Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 235-H.F.No. 1246 
           An act relating to energy; expanding conservation 
          improvement programs; extending protection against 
          disconnection of residential utility customers during 
          cold weather; improving energy efficiency by 
          prohibiting incandescent lighting in certain exit 
          signs; requiring applicants for certificates of need 
          for large utility facilities to justify the use of 
          nonrenewable rather than renewable energy; 
          establishing energy conservation goals for state 
          buildings; requiring a review of the state building 
          code and energy standards; requiring a report to the 
          legislature; providing transitional spending 
          requirements; requiring studies; authorizing 
          conservation improvement financial incentive plans; 
          making conforming amendments; prescribing penalties; 
          appropriating money; amending Minnesota Statutes 1990, 
          sections 16B.32; 16B.61, subdivision 3; 216B.16, 
          subdivision 6b, and by adding a subdivision; 216B.241; 
          216B.243, subdivision 3, and by adding a subdivision; 
          216C.02, subdivision 1; 239.78; and 299F.011, by 
          adding a subdivision; proposing coding for new law in 
          Minnesota Statutes, chapters 216B and 216C. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                    CONSERVATION IMPROVEMENT PROGRAMS
    Section 1.  Minnesota Statutes 1990, section 216B.16, 
subdivision 6b, is amended to read: 
    Subd. 6b.  [ENERGY CONSERVATION IMPROVEMENTS.] All 
investments and expenses of a public utility as defined in 
section 216B.241, subdivision (1), clause (c) 1, paragraph (d), 
incurred in connection with energy conservation improvements 
shall be recognized and included by the commission in the 
determination of just and reasonable rates as if the investments 
and expenses were directly made or incurred by the utility in 
furnishing utility service.  
    Sec. 2.  Minnesota Statutes 1990, section 216B.241, is 
amended to read: 
    216B.241 [ENERGY CONSERVATION IMPROVEMENTS.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the terms defined in this subdivision shall have the 
meanings given them:.  
    (a) "Commission" means the public utilities commission, 
department of public service;. 
    (b) "Commissioner" means the commissioner of public service.
    (c) "Department" means the department of public service;. 
    (c) (d) "Energy conservation improvement" means the 
purchase or installation of any a device, method, or material 
that reduces consumption of or increases the efficiency in the 
use of electricity or natural gas, including, but not limited to:
    (1) insulation and ventilation; 
    (2) storm or thermal doors or windows; 
    (3) caulking and weatherstripping; 
    (4) furnace efficiency modifications; 
    (5) thermostat or lighting controls; 
    (6) awnings; or 
    (7) systems to turn off or vary the delivery of energy.  
The term "energy conservation improvement" includes any a device 
or method which that creates, converts, or actively uses energy 
from renewable sources such as solar, wind, and 
biomass, providing such provided that the device or method 
conforms with national or state performance and quality 
standards whenever applicable.  
    (d) (e) "Investments and expenses of a public utility" 
includes the investments and expenses incurred by a public 
utility in connection with an energy conservation improvement 
including, but not limited to:  
    (1) the differential in interest cost between the market 
rate and the rate charged on a no interest or below market 
interest loan made by a public utility to a customer for the 
purchase or installation of an energy conservation improvement; 
    (2) the difference between the utility's cost of purchase 
or installation of energy conservation improvements and any 
price charged by a public utility to a customer for such 
improvements.  
    (e) "Public utility" has the same meaning as given that 
term in section 216B.02, subdivision 4.  For the purposes of 
this section, "public utility" shall not include cooperative 
electric associations that become subject to rate regulation 
after April 16, 1980. 
    Subd. 1a.  [INVESTMENTS, EXPENDITURES, AND CONTRIBUTIONS; 
REGULATED UTILITIES.] (a) For purposes of this subdivision and 
subdivision 2, "public utility" has the meaning given it in 
section 216B.02, subdivision 4.  Each public utility shall spend 
and invest for energy conservation improvements under this 
subdivision and subdivision 2 the following amounts: 
    (1) for a utility that furnishes gas service, .5 percent of 
its gross operating revenues from service provided in the state; 
and 
    (2) for a utility that furnishes electric service, 1.5 
percent of its gross operating revenues from service provided in 
the state. 
    (b) The commissioner may require investments or spending 
greater than the amounts required under this subdivision for a 
public utility whose most recent advance forecast required under 
section 116C.54 projects a peak demand deficit of 100 megawatts 
or greater within five years under mid-range forecast 
assumptions.  A public utility may appeal a decision of the 
commissioner under this paragraph to the commission under 
subdivision 2.  In reviewing a decision of the commissioner 
under this paragraph, the commission shall rescind the decision 
if it finds that the required investments or spending will: 
    (1) not result in cost-effective programs; or 
    (2) otherwise not be in the public interest. 
    (c) Each utility shall determine what portion of the amount 
it sets aside for conservation improvement will be used for 
conservation improvements under subdivision 2 and what portion 
it will contribute to the energy and conservation account 
established in subdivision 2a.  Contributions must be remitted 
to the commissioner of public service by February 1 of each year.
Nothing in this subdivision prohibits a public utility from 
spending or investing for energy conservation improvement more 
than required in this subdivision. 
    Subd. 1b.  [CONSERVATION IMPROVEMENT; COOPERATIVES; 
MUNICIPALITIES.] (a) This subdivision applies to: 
    (1) a cooperative electric association that generates and 
transmits electricity to associations that provide electricity 
at retail including a cooperative electric association not 
located in this state that serves associations or others in the 
state; 
    (2) a municipality that provides electric service to retail 
customers; and 
    (3) a municipality with gross operating revenues in excess 
of $5,000,000 from sales of natural gas to retail customers.  
    (b) Each cooperative electric association and municipality 
subject to this subdivision shall spend and invest for energy 
conservation improvements under this subdivision the following 
amounts: 
    (1) for a municipality, .5 percent of its gross operating 
revenues from the sale of gas and one percent of its gross 
operating revenues from the sale of electricity not purchased 
from a public utility governed by subdivision 1a or a 
cooperative electric association governed by this subdivision; 
and 
    (2) for a cooperative electric association, 1.5 percent of 
its gross operating revenues from service provided in the state. 
    (c) Each municipality and cooperative association subject 
to this subdivision shall identify and implement energy 
conservation improvement spending and investments that are 
appropriate for the municipality or association.  Load 
management may be used to meet the requirements of this 
subdivision if it reduces the demand for or increases the 
efficiency of electric services.  A generation and transmission 
cooperative electric association may include as spending and 
investment required under this subdivision conservation 
improvement spending and investment by cooperative electric 
associations that provide electric service at retail to 
consumers and that are served by the generation and transmission 
association.  By February 1 of each year, each municipality or 
cooperative shall report to the commissioner its energy 
conservation improvement spending and investments with a brief 
analysis of effectiveness in reducing consumption of electricity 
or gas.  The commissioner shall review each report and make 
recommendations, where appropriate, to the municipality or 
association to increase the effectiveness of conservation 
improvement activities. 
    (e) As part of its spending for conservation improvement, a 
municipality or association may contribute to the energy and 
conservation account.  Any amount contributed must be remitted 
to the commissioner of public service by February 1 of each year.
    Subd. 2.  [PROGRAMS.] The department commissioner may by 
rule require public utilities to make investments and 
expenditures in energy conservation improvements, explicitly 
setting forth the interest rates, prices, and terms under which 
the improvements must be offered to the customers.  The required 
programs must cover a two-year period.  The department 
commissioner shall require at least one public utility to 
establish a pilot program to make investments in and 
expenditures for energy from renewable resources such as solar, 
wind, or biomass and shall give special consideration and 
encouragement to programs that bring about significant net 
savings through the use of energy-efficient lighting.  
The department commissioner shall evaluate the program on the 
basis of cost-effectiveness and the reliability of technologies 
employed.  The rules of the department must provide to the 
extent practicable for a free choice, by consumers participating 
in the program, of the device, method, or material constituting 
the energy conservation improvement and for a free choice of the 
seller, installer, or contractor of the energy conservation 
improvement, provided that the device, method, material, seller, 
installer, or contractor is duly licensed, certified, approved, 
or qualified, including under the residential conservation 
services program, where applicable.  The department commissioner 
may require a utility to make an energy conservation improvement 
investment or expenditure whenever the department commissioner 
finds that the improvement will result in energy savings at a 
total cost to the utility less than the cost to the utility to 
produce or purchase an equivalent amount of new supply of 
energy.  The department commissioner shall nevertheless ensure 
that every public utility operate one or more programs, under 
periodic review by the department, that make significant 
investments in and expenditures for energy conservation 
improvements.  Load management may be used to meet the 
requirements for energy conservation improvements under this 
section if it results in a demonstrable reduction in consumption 
of energy.  The department commissioner shall consider and may 
require a utility to undertake a program suggested by an outside 
source, including a political subdivision or a nonprofit or 
community organization.  The department shall ensure that at 
least half the money spent on residential programs is devoted to 
programs that directly address the needs of renters and 
low-income families and individuals unless an insufficient 
number of appropriate programs are available.  For purposes of 
this section, "low income" means an income less than 185 percent 
of the federal poverty level.  Investments and expenditures made 
under this subdivision must be treated for ratemaking purposes 
in the manner prescribed in section 216B.16, subdivision 6b.  No 
utility shall may make an energy conservation improvement 
pursuant to under this section to a building envelope unless: 
    (1) it is the primary supplier of energy used for either 
space heating or cooling in the building or unless; 
    (2) the department commissioner determines that special 
circumstances, which would unduly restrict the availability of 
conservation programs, warrant otherwise; or 
    (3) the utility has been awarded a contract under 
subdivision 2a. 
    A utility, a political subdivision, or a nonprofit or 
community organization that has suggested a program, or the 
attorney general acting on behalf of consumers and small 
business interests, may petition the commission to modify or 
revoke a department decision to require a program under this 
subdivision section, and the commission may do so if it 
determines that the program is ineffective, does not adequately 
address the needs of renters and low-income families and 
individuals not cost effective, has a long-range negative effect 
on one or more classes of customers, or is otherwise not in the 
public interest.  The person petitioning for commission review 
has the burden of proof.  The commission shall reject a petition 
that, on its face, fails to make a reasonable argument that a 
program is not in the public interest. 
    Subd. 2a.  [ENERGY AND CONSERVATION ACCOUNT.] The 
commissioner shall deposit money contributed under subdivisions 
1a and 1b in the energy and conservation account in the general 
fund.  Money in the account is appropriated to the department 
for programs designed to meet the energy conservation needs of 
low-income persons and to make energy conservation improvements 
in areas not adequately served under subdivision 2.  Interest on 
money in the account accrues to the account.  Using information 
collected under section 216C.02, subdivision 1, paragraph (b), 
the commissioner shall, to the extent possible, allocate enough 
money to programs for low-income persons to assure that their 
needs are being adequately addressed.  The commissioner shall 
request the commissioner of finance to transfer money from the 
account to the commissioner of jobs and training for an energy 
conservation program for low-income persons.  In establishing 
programs, the commissioner shall consult political subdivisions 
and nonprofit and community organizations, especially 
organizations engaged in providing energy and weatherization 
assistance to low-income persons.  At least one program must 
address the need for energy conservation improvements in areas 
in which a high percentage of residents use fuel oil or propane 
to fuel their source of home heating.  The commissioner may 
contract with a political subdivision, a nonprofit or community 
organization, a public utility, a municipality, or a cooperative 
electric association to implement its programs.  
    Subd. 2b.  [RECOVERY OF EXPENSES; TAXES.] The commission 
shall allow a utility to recover expenses resulting from a 
conservation improvement program required by the department and 
contributions to the energy and conservation account, unless the 
recovery would be inconsistent with a financial incentive 
proposal approved by the commission.  In addition, a utility may 
file annually, or the public utilities commission may require 
the utility to file, and the commission may approve, rate 
schedules containing provisions for the automatic adjustment of 
charges for utility service in direct relation to changes in the 
expenses of the utility for real and personal property taxes, 
fees, and permits, the amounts of which the utility cannot 
control.  A public utility is eligible to file for adjustment 
for real and personal property taxes, fees, and permits under 
this subdivision only if, in the year previous to the year in 
which it files for adjustment, it has spent or invested at least 
1.75 percent of its gross revenues from provision of electric 
service and .6 percent of its gross revenues from provision of 
gas service for that year for energy conservation improvements 
under section 216B.241.  
    Subd. 3.  [OWNERSHIP OF ENERGY CONSERVATION IMPROVEMENTS.] 
Any An energy conservation improvement made to or installed in 
any a building pursuant to in accordance with this section, 
except systems owned by the utility and designed to turn off, 
limit, or vary the delivery of energy, shall be are the 
exclusive property of the owner of the building except insofar 
as it to the extent that the improvement is subjected to a 
security interest in favor of the utility in case of a loan to 
the building owner.  The utility shall have has no liability for 
loss, damage or injury caused directly or indirectly by any an 
energy conservation improvement except for negligence by the 
utility in purchase, installation, or modification of the 
product.  
    Subd. 4.  [FEDERAL LAW PROHIBITIONS.] If investments by 
public utilities in energy conservation improvements are in any 
manner prohibited or restricted by federal law and there is a 
provision under which such the prohibition or restriction may be 
waived, then the commission, the governor, or any other 
necessary state agency or officer shall take all necessary and 
appropriate steps to secure a waiver with respect to those 
public utility investments in energy conservation improvements 
included in this section.  
    Sec. 3.  Minnesota Statutes 1990, section 216C.02, 
subdivision 1, is amended to read: 
    Subdivision 1.  [POWERS.] (a) The commissioner may: 
     (1) apply for, receive, and spend money received from 
federal, municipal, county, regional, and other government 
agencies and private sources; 
     (2) apply for, accept, and disburse grants and other aids 
from public and private sources; 
     (3) contract for professional services if work or services 
required or authorized to be carried out by the commissioner 
cannot be satisfactorily performed by employees of the 
department or by another state agency; 
     (4) enter into interstate compacts to carry out research 
and planning jointly with other states or the federal government 
when appropriate; 
     (5) upon reasonable request, distribute informational 
material at no cost to the public; and 
     (6) enter into contracts for the performance of the 
commissioner's duties with federal, state, regional, 
metropolitan, local, and other agencies or units of government 
and educational institutions, including the University of 
Minnesota, without regard to the competitive bidding 
requirements of chapters 16A and 16B.  
     (b) The commissioner shall collect information on 
conservation and other energy-related programs carried on by 
other agencies, by public utilities, by cooperative electric 
associations, by municipal power agencies, by other fuel 
suppliers, by political subdivisions, and by private 
organizations.  Other agencies, cooperative electric 
associations, municipal power agencies, and political 
subdivisions shall cooperate with the commissioner by providing 
information requested by the commissioner.  The commissioner may 
by rule require the submission of information by other program 
operators.  The commissioner shall make the information 
available to other agencies and to the public and, as necessary, 
shall recommend to the legislature changes in the laws governing 
conservation and other energy-related programs to ensure that: 
    (1) expenditures on the programs are adequate to meet 
identified needs; 
    (2) the needs of low-income energy users are being 
adequately addressed; 
    (3) duplication of effort is avoided or eliminated; 
    (4) a program that is ineffective is improved or 
eliminated; and 
    (5) voluntary efforts are encouraged through incentives for 
their operators.  
    The commissioner shall appoint an advisory task force to 
help evaluate the information collected and formulate 
recommendations to the legislature.  The task force must include 
low-income energy users as defined in section 216B.241, 
subdivision 2. 
    (c) By January 15 of each year, the commissioner shall 
report to the legislature on the projected amount of federal 
money likely to be available to the state during the next fiscal 
year, including grant money and money received by the state as a 
result of litigation or settlements of alleged violations of 
federal petroleum pricing regulations.  The report must also 
estimate the amount of money projected as needed during the next 
fiscal year to finance a level of conservation and other 
energy-related programs adequate to meet projected needs, 
particularly the needs of low-income persons and households, and 
must recommend the amount of state appropriations needed to 
cover the difference between the projected availability of 
federal money and the projected needs. 
     Sec. 4.  [REPORT; "CIP" PROGRAMS FOR STORED FUELS 
PROVIDERS.] 
    Not later than February 1, 1992, the commissioner of public 
service shall report to the energy policy committees of the 
senate and the house of representatives on proposals to include 
in conservation improvement programs providers of liquified 
petroleum gas (LPG or "propane") and fuel oil for residential 
heating. 
    Sec. 5.  [216C.195] [ENERGY CODE AMENDMENTS; COMMERCIAL 
BUILDINGS.] 
    Subdivision 1.  [COMMISSIONER TO ADOPT.] Not later than 
September 1, 1992, the commissioner of public service shall 
adopt amendments to the energy code portion of the Minnesota 
building code to implement energy-efficient standards for new 
commercial buildings. 
    Subd. 2.  [ADOPTION OF ASHRAE/IES 90.1 STANDARD.] The 
standards adopted under subdivision 1 must require energy 
efficiency at least as stringent as: 
    (1) the "minimum performance" standards for opaque building 
envelopes; and 
    (2) the January 1, 1992, standards for heating, ventilating 
and air conditioning, and water heating as proposed in 
ASHRAE/IES standard 90.1. 
    Subd. 3.  [LIGHTING STANDARDS.] The standards adopted under 
subdivision 1 must be at least as stringent as lighting 
standards for new federal buildings (for 1993) in Code of 
Federal Regulations, title 10, section 435.103. 
    Sec. 6.  Minnesota Statutes 1990, section 239.78, is 
amended to read: 
    239.78 [INSPECTION FEES.] 
    An inspection fee shall be charged on petroleum products 
when received by the distributor, and on petroleum products 
received and held for sale or use by any person when the 
petroleum products have not previously been received by a 
licensed distributor.  The department shall adjust the 
inspection fee to recover A person who owns petroleum products 
held in storage at a pipeline terminal, river terminal, or 
refinery shall pay an inspection fee of 75 cents for every 1,000 
gallons sold or withdrawn from the terminal or refinery 
storage.  The revenue from the fee must cover the amount 
appropriated for petroleum product quality inspection expenses 
and the amount appropriated for the inspection and testing of 
petroleum product measuring devices as required by this 
chapter.  The department shall review and adjust the inspection 
fee as required by section 16A.128, except the review of the fee 
shall occur annually on or before January 1. 
    The commissioner of revenue shall credit the distributor a 
person for inspection fees previously paid in error or for any 
material exported or sold for export from the state upon filing 
of a report in a manner approved by the department.  The 
commissioner of revenue is authorized to may collect the 
inspection fees along with any taxes due under chapter 296. 
    Sec. 7.  [TRANSITIONAL SPENDING REQUIREMENTS.] 
    Notwithstanding section 2, subdivisions 1a and 1b, a public 
utility, municipality, or cooperative electric association 
governed by one of those subdivisions that spends and invests 
less than those subdivisions require on conservation 
improvements shall increase its spending and investment in 
accordance with this section.  The utility, municipality, or 
association shall: 
    (1) using its 1991 gross operating revenues, apply the 
applicable percentage required by subdivision 1a or 1b to 
determine what level of spending would have been required in 
1991 had those subdivisions been in effect; 
    (2) subtract from the amount computed under clause (1) the 
actual amount spent by the utility, municipality, or association 
on conservation improvements in 1991; and 
    (3) in each of four years, beginning in 1992, increase its 
spending on energy conservation improvements by one-fourth of 
the remainder computed under clause (2). 
    After December 31, 1995, the utility, municipality, or 
association shall annually spend and invest the amount required 
by, and determined under, section 2, subdivision 1a or 1b, 
whichever applies. 
    Sec. 8.  [APPROPRIATION.] 
    $40,000 in fiscal year 1992 and $40,000 in fiscal year 1993 
are appropriated from the general fund to the commissioner of 
public service for administration and analysis of conservation 
improvement programs.  The complement of the department of 
public service is increased by one position.  The cost of this 
position shall be reimbursed through fees paid by public 
utilities. 
     $1,000,000 is appropriated from the general fund to the 
energy and conservation account established in section 2, 
subdivision 2a, to be available until June 30, 1993, for 
programs administered by the commissioner of public service or 
other state agency to improve the energy efficiency of 
residential oil-fired heating plants in low-income households. * 
(This section was vetoed by the governor.) 

                                ARTICLE 2

                            COLD WEATHER RULE
      Section 1.  [216B.097] [COLD WEATHER RULE, COOPERATIVE AND 
MUNICIPAL UTILITIES.] 
     Subdivision 1.  [APPLICATION; NOTICE TO RESIDENTIAL 
CUSTOMERS.] (a) A municipal utility or a cooperative electric 
association must not disconnect the utility service of a 
residential customer if the disconnection affects the primary 
heat source for the residential unit when the following 
conditions are met: 
     (1) the disconnection would occur during the period between 
October 15 and April 15; 
     (2) the customer has declared inability to pay on forms 
provided by the utility; 
     (3) the household income of the customer is less than 185 
percent of the federal poverty level, as documented by the 
customer to the utility; and 
     (4) the customer's account is current for the billing 
period immediately prior to October 15 or the customer has 
entered into a payment schedule and is reasonably current with 
payments under the schedule. 
     (b) A municipal utility or a cooperative electric 
association must, between August 15 and October 15 of each year, 
notify all residential customers of the provisions of this 
section. 
     Subd. 2.  [NOTICE TO RESIDENTIAL CUSTOMER FACING 
DISCONNECTION.] Before disconnecting service to a residential 
customer during the period between October 15 and April 15, a 
municipal utility or cooperative electric association must 
provide the following information to a customer: 
    (1) a notice of proposed disconnection; 
    (2) a statement explaining the customer's rights and 
responsibilities; 
    (3) a list of local energy assistance providers; 
    (4) forms on which to declare inability to pay; and 
    (5) a statement explaining available time payment plans and 
other opportunities to secure continued utility service. 
    Subd. 3.  [RESTRICTIONS IF DISCONNECTION NECESSARY.] (a) If 
a residential customer must be involuntarily disconnected 
between October 15 and April 15 for failure to comply with the 
provisions of subdivision 1, the disconnection must not occur on 
a Friday or on the day before a holiday.  Further, the 
disconnection must not occur until at least 20 days after the 
notice required in subdivision 2 has been mailed to the customer 
or 15 days after the notice has been personally delivered to the 
customer. 
    (b) If a customer does not respond to a disconnection 
notice, the customer must not be disconnected until the utility 
investigates whether the residential unit is actually occupied.  
If the unit is found to be occupied, the utility must 
immediately inform the occupant of the provisions of this 
section.  If the unit is unoccupied, the utility must give seven 
days' written notice of the proposed disconnection to the local 
energy assistance provider before making a disconnection. 
    (c) If, prior to disconnection, a customer appeals a notice 
of involuntary disconnection, as provided by the utility's 
established appeal procedure, the utility must not disconnect 
until the appeal is resolved. 

                                ARTICLE 3

                     ENERGY-EFFICIENT EXIT LIGHTING
    Section 1.  Minnesota Statutes 1990, section 16B.61, 
subdivision 3, is amended to read: 
    Subd. 3.  [SPECIAL REQUIREMENTS.] (a)  [SPACE FOR COMMUTER 
VANS.] The code must require that any parking ramp or other 
parking facility constructed in accordance with the code include 
an appropriate number of spaces suitable for the parking of 
motor vehicles having a capacity of seven to 16 persons and 
which are principally used to provide prearranged commuter 
transportation of employees to or from their place of employment 
or to or from a transit stop authorized by a local transit 
authority.  
      (b)  [SMOKE DETECTION DEVICES.] The code must require that 
all dwellings, lodging houses, apartment houses, and hotels as 
defined in section 299F.362 comply with the provisions of 
section 299F.362.  
      (c)  [DOORS IN NURSING HOMES AND HOSPITALS.] The state 
building code may not require that each door entering a sleeping 
or patient's room from a corridor in a nursing home or hospital 
with an approved complete standard automatic fire extinguishing 
system be constructed or maintained as self-closing or 
automatically closing.  
      (d)  [CHILD CARE FACILITIES IN CHURCHES.] A licensed day 
care center serving fewer than 30 preschool age persons and 
which is located in a below ground space in a church building is 
exempt from the state building code requirement for a ground 
level exit when the center has more than two stairways to the 
ground level and its exit.  
      (e)  [FAMILY AND GROUP FAMILY DAY CARE.] The commissioner 
of administration shall establish a task force to determine 
occupancy standards specific and appropriate to family and group 
family day care homes and to examine hindrances to establishing 
day care facilities in rural Minnesota.  The task force must 
include representatives from rural and urban building code 
inspectors, rural and urban fire code inspectors, rural and 
urban county day care licensing units, rural and urban family 
and group family day care providers and consumers, child care 
advocacy groups, and the departments of administration, human 
services, and public safety. 
      By January 1, 1989, the commissioner of administration 
shall report the task force findings and recommendations to the 
appropriate legislative committees together with proposals for 
legislative action on the recommendations. 
      Until the legislature enacts legislation specifying 
appropriate standards, the definition of Group R-3 occupancies 
in the state building code applies to family and group family 
day care homes licensed by the department of human services 
under Minnesota Rules, chapter 9502. 
      (f)  [MINED UNDERGROUND SPACE.] Nothing in the state 
building codes shall prevent cities from adopting rules 
governing the excavation, construction, reconstruction, 
alteration, and repair of mined underground space pursuant to 
sections 469.135 to 469.141, or of associated facilities in the 
space once the space has been created, provided the intent of 
the building code to establish reasonable safeguards for health, 
safety, welfare, comfort, and security is maintained. 
     (g)  [ENCLOSED STAIRWAYS.] No provision of the code or any 
appendix chapter of the code may require stairways of existing 
multiple dwelling buildings of two stories or less to be 
enclosed. 
     (h)  [DOUBLE CYLINDER DEAD BOLT LOCKS.] No provision of the 
code or appendix chapter of the code may prohibit double 
cylinder dead bolt locks in existing single-family homes, 
townhouses, and first floor duplexes used exclusively as a 
residential dwelling.  Any recommendation or promotion of double 
cylinder dead bolt locks must include a warning about their 
potential fire danger and procedures to minimize the danger. 
     (i)  [RELOCATED RESIDENTIAL BUILDINGS.] A residential 
building relocated within or into a political subdivision of the 
state need not comply with the state energy code or section 
326.371 provided that, where available, an energy audit is 
conducted on the relocated building. 
     (j)  [AUTOMATIC GARAGE DOOR OPENING SYSTEMS.] The code must 
require all residential buildings as defined in section 325F.82 
to comply with the provisions of sections 325F.82 and 325F.83.  
    (k)  [EXIT SIGN ILLUMINATION.] The code must prohibit the 
use of incandescent bulbs, except for battery-powered back-up 
bulbs, in internally illuminated exit signs. 
    Sec. 2.  Minnesota Statutes 1990, section 299F.011, is 
amended by adding a subdivision to read: 
    Subd. 4d.  [EXIT SIGN ILLUMINATION.] The uniform fire code 
must prohibit the use of incandescent bulbs, except for 
battery-powered back-up bulbs, in internally illuminated exit 
signs. 
    Sec. 3.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective January 1, 1994, and apply 
to all internally illuminated exit signs in use on or after that 
date. 

                                ARTICLE 4

                       CERTIFICATE OF NEED PROCESS
    Section 1.  Minnesota Statutes 1990, section 216B.243, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [USE OF RENEWABLE RESOURCES.] The commission may 
not issue a certificate of need under this section for a large 
energy facility that generates electric power by means of a 
nonrenewable energy source, or that transmits electric power 
generated by means of a nonrenewable energy source, unless the 
applicant for the certificate has demonstrated to the 
commission's satisfaction that it has explored the possibility 
of generating power by means of renewable energy sources and has 
demonstrated that the alternative selected is less expensive 
(including environmental costs) than power generated by a 
renewable energy source.  For purposes of this subdivision, 
"renewable energy source" includes hydro, wind, solar, and 
geothermal energy and the use of trees or other vegetation as 
fuel. 
    Sec. 2.  [EFFECTIVE DATE.] 
    Section 1 is effective for applications for certificates of 
need filed with the public utilities commission after July 31, 
1991. 

                                ARTICLE 5

                     ENERGY CONSERVATION:  BUILDINGS
    Section 1.  Minnesota Statutes 1990, section 16B.32, is 
amended to read: 
    16B.32 [ALTERNATIVE ENERGY SOURCES USE.] 
    Subdivision 1.  [ALTERNATIVE ENERGY SOURCES.] Plans 
prepared by the commissioner for a new building or for a 
renovation of 50 percent or more of an existing building or its 
energy systems must include designs which use active and passive 
solar energy systems, earth sheltered construction, and other 
alternative energy sources where feasible.  
    Subd. 2.  [ENERGY CONSERVATION GOALS; EFFICIENCY 
PROGRAM.] (a) The commissioner of administration in consultation 
with the department of public service, in cooperation with one 
or more public utilities or comprehensive energy services 
providers, may conduct a shared-savings program involving energy 
conservation expenditures of up to $15,000,000 by July 1, 1996, 
on state-owned buildings.  The public utility or energy services 
provider shall contract with appropriate state agencies to 
implement energy efficiency improvements in the selected 
buildings.  A contract must require the public utility or energy 
services provider to include all energy efficiency improvements 
in selected buildings that are calculated to achieve a cost 
payback within ten years.  The contract must require that the 
public utility or energy services provider be repaid solely from 
energy cost savings and only to the extent of energy cost 
savings.  Repayments must be interest-free.  The goal of the 
program in this paragraph is to demonstrate that through 
effective energy conservation the total energy consumption per 
square foot of state-owned and wholly state-leased buildings 
could be reduced by at least 25 percent, and climate control 
energy consumption per square foot could be reduced by at least 
15 percent from consumption in the base year of 1990. 
    (b) The commissioner may exclude from the program of 
paragraph (a) a building in which energy conservation measures 
are carried out.  "Energy conservation measures" means measures 
that are applied to a state building that improve energy 
efficiency and have a simple return of investment in five years 
or within the remaining period of a lease, whichever time is 
shorter, and involves energy conservation, conservation 
facilities, renewable energy sources, improvements in operations 
and maintenance efficiencies, or retrofit activities. 
    (c) By January 1, 1993, the commissioner shall submit to 
the legislature a report that includes: 
    (1) an energy use survey of new or added space state 
buildings occupy; 
    (2) a plan for conserving energy without undertaking any 
physical alterations of the space; 
    (3) recommendations for physical alterations that would 
enable the agency to conserve additional energy along with an 
estimate of the cost of the alterations; and 
    (4) recommendations for additional legislation needed to 
achieve the goal along with an estimate of any costs associated 
with the recommended legislation. 
    Sec. 2.  [BUILDING CODE REVIEW.] 
    The commissioner of public service, in cooperation with the 
commissioner of administration, shall review the state building 
code and the energy conservation standards for public buildings 
in view of the state's projected long-range energy needs, the 
effect of conservation programs on those needs, and advances in 
technology with respect to weatherization and energy 
efficiency.  The commissioner shall report to the energy and 
public utilities committee of the senate and the energy 
committee of the house of representatives by January 15, 1992, 
on the results of the review.  The report must include: 
    (1) any recommendations for changes in the building code 
and the energy conservation standards to achieve greater 
conservation of energy; 
    (2) the direct effect of implementing the changes on the 
cost of construction and remodeling; and 
    (3) an estimate of energy savings that would result in the 
changes, including an estimate of net costs when savings are 
deducted from any increased construction and remodeling costs. 
    Sec. 3.  [REPEALER.] 
    Section 1, subdivision 2, is repealed effective July 1, 
1995. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Section 1 is effective May 1, 1991. 

                                ARTICLE 6
 FINANCIAL INCENTIVES 
    Section 1.  Minnesota Statutes 1990, section 216B.16, is 
amended by adding a subdivision to read: 
    Subd. 6c.  [INCENTIVE PLANS FOR ENERGY CONSERVATION 
IMPROVEMENTS.] (a) The commission may order public utilities to 
develop and submit for commission approval incentive plans that 
describe the method of recovery and accounting for utility 
conservation expenditures and savings.  In developing the 
incentive plans the commission shall ensure the effective 
involvement of interested parties. 
    In approving incentive plans, the commission shall consider:
    (1) whether the plan is likely to increase utility 
investment in cost-effective energy conservation; 
    (2) whether the plan is compatible with the interest of 
utility ratepayers and other interested parties; 
    (3) whether the plan links the incentive to the utility's 
performance in achieving cost-effective conservation; and 
    (4) whether the plan is in conflict with other provisions 
of this chapter. 
    (b) The commission may set rates to encourage the vigorous 
and effective implementation of utility conservation programs.  
The commission may: 
    (1) increase or decrease any otherwise allowed rate of 
return on net investment based upon the utility's skill, 
efforts, and success in conserving energy; 
    (2) share between ratepayers and utilities the net savings 
resulting from energy conservation programs to the extent 
justified by the utility's skill, efforts, and success in 
conserving energy; and 
    (3) compensate the utility for earnings lost as a result of 
its conservation programs. 
    Sec. 2.  Minnesota Statutes 1990, section 216B.243, 
subdivision 3, is amended to read: 
    Subd. 3.  No proposed large energy facility shall be 
certified for construction unless the applicant can show that 
demand for electricity cannot be met more cost effectively 
through energy conservation and load-management measures and 
unless the applicant has otherwise justified its need.  In 
assessing need, the commission shall evaluate: 
    (1) The accuracy of the long-range energy demand forecasts 
on which the necessity for the facility is based; 
    (2) The effect of existing or possible energy conservation 
programs under sections 216C.05 to 216C.30 and this section or 
other federal or state legislation on long-term energy demand; 
    (3) The relationship of the proposed facility to overall 
state energy needs, as described in the most recent state energy 
policy and conservation report prepared pursuant to under 
section 216C.18; 
    (4) Promotional activities which that may have given rise 
to the demand for this facility; 
    (5) Socially beneficial uses of the output of this 
facility, including its uses to protect or enhance environmental 
quality; 
    (6) The effects of the facility in inducing future 
development; 
    (7) Possible alternatives for satisfying the energy demand 
including but not limited to potential for increased efficiency 
of existing energy generation facilities; 
    (8) The policies, rules, and regulations of other state and 
federal agencies and local governments; and 
    (9) Any feasible combination of energy conservation 
improvements, required by the commission pursuant to under 
section 216B.241, that can (a) (i) replace part or all of the 
energy to be provided by the proposed facility, and (b) (ii) 
compete with it economically. 

                                ARTICLE 7

                                 STUDIES
    Section 1.  [STUDY; PHOTOVOLTAIC DEVICES.] 
    The commissioner of public service shall conduct a study of 
the potential market within the state for photovoltaic devices.  
The study shall focus on applications where photovoltaics, with 
and without energy storage, cost less than conventional means of 
supplying energy and power for those applications.  The 
commissioner shall submit the report to the appropriate 
committees of the legislature by January 15, 1992. * (This 
section was vetoed by the governor.) 
    Sec. 2.  [STUDY; CARBON EMISSIONS TAX.] 
    The commissioner of public service shall conduct a study to 
evaluate the need for, and the impact of, a carbon emissions tax 
ranging from $1 to $75 per ton of carbon emissions.  The study 
shall consider the effect of the tax on the sources and use of 
energy in the state and on the economy of the state.  The 
commissioner shall submit the report to the appropriate 
committees of the legislature by January 15, 1992. * (This 
section was vetoed by the governor.) 
    Sec. 3.  [LANDFILL GAS RECOVERY.] 
    The public utilities commission shall examine the economic 
and technical aspects of the process by which a qualified 
facility could use methane gas from qualified landfills to 
produce electricity for sale to electric utilities under 
Minnesota Statutes, section 216B.164.  If the commission 
determines that use of that technology should be encouraged, but 
that changes in relevant statutes are necessary to accomplish 
that end, it shall recommend appropriate statutory changes to 
the legislature by January 15, 1992. 
    Sec. 4.  [APPROPRIATION.] 
    $55,000 is appropriated from the general fund to the 
commissioner of public service to cover costs associated with 
the studies required by sections 1 and 2. * (This section was 
vetoed by the governor.) 
    Presented to the governor May 24, 1991 
    Signed by the governor May 28, 1991, 8:55 p.m.