SF 2393

1st Engrossment - 94th Legislature (2025 - 2026) Posted on 05/07/2025 05:00pm

A bill for an act
relating to energy; establishing a budget for energy, transmission, petroleum, and
renewable energy purposes; adding and modifying provisions governing geothermal
energy, solar energy, and other energy policy; authorizing natural gas utilities to
sell extraordinary event bonds under certain circumstances; sunsetting the renewable
development account; establishing an account; appropriating money; amending
Minnesota Statutes 2024, sections 116C.7792; 116D.04, subdivision 4a; 116J.55,
subdivision 5; 216B.02, by adding subdivisions; 216B.16, subdivisions 14, 15, by
adding a subdivision; 216B.164, subdivisions 2a, 3, 4a; 216B.1641, by adding a
subdivision; 216B.1645, subdivision 1; 216B.1691, subdivisions 1, 2g; 216B.2402,
subdivision 16; 216B.2421, subdivision 2; 216B.243, subdivision 8; 216B.62,
subdivision 3, by adding a subdivision; 216C.09; 216C.10; 216C.11; 216C.12;
216C.377, subdivision 3; 216C.391, subdivisions 1, 3; 216C.417, subdivision 2,
by adding a subdivision; 216C.47, subdivision 1; 216I.02, by adding a subdivision;
216I.07, subdivisions 2, 3; proposing coding for new law in Minnesota Statutes,
chapter 216B; repealing Minnesota Statutes 2024, sections 116C.779, subdivisions
1, 2; 116C.7791; 216C.41.

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

ARTICLE 1

CLIMATE AND ENERGY FINANCE

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027. If an appropriation in this article is enacted more than once
in the 2025 regular or a 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 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 12,644,000 new text end

new text begin $ new text end

new text begin 12,644,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 11,047,000 new text end	new text begin 11,047,000 new text end
new text begin Petroleum Tank new text end	new text begin 1,597,000 new text end	new text begin 1,597,000 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 Energy Resources new text end

new text begin 11,047,000 new text end

new text begin 11,047,000 new text end

new text begin (a) $150,000 the first year and $150,000 the
second year are to remediate vermiculite
insulation from households that are eligible
for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be performed in
conjunction with federal weatherization
assistance program services.
new text end

new text begin (b) $189,000 each year is for activities
associated with a utility's implementation of
a natural gas innovation plan under Minnesota
Statutes, section 216B.2427.
new text end

new text begin (c) $500,000 each year is for a grant to the
clean energy resource teams under Minnesota
Statutes, section 216C.385, subdivision 2, to
provide additional capacity to perform the
duties specified under Minnesota Statutes,
section 216C.385, subdivision 3. This
appropriation may be used to reimburse the
reasonable costs incurred by the Department
of Commerce to administer the grant.
new text end

new text begin (d) $301,000 each year is to implement energy
benchmarking under Minnesota Statutes,
section 216C.331.
new text end

new text begin (e) $164,000 each year is for activities
associated with a public utility's transportation
electrification plan filing under Minnesota
Statutes, section 216B.1615.
new text end

new text begin (f) $77,000 each year is for activities
associated with appeals of consumer
complaints to the commission under
Minnesota Statutes, section 216B.172.
new text end

new text begin (g) $961,000 each year is for activities
required under Minnesota Statutes, section
216B.1641, for community solar gardens. This
appropriation must be assessed directly to the
public utility subject to Minnesota Statutes,
section 116C.779.
new text end

new text begin (h) $46,000 each year is for work to align
energy transmission and distribution planning
activities with opportunities along trunk
highway rights-of-way.
new text end

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

new text begin The general fund base is $10,782,000 in fiscal
year 2028 and $10,782,000 in fiscal year 2029.
new text end

new text begin Subd. 3. new text end new text begin Petroleum Tank Release Compensation Board new text end

new text begin 1,597,000 new text end

new text begin 1,597,000 new text end

new text begin This appropriation is from the petroleum tank
fund.
new text end

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

new text begin $ new text end

new text begin 13,330,000 new text end

new text begin $ new text end

new text begin 13,417,000 new text end

new text begin The general fund base is $13,183,000 in fiscal
year 2028 and later.
new text end

Sec. 4. new text begin TRANSFERS.
new text end

new text begin $1,199,000 in fiscal year 2026 and $1,199,000 in fiscal year 2027 are transferred from
the general fund to the preweatherization account in the special revenue fund under Minnesota
Statutes, section 216C.264, subdivision 1c. For fiscal years 2028 through 2031, the
commissioner of management and budget must include a transfer of $1,199,000 each year
from the general fund to the preweatherization account in the special revenue fund when
preparing each forecast from the effective date of this section through the February 2027
forecast, under Minnesota Statutes, section 16A.103.
new text end

Sec. 5. new text begin APPROPRIATION EXTENSION.
new text end

new text begin The availability of the appropriation for the Tribal Advocacy Council on Energy in Laws
2023, chapter 60, article 10, section 2, subdivision 2, paragraph (i), is extended to June 30,
2026.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS

Section 1. new text begin RENEWABLE DEVELOPMENT FINANCE. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable
development account in the special revenue fund established in Minnesota Statutes, section
116C.779, subdivision 1, and are available for the fiscal years indicated for each purpose.
The figures "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027. If an appropriation in this article is enacted more than once
in the 2025 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 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 10,500,000 new text end

new text begin $ new text end

new text begin 100,000 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 "Made in Minnesota" Administration new text end

new text begin $100,000 each year is to administer the "Made
in Minnesota" solar energy production
incentive program under Minnesota Statutes,
section 216C.417. Any unobligated amount
remaining on June 30, 2027, cancels to the
renewable development account.
new text end

new text begin Subd. 3. new text end new text begin Microgrid Research and Application new text end

new text begin $1,200,000 the first year is for a grant to the
University of St. Thomas Center for Microgrid
Research, which must be used to:
new text end

new text begin (1) increase the center's capacity to provide
industry partners opportunities to test
near-commercial microgrid products on a
real-world scale and to multiply opportunities
for innovative research;
new text end

new text begin (2) procure advanced equipment and controls
to enable the extension of the university's
microgrid to additional buildings; and
new text end

new text begin (3) expand (i) hands-on educational
opportunities for undergraduate and graduate
electrical engineering students to increase
understanding of microgrid operations, and
(ii) partnerships with community colleges.
This is a onetime appropriation and is
available until June 30, 2028.
new text end

new text begin Subd. 4. new text end new text begin Green Hydrogen Project new text end

new text begin $2,000,000 the first year is for a grant to the
city of St. Cloud for the Green Hydrogen
Project to incorporate a battery and renewable
energy system. This is a onetime appropriation
and is available until June 30, 2028.
new text end

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

new text begin $4,000,000 the first year is for a grant to
Ramsey/Washington Recycling and Energy,
in partnership with Dem-Con HZI Bioenergy,
LLC, to construct an anaerobic digester energy
system in Louisville Township. For the
purposes of this subdivision, "anaerobic
digester energy system" means a facility that
uses diverted food and organic waste to create
renewable natural gas and biochar. This is a
onetime appropriation and is available until
June 30, 2028.
new text end

new text begin Subd. 6. new text end new text begin Como Zoo Geothermal Energy System new text end

new text begin $2,200,000 the first year is for a grant to Como
Zoo in the city of St. Paul to construct a
geothermal energy system that provides space
heating and cooling to the large cats building.
For the purposes of this subdivision,
"geothermal energy system" means a system
composed of a heat pump that moves a
heat-transferring fluid through piping
embedded in the earth and absorbs the earth's
constant temperature, a heat exchanger, and
ductwork to distribute heated and cooled air
to a building. This is a onetime appropriation
and is available until June 30, 2028.
new text end

new text begin Subd. 7. new text end new text begin Minnesota Energy Alley new text end

new text begin (a) $1,000,000 the first year for a grant to
Clean Energy Economy Minnesota for the
Minnesota Energy Alley initiative. The
initiative is designed to promote energy
innovation through supporting energy
entrepreneurs and emerging businesses to
commercialize energy solutions by matching
promising innovators with established and
trustworthy Minnesota-based public and
private partners to demonstrate emerging
technologies in real-world applications. The
grant may be used to provide seed funding for
businesses, develop a training and
development program, support recruitment of
entrepreneurs to Minnesota, and secure
funding from federal programs and corporate
partners to establish a self-sustaining,
long-term revenue model. This is a onetime
appropriation and is available until June 30,
2027.
new text end

new text begin (b) By January 15, 2027, the commissioner of
commerce must submit a written report to the
chairs and ranking minority members of the
house of representatives and senate
committees with jurisdiction over energy
finance and policy on the activities and
accomplishments of the Minnesota Energy
Alley initiative during the previous fiscal year
and the disposition of this appropriation,
including a separate statement of the amount
of administrative costs.
new text end

new text begin Subd. 8. new text end new text begin Grant Administration new text end

new text begin Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to $100,000 of the amount in this
section for the administrative costs of the
grants in this section.
new text end

Sec. 3. new text begin DEPARTMENT OF ADMINISTRATION new text end

new text begin $ new text end

new text begin 92,000 new text end

new text begin $ new text end

new text begin 92,000 new text end

new text begin $92,000 each year is for software and
administrative costs associated with the state
building energy conservation improvement
revolving loan program under Minnesota
Statutes, section 16B.87.
new text end

Sec. 4. new text begin UNIVERSITY OF MINNESOTA 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 $5,000,000 the first year is for research,
development, outreach, and demonstration of
energy systems that use hydrogen and
ammonia production from renewable energy
resources and other sources of clean energy
as a means of storing and generating
electricity. This is a onetime appropriation and
is available until June 30, 2028.
new text end

Sec. 5. new text begin POLLUTION CONTROL AGENCY new text end

new text begin $ new text end

new text begin 3,000,000 new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $3,000,000 the first year is for a grant to the
owner of a biomass energy generation plant
in Shakopee that uses waste heat from the
generation of electricity in the malting process
to purchase equipment to facilitate the disposal
of wood that is infested by emerald ash borer.
This is a onetime appropriation and is
available until June 30, 2028. Notwithstanding
Minnesota Statutes, section 16B.98,
subdivision 14, the commissioner of the
Pollution Control Agency may use up to
$25,000 of the amount in this section for the
administrative costs of this grant.
new text end

Sec. 6. new text begin TRANSFER.
new text end

new text begin $2,000,000 in fiscal year 2026 is transferred from the renewable development account
in the special revenue fund to the geothermal planning grant account under Minnesota
Statutes, section 216C.47, subdivision 3.
new text end

Sec. 7. new text begin APPROPRIATION EXTENSION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 16A.28, and Laws 2023, chapter 60, article
11, section 2, subdivision 3, paragraph (c), the availability of the fiscal year 2024 and fiscal
year 2025 appropriations for grants to the University of St. Thomas Center for Microgrid
Research in Laws 2023, chapter 60, article 11, section 2, subdivision 3, are extended to June
30, 2028.
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

ENERGY POLICY

Section 1.

Minnesota Statutes 2024, section 116D.04, subdivision 4a, is amended to read:

Subd. 4a.

Alternative review.

new text begin (a) new text end The board shall by rule identify alternative forms of
environmental review which will address the same issues and utilize similar procedures as
an environmental impact statement in a more timely or more efficient manner to be utilized
in lieu of an environmental impact statement.

new text begin (b) Upon adoption by the responsible governmental unit of the environmental document
and plan for mitigation under an alternative urban areawide review process, and
notwithstanding any additional environmental review that may otherwise be required for a
phased action or connected action, or project component that was not evaluated in the
alternative urban areawide review process, environmental review is complete and the
prerequisites under subdivision 2b are satisfied with regards to the anticipated residential,
commercial, warehousing, and light industrial development projects that are consistent with
development assumptions within the established boundaries of the geographic area to which
the alternative urban areawide review applies.
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 2024, section 216B.02, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Emergency backup generator. new text end

new text begin "Emergency backup generator" means a
stationary compressed ignition or spark ignition engine described under Code of Federal
Regulations, title 40, parts 60.4211(f) and 60.4243(d), respectively, that is installed with
equipment that prevents the flow of electricity to the electric grid.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2024, section 216B.02, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Data center. new text end

new text begin "Data center" means a freestanding structure that primarily
contains electronic equipment used to process, store, and transmit digital information.
new text end

Sec. 4.

Minnesota Statutes 2024, section 216B.16, is amended by adding a subdivision to
read:

new text begin Subd. 1b. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, "low-income" means a household:
new text end

new text begin (1) who is approved as qualified for energy assistance from the low-income home energy
assistance program;
new text end

new text begin (2) whose household income is 50 percent or less of the state median income; or
new text end

new text begin (3) who meets another qualification established by the commission.
new text end

Sec. 5.

Minnesota Statutes 2024, section 216B.16, subdivision 14, is amended to read:

Subd. 14.

Low-income electric rate discount.

A public utility shall fund an affordability
program for low-income customers at a base annual funding level of $8,000,000. The annual
funding level shall increase in the calendar years subsequent to each commission approval
of a rate increase for the public utility's residential customers by the same percentage as the
approved residential rate increase. Costs for the program shall be included in the utility's
base rate. deleted text begin For the purposes of this subdivision, "low-income" describes a customer who is
receiving assistance from the federal low-income home energy assistance program. deleted text end The
affordability program must be designed to target participating customers with the lowest
incomes and highest energy costs in order to lower the percentage of income they devote
to energy bills, increase their payments, lower utility service disconnections, and decrease
costs associated with collection activities on their accounts. For low-income customers who
are 62 years of age or older or disabled, the program must include a $15 discount in each
billing period. For the purposes of this subdivision, "public utility" includes only those
public utilities with more than 200,000 residential electric service customers. The commission
may issue orders necessary to implement, administer, and recover the costs of the program
on a timely basis.

Sec. 6.

Minnesota Statutes 2024, section 216B.16, subdivision 15, is amended to read:

Subd. 15.

Low-income affordability programs.

(a) The commission must consider
ability to pay as a factor in setting utility rates and may establish affordability programs for
low-income residential ratepayers in order to ensure affordable, reliable, and continuous
service to low-income utility customers. A public utility serving low-income residential
ratepayers who use natural gas for heating must file an affordability program with the
commission. deleted text begin For purposes of this subdivision, "low-income residential ratepayers" means
ratepayers who receive energy assistance from the low-income home energy assistance
program (LIHEAP).
deleted text end

(b) Any affordability program the commission orders a utility to implement must:

(1) lower the percentage of income that participating low-income households devote to
energy bills;

(2) increase participating customer payments over time by increasing the frequency of
payments;

(3) decrease or eliminate participating customer arrears;

(4) lower the utility costs associated with customer account collection activities; and

(5) coordinate the program with other available low-income bill payment assistance and
conservation resources.

(c) In ordering affordability programs, the commission may require public utilities to
file program evaluations that measure the effect of the affordability program on:

(1) the percentage of income that participating households devote to energy bills;

(2) service disconnections; and

(3) frequency of customer payments, utility collection costs, arrearages, and bad debt.

(d) The commission must issue orders necessary to implement, administer, and evaluate
affordability programs, and to allow a utility to recover program costs, including
administrative costs, on a timely basis. The commission may not allow a utility to recover
administrative costs, excluding start-up costs, in excess of five percent of total program
costs, or program evaluation costs in excess of two percent of total program costs. The
commission must permit deferred accounting, with carrying costs, for recovery of program
costs incurred during the period between general rate cases.

(e) Public utilities may use information collected or created for the purpose of
administering energy assistance to administer affordability programs.

Sec. 7.

Minnesota Statutes 2024, section 216B.164, subdivision 2a, is amended to read:

Subd. 2a.

Definitions.

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

(b) "Aggregated meter" means a meter located on the premises of a customer's owned
or leased property that is contiguous with property containing the customer's designated
meter.

(c) "Capacity" means the number of megawatts alternating current deleted text begin (AC) at the point of
interconnection between a distributed generation facility and a utility's electric system deleted text end new text begin that
a qualifying facility is capable of producing new text end .

(d) "Cogeneration" means a combined process whereby electrical and useful thermal
energy are produced simultaneously.

(e) "Contiguous property" means property owned or leased by the customer sharing a
common border, without regard to interruptions in contiguity caused by easements, public
thoroughfares, transportation rights-of-way, or utility rights-of-way.

(f) "Customer" means the person who is named on the utility electric bill for the premises.

(g) "Designated meter" means a meter that is physically attached to the customer's facility
that the customer-generator designates as the first meter to which net metered credits are
to be applied as the primary meter for billing purposes when the customer is serviced by
more than one meter.

(h) "Distributed generation" means a facility that:

(1) has a capacity of ten megawatts or less;

(2) is interconnected with a utility's distribution system, over which the commission has
jurisdiction; and

(3) generates electricity from natural gas, renewable fuel, or a similarly clean fuel, and
may include waste heat, cogeneration, or fuel cell technology.

(i) "High-efficiency distributed generation" means a distributed energy facility that has
a minimum efficiency of 40 percent, as calculated under section 272.0211, subdivision 1.

(j) "Net metered facility" means an electric generation facility constructed for the purpose
of offsetting energy use through the use of renewable energy or high-efficiency distributed
generation sources.

(k) "Renewable energy" has the meaning given in section 216B.2411, subdivision 2.

(l) "Standby charge" means a charge imposed by an electric utility upon a distributed
generation facility for the recovery of costs for the provision of standby services, as provided
for in a utility's tariffs approved by the commission, necessary to make electricity service
available to the distributed generation facility.

Sec. 8.

Minnesota Statutes 2024, section 216B.164, subdivision 3, is amended to read:

Subd. 3.

Purchases; small facilities.

(a) This paragraph applies to cooperative electric
associations and municipal utilities. For a qualifying facility having less than 40-kilowatt
capacity, the customer shall be billed for the net energy supplied by the utility according to
the applicable rate schedule for sales to that class of customer. A cooperative electric
association or municipal utility may charge an additional fee to recover the fixed costs not
already paid for by the customer through the customer's existing billing arrangement. Any
additional charge by the utility must be reasonable and appropriate for that class of customer
based on the most recent cost of service study. The cost of service study must be made
available for review by a customer of the utility upon request. In the case of net input into
the utility system by a qualifying facility having less than 40-kilowatt capacity, compensation
to the customer shall be at a per kilowatt-hour rate determined under paragraph (c) deleted text begin , (d), deleted text end or
(f).

(b) This paragraph applies to public utilities. For a qualifying facility having less than
1,000-kilowatt capacity, the customer shall be billed for the net energy supplied by the
utility according to the applicable rate schedule for sales to that class of customer. In the
case of net input into the utility system by a qualifying facility having: (1) more than
40-kilowatt but less than 1,000-kilowatt capacity, compensation to the customer shall be at
a per kilowatt-hour rate determined under paragraph (c); or (2) less than 40-kilowatt capacity,
compensation to the customer shall be at a per-kilowatt rate determined under paragraph
(c) or (d).

(c) In setting rates, the commission shall consider the fixed distribution costs to the
utility not otherwise accounted for in the basic monthly charge and shall ensure that the
costs charged to the qualifying facility are not discriminatory in relation to the costs charged
to other customers of the utility. The commission shall set the rates for net input into the
utility system based on avoided costs as defined in the Code of Federal Regulations, title
18, section 292.101, paragraph (b)(6), the factors listed in Code of Federal Regulations,
title 18, section 292.304, and all other relevant factors.

(d) Notwithstanding any provision in this chapter to the contrary, a qualifying facility
deleted text begin having deleted text end new text begin that is interconnected to a public utility and has new text end less than 40-kilowatt capacity may
elect that the compensation for net input by the qualifying facility into the utility system
deleted text begin shall be deleted text end new text begin is new text end at the average retail utility energy rate. "Average retail utility energy rate" is
defined as the average of the retail energy rates, exclusive of special rates based on income,
age, or energy conservation, according to the applicable rate schedule of the utility for sales
to that class of customer.

(e) If the qualifying facility or net metered facility is interconnected with a nongenerating
utility which has a sole source contract with a municipal power agency or a generation and
transmission utility, the nongenerating utility may elect to treat its purchase of any net input
under this subdivision as being made on behalf of its supplier and shall be reimbursed by
its supplier for any additional costs incurred in making the purchase. Qualifying facilities
or net metered facilities having less than 1,000-kilowatt capacity if interconnected to a
public utility, or less than 40-kilowatt capacity if interconnected to a cooperative electric
association or municipal utility may, at the customer's option, elect to be governed by the
provisions of subdivision 4.

(f) A customer with a qualifying facility or net metered facility having a capacity below
40 kilowatts that is interconnected to a cooperative electric association or a municipal utility
may elect to be compensated for the customer's net input into the utility system in the form
of a kilowatt-hour credit on the customer's energy bill carried forward and applied to
subsequent energy bills. Any kilowatt-hour credits carried forward by the customer cancel
at the end of the calendar year deleted text begin with no additional compensation deleted text end . new text begin A customer must be
compensated for a canceled credit at the per kilowatt-hour rate determined under paragraph
(c).
new text end

new text begin (g) This section applies only to qualifying facilities that have submitted interconnection
applications after December 31, 2026. Qualifying facilities with interconnection applications
submitted on or before that date are subject to Minnesota Statutes 2024, section 216B.164.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2024, section 216B.164, subdivision 4a, is amended to read:

Subd. 4a.

Aggregation of meters.

(a) For the purpose of measuring electricity under
subdivisions 3 and 3a, a public utility must aggregate for billing purposes a customer's
designated meter with one or more aggregated meters if a customer requests that it do so.
To qualify for aggregation under this subdivision, a meter must be owned by the customer
requesting the aggregation, must be located on contiguous property owned by the customer
requesting the aggregation, and the total of all aggregated meters must be subject to the size
limitation in this section. new text begin A cooperative electric association or a municipal utility must
aggregate for billing purposes one or more aggregated meters if a customer requests that it
do so.
new text end

(b) A deleted text begin public deleted text end utility must comply with a request by a customer-generator to aggregate
additional meters within 90 days. The specific meters must be identified at the time of the
request. In the event that more than one meter is identified, the customer must designate
the rank order for the aggregated meters to which the net metered credits are to be applied.
At least 60 days prior to the beginning of the next annual billing period, a customer may
amend the rank order of the aggregated meters, subject to this subdivision.

(c) The aggregation of meters applies only to charges that use kilowatt-hours as the
billing determinant. All other charges applicable to each meter account shall be billed to
the customer.

(d) A deleted text begin public deleted text end utility will first apply the kilowatt-hour credit to the charges for the
designated meter and then to the charges for the aggregated meters in the rank order specified
by the customer. If the deleted text begin net metered deleted text end facility supplies more electricity to the public utility
than the energy usage recorded by the customer-generator's designated and aggregated
meters during a monthly billing period, the public utility shall apply credits to the customer's
next monthly bill for the excess kilowatt-hours.

(e) With the commission's prior approval, a deleted text begin public deleted text end utility may charge the
customer-generator requesting to aggregate meters a reasonable fee to cover the
administrative costs incurred in implementing the costs of this subdivision, pursuant to a
tariff approved by the commission for a deleted text begin public deleted text end utility.

Sec. 10.

Minnesota Statutes 2024, section 216B.1641, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Sunset. new text end

new text begin This section expires July 31, 2028.
new text end

Sec. 11.

Minnesota Statutes 2024, section 216B.1691, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Carbon-free" means a technology that generates electricity without emitting carbon
dioxide. new text begin Carbon-free includes a technology that, as of the effective date of this act and
thereafter, is used by a utility to generate electricity for retail sale in Minnesota by combusting
wood chips derived from:
new text end

new text begin (1) limbs, branches, and other by-products of timber harvesting operations conducted
to obtain wood for nonenergy purposes; or
new text end

new text begin (2) discarded wood products.
new text end

(c) Unless otherwise specified in law, "eligible energy technology" means an energy
technology that generates electricity from the following renewable energy sources:

(1) solar;

(2) wind;

(3) hydroelectric deleted text begin with a capacity of: (i) less than 100 megawatts; or (ii) 100 megawatts
or more, provided that the facility is in operation as of February 8, 2023 deleted text end ;

(4) hydrogen generated from the resources listed in this paragraph; or

(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester
system; the predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge to produce electricity; and, except as provided in subdivision 1a, an
energy recovery facility used to capture the heat value of mixed municipal solid waste or
refuse-derived fuel from mixed municipal solid waste as a primary fuel.

(d) "Electric utility" means: (1) a public utility providing electric service; (2) a generation
and transmission cooperative electric association; (3) a municipal power agency; (4) a power
district; or (5) a cooperative electric association or municipal utility providing electric service
that is not a member of an entity in clauses (2) to (4).

(e) "Environmental justice area" means an area in Minnesota that, based on the most
recent data published by the United States Census Bureau, meets one or more of the following
criteria:

(1) 40 percent or more of the area's total population is nonwhite;

(2) 35 percent or more of households in the area have an income that is at or below 200
percent of the federal poverty level;

(3) 40 percent or more of the area's residents over the age of five have limited English
proficiency; or

(4) the area is located within Indian country, as defined in United State Code, title 18,
section 1151.

(f) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year by
an electric utility to retail customers of the electric utility or to a distribution utility for
distribution to the retail customers of the distribution utility.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2024, section 216B.1691, subdivision 2g, is amended to read:

Subd. 2g.

Carbon-free standard.

new text begin (a) new text end In addition to the requirements under subdivisions
2a and 2f, each electric utility must generate or procure sufficient electricity generated from
a carbon-free energy technology to provide the electric utility's retail customers in Minnesota,
or the retail customers of a distribution utility to which the electric utility provides wholesale
electric service, so that the electric utility generates or procures an amount of electricity
from carbon-free energy technologies that is equivalent to at least the following standard
percentages of the electric utility's total retail electric sales to retail customers in Minnesota
by the end of the year indicated:

(1)	2030	80 percent for public utilities; 60 percent for other electric utilities
(2)	2035	90 percent for all electric utilities
(3)	2040	100 percent for all electric utilities.

new text begin (b) For purposes of this section, electricity generated from a carbon-free technology
includes electricity generated by a peaking facility that uses only biodiesel fuel, as defined
in section 239.77, subdivision 1, paragraph (b), for the first 400 hours each year in which
the peaking facility uses only biodiesel fuel.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2024, section 216B.2402, subdivision 16, is amended to read:

Subd. 16.

Low-income household.

"Low-income household" means a household whose
household income:

(1) is 80 percent or less of the area median household income for the geographic area
in which the low-income household is located, as calculated by deleted text begin the United States Department
of Housing and Urban Development deleted text end new text begin a body of the state or federal government new text end ; or

(2) meets the income eligibility standards, as determined by the commissioner, required
for a household to receive financial assistance from a federal, state, municipal, or utility
program administered or approved by the department.

Sec. 14.

Minnesota Statutes 2024, section 216B.2421, subdivision 2, is amended to read:

Subd. 2.

Large energy facility.

"Large energy facility" means:

(1) any electric power generating plant or combination of plants at a single site with a
combined capacity of 50,000 kilowatts or more and transmission lines directly associated
with the plant that are necessary to interconnect the plant to the transmission system;

(2) any high-voltage transmission line with a capacity of 300 kilovolts or more and
greater than one mile in length in Minnesota;

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

(4) any pipeline greater than six inches in diameter and having more than 50 miles of
its length in Minnesota used for the transportation of coal, crude petroleum or petroleum
fuels or oil, or their derivatives;

(5) any pipeline for transporting natural or synthetic gas at pressures in excess of 200
pounds per square inch with more than 50 miles of its length in Minnesota;

(6) any facility designed for or capable of storing on a single site more than deleted text begin 100,000 deleted text end new text begin
1,000,000 new text end gallons of liquefied natural gas or synthetic gas;

(7) any underground gas storage facility requiring a permit pursuant to section 103I.681;

(8) any nuclear fuel processing or nuclear waste storage or disposal facility; and

(9) any facility intended to convert any material into any other combustible fuel and
having the capacity to process in excess of 75 tons of the material per hour.

Sec. 15.

Minnesota Statutes 2024, section 216B.243, subdivision 8, is amended to read:

Subd. 8.

Exemptions.

(a) This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined after being advised by the attorney general
that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to serve
the demand of a single customer at a single location, unless the applicant opts to request
that the commission determine need under this section or section 216B.2425;

(3) the upgrade to a higher voltage of an existing transmission line that serves the demand
of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
request that the commission determine need under this section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less required to connect a new or
upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using natural
gas;

(6) the modification of an existing electric generating plant to increase efficiency, as
long as the capacity of the plant is not increased more than ten percent or more than 100
megawatts, whichever is greater;

(7) a large wind energy conversion system, as defined in section 216I.02, subdivision
12, or a solar energy generating system, as defined in section 216I.02, subdivision 18, for
which a site permit application is submitted by an independent power producer under chapter
216I;

(8) a large wind energy conversion system, as defined in section 216I.02, subdivision
12, or a solar energy generating system, as defined in section 216I.02, subdivision 18,
engaging in a repowering project that:

(i) will not result in the system exceeding the nameplate capacity under its most recent
interconnection agreement; or

(ii) will result in the system exceeding the nameplate capacity under its most recent
interconnection agreement, provided that the Midcontinent Independent System Operator
has provided a signed generator interconnection agreement that reflects the expected net
power increase;

(9) energy storage systems, as defined in section 216I.02, subdivision 6;

(10) transmission lines that directly interconnect large wind energy conversion systems,
solar energy generating systems, or energy storage systems to the transmission system; deleted text begin or
deleted text end

(11) relocation of an existing high voltage transmission line to new right-of-way, provided
that any new structures that are installed are not designed for and capable of operation at
higher voltage deleted text begin . deleted text end new text begin ; or
new text end

new text begin (12) a combination of emergency backup generators at a single site with a combined
capacity of 50,000 kilowatts or more that provides power to a data center and is eligible for
permitting as a single stationary source under Minnesota Rules, part 7007.0200, 7007.0250,
7007.1100, or 7007.1110 to 7007.1141.
new text end

(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating system
that is a large energy facility to increase its efficiency without increasing its nameplate
capacity;

(2) replacing turbines in a large wind energy conversion system without increasing the
nameplate capacity of the system; or

(3) increasing the nameplate capacity of a large wind energy conversion system.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies to applications under Minnesota Statutes, section 216B.243,
that are pending before or submitted to the Public Utilities Commission on or after that date.
new text end

Sec. 16.

Minnesota Statutes 2024, section 216C.09, is amended to read:

216C.09 COMMISSIONER DUTIES.

(a) The commissioner shall:

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

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

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

(4) carry out energy new text begin conservation and efficiency new text end measures as specified by the legislature
and recommend to the governor and the legislature additional energy policies and new text begin energy
new text end conservation deleted text begin measures deleted text end new text begin and efficiency programming new text end as required to meet the objectives of
this chapter;

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

(6) evaluate policies governing the establishment of rates and prices for energy as related
to energy conservation new text begin and energy efficiency new text end , and other goals and policies of this chapter,
and make recommendations for changes in energy pricing policies and rate schedules;

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

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

(9) inform and educate the public about the sources and uses of energy and the ways in
which deleted text begin persons deleted text end new text begin Minnesotans new text end can new text begin transition to a clean energy future, new text end conserve energy new text begin , and
save money new text end ;

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

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

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

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

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

Sec. 17.

Minnesota Statutes 2024, section 216C.10, is amended to read:

216C.10 COMMISSIONER POWERS.

(a) The commissioner may:

(1) adopt rules under chapter 14 as necessary to carry out the purposes of this chapter;

(2) make all contracts under this chapter and do all things necessary to cooperate with
the United States government, and to qualify for, accept, and disburse any grant intended
to administer this chapter;

(3) provide on-site technical assistance to units of local government in order to enhance
local capabilities deleted text begin for dealing with energy problems deleted text end new text begin to provide new text end new text begin energy-related financial
resources, planning, outreach, and engagement new text end ;

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

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

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

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

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

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

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

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

(b) Notwithstanding any other law, the commissioner is designated the state agent to
apply for, receive, and accept federal or other funds made available to the state for the
purposes of this chapter.

Sec. 18.

Minnesota Statutes 2024, section 216C.11, is amended to read:

216C.11 ENERGY CONSERVATION INFORMATION CENTER.

new text begin (a) new text end The commissioner deleted text begin shall deleted text end new text begin must new text end establish an Energy Information Center in the
deleted text begin department's offices in St. Paul deleted text end new text begin department new text end . The information center deleted text begin shall deleted text end new text begin must new text end maintain a
deleted text begin toll-free telephone information service and disseminate printed materials on energy
conservation topics, including but not limited to, availability of loans and other public and
private financing methods for energy conservation physical improvements, the techniques
and materials used to conserve energy in buildings, including retrofitting or upgrading
insulation and installing weatherstripping, the projected prices and availability of different
sources of energy, and alternative sources of energy deleted text end new text begin physical, new text end new text begin virtual, and mobile information
service that collects, analyzes, and disseminates energy resources, data, technical assistance
and expertise, financial assistance, connections, and information on a variety of energy
topics relevant to Minnesota consumers, businesses, Tribal and local governments, and
community organizations. The information center must be accessible and responsive to
public inquiries and must conduct proactive outreach new text end .

deleted text begin The Energy Information Center shall serve as the official Minnesota Alcohol Fuels
Information Center and shall disseminate information, printed, by the toll-free telephone
information service, or otherwise on the applicability and technology of alcohol fuels.
deleted text end

deleted text begin The information center shall include information on the potential hazards of energy
conservation techniques and improvements in the printed materials disseminated. The
commissioner shall not be liable for damages arising from the installation or operation of
equipment or materials recommended by the information center.
deleted text end

new text begin (b) new text end The information center deleted text begin shall deleted text end new text begin must new text end use the information collected under section
216C.02, subdivision 1, to maintain a central source of information on new text begin energy new text end conservation new text begin ,
energy efficiency, new text end and other energy-related programs, including deleted text begin both deleted text end programs required by
law or rule and programs developed and carried on voluntarily.

Sec. 19.

Minnesota Statutes 2024, section 216C.12, is amended to read:

216C.12 ENERGY deleted text begin CONSERVATION PUBLICITY deleted text end new text begin LITERACY new text end .

new text begin (a) new text end The commissioner new text begin , new text end in consultation with other affected agencies or departments deleted text begin shall deleted text end new text begin ,
must new text end develop informational materials deleted text begin , pamphlets and radio and television messages deleted text end new text begin and
messaging new text end on energy conservation and deleted text begin housing deleted text end new text begin energy efficiency new text end programs available in
Minnesota deleted text begin , renewable energy resources, and energy supply and demand. The printed materials
shall include information on available tax credits for residential energy conservation
measures, residential retrofitting loan and grant programs, and data on the economics of
energy conservation and renewable resource measures. Copies of printed materials shall be
distributed to members of the appropriate standing committees of the legislature deleted text end . new text begin The
commissioner must use modern and current outreach strategies and media to distribute the
informational materials and messaging to the widest possible audience.
new text end

new text begin (b) The informational materials must promote energy literacy for individuals and
communities to help individuals and communities make informed decisions on topics ranging
from smart energy use at home and consumer choices to national and international energy
policy. The informational materials must include but are not limited to information on energy
sources, energy generation, energy use, energy conservation strategies, the energy workforce
sector, and state and federal energy-related programs administered by the department.
new text end

Sec. 20.

Minnesota Statutes 2024, section 216C.391, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Competitive funds" means federal funds awarded to selected applicants based on
the grantor's evaluation of the strength of an application measured against all other
applications.

(c) "Disadvantaged community" has the meaning given by the federal agency disbursing
federal funds.

(d) "Eligible entity" means an entity located in Minnesota that is eligible to receive
federal funds, tax credits, loans, or an entity that has at least one Minnesota-based partner,
as determined by the grantor of the federal funds, tax credits, or loans.

(e) "Federal funds" means federal formula or competitive funds available for award to
applicants for energy projects under the Infrastructure Investment and Jobs Act, Public Law
117-58, or the Inflation Reduction Act of 2022, Public Law 117-169.

(f) "Formula funds" means federal funds awarded to all eligible applicants on a
noncompetitive basis.

(g) "Loans" means federal loans from loan funds authorized or funded in the Inflation
Reduction Act of 2022, Public Law 117-169.

(h) "Match" means the amount of deleted text begin state deleted text end new text begin nonfederal new text end money a successful grantee in
Minnesota is required to contribute to a project as a condition of receiving federal funds.

(i) "Political subdivision" has the meaning given in section 331A.01, subdivision 3.

(j) "Project" means the activities proposed to be undertaken by an eligible entity awarded
federal funds and are located in Minnesota or will directly benefit Minnesotans.

(k) "Tax credits" means federal tax credits authorized in the Inflation Reduction Act of
2022, Public Law 117-169.

(l) "Tribal government" has the meaning given in section 116J.64, subdivision 4.

Sec. 21.

Minnesota Statutes 2024, section 216C.391, subdivision 3, is amended to read:

Subd. 3.

Grant awards; eligible entities; priorities.

(a) Grants may be awarded under
this section to eligible entities in accordance with the following order of priorities:

(1) federal formula funds directed to the state that require a match;

(2) federal funds directed to a political subdivision or a Tribal government that require
a match;

(3) federal funds directed to an institution of higher education, a consumer-owned utility,
a business, or a nonprofit organization that require a match;

(4) federal funds directed to investor-owned utilities that require a match;

(5) federal funds directed to an eligible entity not included in clauses (1) to (4) that
require a match; and

(6) all other grant opportunities directed to eligible entities that do not require a match
but for which the commissioner determines that a grant made under this section is likely to
enhance the likelihood of an applicant receiving federal funds, or to increase the potential
amount of federal funds received.

(b) By November 15, 2023, the commissioner must develop and publicly post, and report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over energy finance, the federal energy grant funds that are eligible for state matching funds
under this section.

new text begin (c) Notwithstanding section 16B.98, subdivision 5, paragraph (b), a grant made under
this section may exceed five years.
new text end

Sec. 22.

Minnesota Statutes 2024, section 216C.47, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Eligible applicant" means a county, city, town, new text begin Tribal government, new text end or the
Metropolitan Council.

(c) "Geothermal energy system" means a system that heats and cools one or more
buildings by using the constant temperature of the earth as both a heat source and heat sink,
and a heat exchanger consisting of an underground closed loop system of piping containing
a liquid to absorb and relinquish heat within the earth. Geothermal energy system includes:

(1) a bored geothermal heat exchanger, as defined in section 103I.005;

(2) a groundwater thermal exchange device, as defined in section 103I.005; and

(3) a submerged closed loop heat exchanger, as defined in section 103I.005.

new text begin (d) "Tribal government" means the elected government of a federally recognized Indian
Tribe located in Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2024, section 216I.02, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Emergency backup generator. new text end

new text begin "Emergency backup generator" has the
meaning given in section 216B.02, subdivision 11.
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. 24.

Minnesota Statutes 2024, section 216I.07, subdivision 2, is amended to read:

Subd. 2.

Applicable projects.

The requirements and procedures under this section apply
to projects for which the applicant's proposal is:

(1) large electric power generating plants with a capacity of less than 80 megawatts;

new text begin (2) a combination of emergency backup generators designed to serve one person and
located on property owned or controlled by the person;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end large electric power generating plants that are fueled by natural gas;

deleted text begin (3) deleted text end new text begin (4) new text end high-voltage transmission lines with a capacity between 100 and 300 kilovolts;

deleted text begin (4) deleted text end new text begin (5) new text end high-voltage transmission lines with a capacity in excess of 300 kilovolts and
less than 30 miles in length in Minnesota;

deleted text begin (5) deleted text end new text begin (6) new text end high-voltage transmission lines with a capacity in excess of 300 kilovolts, if at
least 80 percent of the distance of the line in Minnesota, as proposed by the applicant, is
located along existing high-voltage transmission line right-of-way;

deleted text begin (6) deleted text end new text begin (7) new text end solar energy systems;

deleted text begin (7) deleted text end new text begin (8) new text end energy storage systems; and

deleted text begin (8) deleted text end new text begin (9) new text end large wind energy conversion systems.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective July 1, 2025, and
applies to applications under Minnesota Statutes, section 216I.07, that are pending before
or submitted to the Public Utilities Commission on or after that date.
new text end

Sec. 25.

Minnesota Statutes 2024, section 216I.07, subdivision 3, is amended to read:

Subd. 3.

Environmental review.

(a) For the projects identified in subdivision 2 and
following the procedures under this section, the applicant must prepare and submit an
environmental assessment with the application. A draft of the environmental assessment
must also be provided to commission staff as part of the preapplication review under section
216I.05, subdivision 6. The environmental assessment must (1) contain information regarding
the proposed project's human and environmental impacts, and (2) address mitigating measures
for identified impacts. new text begin The environmental assessment for projects identified in subdivision
2, clause (2), must also include a discussion of reasonable alternatives to the proposed
project considering: (i) the appropriateness of the size and type of the proposed generation
method compared to reasonable alternatives; (ii) the cost to the proposer of energy to be
supplied by the project compared to the cost of energy that would be supplied by reasonable
alternatives; (iii) the effects of the proposed project on the natural and socioeconomic
environments compared to the effects of reasonable alternatives; and (iv) the expected
reliability of the proposed facility compared to the expected reliability of reasonable
alternatives. new text end The environmental assessment is the only state environmental review document
that must be prepared for the proposed project.

(b) If after the public meeting the commission identifies other sites or routes or potential
impacts for review, the commission must prepare an addendum to the environmental
assessment that evaluates (1) the human and environmental impacts of the alternative site
or route, and (2) any additional mitigating measures related to the identified impacts
consistent with the scoping decision made pursuant to section 216I.06, subdivision 10,
clause (2). The public may provide comments on the environmental assessment and any
addendum to the environmental assessment at the public hearing and comment period under
subdivision 4. When making the commission's final decision, the commission must consider
the environmental assessment, the environmental assessment addendum, if any, and the
entirety of the record related to human and environmental impacts.

ARTICLE 4

SECURITIZATION

Section 1.

new text begin [216B.491] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 216B.491 to 216B.499, the terms
defined in this section have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Ancillary agreement. new text end

new text begin "Ancillary agreement" means a bond, insurance policy,
letter of credit, reserve account, surety bond, interest rate lock or swap arrangement, liquidity
or credit support arrangement, or other financial arrangement entered into in connection
with extraordinary event bonds that is designed to promote the credit quality and
marketability of extraordinary event bonds or to mitigate the risk of an increase in interest
rates.
new text end

new text begin Subd. 3. new text end

new text begin Assignee. new text end

new text begin "Assignee" means a person to which an interest in extraordinary
event property is sold, assigned, transferred, or conveyed, other than as security, and any
successor to or subsequent assignee of the person.
new text end

new text begin Subd. 4. new text end

new text begin Bondholder. new text end

new text begin "Bondholder" means a holder or owner of extraordinary event
bonds.
new text end

new text begin Subd. 5. new text end

new text begin Customer. new text end

new text begin "Customer" means a person who purchases natural gas or natural
gas transportation services from a utility in Minnesota. Customer does not include a person
who:
new text end

new text begin (1) purchases natural gas transportation services from a utility in Minnesota that serves
fewer than 350,000 natural gas customers in Minnesota; and
new text end

new text begin (2) does not purchase natural gas from a utility in Minnesota.
new text end

new text begin Subd. 6. new text end

new text begin Extraordinary event. new text end

new text begin (a) "Extraordinary event" means an event arising from
unforeseen circumstances of sufficient magnitude, as determined by the commission:
new text end

new text begin (1) to impose significant costs on customers; and
new text end

new text begin (2) for which the issuance of extraordinary event bonds in response to the event meets
the conditions of section 216B.492, subdivision 2.
new text end

new text begin (b) Extraordinary event includes but is not limited to a storm event or other natural
disaster, an act of God, war, terrorism, sabotage, vandalism, a cybersecurity attack, or a
temporary significant increase in the wholesale price of natural gas.
new text end

new text begin Subd. 7. new text end

new text begin Extraordinary event activity. new text end

new text begin "Extraordinary event activity" means an activity
undertaken by or on behalf of a utility to restore or maintain the utility's ability to provide
natural gas service following one or more extraordinary events, including but not limited
to activities related to mobilizing, staging, constructing, reconstructing, replacing, or repairing
natural gas transmission, distribution, storage, or general facilities.
new text end

new text begin Subd. 8. new text end

new text begin Extraordinary event bonds. new text end

new text begin "Extraordinary event bonds" means debt securities,
including but not limited to senior secured bonds, debentures, notes, certificates of
participation, certificates of beneficial interest, certificates of ownership, or other evidences
of indebtedness or ownership, that: (1) have a scheduled maturity of no longer than 30 years
and a final legal maturity date that is not later than 32 years from the issue date; (2) are rated
AA, Aa2, or higher by a major independent credit rating agency at the time of issuance;
and (3) are issued by a utility or an assignee under a financing order.
new text end

new text begin Subd. 9. new text end

new text begin Extraordinary event charge. new text end

new text begin "Extraordinary event charge" means a
nonbypassable charge that:
new text end

new text begin (1) a utility that is the subject of a financing order or the utility's successor or assignee
imposes on all of the utility's customers;
new text end

new text begin (2) is separate from the utility's base rates; and
new text end

new text begin (3) provides a source of revenue used only to repay, finance, or refinance extraordinary
event costs.
new text end

new text begin Subd. 10. new text end

new text begin Extraordinary event costs. new text end

new text begin "Extraordinary event costs":
new text end

new text begin (1) means all incremental costs of extraordinary event activities that are approved by
the commission in a financing order issued under section 216B.492 as being:
new text end

new text begin (i) necessary to enable the utility to restore or maintain natural gas service to customers
after the utility experiences an extraordinary event; and
new text end

new text begin (ii) prudent and reasonable;
new text end

new text begin (2) includes costs to repurchase equity or retire any indebtedness relating to extraordinary
event activities;
new text end

new text begin (3) are net of applicable insurance proceeds, tax benefits, and any other amounts intended
to reimburse the utility for extraordinary event activities, including government grants or
aid of any kind;
new text end

new text begin (4) do not include any monetary penalty, fine, or forfeiture assessed against a utility by
a government agency or court under a federal or state environmental statute, rule, or
regulation; and
new text end

new text begin (5) must be adjusted to reflect:
new text end

new text begin (i) the difference, as determined by the commission, between extraordinary event costs
that the utility expects to incur and actual, reasonable, and prudent costs incurred; or
new text end

new text begin (ii) a more fair or reasonable allocation of extraordinary event costs to customers over
time, as expressed in a commission order, provided that after the issuance of extraordinary
event bonds relating to the extraordinary event costs, the adjustment must not (A) reduce
or impair the extraordinary event property relating to the extraordinary event bonds, or (B)
reduce, impair, postpone, or terminate extraordinary event charges relating to the
extraordinary event bonds until all principal, interest, and redemption premium, if any,
payable on the extraordinary event bonds, all financing costs for the extraordinary event
bonds, and all amounts that must be paid to an assignee or financing party under an ancillary
agreement relating to the extraordinary event bonds are paid in full.
new text end

new text begin Subd. 11. new text end

new text begin Extraordinary event property. new text end

new text begin "Extraordinary event property" means:
new text end

new text begin (1) all rights and interests that a utility or the utility's successor or assignee possess under
a financing order to impose, bill, collect, receive, and obtain periodic adjustments to
extraordinary event charges authorized under a financing order issued by the commission;
and
new text end

new text begin (2) all revenue, collections, claims, rights to payments, payments, money, or proceeds
arising from the rights and interests specified in clause (1), regardless of whether any are
commingled with other revenue, collections, rights to payment, payments, money, or
proceeds.
new text end

new text begin Subd. 12. new text end

new text begin Extraordinary event revenue. new text end

new text begin "Extraordinary event revenue" means revenue,
receipts, collections, payments, money, claims, or other proceeds arising from extraordinary
event property.
new text end

new text begin Subd. 13. new text end

new text begin Financing costs. new text end

new text begin "Financing costs" means:
new text end

new text begin (1) principal, interest, and redemption premiums, if any, that are payable on extraordinary
event bonds;
new text end

new text begin (2) payments required under an ancillary agreement and amounts required to fund or
replenish a reserve account or other accounts established under the terms of any indenture,
ancillary agreement, or other financing document pertaining to extraordinary event bonds;
new text end

new text begin (3) other demonstrable costs related to issuing, supporting, repaying, refunding, and
servicing extraordinary event bonds, including but not limited to servicing fees, accounting
and auditing fees, trustee fees, legal fees, consulting fees, financial adviser fees,
administrative fees, placement and underwriting fees, capitalized interest, rating agency
fees, stock exchange listing and compliance fees, security registration fees, filing fees,
information technology programming costs, and any other demonstrable costs necessary to
otherwise ensure and guarantee the timely payment of extraordinary event bonds, other
amounts payable in connection with extraordinary event bonds, or other extraordinary event
charges payable in connection with extraordinary event bonds;
new text end

new text begin (4) taxes and license fees imposed on the revenue generated from collecting an
extraordinary event charge;
new text end

new text begin (5) state and local taxes, including franchise, sales and use, and other taxes or similar
charges, including but not limited to regulatory assessment fees, whether paid, payable, or
accrued; and
new text end

new text begin (6) costs incurred by the commission to (i) hire and compensate additional temporary
staff needed to perform the commission's responsibilities under this section, and (ii) engage
specialized counsel and expert consultants experienced in securitized utility ratepayer-backed
bond financings similar to extraordinary event bonds financings, as provided under section
216B.494.
new text end

new text begin Subd. 14. new text end

new text begin Financing order. new text end

new text begin "Financing order" means an order issued by the commission
under section 216B.492 that authorizes an applicant to:
new text end

new text begin (1) issue extraordinary event bonds in one or more series;
new text end

new text begin (2) impose, charge, and collect extraordinary event charges; and
new text end

new text begin (3) create extraordinary event property.
new text end

new text begin Subd. 15. new text end

new text begin Financing party. new text end

new text begin "Financing party" means a holder of extraordinary event
bonds and a trustee, a collateral agent, a party under an ancillary agreement, or any other
person acting for the benefit of extraordinary event bondholders.
new text end

new text begin Subd. 16. new text end

new text begin Natural gas facility. new text end

new text begin "Natural gas facility" means natural gas pipelines,
including distribution lines, underground storage areas, liquefied natural gas facilities,
propane storage tanks, and other facilities the commission determines are used and useful
to provide natural gas service to retail and transportation customers in Minnesota.
new text end

new text begin Subd. 17. new text end

new text begin Nonbypassable. new text end

new text begin "Nonbypassable" means an extraordinary event charge that
a retail customer located within a utility service area cannot avoid and must pay.
new text end

new text begin Subd. 18. new text end

new text begin Pretax costs. new text end

new text begin "Pretax costs" means costs incurred by a utility and approved
by the commission, including but not limited to:
new text end

new text begin (1) unrecovered capitalized costs of replaced natural gas facilities damaged or destroyed
by an extraordinary event;
new text end

new text begin (2) costs to decommission and restore the site of a natural gas facility damaged or
destroyed by an extraordinary event;
new text end

new text begin (3) other applicable capital and operating costs, accrued carrying charges, deferred
expenses, reductions for applicable insurance, and salvage proceeds; and
new text end

new text begin (4) costs to retire any existing indebtedness, fees, costs, and expenses to modify existing
debt agreements, or for waivers or consents related to existing debt agreements.
new text end

new text begin Subd. 19. new text end

new text begin Storm event. new text end

new text begin "Storm event" means a tornado, derecho, ice or snow storm,
wildfire, flood, earthquake, or other significant weather or natural disaster that causes
substantial damage to a utility's infrastructure.
new text end

new text begin Subd. 20. new text end

new text begin Successor. new text end

new text begin "Successor" means a legal entity that succeeds by operation of law
to the rights and obligations of another legal entity as a result of bankruptcy, reorganization,
restructuring, other insolvency proceeding, merger, acquisition, consolidation, or sale or
transfer of assets.
new text end

new text begin Subd. 21. new text end

new text begin Utility. new text end

new text begin "Utility" means a public utility, as defined in section 216B.02,
subdivision 4, that provides natural gas service to Minnesota customers. Utility includes
the utility's successors or assignees.
new text end

Sec. 2.

new text begin [216B.492] FINANCING ORDER.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin (a) A utility may file an application with the commission
requesting a financing order to enable the utility to recover extraordinary event costs by
issuing extraordinary event bonds under this section.
new text end

new text begin (b) The application must include the following information, as applicable:
new text end

new text begin (1) a description of each natural gas facility to be repaired or replaced;
new text end

new text begin (2) the undepreciated value remaining in each natural gas facility under clause (1) that
the utility proposes to repair or replace using financing obtained by issuing extraordinary
event bonds under sections 216B.491 to 216B.499, and the method used to calculate the
undepreciated value remaining;
new text end

new text begin (3) the estimated costs imposed on customers resulting from an extraordinary event that
involves no physical damage to natural gas facilities;
new text end

new text begin (4) the estimated savings or estimated mitigation of rate impacts to utility customers if
the financing order is issued as requested in the application, calculated by comparing the
costs to customers that are expected to result from implementing the financing order and
the estimated costs associated with implementing traditional utility financing mechanisms
with respect to the same undepreciated balance, expressed in net present value terms;
new text end

new text begin (5) a description of (i) the nonbypassable extraordinary event charge utility customers
must pay in order to fully recover financing costs, and (ii) the method and assumptions used
to calculate the nonbypassable extraordinary event charge;
new text end

new text begin (6) a proposed methodology to allocate the revenue requirement for the extraordinary
event charge among the utility's customer classes;
new text end

new text begin (7) a description of a proposed adjustment mechanism that is implemented when necessary
to correct any overcollection or undercollection of extraordinary event charges, in order to
complete payment of scheduled principal and interest on extraordinary event bonds and
other financing costs in a timely fashion;
new text end

new text begin (8) a memorandum with supporting exhibits, developed by a securities firm that is
experienced in the marketing of securitized utility ratepayer-backed bonds, indicating the
proposed issuance satisfies: (i) the current published AA, Aa2, or higher rating; or (ii)
equivalent rating criteria of at least one nationally recognized securities rating organization
for issuances similar to the proposed extraordinary event bonds;
new text end

new text begin (9) an estimate of: (i) the timing of the extraordinary event bonds issuance; and (ii) the
term of the extraordinary event bonds or series of bonds, provided that the scheduled final
maturity for each bond issuance does not exceed 30 years;
new text end

new text begin (10) identification of plans to sell, assign, transfer, or convey, other than as a security,
interest in extraordinary event property, including identification of an assignee and
demonstration that the assignee is a financing entity that is wholly owned, directly or
indirectly, by the utility;
new text end

new text begin (11) identification of ancillary agreements that may be necessary or appropriate;
new text end

new text begin (12) one or more alternative financing scenarios in addition to the preferred scenario
contained in the application;
new text end

new text begin (13) the extent of damage to the utility's natural gas facility caused by an extraordinary
event and the estimated costs to repair or replace the damaged natural gas facility;
new text end

new text begin (14) a schedule of the proposed repairs to and replacement of the damaged natural gas
facility;
new text end

new text begin (15) a description of the steps taken to provide customers interim natural gas service
while the damaged natural gas facility is being repaired or replaced; and
new text end

new text begin (16) a description of the impacts on the utility's current workforce resulting from
implementing a repair or replacement plan following an extraordinary event.
new text end

new text begin Subd. 2. new text end

new text begin Findings. new text end

new text begin After providing notice and holding a public hearing on an application
filed under subdivision 1, the commission may issue a financing order if the commission
finds that:
new text end

new text begin (1) the extraordinary event costs described in the application are reasonable;
new text end

new text begin (2) the proposed issuance of extraordinary event bonds and the imposition and collection
of extraordinary event charges:
new text end

new text begin (i) are just and reasonable;
new text end

new text begin (ii) are consistent with the public interest;
new text end

new text begin (iii) constitute a prudent and reasonable mechanism to finance the extraordinary event
costs; and
new text end

new text begin (iv) provide tangible and quantifiable benefits to customers, either by providing lower
overall costs or mitigating rate impacts relative to traditional methods of financing, that
exceed the benefits achieved absent the issuance of extraordinary event bonds; and
new text end

new text begin (3) the proposed structuring, marketing, and pricing of the extraordinary event bonds:
new text end

new text begin (i) lower overall costs to customers or mitigate rate impacts to customers relative to
traditional methods of financing; and
new text end

new text begin (ii) achieve customer savings or mitigate rate impacts to customers, as determined by
the commission in a financing order, consistent with market conditions at the time of sale
and the terms of the financing order.
new text end

new text begin Subd. 3. new text end

new text begin Contents. new text end

new text begin (a) A financing order issued under this section must:
new text end

new text begin (1) determine the maximum amount of extraordinary event costs that may be financed
from proceeds of extraordinary event bonds issued pursuant to the financing order;
new text end

new text begin (2) describe the proposed customer billing mechanism for extraordinary event charges
and include a finding that the mechanism is just and reasonable;
new text end

new text begin (3) describe the financing costs that may be recovered through extraordinary event
charges and the period over which the costs may be recovered, which must end no earlier
than the date of final legal maturity of the extraordinary event bonds;
new text end

new text begin (4) describe the extraordinary event property that is created and that may be used to pay,
and secure the payment of, principal and interest on the extraordinary event bonds and other
financing costs authorized in the financing order;
new text end

new text begin (5) authorize the utility to finance extraordinary event costs by issuing one or more series
of extraordinary event bonds. A utility is not required to secure a separate financing order
for each extraordinary event bonds issuance or for each scheduled phase to replace natural
gas facilities approved in the financing order;
new text end

new text begin (6) include a formula-based mechanism that must be used to make expeditious periodic
adjustments to the extraordinary event charges authorized by the financing order that are
necessary to (i) correct for any overcollection or undercollection, or (ii) otherwise provide
for the timely payment of extraordinary event bonds, other financing costs, and other required
amounts and charges payable in connection with extraordinary event bonds;
new text end

new text begin (7) specify the degree of flexibility afforded to the utility to establish the terms and
conditions of the extraordinary event bonds, including but not limited to repayment schedules,
expected interest rates, and other financing costs;
new text end

new text begin (8) specify that the extraordinary event bonds must be issued, subject to market conditions
and the financing order's terms, as soon as feasible following the financing order's issuance;
new text end

new text begin (9) require the utility, at the same time extraordinary event charges are initially collected
and independent of the schedule to close and decommission any natural gas facility replaced
as the result of an extraordinary event, if any, to remove the natural gas facility from the
utility's rate base and commensurately reduce the utility's base rates;
new text end

new text begin (10) specify a future ratemaking process to reconcile any difference between the projected
pretax costs included in the amount financed by extraordinary event bonds and the final
actual pretax costs incurred by the utility to retire or replace the natural gas facility, if any;
new text end

new text begin (11) specify information regarding extraordinary event bonds issuance and repayments,
financing costs, energy transaction charges, extraordinary event property, and related matters
that the natural gas utility is required to provide to the commission on a schedule determined
by the commission;
new text end

new text begin (12) allow or require the creation of a utility's extraordinary event property to be
conditioned on, and occur simultaneously with, the sale or other transfer of the extraordinary
event property to an assignee and the pledge of the extraordinary event property to secure
the extraordinary event bonds;
new text end

new text begin (13) ensure that the structuring, marketing, and pricing of extraordinary event bonds
result in reasonable extraordinary event charges and customer savings or rate impact
mitigation, consistent with market conditions and the financing order's terms; and
new text end

new text begin (14) specify that a utility that finances the replacement of one or more natural gas facilities
after the natural gas facilities that are subject to the finance order are removed from the
utility's rate base is prohibited from:
new text end

new text begin (i) operating the natural gas facilities; or
new text end

new text begin (ii) selling the natural gas facilities to another entity to operate as natural gas facilities.
new text end

new text begin (b) A financing order issued under this section may:
new text end

new text begin (1) include conditions different from those requested in the application that the
commission determines are necessary to:
new text end

new text begin (i) promote the public interest; and
new text end

new text begin (ii) maximize the financial benefits or minimize the financial risks of the transaction to
customers and to directly impacted Minnesota workers and communities; and
new text end

new text begin (2) select one or more underwriters for the extraordinary event bonds.
new text end

new text begin Subd. 4. new text end

new text begin Duration; irrevocability; subsequent order. new text end

new text begin (a) A financing order remains
effective until the extraordinary event bonds issued under the financing order and all
financing costs related to the extraordinary event bonds have been paid in full.
new text end

new text begin (b) A financing order remains effective and unabated notwithstanding the bankruptcy,
reorganization, or insolvency of the utility to which the financing order applies or any
affiliate, successor, or assignee of the utility to which the financing order applies.
new text end

new text begin (c) Subject to judicial review under section 216B.52, a financing order is irrevocable
and is not reviewable by a future commission. The commission must not: (1) reduce, impair,
postpone, or terminate extraordinary event charges approved in a financing order; (2) reduce
or impair the extraordinary event property approved in a financing order or impair the
collection or recovery of extraordinary event charges and extraordinary event revenue; or
(3) change the customers required to pay extraordinary event charges.
new text end

new text begin (d) Notwithstanding paragraph (c), the commission may, on the commission's own
motion or at the request of a utility or any other person, commence a proceeding and issue
a subsequent financing order that provides for refinancing, retiring, or refunding extraordinary
event bonds issued under the original financing order if:
new text end

new text begin (1) the commission makes all of the findings specified in subdivision 2 with respect to
the subsequent financing order; and
new text end

new text begin (2) the modification contained in the subsequent financing order does not in any way
impair the covenants and terms of the extraordinary event bonds being refinanced, retired,
or refunded.
new text end

new text begin Subd. 5. new text end

new text begin Effect on commission jurisdiction. new text end

new text begin (a) Except as provided in paragraph (b),
the commission, in exercising the powers and carrying out the duties under this section, is
prohibited from:
new text end

new text begin (1) considering extraordinary event bonds issued under this section to be debt of the
utility other than for income tax purposes, unless considering the extraordinary event bonds
to be debt is necessary to achieve consistency with prevailing utility debt rating
methodologies;
new text end

new text begin (2) considering the extraordinary event charges paid under the financing order to be
revenue of the utility;
new text end

new text begin (3) considering the extraordinary event costs or financing costs specified in the financing
order to be the regulated costs or assets of the utility; or
new text end

new text begin (4) determining that any prudent action taken by a utility that is consistent with the
financing order is unjust or unreasonable.
new text end

new text begin (b) Nothing in this subdivision:
new text end

new text begin (1) affects the authority of the commission to apply or modify a billing mechanism
designed to recover extraordinary event charges;
new text end

new text begin (2) prevents or precludes the commission from (i) investigating a utility's compliance
with the financing order's terms and conditions, and (ii) requiring compliance with the
financing order; or
new text end

new text begin (3) prevents or precludes the commission from imposing regulatory sanctions against a
utility for failure to comply with (i) the financing order's terms and conditions, or (ii) the
requirements of this section.
new text end

new text begin (c) The commission is prohibited from refusing to allow a utility to recover any costs
associated with the replacement of natural gas facilities solely because the utility has elected
to finance the natural gas facility replacement through a financing mechanism other than
extraordinary event bonds.
new text end

Sec. 3.

new text begin [216B.493] POSTORDER COMMISSION DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Financing costs review. new text end

new text begin Within 120 days after the date extraordinary
event bonds are issued, a utility subject to a financing order must file with the commission
the actual initial and ongoing financing costs, the final structure and pricing of the
extraordinary event bonds, and the actual extraordinary event charge. The commission must
review the prudence of the natural gas utility's actions to determine whether the actual
financing costs were the lowest that could reasonably be achieved given the financing order's
terms and market conditions prevailing at the time of the extraordinary event bond's issuance.
new text end

new text begin Subd. 2. new text end

new text begin Enforcement. new text end

new text begin If the commission determines that a utility's actions under this
section are not prudent or are inconsistent with the financing order, the commission may
apply remedies deemed appropriate for utility actions, provided that any remedy applied
must not directly or indirectly: (1) reduce or impair the extraordinary event property approved
in the financing order or impair the collection or recovery of extraordinary event charges
and extraordinary event revenue; (2) reduce, impair, postpone, or terminate extraordinary
event charges approved in the financing order until all principal, interest, and redemption
premium, if any, payable on the extraordinary event bonds, all financing costs, and all
amounts to be paid to an assignee or financing party under an ancillary agreement are paid
in full; or (3) change the customers required to pay extraordinary event charges.
new text end

Sec. 4.

new text begin [216B.494] USE OF OUTSIDE EXPERTS.
new text end

new text begin (a) To carry out the duties under this section, the commission may:
new text end

new text begin (1) contract with outside consultants and counsel experienced in securitized utility
customer-backed bond financing similar to extraordinary event bonds; and
new text end

new text begin (2) hire and compensate additional temporary staff as needed.
new text end

new text begin Expenses incurred by the commission under this paragraph must be treated as financing
costs paid by the extraordinary event revenue. The costs incurred under clause (1) are not
an obligation of the state and are assigned solely to the transaction.
new text end

new text begin (b) A utility presented with a written request from the commission to reimburse the
commission's expenses incurred under paragraph (a), accompanied by a detailed account
of the subject expenses, must provide the issuer of the extraordinary event bonds and the
indenture trustee for the extraordinary event bonds with such documentation. The indenture
trustee must remit full payment of the expenses to the commission on the next interest
payment date of the extraordinary event bonds after the payment of interest and scheduled
principal of the extraordinary event bonds in accordance with the payment waterfall included
in the indenture governing the extraordinary event bonds.
new text end

new text begin (c) If a utility's application for a financing order is denied or withdrawn for any reason
and extraordinary event bonds are not issued, the commission's costs to retain expert
consultants under this section must be paid by the applicant utility and are deemed a prudent
deferred expense eligible for recovery in the utility's future rates.
new text end

Sec. 5.

new text begin [216B.495] EXTRAORDINARY EVENT CHARGE; BILLING TREATMENT.
new text end

new text begin (a) A utility that obtains a financing order and issues extraordinary event bonds must:
new text end

new text begin (1) include on each customer's monthly natural gas bill:
new text end

new text begin (i) a statement that a portion of the charges represents extraordinary event charges
approved in a financing order;
new text end

new text begin (ii) the amount and rate of the extraordinary event charge as a separate line item titled
"extraordinary event charge"; and
new text end

new text begin (iii) if extraordinary event property has been transferred to an assignee, a statement that
the assignee is the owner of the rights to extraordinary event charges and that the utility or
other entity, if applicable, is acting as a collection agent or servicer for the assignee; and
new text end

new text begin (2) file annually with the commission:
new text end

new text begin (i) a calculation that identifies the impact financing the retirement or replacement of
natural gas facilities has on customer rates, itemized by customer class; and
new text end

new text begin (ii) evidence demonstrating that extraordinary event revenues are applied solely to pay
(A) principal and interest on extraordinary event bonds, and (B) other financing costs.
new text end

new text begin (b) Extraordinary event charges are nonbypassable and must be paid by all existing and
future customers receiving service from the utility or the utility's successors or assignees
under commission-approved rate schedules or special contracts.
new text end

new text begin (c) A utility's failure to comply with this section does not invalidate, impair, or affect
any financing order, extraordinary event property, extraordinary event charge, or
extraordinary event bonds, but does subject the utility to penalties under applicable
commission rules provided that any penalty applied must not directly or indirectly: (1)
reduce or impair the extraordinary event property approved in the financing order or impair
the collection or recovery of extraordinary event charges and extraordinary event revenue;
(2) reduce, impair, postpone, or terminate extraordinary event charges approved in the
financing order until all principal, interest, and redemption premium, if any, payable on the
extraordinary event bonds, all financing costs, and all amounts to be paid to an assignee or
financing party under an ancillary agreement are paid in full; or (3) change the customers
required to pay extraordinary event charges.
new text end

Sec. 6.

new text begin [216B.496] EXTRAORDINARY EVENT PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin (a) Extraordinary event property is an existing present property
right or interest in a property right, even though the imposition and collection of extraordinary
event charges depend on the utility collecting extraordinary event charges and on future
natural gas consumption. The property right or interest exists regardless of whether the
revenues or proceeds arising from the extraordinary event property have been billed, have
accrued, or have been collected.
new text end

new text begin (b) Extraordinary event property exists until all extraordinary event bonds issued under
a financing order are paid in full and all financing costs and other extraordinary event bonds
costs have been recovered in full.
new text end

new text begin (c) All or any portion of extraordinary event property described in a financing order
issued to a utility may be transferred, sold, conveyed, or assigned to a successor or assignee
that is wholly owned, directly or indirectly, by the utility and created for the limited purpose
of acquiring, owning, or administering extraordinary event property or issuing extraordinary
event bonds authorized by the financing order. All or any portion of extraordinary event
property may be pledged to secure extraordinary event bonds issued under a financing order,
amounts payable to financing parties and to counterparties under any ancillary agreements,
and other financing costs. Each transfer, sale, conveyance, assignment, or pledge by a utility
or an affiliate of extraordinary event property is a transaction in the ordinary course of
business.
new text end

new text begin (d) If a utility defaults on any required payment of charges arising from extraordinary
event property described in a financing order, a court, upon petition by an interested party
and without limiting any other remedies available to the petitioner, must order the
sequestration and payment of the revenues arising from the extraordinary event property to
the financing parties.
new text end

new text begin (e) The interest of a transferee, purchaser, acquirer, assignee, or pledgee in extraordinary
event property specified in a financing order issued to a utility, and in the revenue and
collections arising from the property, is not subject to setoff, counterclaim, surcharge, or
defense by the utility or any other person, or in connection with the reorganization,
bankruptcy, or other insolvency of the utility or any other entity.
new text end

new text begin (f) A successor to a utility, whether resulting from a reorganization, bankruptcy, or other
insolvency proceeding, merger or acquisition, sale, other business combination, transfer by
operation of law, utility restructuring, or otherwise: (1) must perform and satisfy all
obligations of, and has the same duties and rights under, a financing order as the utility to
which the financing order applies; and (2) must perform the duties and exercise the rights
in the same manner and to the same extent as the utility, including (i) collecting extraordinary
event bonds revenues, collections, payments, or proceeds, and (ii) paying a person entitled
to receive extraordinary event bonds revenues, collections, payments, or proceeds.
new text end

new text begin Subd. 2. new text end

new text begin Security interests in extraordinary event property. new text end

new text begin (a) The creation,
perfection, and enforcement of any security interest in extraordinary event property to secure
the repayment of the principal and interest on extraordinary event bonds, amounts payable
under any ancillary agreement, and other financing costs are governed by this section only.
new text end

new text begin (b) A security interest in extraordinary event property is created, valid, and binding
when:
new text end

new text begin (1) the financing order that describes the extraordinary event property is issued;
new text end

new text begin (2) a security agreement is executed and delivered; and
new text end

new text begin (3) value is received for the extraordinary event bonds.
new text end

new text begin (c) Once a security interest in extraordinary event property is created, the security interest
attaches without any physical delivery of collateral or any other act. The lien of the security
interest is valid, binding, and perfected against all parties having claims of any kind in tort,
in contract, or otherwise against the person granting the security interest, regardless of
whether the parties have notice of the lien, upon the filing of a financing statement with the
secretary of state.
new text end

new text begin (d) The description or indication of extraordinary event property in a transfer or security
agreement and a financing statement is sufficient only if the description or indication refers
to this section and the financing order creating the extraordinary event property.
new text end

new text begin (e) A security interest in extraordinary event property is a continuously perfected security
interest and has priority over any other lien, created by operation of law or otherwise, that
may subsequently attach to the extraordinary event property unless the person that holds
the security interest has agreed otherwise in writing.
new text end

new text begin (f) The priority of a security interest in extraordinary event property is not affected by
the commingling of extraordinary event property or extraordinary event revenue with other
money. An assignee, bondholder, or financing party has a perfected security interest in the
amount of all extraordinary event property or extraordinary event revenue that is pledged
to pay extraordinary event bonds even if the extraordinary event property or extraordinary
event revenue is deposited in a cash or deposit account owned by the utility in which the
extraordinary event revenue is commingled with other money. Any other security interest
that applies to the other money does not apply to the extraordinary event revenue.
new text end

new text begin (g) A subsequent commission order amending a financing order under section 216B.492,
subdivision 4, or the application of an adjustment mechanism authorized by a financing
order under section 216B.492, subdivision 3, does not affect the validity, perfection, or
priority of a security interest in or transfer of extraordinary event property.
new text end

new text begin Subd. 3. new text end

new text begin Sales of extraordinary event property. new text end

new text begin (a) A sale, assignment, or transfer of
extraordinary event property is an absolute transfer and true sale of, and not a pledge of or
secured transaction relating to, the seller's right, title, and interest in, to, and under the
extraordinary event property if the documents governing the transaction expressly state that
the transaction is a sale or other absolute transfer. A transfer of an interest in extraordinary
event property may be created when:
new text end

new text begin (1) the financing order creating and describing the extraordinary event property is
effective;
new text end

new text begin (2) the documents evidencing the transfer of the extraordinary event property are executed
and delivered to the assignee; and
new text end

new text begin (3) value is received.
new text end

new text begin (b) The characterization of a sale, assignment, or transfer as an absolute transfer and
true sale, and the corresponding characterization of the property interest of the assignee, is
not affected or impaired by:
new text end

new text begin (1) commingling extraordinary event revenue with other money;
new text end

new text begin (2) the seller retaining:
new text end

new text begin (i) a partial or residual interest, including an equity interest, in the extraordinary event
property, whether (A) direct or indirect, or (B) subordinate or otherwise; or
new text end

new text begin (ii) the right to recover costs associated with taxes, franchise fees, or license fees imposed
on the collection of extraordinary event revenue;
new text end

new text begin (3) any recourse that the extraordinary event property purchaser may have against the
seller;
new text end

new text begin (4) any indemnification rights, obligations, or repurchase rights made or provided by
the extraordinary event property seller;
new text end

new text begin (5) the extraordinary event property seller's obligation to collect extraordinary event
revenues on behalf of an assignee;
new text end

new text begin (6) the treatment of the sale, assignment, or transfer for tax, financial reporting, or other
purposes;
new text end

new text begin (7) any subsequent financing order amending a financing order under section 216B.492,
subdivision 4, paragraph (d); or
new text end

new text begin (8) any application of an adjustment mechanism under section 216B.492, subdivision
3, paragraph (a), clause (6).
new text end

Sec. 7.

new text begin [216B.497] EXTRAORDINARY EVENT BONDS.
new text end

new text begin (a) A bank, trust company, savings and loan association, insurance company, executor,
administrator, guardian, trustee, or other fiduciary may legally invest any money within the
individual's or entity's control in extraordinary event bonds.
new text end

new text begin (b) Extraordinary event bonds issued under a financing order are not debt of or a pledge
of the faith and credit or taxing power of the state, any agency of the state, or any political
subdivision. An extraordinary event bonds holder does not possess the ability to compel
taxes to be levied by the state or a political subdivision in order to pay the principal or
interest on extraordinary event bonds. The issuance of extraordinary event bonds does not
directly, indirectly, or contingently obligate the state or a political subdivision to levy any
tax or make any appropriation to pay principal or interest on the extraordinary event bonds.
new text end

new text begin (c) The state pledges to and agrees with an extraordinary event bonds holder, assignee,
and financing party that the state and state agencies, including the commission, are prohibited
from:
new text end

new text begin (1) taking or permitting an action that reduces or impairs the extraordinary event property
approved in the financing order or impairs the collection or recovery of extraordinary event
charges or extraordinary event revenue;
new text end

new text begin (2) reducing, impairing, postponing, or terminating extraordinary event charges approved
in the financing order that are imposed, collected, and remitted for the benefit of an
extraordinary event bonds holder, assignee, and financing party until all principal, interest,
and redemption premium, if any, payable on extraordinary event bonds, all financing costs,
and all amounts to be paid to an assignee or financing party under an ancillary agreement
are paid in full; or
new text end

new text begin (3) changing the customers required to pay the extraordinary event charges.
new text end

new text begin (d) The commission may include a pledge in the financing order similar to the pledge
included in paragraph (c).
new text end

new text begin (e) A person who issues extraordinary event bonds may include the pledge specified in
paragraphs (c) and (d) in the extraordinary event bonds, ancillary agreements, and
documentation related to the issuance and marketing of the extraordinary event bonds.
new text end

Sec. 8.

new text begin [216B.498] ASSIGNEE OF FINANCING PARTY NOT SUBJECT TO
COMMISSION REGULATION.
new text end

new text begin An assignee or financing party that is not already regulated by the commission does not
become subject to commission regulation solely as a result of engaging in any transaction
authorized by or described in sections 216B.491 to 216B.499.
new text end

Sec. 9.

new text begin [216B.499] EFFECT ON OTHER LAWS.
new text end

new text begin (a) If a provision of sections 216B.491 to 216B.499 conflicts with other law regarding
the attachment, assignment, perfection, effect of perfection, or priority of a security interest
in or transfer of extraordinary event property, sections 216B.491 to 216B.499 govern.
new text end

new text begin (b) Nothing in this section precludes a utility for which the commission has initially
issued a financing order from applying to the commission for:
new text end

new text begin (1) a subsequent financing order amending the financing order under section 216B.492,
subdivision 4, paragraph (d); or
new text end

new text begin (2) approval to issue extraordinary event bonds to refund all or a portion of an outstanding
series of extraordinary event bonds.
new text end

Sec. 10.

Minnesota Statutes 2024, section 216B.62, subdivision 3, is amended to read:

Subd. 3.

Assessing all public utilities.

The department and commission shall quarterly,
at least 30 days before the start of each quarter, estimate the total of their expenditures in
the performance of their duties relating to public utilities under sections 216B.01 to 216B.67,
other than amounts chargeable to public utilities under subdivision 2, 6, 7, deleted text begin or deleted text end 8 new text begin , or 9 new text end . The
remainder shall be assessed by the commission and department to the several public 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. The assessment shall be paid into the
state treasury within 30 days after the bill has been transmitted via mail, personal delivery,
or electronic service to the several public utilities, which shall constitute notice of the
assessment and demand of payment thereof. The total amount which may be assessed to
the public utilities, under authority of this subdivision, shall not exceed one-sixth of one
percent of the total gross operating revenues of the public utilities during the calendar year
from retail sales of gas or electric service within the state. The assessment for the third
quarter of each fiscal year shall be adjusted to compensate for the amount by which actual
expenditures by the commission and department for the preceding fiscal year were more or
less than the estimated expenditures previously assessed.

Sec. 11.

Minnesota Statutes 2024, section 216B.62, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Administrative costs for extraordinary event bonds. new text end

new text begin The commission and
the department may assess gas utilities for the actual commission and department costs of
administering extraordinary event bonds under sections 216B.491 to 216B.499. The money
received from the assessment shall be deposited into an account in the special revenue fund
and all funds deposited are appropriated to the commission or the department for the purposes
of this subdivision. The commission and department may initially assess for estimated costs
under sections 216B.491 to 216B.499, then must adjust subsequent assessments for actual
costs incurred under sections 216B.491 to 216B.499. An assessment made under this
subdivision is not subject to the cap on assessments provided in subdivision 3 or any other
law.
new text end

ARTICLE 5

RENEWABLE DEVELOPMENT ACCOUNT SUNSET

Section 1.

Minnesota Statutes 2024, section 116C.7792, is amended to read:

116C.7792 SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM.

new text begin Subdivision 1. new text end

new text begin Program operations. new text end

(a) The utility subject to section deleted text begin 116C.779 deleted text end new text begin
216B.1641 new text end 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) new text begin Through 2025, new text end the program is funded by money deleted text begin withheld from transfer to the
renewable development account under section 116C.779, subdivision 1, paragraphs (b) and
(e). Program funds must be placed deleted text end new text begin that the utility deposits new text end in a separate account for the
purpose of the solar energy production incentive program operated by the utility and not
for any other program or purpose.

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

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

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

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

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

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

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

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

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

(f) deleted text begin Funds deleted text end new text begin Money new text end allocated to the solar energy production incentive program that deleted text begin have deleted text end new text begin
has new text end not been committed to a specific project at the end of a program year deleted text begin remain deleted text end new text begin remains new text end
available to the solar energy production incentive program new text begin , except that the utility's money
that has not been obligated to a specific project by December 31, 2025, must be refunded
to the utility's electric service customers in a manner and according to a schedule determined
by the Public Utilities Commission new text end .

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

deleted text begin (h) deleted text end new text begin (g) new text end 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.

deleted text begin (i) deleted text end new text begin (h) new text end 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.

new text begin (i) The utility must operate the program through December 31, 2025. Beginning on
January 1, 2026, the commissioner of commerce must operate the program under this section
in conformance with the orders issued by the Public Utilities Commission in Docket No.
E002/M-13-1015, as applicable.
new text end

new text begin (j) A payment must not be made under this section to an owner of a solar energy system
who did not receive a payment under this section before January 1, 2027.
new text end

new text begin Subd. 2. new text end

new text begin Establishment of account. new text end

new text begin (a) The solar energy production incentive account
is established in the special revenue fund in the state treasury. Money received from the
general fund must be transferred to the commissioner of commerce and credited to the
account. The commissioner of commerce must manage the account.
new text end

new text begin (b) Money in the account may be expended only from January 1, 2026, to December
31, 2036. Any money remaining in the account on December 31, 2036, cancels to the general
fund.
new text end

new text begin (c) The utility subject to this section must advise the commissioner of commerce, on a
schedule determined by the commissioner of commerce, regarding:
new text end

new text begin (1) the total amount required to be withdrawn from the account to pay for solar energy
production incentives; and
new text end

new text begin (2) the amount of payments to be made separately to each program participant due a
payment under this section.
new text end

new text begin (d) Beginning in fiscal year 2027, an amount sufficient is annually appropriated from
the general fund to the commissioner to make the payments under paragraph (c) for projects
that first received payments under this section no later than December 31, 2026.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin This section expires April 1, 2037.
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 2024, section 116J.55, subdivision 5, is amended to read:

Subd. 5.

Grant awards; limitations.

deleted text begin (a) deleted text end A grant awarded to an eligible community
under this section must not exceed $1,000,000 in any calendar year. The commissioner may
accept grant applications on an ongoing or rolling basis.

deleted text begin (b) Grants funded with revenues from the renewable development account established
in section 116C.779 must be awarded to an eligible community located within the retail
electric service territory of the public utility that is subject to section 116C.779 or to an
eligible community in which an electric generating plant owned by that public utility is
located.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2024, section 216B.1645, subdivision 1, is amended to read:

Subdivision 1.

Commission authority.

Upon the petition of a public utility, the Public
Utilities Commission shall approve or disapprove power purchase contracts, investments,
or expenditures entered into or made by the utility to satisfy the wind and biomass mandates
contained in sections 216B.169, 216B.2423, and 216B.2424, and to satisfy the renewable
energy objectives and standards set forth in section 216B.1691, including reasonable
investments and expenditures made to:

(1) transmit the electricity generated from sources developed under those sections that
is ultimately used to provide service to the utility's retail customers, including studies
necessary to identify new transmission facilities needed to transmit electricity to Minnesota
retail customers from generating facilities constructed to satisfy the renewable energy
objectives and standards, provided that the costs of the studies have not been recovered
previously under existing tariffs and the utility has filed an application for a certificate of
need or for certification as a priority project under section 216B.2425 for the new
transmission facilities identified in the studies; new text begin or
new text end

(2) provide storage facilities for renewable energy generation facilities that contribute
to the reliability, efficiency, or cost-effectiveness of the renewable facilities deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (3) develop renewable energy sources from the account required in section 116C.779.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2024, section 216C.377, subdivision 3, is amended to read:

Subd. 3.

Establishment of account.

A solar on public buildings grant program account
is established in the special revenue fund. Money received from the general fund deleted text begin and the
renewable development account established in section 116C.779, subdivision 1, deleted text end must be
transferred to the commissioner of commerce and credited to the account. Earnings, including
interest, dividends, and any other earnings arising from the assets of the account, must be
credited to the account. Earnings remaining in the account at the end of a fiscal year do not
cancel to the general fund or renewable development account but remain in the account
until expended. The commissioner must manage the account.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2024, section 216C.417, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Account established; account management; appropriation. new text end

new text begin A "Made in
Minnesota" solar energy production incentive account is established as a separate account
in the special revenue fund in the state treasury. Earnings, including interest, dividends, and
any other earnings arising from account assets, must be credited to the account. Money
remaining in the account at the end of a fiscal year cancels to the general fund. The
commissioner of commerce must manage the account.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2024, section 216C.417, subdivision 2, is amended to read:

Subd. 2.

Appropriation.

deleted text begin (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 section
116C.779, subdivision 1.
deleted text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 7. new text begin DISPOSITION OF REMAINING FUNDS.
new text end

new text begin Any money remaining in the renewable development account established under Minnesota
Statutes, section 116C.779, as of the effective date of this act must be remitted to the utility
subject to Minnesota Statutes, section 216B.1641, subdivision 1, to refund the utility's
electric service customers in a manner and according to a schedule determined by the Public
Utilities Commission.
new text end

Sec. 8. new text begin REVISOR INSTRUCTION.
new text end

new text begin In each section of Minnesota Statutes referred to in column A, the revisor of statutes
must delete the reference in column B and insert the reference in column C. The references
in column C may be changed by the revisor of statutes to the section in Minnesota Statutes
in which the bill sections are compiled.
new text end

new text begin Column A new text end	new text begin Column B new text end	new text begin Column C new text end
new text begin 16B.87 new text end	new text begin 116C.779 new text end	new text begin 216B.1641, subdivision 1 new text end
new text begin 116C.776 new text end	new text begin 116C.779 new text end	new text begin 116C.778 new text end
new text begin 216B.1641 new text end	new text begin 116C.779 new text end	new text begin 216B.1691, paragraph (a), clause (1) new text end
new text begin 216C.375 new text end	new text begin 116C.779 new text end	new text begin 216B.1641, subdivision 1 new text end
new text begin 216C.378 new text end	new text begin 116C.779 new text end	new text begin 216B.1641, subdivision 1 new text end
new text begin 216C.379 new text end	new text begin 116C.779 new text end	new text begin 216B.1641, subdivision 1 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 116C.779, subdivisions 1 and 2; 116C.7791; and
216C.41, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

APPENDIX

Repealed Minnesota Statutes: S2393-1

116C.779 FUNDING FOR RENEWABLE DEVELOPMENT.

Subdivision 1.

Renewable development account.

(a) The renewable development account is established as a separate account in the special revenue fund in the state treasury. Appropriations and transfers to the account shall be credited to the account. Earnings, such as interest, dividends, and any other earnings arising from assets of the account, shall be credited to the account. Funds remaining in the account at the end of a fiscal year are not canceled to the general fund but remain in the account until expended. The account shall be administered by the commissioner of management and budget as provided under this section.

(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating plant must transfer all funds in the renewable development account previously established under this subdivision and managed by the public utility to the renewable development account established in paragraph (a). Funds awarded to grantees in previous grant cycles that have not yet been expended and unencumbered funds required to be paid in calendar year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject to transfer under this paragraph.

(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating plant must transfer to the renewable development account $500,000 each year for each dry cask containing spent fuel that is located at the Prairie Island power plant for each year the plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any part of a year. The total amount transferred annually under this paragraph must be reduced by $3,750,000.

(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing each January 15 thereafter, the public utility that owns the Monticello nuclear generating plant must transfer to the renewable development account $350,000 each year for each dry cask containing spent fuel that is located at the Monticello nuclear power plant for each year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for any part of a year.

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

(f) If the commission approves a new or amended power purchase agreement, the termination of a power purchase agreement, or the purchase and closure of a facility under section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, the public utility subject to this section shall enter into a contract with the city in which the poultry litter plant is located to provide grants to the city for the purposes of economic development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid by the public utility from funds withheld from the transfer to the renewable development account, as provided in paragraphs (b) and (e).

(g) If the commission approves a new or amended power purchase agreement, or the termination of a power purchase agreement under section 216B.2424, subdivision 9, with an entity owned or controlled, directly or indirectly, by two municipal utilities located north of Constitutional Route No. 8, that was previously used to meet the biomass mandate in section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a grant contract with such entity to provide $6,800,000 per year for five years, commencing 30 days after the commission approves the new or amended power purchase agreement, or the termination of the power purchase agreement, and on each June 1 thereafter through 2021, to assist the transition required by the new, amended, or terminated power purchase agreement. The grant shall be paid by the public utility from funds withheld from the transfer to the renewable development account as provided in paragraphs (b) and (e).

(h) The collective amount paid under the grant contracts awarded under paragraphs (f) and (g) is limited to the amount deposited into the renewable development account, and its predecessor, the renewable development account, established under this section, that was not required to be deposited into the account under Laws 1994, chapter 641, article 1, section 10.

(i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued facility, the commission shall require the public utility to pay $7,500,000 for the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year in which the commission finds, by the preponderance of the evidence, that the public utility did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a permanent or interim storage site out of the state. This determination shall be made at least every two years.

(j) Funds in the account may be expended only for any of the following purposes:

(1) to stimulate research and development of renewable electric energy technologies;

(2) to encourage grid modernization, including, but not limited to, projects that implement electricity storage, load control, and smart meter technology; and

(3) to stimulate other innovative energy projects that reduce demand and increase system efficiency and flexibility.

Expenditures from the fund must benefit Minnesota ratepayers receiving electric service from the utility that owns a nuclear-powered electric generating plant in this state or the Prairie Island Indian community or its members.

The utility that owns a nuclear generating plant is eligible to apply for grants under this subdivision.

(k) For the purposes of paragraph (j), the following terms have the meanings given:

(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph (c), clauses (1), (2), (4), and (5); and

(2) "grid modernization" means:

(i) enhancing the reliability of the electrical grid;

(ii) improving the security of the electrical grid against cyberthreats and physical threats; and

(iii) increasing energy conservation opportunities by facilitating communication between the utility and its customers through the use of two-way meters, control technologies, energy storage and microgrids, technologies to enable demand response, and other innovative technologies.

(l) A renewable development account advisory group that includes, among others, representatives of the public utility and its ratepayers, and includes at least one representative of the Prairie Island Indian community appointed by that community's tribal council, shall develop recommendations on account expenditures. The advisory group must design a request for proposal and evaluate projects submitted in response to a request for proposals. The advisory group must utilize an independent third-party expert to evaluate proposals submitted in response to a request for proposal, including all proposals made by the public utility. A request for proposal for research and development under paragraph (j), clause (1), may be limited to or include a request to higher education institutions located in Minnesota for multiple projects authorized under paragraph (j), clause (1). The request for multiple projects may include a provision that exempts the projects from the third-party expert review and instead provides for project evaluation and selection by a merit peer review grant system. In the process of determining request for proposal scope and subject and in evaluating responses to request for proposals, the advisory group must strongly consider, where reasonable:

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

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

(m) The advisory group shall submit funding recommendations to the public utility, which has full and sole authority to determine which expenditures shall be submitted by the advisory group to the legislature. The commission may approve proposed expenditures, may disapprove proposed expenditures that it finds not to be in compliance with this subdivision or otherwise not in the public interest, and may, if agreed to by the public utility, modify proposed expenditures. The commission shall, by order, submit its funding recommendations to the legislature as provided under paragraph (n).

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

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

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

(o) A request for proposal for renewable energy generation projects must, when feasible and reasonable, give preference to projects that are most cost-effective for a particular energy source.

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

(q) A project receiving funds from the account must produce a written final report that includes sufficient detail for technical readers and a clearly written summary for nontechnical readers. The report must include an evaluation of the project's financial, environmental, and other benefits to the state and the public utility's ratepayers. A project receiving funds from the account must submit a report that meets the requirements of section 216C.51, subdivisions 3 and 4, each year the project funded by the account is in progress.

(r) Final reports, any mid-project status reports, and renewable development account financial reports must be posted online on a public website designated by the commissioner of commerce.

(s) All final reports must acknowledge that the project was made possible in whole or part by the Minnesota renewable development account, noting that the account is financed by the public utility's ratepayers.

(t) Of the amount in the renewable development account, priority must be given to making the payments required under section 216C.417.

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

Subd. 2.

Renewable energy production incentive.

(a) Until January 1, 2021, $10,900,000 annually must be allocated from available funds in the account to fund renewable energy production incentives. $9,400,000 of this annual amount is for incentives for electricity generated by wind energy conversion systems that are eligible for the incentives under section 216C.41 or Laws 2005, chapter 40.

(b) The balance of this amount, up to $1,500,000 annually, may be used for production incentives for on-farm biogas recovery facilities and hydroelectric facilities that are eligible for the incentive under section 216C.41 or for production incentives for other renewables, to be provided in the same manner as under section 216C.41.

(c) Any portion of the $10,900,000 not expended in any calendar year for the incentive is available for other spending purposes under subdivision 1. This subdivision does not create an obligation to contribute funds to the account.

(d) The Department of Commerce shall determine eligibility of projects under section 216C.41 for the purposes of this subdivision. At least quarterly, the Department of Commerce shall notify the public utility of the name and address of each eligible project owner and the amount due to each project under section 216C.41. The public utility shall make payments within 15 working days after receipt of notification of payments due.

116C.7791 REBATES FOR SOLAR PHOTOVOLTAIC MODULES.

Subdivision 1.

Definitions.

For the purpose of this section, the following terms have the meanings given.

(a) "Installation" means an array of solar photovoltaic modules attached to a building that will use the electricity generated by the solar photovoltaic modules or placed on a facility or property proximate to that building.

(b) "Manufactured" means:

(1) the material production of solar photovoltaic modules, including the tabbing, stringing, and lamination processes; or

(2) the production of interconnections of low-voltage photoactive elements that produce the final useful photovoltaic output by a manufacturer operating in this state on May 18, 2010.

(c) "Qualified owner" means an owner of a qualified property, but does not include an entity engaged in the business of generating or selling electricity at retail, or an unregulated subsidiary of such an entity.

(d) "Qualified property" means a residence, multifamily residence, business, or publicly owned building located in the assigned service area of the utility subject to section 116C.779.

(e) "Solar photovoltaic module" means the smallest, nondivisible, self-contained physical structure housing interconnected photovoltaic cells and providing a single direct current of electrical output.

Subd. 2.

Establishment.

The utility subject to section 116C.779 shall establish a program to provide rebates to an owner of a qualified property for installing solar photovoltaic modules manufactured in Minnesota after December 31, 2009. Any solar photovoltaic modules installed under this program and any expenses incurred by the utility operating the program shall be treated the same as solar installations and related expenses under section 216B.241.

Subd. 3.

Rebate eligibility.

(a) To be eligible for a rebate under this section, a solar photovoltaic module:

(1) must be manufactured in Minnesota;

(2) must be installed on a qualified property as part of a system whose generating capacity does not exceed 40 kilowatts;

(3) must be certified by Underwriters Laboratory, must have received the ETL listed mark from Intertek, or must have an equivalent certification from an independent testing agency;

(4) may or may not be connected to a utility grid;

(5) must be installed, or reviewed and approved, by a person certified as a solar photovoltaic installer by the North American Board of Certified Energy Practitioners; and

(6) may not be used to sell, transmit, or distribute the electrical energy at retail, nor to provide end-use electricity to an offsite facility of the electrical energy generator. On-site generation is allowed to the extent provided for in section 216B.1611.

(b) To be eligible for a rebate under this section, an applicant must have applied for and been awarded a rebate or other form of financial assistance available exclusively to owners of properties on which solar photovoltaic modules are installed that is offered by:

(1) the utility serving the property on which the solar photovoltaic modules are to be installed; or

(2) this state, under an authority other than this section.

(c) An applicant who is otherwise ineligible for a rebate under paragraph (b) is eligible if the applicant's failure to secure a rebate or other form of financial assistance is due solely to a lack of available funds on the part of a utility or this state.

Subd. 4.

Rebate amount and payment.

(a) The amount of a rebate under this section is the difference between the sum of all rebates described in subdivision 3, paragraph (b), awarded to the applicant and $5 per watt of installed generating capacity.

(b) Notwithstanding paragraph (a), the amount of all rebates or other forms of financial assistance awarded to an applicant by a utility and the state, including any rebate paid under this section, net of applicable federal income taxes applied at the highest applicable income tax rates, must not exceed 60 percent of the total installed cost of the solar photovoltaic modules.

(c) Rebates must be awarded to eligible applicants beginning July 1, 2010.

(d) The rebate must be paid out proportionately in five consecutive annual installments.

Subd. 5.

Rebate program funding.

(a) The following amounts must be allocated from the renewable development account established in section 116C.779 to a separate account for the purpose of providing the rebates for solar photovoltaic modules specified in this section:

(1) $2,000,000 in fiscal year 2011;

(2) $4,000,000 in fiscal year 2012;

(3) $5,000,000 in fiscal year 2013;

(4) $5,000,000 in fiscal year 2014; and

(5) $5,000,000 in fiscal year 2015.

(b) If, by the end of fiscal year 2015, insufficient qualified owners have applied for and met the requirements for rebates under this section to exhaust the funds available, any remaining balance shall be returned to the account established under section 116C.779.

216C.41 RENEWABLE ENERGY PRODUCTION INCENTIVE.

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Qualified hydroelectric facility" means a hydroelectric generating facility in this state that:

(1) is located at the site of a dam, if the dam was in existence as of March 31, 1994; and

(2) begins generating electricity after July 1, 1994, or generates electricity after substantial refurbishing of a facility that begins after July 1, 2001.

(c) "Qualified wind energy conversion facility" means a wind energy conversion system in this state that:

(1) produces two megawatts or less of electricity as measured by nameplate rating and begins generating electricity after December 31, 1996, and before July 1, 1999;

(2) begins generating electricity after June 30, 1999, produces two megawatts or less of electricity as measured by nameplate rating, and is:

(i) owned by a resident of Minnesota or an entity that is organized under the laws of this state, is not prohibited from owning agricultural land under section 500.24, and owns the land where the facility is sited;

(ii) owned by a Minnesota small business as defined in section 645.445;

(iii) owned by a Minnesota nonprofit organization;

(iv) owned by a tribal council if the facility is located within the boundaries of the reservation;

(v) owned by a Minnesota municipal utility or a Minnesota cooperative electric association; or

(vi) owned by a Minnesota political subdivision or local government, including, but not limited to, a county, statutory or home rule charter city, town, school district, or any other local or regional governmental organization such as a board, commission, or association; or

(3) begins generating electricity after June 30, 1999, produces seven megawatts or less of electricity as measured by nameplate rating, and:

(i) is owned by a cooperative organized under chapter 308A other than a Minnesota cooperative electric association; and

(ii) all shares and membership in the cooperative are held by an entity that is not prohibited from owning agricultural land under section 500.24.

(d) "Qualified on-farm biogas recovery facility" means an anaerobic digester system that:

(1) is located at the site of an agricultural operation; and

(2) is owned by an entity that is not prohibited from owning agricultural land under section 500.24 and that owns or rents the land where the facility is located.

(e) "Anaerobic digester system" means a system of components that processes animal waste based on the absence of oxygen and produces gas used to generate electricity.

Subd. 2.

Incentive payment; appropriation.

(a) Incentive payments must be made according to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner or operator of a qualified hydropower facility or qualified wind energy conversion facility for electric energy generated and sold by the facility, (3) a publicly owned hydropower facility for electric energy that is generated by the facility and used by the owner of the facility outside the facility, or (4) the owner of a publicly owned dam that is in need of substantial repair, for electric energy that is generated by a hydropower facility at the dam and the annual incentive payments will be used to fund the structural repairs and replacement of structural components of the dam, or to retire debt incurred to fund those repairs.

(b) Payment may only be made upon receipt by the commissioner of commerce of an incentive payment application that establishes that the applicant is eligible to receive an incentive payment and that satisfies other requirements the commissioner deems necessary. The application must be in a form and submitted at a time the commissioner establishes.

(c) There is annually appropriated from the renewable development account under section 116C.779 to the commissioner of commerce sums sufficient to make the payments required under this section, in addition to the amounts funded by the renewable development account as specified in subdivision 5a.

Subd. 3.

Eligibility window.

Payments may be made under this section only for:

(a) electricity generated from:

(1) a qualified hydroelectric facility that is operational and generating electricity before December 31, 2011;

(2) a qualified wind energy conversion facility that is operational and generating electricity before January 1, 2008; or

(3) a qualified on-farm biogas recovery facility from July 1, 2001, through December 31, 2017; and

(b) gas generated from a qualified on-farm biogas recovery facility from July 1, 2007, through December 31, 2017.

Subd. 4.

Payment period.

(a) A facility may receive payments under this section for a ten-year period. No payment under this section may be made for electricity generated:

(1) by a qualified hydroelectric facility after December 31, 2021;

(2) by a qualified wind energy conversion facility after December 31, 2018; or

(3) by a qualified on-farm biogas recovery facility after December 31, 2017.

(b) The payment period begins and runs consecutively from the date the facility begins generating electricity or, in the case of refurbishment of a hydropower facility, after substantial repairs to the hydropower facility dam funded by the incentive payments are initiated.

Subd. 5.

Amount of payment; wind facilities limit.

(a) An incentive payment is based on the number of kilowatt-hours of electricity generated. The amount of the payment is:

(1) for a facility described under subdivision 2, paragraph (a), clause (4), 1.0 cent per kilowatt-hour; and

(2) for all other facilities, 1.5 cents per kilowatt-hour.

For electricity generated by qualified wind energy conversion facilities, the incentive payment under this section is limited to no more than 200 megawatts of nameplate capacity.

(b) For wind energy conversion systems installed and contracted for after January 1, 2002, the total size of a wind energy conversion system under this section must be determined according to this paragraph. Unless the systems are interconnected with different distribution systems, the nameplate capacity of one wind energy conversion system must be combined with the nameplate capacity of any other wind energy conversion system that is:

(1) located within five miles of the wind energy conversion system;

(2) constructed within the same calendar year as the wind energy conversion system; and

(3) under common ownership.

In the case of a dispute, the commissioner of commerce shall determine the total size of the system, and shall draw all reasonable inferences in favor of combining the systems.

(c) In making a determination under paragraph (b), the commissioner of commerce may determine that two wind energy conversion systems are under common ownership when the underlying ownership structure contains similar persons or entities, even if the ownership shares differ between the two systems. Wind energy conversion systems are not under common ownership solely because the same person or entity provided equity financing for the systems.

Subd. 5a.

Renewable development account.

The Department of Commerce shall authorize payment of the renewable energy production incentive to wind energy conversion systems that are eligible under this section or Laws 2005, chapter 40, to on-farm biogas recovery facilities, and to hydroelectric facilities. Payment of the incentive shall be made from the renewable energy development account as provided under section 116C.779, subdivision 2.

Subd. 6.

Ownership; financing; cure.

(a) For the purposes of subdivision 1, paragraph (c), clause (2), a wind energy conversion facility qualifies if it is owned at least 51 percent by one or more of any combination of the entities listed in that clause.

(b) A subsequent owner of a qualified facility may continue to receive the incentive payment for the duration of the original payment period if the subsequent owner qualifies for the incentive under subdivision 1.

(c) Nothing in this section may be construed to deny incentive payment to an otherwise qualified facility that has obtained debt or equity financing for construction or operation as long as the ownership requirements of subdivision 1 and this subdivision are met. If, during the incentive payment period for a qualified facility, the owner of the facility is in default of a lending agreement and the lender takes possession of and operates the facility and makes reasonable efforts to transfer ownership of the facility to an entity other than the lender, the lender may continue to receive the incentive payment for electricity generated and sold by the facility for a period not to exceed 18 months. A lender who takes possession of a facility shall notify the commissioner immediately on taking possession and, at least quarterly, document efforts to transfer ownership of the facility.

(d) If, during the incentive payment period, a qualified facility loses the right to receive the incentive because of changes in ownership, the facility may regain the right to receive the incentive upon cure of the ownership structure that resulted in the loss of eligibility and may reapply for the incentive, but in no case may the payment period be extended beyond the original ten-year limit.

(e) A subsequent or requalifying owner under paragraph (b) or (d) retains the facility's original priority order for incentive payments as long as the ownership structure requalifies within two years from the date the facility became unqualified or two years from the date a lender takes possession.

Subd. 7.

Eligibility process.

(a) A qualifying project is eligible for the incentive on the date the commissioner receives:

(1) an application for payment of the incentive;

(2) one of the following:

(i) a copy of a signed power purchase agreement;

(ii) a copy of a binding agreement other than a power purchase agreement to sell electricity generated by the project to a third person; or

(iii) if the project developer or owner will sell electricity to its own members or customers, a copy of the purchase order for equipment to construct the project with a delivery date and a copy of a signed receipt for a nonrefundable deposit; and

(3) any other information the commissioner deems necessary to determine whether the proposed project qualifies for the incentive under this section.

(b) The commissioner shall determine whether a project qualifies for the incentive and respond in writing to the applicant approving or denying the application within 15 working days of receipt of the information required in paragraph (a). A project that is not operational within 18 months of receipt of a letter of approval is no longer approved for the incentive. The commissioner shall notify an applicant of potential loss of approval not less than 60 days prior to the end of the 18-month period. Eligibility for a project that loses approval may be reestablished as of the date the commissioner receives a new completed application.