Minnesota Session Laws - 1993, Regular Session

  
    Laws of Minnesota 1993 

                        CHAPTER 327-S.F.No. 1437 
           An act relating to utilities; setting requirements for 
          exit sign illumination for new buildings; eliminating 
          advance forecast requirements for public electric 
          utilities submitting advance forecasts in an 
          integrated resource plan; requiring cooperative 
          electric associations and municipal utilities to 
          comply with standards set by public utilities 
          commission relating to electrical current or voltage; 
          allowing extension of utility rate hearings in certain 
          cases; eliminating district heating loan program; 
          setting conditions for certain utility contracts; 
          regulating the provision of water service to 
          communities near Duluth; making technical changes; 
          amending Minnesota Statutes 1992, sections 16B.61, 
          subdivision 3; 116C.54; 216B.09; 216B.16, subdivisions 
          1, 1a, 2, and 3; 216B.2421, subdivision 2 and by 
          adding a subdivision; 216B.43; 216B.48, subdivisions 
          1, 3, and 4; 216C.17, subdivision 3; 216C.37, 
          subdivision 1; 299F.011, subdivision 4c; 446A.03, 
          subdivision 1; 446A.10, subdivision 2; and 465.74, 
          subdivisions 1, 4, and 6; Laws 1981, chapter 354, 
          section 4; repealing Minnesota Statutes 1992, section 
          216C.36; Minnesota Rules, parts 7665.0200; 7665.0210; 
          7665.0220; 7665.0230; 7665.0240; 7665.0250; 7665.0300; 
          7665.0310; 7665.0320; 7665.0330; 7665.0340; 7665.0350; 
          7665.0360; 7665.0370; and 7665.0380. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1992, 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; GROUND LEVEL 
EXIT.] 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)  [CHILD CARE FACILITIES IN CHURCHES; VERTICAL ACCESS.] 
Until August 1, 1996, an organization providing child care in an 
existing church building which is exempt from taxation under 
section 272.02, subdivision 1, clause (5), shall have five years 
from the date of initial licensure under chapter 245A to provide 
interior vertical access, such as an elevator, to persons with 
disabilities as required by the state building code.  To obtain 
the extension, the organization providing child care must secure 
a $2,500 performance bond with the commissioner of human 
services to ensure that interior vertical access is achieved by 
the agreed upon date. 
     (f)  [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. 
     (g)  [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. 
    (h)  [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. 
    (i)  [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. 
    (j)  [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. 
    (k)  [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.  
    (l)  [EXIT SIGN ILLUMINATION.] For a new building on which 
construction is begun on or after October 1, 1993, or an 
existing building on which remodeling affecting 50 percent or 
more of the enclosed space is begun on or after October 1, 1993, 
the code must prohibit the use of internally illuminated exit 
signs whose electrical consumption during nonemergency operation 
exceeds 20 watts of resistive power with a maximum total power 
consumption of 40 volt amperes (VA).  All other requirements in 
the code for exit signs must be complied with.  Power 
consumption in volt amperes is the resistive power divided by 
the power factor. 
    Sec. 2.  Minnesota Statutes 1992, section 116C.54, is 
amended to read: 
    116C.54 [ADVANCE FORECASTING FORECAST REQUIREMENT.] 
    Subdivision 1.  [REPORT.] Every utility which owns or 
operates, or plans within the next 15 years to own or operate 
large electric power generating plants or high voltage 
transmission lines shall develop forecasts as specified in this 
section.  On or before July 1 of each even-numbered year, every 
such utility shall submit a report of its forecast to the 
board.  The report may be appropriate portions of a single 
regional forecast or may be jointly prepared and submitted by 
two or more utilities and shall contain the following 
information: 
    (1) Description of the tentative regional location and 
general size and type of all large electric power generating 
plants and high voltage transmission lines to be owned or 
operated by the utility during the ensuing 15 years or any 
longer period the board deems necessary; 
    (2) Identification of all existing generating plants and 
transmission lines projected to be removed from service during 
any 15 year period or upon completion of construction of any 
large electric power generating plants and high voltage 
transmission lines; 
    (3) Statement of the projected demand for electric energy 
for the ensuing 15 years and the underlying assumptions for this 
forecast, such information to be as geographically specific as 
possible where this demand will occur; 
    (4) Description of the capacity of the electric power 
system to meet projected demands during the ensuing 15 years; 
    (5) Description of the utility's relationship to other 
utilities and regional associations, power pools or networks; 
and 
    (6) Other relevant information as may be requested by the 
board. 
    On or before July 1 of each odd-numbered year, a utility 
shall verify or submit revisions to items (1) and (2). 
    Subd. 2.  [EXCEPTION.] Public electric utilities submitting 
advance forecasts containing all information specified in 
subdivision 1 as part of an integrated resource plan filed 
pursuant to public utilities commission rules shall be excluded 
from the annual reporting requirement of this section.  
    Sec. 3.  Minnesota Statutes 1992, section 216B.09, is 
amended to read: 
    216B.09 [STANDARDS; CLASSIFICATIONS; RULES; PRACTICES.] 
    Subdivision 1.  [COMMISSION AUTHORITY, GENERALLY.] The 
commission, after hearing upon reasonable notice had upon on its 
own motion or upon complaint and after reasonable notice and 
hearing, may ascertain and fix just and reasonable standards, 
classifications, rules, or practices to be observed and followed 
by any or all public utilities with respect to the service to be 
furnished;. 
    Subd. 2.  [ELECTRIC SERVICE.] The commission, on its own 
motion or upon complaint and after reasonable notice and 
hearing, may ascertain and fix adequate and reasonable standards 
for the measurement of the quantity, quality, pressure, initial 
voltage, or other condition pertaining to the supply of the 
service; prescribe reasonable rules for the examination and 
testing of the service and for the measurement thereof; 
establish or approve reasonable rules, specifications, and 
standards to secure the accuracy of all meters, instruments and 
equipment used for the measurement of any service of any public 
utility.  In this subdivision, service standards or requirements 
governing any current or voltage originating from the practice 
of grounding of electrical systems apply to cooperative 
associations and municipal utilities providing or furnishing 
retail electric service to agricultural customers. 
    Subd. 3.  [FILINGS.] Any standards, classifications, rules, 
or practices now or hereafter observed or followed by any public 
utility may be filed by it with the commission, and the same 
shall continue in force until amended by the public utility or 
until changed by the commission as herein provided.  
    The commission may require the filing of all rates, 
including rates charged to and by public utilities.  
    Subd. 4.  [APPEARANCES BEFORE FEDERAL AGENCY.] The 
commission is empowered to appear before the Federal Power 
Energy Regulatory Commission to offer evidence and to seek 
appropriate relief in any case in which the rates charged 
consumers within the state of Minnesota may be affected. 
    Sec. 4.  Minnesota Statutes 1992, section 216B.16, 
subdivision 1, is amended to read: 
    Subdivision 1.  [NOTICE.] Unless the commission otherwise 
orders, no public utility shall change a rate which has been 
duly established under this chapter, except upon 60 days notice 
to the commission.  The notice shall include statements of 
facts, expert opinions, substantiating documents, and 
exhibits including an energy conservation improvement plan 
pursuant to section 216B.241, supporting the change requested, 
and state the change proposed to be made in the rates then in 
force and the time when the modified rates will go into effect.  
If the filing utility does not have an approved conservation 
improvement plan on file with the department of public service, 
it shall also include in its notice an energy conservation plan 
pursuant to section 216B.241.  The filing utility shall give 
written notice, as approved by the commission, of the proposed 
change to the governing body of each municipality and county in 
the area affected.  All proposed changes shall be shown by 
filing new schedules or shall be plainly indicated upon 
schedules on file and in force at the time. 
    Sec. 5.  Minnesota Statutes 1992, section 216B.16, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [SETTLEMENT.] (a) When a public utility submits 
a general rate filing, the office of administrative hearings, 
before conducting a contested case hearing, shall convene a 
settlement conference including all of the parties for the 
purpose of encouraging settlement of any or all of the issues in 
the contested case.  If a stipulated settlement is not reached 
before the contested case hearing, the office of administrative 
hearings may reconvene the settlement conference during or after 
completion of the contested case hearing at its discretion or a 
party's request.  The office of administrative hearings or the 
commission may, upon the request of any party and the public 
utility, extend the procedural schedule of the contested case in 
order to permit the parties to engage in settlement 
discussions.  An extension must be for a definite period of time 
not to exceed 60 days.  
    (b) If the applicant and all intervening parties agree to a 
stipulated settlement of the case or parts of the case, the 
settlement must be submitted to the commission.  The commission 
shall accept or reject the settlement in its entirety and, at 
any time until its final order is issued in the case, may 
require the office of administrative hearings to conduct a 
contested case hearing.  The commission may accept the 
settlement on finding that to do so is in the public interest 
and is supported by substantial evidence.  If the commission 
does not accept the settlement, it may issue an order modifying 
the settlement subject to the approval of the parties.  Each 
party shall have ten days in which to reject the proposed 
modification.  If no party rejects the proposed modification, 
the commission's order becomes final.  If the commission rejects 
the settlement, or a party rejects the commission's proposed 
modification, a contested case hearing must be completed. 
    Sec. 6.  Minnesota Statutes 1992, section 216B.16, 
subdivision 2, is amended to read: 
    Subd. 2.  [SUSPENSION OF PROPOSED RATES; HEARING; FINAL 
DETERMINATION DEFINED.] (a) Whenever there is filed with the 
commission a schedule modifying or resulting in a change in any 
rates then in force as provided in subdivision 1, the commission 
may suspend the operation of the schedule by filing with the 
schedule of rates and delivering to the affected utility a 
statement in writing of its reasons for the suspension at any 
time before the rates become effective.  The suspension shall 
not be for a longer period than ten months beyond the initial 
filing date except as provided in paragraph (b) this subdivision 
or subdivision 1a.  During the suspension the commission shall 
determine whether all questions of the reasonableness of the 
rates requested raised by persons deemed interested or by the 
administrative division of the department of public service can 
be resolved to the satisfaction of the commission.  If the 
commission finds that all significant issues raised have not 
been resolved to its satisfaction, or upon petition by ten 
percent of the affected customers or 250 affected customers, 
whichever is less, it shall refer the matter to the office of 
administrative hearings with instructions for a public hearing 
as a contested case pursuant to chapter 14, except as otherwise 
provided in this section.  The commission may order that the 
issues presented by the proposed rate changes be bifurcated into 
two separate hearings as follows:  (1) determination of the 
utility's revenue requirements and (2) determination of the rate 
design.  Upon issuance of both administrative law judge reports, 
the issues shall again be joined for consideration and final 
determination by the commission.  All prehearing discovery 
activities of state agency intervenors shall be consolidated and 
conducted by the department of public service.  If the 
commission does not make a final determination concerning a 
schedule of rates within ten months after the initial filing 
date, the schedule shall be deemed to have been approved by the 
commission; except if: 
    (1) an extension of the procedural schedule has been 
granted under subdivision 1a, in which case the schedule of 
rates is deemed to have been approved by the commission on the 
last day of the extended period of suspension; or 
    (2) a settlement has been submitted to and rejected by the 
commission, the schedule is deemed to have been approved 12 
months after the initial filing and the commission does not make 
a final determination concerning the schedule of rates, the 
schedule of rates is deemed to have been approved 60 days after 
the initial or, if applicable, the extended period of suspension.
    (b) If the commission finds that it has insufficient time 
during the suspension period to make a final determination of a 
case involving changes in general rates because of the need to 
make final determinations of other previously filed cases 
involving changes in general rates under this section or section 
237.075, the commission may extend the suspension period to the 
extent necessary to allow itself 20 working days to make the 
final determination after it has made final determinations in 
the previously filed cases.  An extension of the suspension 
period under this paragraph does not alter the setting of 
interim rates under subdivision 3. 
    (c) For the purposes of this section, "final determination" 
means the initial decision of the commission and not any order 
which may be entered by the commission in response to a petition 
for rehearing or other further relief.  The commission may 
further suspend rates until it determines all those petitions. 
    Sec. 7.  Minnesota Statutes 1992, section 216B.16, 
subdivision 3, is amended to read: 
    Subd. 3.  [INTERIM RATES.] Notwithstanding any order of 
suspension of a proposed increase in rates, the commission shall 
order an interim rate schedule into effect not later than 60 
days after the initial filing date.  The commission shall order 
the interim rate schedule ex parte without a public hearing.  
Notwithstanding the provisions of sections 216.25, 216B.27 and 
216B.52, no interim rate schedule ordered by the commission 
pursuant to this subdivision shall be subject to an application 
for a rehearing or an appeal to a court until the commission has 
rendered its final determination.  Unless the commission finds 
that exigent circumstances exist, the interim rate schedule 
shall be calculated using the proposed test year cost of 
capital, rate base, and expenses, except that it shall include:  
(1) a rate of return on common equity for the utility equal to 
that authorized by the commission in the utility's most recent 
rate proceeding; (2) rate base or expense items the same in 
nature and kind as those allowed by a currently effective order 
of the commission in the utility's most recent rate proceeding; 
and (3) no change in the existing rate design.  In the case of a 
utility which has not been subject to a prior commission 
determination, the commission shall base the interim rate 
schedule on its most recent determination concerning a similar 
utility.  
     If, at the time of its final determination, the commission 
finds that the interim rates are in excess of the rates in the 
final determination, the commission shall order the utility to 
refund the excess amount collected under the interim rate 
schedule, including interest on it which shall be at the rate of 
interest determined by the commission.  The utility shall 
commence distribution of the refund to its customers within 120 
days of the final order, not subject to rehearing or appeal.  
If, at the time of its final determination, the commission finds 
that the interim rates are less than the rates in the final 
determination, the commission shall prescribe a method by which 
the utility will recover the difference in revenues from between 
the date of the final determination to and the date the new rate 
schedules are put into effect.  In addition, when an extension 
is granted for settlement discussions under subdivision 1a, the 
commission shall allow the utility to also recover the 
difference in revenues for a length of time equal to the length 
of the extension. 
    If the public utility fails to make refunds within the 
period of time prescribed by the commission, the commission 
shall sue therefor and may recover on behalf of all persons 
entitled to a refund.  In addition to the amount of the refund 
and interest due, the commission shall be entitled to recover 
reasonable attorney's fees, court costs and estimated cost of 
administering the distribution of the refund to persons entitled 
to it.  No suit under this subdivision shall be maintained 
unless instituted within two years after the end of the period 
of time prescribed by the commission for repayment of refunds.  
The commission shall not order an interim rate schedule in a 
general rate case into effect as provided by this subdivision 
until at least four months after it has made a final 
determination concerning any previously filed change of the rate 
schedule or the change has otherwise become effective under 
subdivision 2, unless: 
     (1) the commission finds that a four month delay would 
unreasonably burden the utility, its customers, or its 
shareholders and that an earlier imposition of interim rates is 
therefore necessary; or 
     (2) the utility files a second general rate case at least 
12 months after it has filed a previous general rate case for 
which the commission has extended the suspension period under 
subdivision 2. 
    Sec. 8.  Minnesota Statutes 1992, section 216B.2421, 
subdivision 2, is amended to read: 
    Subd. 2.  [LARGE ENERGY FACILITY.] "Large energy facility" 
means: 
    (a) any electric power generating plant or combination of 
plants at a single site with a combined capacity of 80,000 
kilowatts or more, or any facility of 5,000 50,000 kilowatts or 
more which requires oil, natural gas, or natural gas liquids as 
a fuel and for which an installation permit has not been applied 
for by May 19, 1977 pursuant to Minn. Reg. APC 3(a); 
    (b) any high voltage transmission line with a capacity of 
200 kilovolts or more and with more than 50 miles of its length 
in Minnesota; or, any high voltage transmission line with a 
capacity of 300 kilovolts or more with more than 25 miles of its 
length in Minnesota; 
    (c) 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; 
    (d) 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; 
    (e) any facility designed for or capable of storing on a 
single site more than 100,000 gallons of liquefied natural gas 
or synthetic gas; 
    (f) any underground gas storage facility requiring permit 
pursuant to section 103I.681; 
    (g) any nuclear fuel processing or nuclear waste storage or 
disposal facility; and 
    (h) 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. 9.  Minnesota Statutes 1992, section 216B.2421, is 
amended by adding a subdivision to read: 
    Subd. 3.  [MULTIFUEL FACILITIES; PRIMARY FUEL SOURCE.] If 
more than one fuel source would be used for any electric power 
generating plant or combination of plants at a single site, the 
primary fuel source determines whether the facility is a large 
energy facility. 
    Sec. 10.  Minnesota Statutes 1992, section 216B.43, is 
amended to read: 
    216B.43 [HEARINGS; COMPLAINTS.] 
    Upon the filing of an application under section 216B.42 or 
upon complaint by an affected utility that the provisions of 
sections 216B.39 to 216B.42 have been violated, the commission 
shall hold a hearing, upon notice, within 15 30 days after the 
filing of the application of complaint, and shall render its 
decision within 30 days after said the hearing.  
    Sec. 11.  Minnesota Statutes 1992, section 216B.48, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITION OF AFFILIATED INTERESTS.] 
"Affiliated interests" with a public utility means the following:
    (a) Every corporation and person owning or holding directly 
or indirectly five percent or more of the voting securities of 
such public utility. 
    (b) Every corporation and person in any chain of successive 
ownership of five percent or more of voting securities. 
    (c) Every corporation five percent or more of whose voting 
securities is owned by any person or corporation owning five 
percent or more of the voting securities of such public utility 
or by any person or corporation in any such chain of successive 
ownership of five percent or more of voting securities. 
    (d) Every person who is an officer or director of such 
public utility or of any corporation in any chain of successive 
ownership of five percent or more of voting securities. 
    (e) Every corporation operating a public utility or a 
servicing organization for furnishing supervisory, construction, 
engineering, accounting, legal and similar services to 
utilities, which has one or more officers or one or more 
directors in common with the public utility, and every other 
corporation which has directors in common with the public 
utility where the number of the directors is more than one-third 
of the total number of the utility's directors. 
    (f) Every corporation or person which the commission may 
determine as a matter of fact after investigation and hearing is 
actually exercising any substantial influence over the policies 
and actions of the public utility even though the influence is 
not based upon stockholding, stockholders, directors or officers 
to the extent specified in this section. 
    (g) Every person or corporation who or which the commission 
may determine as a matter of fact after investigation and 
hearing is actually exercising substantial influence over the 
policies and actions of the public utility in conjunction with 
one or more other corporations or persons with which or whom 
they are related by ownership or blood relationship or by action 
in concert that together they are affiliated with such public 
utility within the meaning of this section even though no one of 
them alone is so affiliated. 
    (h) Every subsidiary of a public utility. 
    (i) Every part of a corporation in which an operating 
division is a public utility. 
    Sec. 12.  Minnesota Statutes 1992, section 216B.48, 
subdivision 3, is amended to read: 
    Subd. 3.  [CONTRACTS.] No contract or arrangement, 
including any general or continuing arrangement, providing for 
the furnishing of management, supervisory, construction, 
engineering, accounting, legal, financial or similar services, 
and no contract or arrangement for the purchase, sale, lease or 
exchange of any property, right, or thing, or for the furnishing 
of any service, property, right, or thing, other than those 
above enumerated, made or entered into after January 1, 1975 
between a public utility and any affiliated interest as defined 
in Laws 1974, chapter 429 subdivision 1, clauses (a) to (h), or 
any arrangement between a public utility and an affiliated 
interest as defined in subdivision 1, clause (i), made or 
entered into after August 1, 1993, shall be is valid or 
effective unless and until the contract or arrangement has 
received the written approval of the commission.  Regular 
recurring transactions under a general or continuing arrangement 
that has been approved by the commission are valid if they are 
conducted in accordance with the approved terms and conditions.  
It shall be the duty of Every public utility to shall file with 
the commission a verified copy of the contract or arrangement, 
or a verified summary of the unwritten contract or arrangement, 
and also of all the contracts and arrangements, whether written 
or unwritten, entered into prior to January 1, 1975, or, for the 
purposes of subdivision 1, clause (i), prior to August 1, 1993, 
and in force and effect at that time.  The commission shall 
approve the contract or arrangement made or entered into after 
that date only if it shall clearly appear appears and be is 
established upon investigation that it is reasonable and 
consistent with the public interest.  No contract or arrangement 
shall may receive the commission's approval unless satisfactory 
proof is submitted to the commission of the cost to the 
affiliated interest of rendering the services or of furnishing 
the property or service described herein to each public 
utility.  No Proof shall be is satisfactory within the meaning 
of the foregoing sentence unless only if it includes the 
original or verified copies of the relevant cost records and 
other relevant accounts of the affiliated interest, or an 
abstract or summary as the commission may deem adequate, 
properly identified and duly authenticated, provided, however, 
that the commission may, where reasonable, approve or disapprove 
the contracts or arrangements without the submission of cost 
records or accounts.  The burden of proof to establish the 
reasonableness of the contract or arrangement shall be is on the 
public utility. 
    Sec. 13.  Minnesota Statutes 1992, section 216B.48, 
subdivision 4, is amended to read: 
    Subd. 4.  [CONTRACTS WITH CONSIDERATION LESS THAN $10,000 
NOT EXCEEDING $50,000.] The provisions of this section requiring 
the written approval of the commission shall not apply to 
transactions with affiliated interests where the amount of 
consideration involved is not in excess of $10,000 $50,000 or 
five percent of the capital equity of the utility whichever is 
smaller; provided, however, that regularly recurring payments 
under a general or continuing arrangement which aggregate a 
greater annual amount shall not be broken down into a series of 
transactions to come within the aforesaid exemption.  Such 
transactions shall be valid or effective without commission 
approval under this section.  However, in any proceeding 
involving the rates or practices of the public utility, the 
commission may exclude from the accounts of such public utility 
any payment or compensation made pursuant to the transaction 
unless the public utility shall establish the reasonableness of 
the payment or compensation. 
    Sec. 14.  Minnesota Statutes 1992, section 216C.17, 
subdivision 3, is amended to read: 
    Subd. 3.  [DUPLICATION.] The commissioner shall, to the 
maximum extent feasible, provide that forecasts required under 
this section be consistent with material required by other state 
and federal agencies in order to prevent unnecessary 
duplication.  Public electric utilities submitting advance 
forecasts containing all information specified in section 
116C.54, subdivision 1, as part of an integrated resource plan 
filed pursuant to public utilities commission rules shall be 
excluded from the annual reporting requirement in subdivision 2. 
    Sec. 15.  Minnesota Statutes 1992, section 216C.37, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] In this section:  
    (a) "Commissioner" means the commissioner of public 
service.  Upon passage of legislation creating a body known as 
the Minnesota public facilities authority, the duties assigned 
to the commissioner in this section are delegated to the 
authority.  
    (b) "Maxi-audit" means a detailed engineering analysis of 
energy-saving improvements to existing buildings or stationary 
energy-using systems, including (1) modifications to building 
structures; (2) heating, ventilating, and air conditioning 
systems; (3) operation practices; (4) lighting; and (5) other 
factors that relate to energy use.  The primary purpose of the 
engineering analysis is to quantify the economic and engineering 
feasibility of energy-saving improvements that require capital 
expenditures or major operational modifications.  
    (c) "Energy conservation investments" mean means all 
capital expenditures that are associated with conservation 
measures identified in a maxi-audit or energy project study, and 
that have a ten-year or less payback period.  Public school 
districts that received a federal institutional building grant 
in 1984 to convert a heating system to wood, and that apply for 
an energy conservation investment loan to match a federal grant 
for wood conversion, shall be allowed to calculate payback of 
conservation measures based on the costs of the traditional fuel 
in use prior to the wood conversion. 
     (d) "Municipality" means any county, statutory or home rule 
charter city, town, school district, or any combination of those 
units operating under an agreement to jointly undertake projects 
authorized in this section.  
    (e) "Energy project study" means a study of one or more 
energy-related capital improvement projects analyzed in 
sufficient detail to support a financing application.  At a 
minimum, it must include one year of energy consumption and cost 
data, a description of existing conditions, a description of 
proposed conditions, a detailed description of the costs of the 
project, and calculations sufficient to document the proposed 
energy savings. 
    Sec. 16.  Minnesota Statutes 1992, section 299F.011, 
subdivision 4c, is amended to read: 
    Subd. 4c.  [EXIT SIGN ILLUMINATION.] For a new building on 
which construction is begun on or after October 1, 1993, or an 
existing building on which remodeling affecting 50 percent or 
more of the enclosed space is begun on or after October 1, 1993, 
the uniform fire code must prohibit the use of internally 
illuminated exit signs whose electrical consumption during 
nonemergency operation exceeds 20 watts of resistive power with 
a maximum total power consumption of 40 volt amperes (VA).  All 
other requirements in the code for exit signs must be complied 
with.  Power consumption in volt amperes is the resistive power 
divided by the power factor. 
    Sec. 17.  Minnesota Statutes 1992, section 446A.03, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MEMBERSHIP.] The Minnesota public 
facilities authority consists of the commissioner of trade and 
economic development, the commissioner of finance, the 
commissioner of public service, the commissioner of the 
pollution control agency, and three additional members appointed 
by the governor from the general public with the advice and 
consent of the senate. 
    Sec. 18.  Minnesota Statutes 1992, section 446A.10, 
subdivision 2, is amended to read: 
    Subd. 2.  [OTHER RESPONSIBILITIES.] (a) The 
responsibilities for the health care equipment loan program 
under Minnesota Statutes 1986, section 116M.07, subdivisions 7a, 
7b, and 7c; the public school energy conservation loan program 
under section 216C.37; and the district heating and qualified 
energy improvement loan program under section 216C.36, are 
transferred from the Minnesota energy and economic development 
authority to the Minnesota public facilities authority.  The 
commissioner of public service shall continue to administer the 
municipal energy grant and loan programs under section 216C.36 
and the school energy loan program under section 216C.37 until 
the commissioner of trade and economic development has adopted 
rules to implement the financial administration of the programs 
as provided under sections 216C.36, subdivisions 2, 3b, 3c, 8, 
8a, and 11, and 216C.37, subdivisions 1 and 8. 
    (b) Except as otherwise provided in this paragraph, section 
15.039 applies to the transfer of responsibilities.  The 
transfer includes 8-1/2 positions from the financial management 
division of the department of trade and economic development to 
the community development division of the department of trade 
and economic development.  The commissioner of trade and 
economic development and the commissioner of public service 
shall determine which classified and unclassified positions 
associated with the responsibilities of the grant and loan 
programs under section 216C.36 and the school energy loan 
program under section 216C.37 are transferred to the 
commissioner of public service and which positions are 
transferred to the commissioner of trade and economic 
development in order to carry out the purposes of Laws 1987, 
chapter 386, article 3. 
    Sec. 19.  Minnesota Statutes 1992, section 465.74, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CITIES OF THE FIRST CLASS.] Any city 
operating or authorized to operate a public utility pursuant to 
chapter 452 or its charter is authorized to acquire, construct, 
own, and operate a municipal district heating system pursuant to 
the provisions of that chapter or its charter.  Acquisition or 
construction of a municipal district heating system shall not be 
subject to the election requirement of sections 452.11 and 
452.12, or city charter provision, but must be approved by a 
three-fifths vote of the city's council or other governing 
body.  Loans obtained by a municipality pursuant to Minnesota 
Statutes 1992, section 216C.36 are not subject to the 
limitations on the amount of money which may be borrowed upon a 
pledge of the city's full faith and credit or the election 
requirements for general obligation borrowing, contained in 
section 452.08.  
    Sec. 20.  Minnesota Statutes 1992, section 465.74, 
subdivision 4, is amended to read: 
    Subd. 4.  [NET DEBT LIMITS.] The loan obligations or debt 
incurred by a political subdivision pursuant to section 216C.36 
or 475.525, or Minnesota Statutes 1992, section 216C.36, shall 
not be considered as a part of its indebtedness under the 
provisions of its governing charter or of any law of this state 
fixing a limit of indebtedness.  
    Sec. 21.  Minnesota Statutes 1992, section 465.74, 
subdivision 6, is amended to read: 
    Subd. 6.  [DEFINITION.] For the purposes of this section, 
and chapters 474 and 475, "district heating system" means any 
existing or proposed facility for (1) the production, through 
cogeneration or otherwise, of hot water or steam to be used for 
district heating, or (2) the transmission and distribution of 
hot water or steam for district heating either directly to 
heating consumers or to another facility or facilities for 
transmission and distribution, or (3) any part or combination of 
the foregoing facilities.  
    In keeping with the public purpose of section 216C.36, 
subdivision 1, to encourage state and local leadership and aid 
in providing available and economical district heating service, 
the definition of "district heating system" under this section 
should be broadly construed to allow municipal government 
sufficient flexibility and authority to evaluate and undertake 
such policies and projects as will most efficiently and 
economically encourage local expansion of district heating 
service. 
    Sec. 22.  Laws 1981, chapter 354, section 4, is amended to 
read: 
    Sec. 4.  [HERMANTOWN, PROCTOR, RICE LAKE, AND DULUTH; WATER 
SERVICE.] 
    Subdivision 1.  [DEFINITION.] For the purposes of this 
section, "local government unit or units" means the cities of 
Hermantown and Proctor and the town of Rice Lake. 
    Subd. 2.  [REQUEST FOR SERVICE.] By September 1, 1981, the 
city of Hermantown A local government unit shall submit to the 
city of Duluth a request for water service including the volume 
of water needed and the number of years for which the service is 
requested. 
    Subd. 2. 3.  [CONTRACT OFFER; RATE.] By April 1, 1982, The 
city of Duluth shall offer a contract to the city of 
Hermantown a local government unit to provide the service 
requested by the city of Hermantown local government unit at a 
rate determined by the city of Duluth.  The rate shall be based 
on a reasonable allocation of the capital, repair and operating 
expenses of the Duluth water system which are attributable to 
the water service requested by the city of Hermantown local 
government unit, including the full cost of any capital 
construction and repairs required by the volume of service to 
the city of Hermantown local government unit.  The rate for each 
local government unit shall provide for an amortization of any 
construction costs reflected in the rate over a reasonable 
period not to exceed the terms of the proposed contract. 
    Subd. 3. 4.  [APPEAL TO PUBLIC UTILITIES COMMISSION.] Not 
later than 90 days after the city of Duluth offers a contract 
under subdivision 2 3, the city of Hermantown a local government 
unit may appeal the rate determined by the city of Duluth by 
filing a petition with the public utilities commission.  If a 
petition is filed, the city shall file its answer within 30 days 
after the petition is filed.  The commission, after public 
notice and hearing, shall determine whether the rate is just and 
reasonable consistent with the provisions of subdivision 2 3.  
Not later than 120 days after a petition of the city of 
Hermantown is filed, the commission shall affirm the rate or, if 
it finds that the rate is not just and reasonable, determine a 
just and reasonable rate.  The rulemaking and contested case 
procedures of sections 15.0412 14.05 to 15.0422 14.62 shall not 
apply to any proceeding required by this subdivision. 
    Subd. 4. 5.  [CONTRACT.] Not later than 90 days after the 
rate is affirmed or determined by the commission or, if no 
appeal is taken under subdivision 3 4, not later than 90 days 
after a contract is offered under subdivision 2 3, the cities of 
Hermantown a local government unit and Duluth shall enter a 
contract for provision of water service by the city of Duluth to 
the city of Hermantown local government unit.  The rate for the 
service shall be the rate determined by the city of Duluth 
pursuant to subdivision 2 3 or, if the commission has affirmed 
or determined a rate, the rate affirmed or determined by the 
commission. 
    Sec. 23.  [VENTILATION STANDARDS REPORT.] 
    The department of administration, building code division, 
shall in consultation with the department of public service 
develop recommended ventilation standards for single family 
homes to include mechanical ventilation or other types of 
ventilation standards and report the proposed standards to the 
legislature by January 15, 1994. 
    Sec. 24.  [REPEALER.] 
    Minnesota Statutes 1992, section 216C.36, is repealed. 
    Minnesota Rules, parts 7665.0200; 7665.0210; 7665.0220; 
7665.0230; 7665.0240; 7665.0250; 7665.0300; 7665.0310; 
7665.0320; 7665.0330; 7665.0340; 7665.0350; 7665.0360; 
7665.0370; and 7665.0380, are repealed. 
    Sec. 25.  [EFFECTIVE DATE.] 
    Sections 1 and 15 are effective the day following final 
enactment. 
    Under Minnesota Statutes 1992, section 645.023, subdivision 
1, clause (a), section 22 is effective without local approval on 
the day following final enactment. 
    Presented to the governor May 17, 1993 
    Signed by the governor May 20, 1993, 4:23 p.m.