1.1 	A bill for an act
1.2 	relating to energy; modifying the renewable energy standard; enhancing the 
1.3 	energy assurance and emergency conservation plan; establishing a petroleum 
1.4 	end user program; modifying energy auditor standards; modifying eligibility 
1.5 	for various siting requirements;amending Minnesota Statutes 2014, sections 
1.6 	216B.1691, subdivision 2a; 216C.16, subdivisions 1, 2; 216C.31; 216E.01, 
1.7 	subdivision 5; 216E.021; 216E.03, subdivision 3; 216E.05, subdivision 2; 
1.8 	proposing coding for new law in Minnesota Statutes, chapters 216C; 216E; 
1.9 	repealing Minnesota Statutes 2014, section 216C.15.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. Minnesota Statutes 2014, section 216B.1691, subdivision 2a, is amended to 
1.12 	read:
1.13 		Subd. 2a.Eligible energy technology standard. (a) Except as provided in 
1.14 	paragraph (b), each electric utility shall generate or procure sufficient electricity generated 
1.15 	by an eligible energy technology to provide its retail customers in Minnesota, or the 
1.16 	retail customers of a distribution utility to which the electric utility provides wholesale 
1.17 	electric service, so that at least the following standard percentages of the electric utility's 
1.18 	total retail electric sales to retail customers in Minnesota are generated by eligible energy 
1.19 	technologies by the end of the year indicated:

1.20	(1)
	2012
	12 percent
	
1.21	(2)
	2016
	17 percent
	
1.22	(3)
	2020
	20 25 percent
	
1.23	(4)
	2025
	25 32 percent.
	
1.24	(5)
	2030
	40 percent.
	
1.25 	(b) An electric utility that owned a nuclear generating facility as of January 1, 2007, 
1.26 	must meet the requirements of this paragraph rather than paragraph (a). An electric utility 
1.27 	subject to this paragraph must generate or procure sufficient electricity generated by 
2.1 	an eligible energy technology to provide its retail customers in Minnesota or the retail 
2.2 	customer of a distribution utility to which the electric utility provides wholesale electric 
2.3 	service so that at least the following percentages of the electric utility's total retail electric 
2.4 	sales to retail customers in Minnesota are generated by eligible energy technologies by the 
2.5 	end of the year indicated:

2.6	(1)
	2010
	15 percent
	
2.7	(2)
	2012
	18 percent
	
2.8	(3)
	2016
	25 percent
	
2.9	(4)
	2020
	30 percent.
	
2.10	(5)
	2025
	35 percent
	
2.11	(6)
	2030
	40 percent.
	
2.12 	Of the 30 percent in 2020, at least 25 percent must be generated by solar energy 
2.13 	or wind energy conversion systems and the remaining five percent by other eligible 
2.14 	energy technology. Of the 25 percent that must be generated by wind or solar, no more 
2.15 	than one percent may be solar generated and the remaining 24 percent or greater must 
2.16 	be wind generated.

2.17 	Sec. 2. [216C.155] ENERGY ASSURANCE AND EMERGENCY 
2.18 	CONSERVATION PLAN.
2.19 		Subdivision 1.Plan requirements. (a) The commissioner shall maintain an energy 
2.20 	assurance and emergency conservation plan. The plan shall:
2.21 	(1) profile the state's energy sectors, including an assessment of the risk within each 
2.22 	energy sector and the character of the vulnerabilities;
2.23 	(2) establish priorities for Minnesota's long-term preparedness activities to ensure 
2.24 	the availability of energy resources critical for the safety, health, and welfare of the state's 
2.25 	citizens;
2.26 	(3) include Minnesota's three main energy sectors of electricity, natural gas, and 
2.27 	liquid fuels, including renewable and biological sources of energy available in each sector;
2.28 	(4) identify relevant legal authorities governing the commissioner's actions during 
2.29 	an energy emergency and any necessary allocation of limited energy resources under the 
2.30 	emergency conservation section of the plan; and
2.31 	(5) establish response protocols for the commissioner's actions in the event of an 
2.32 	energy supply emergency.
2.33 	(b) At least once every five years, the commissioner shall review and update the 
2.34 	plan. Revisions of the plan directly relating to the emergency conservation requirements 
2.35 	of the plan must be adopted under the rulemaking procedures of chapter 14.
3.1 		Subd. 2.Long-term preparedness. (a) The commissioner shall establish priorities 
3.2 	for Minnesota's long-term preparedness activities, with the primary goal of reducing the 
3.3 	consequences of any energy disruption by increasing Minnesota's resilience to short- 
3.4 	and long-term disruptions of energy delivery to government, commercial, industrial, 
3.5 	nonprofit, and citizen energy consumers.
3.6 	(b) Long-term preparedness goals must also include:
3.7 	(1) increasing the utilization of Minnesota-derived energy sources;
3.8 	(2) reducing overall demand for energy through both cost-effective energy efficiency 
3.9 	and conservation activities;
3.10 	(3) developing new energy production technologies, new consumer-level energy 
3.11 	monitoring mechanisms, and new energy provider business models; and
3.12 	(4) minimizing consumer and ratepayer costs, and maximizing the economic benefits 
3.13 	for the state as a result of these preparedness activities.
3.14 		Subd. 3.Emergency energy conservation protocols. (a) The commissioner shall 
3.15 	establish protocols for responding to an energy supply emergency. These protocols must 
3.16 	be consistent with the responsibilities identified in chapter 12, the Minnesota Emergency 
3.17 	Operations Plan, the State All-Hazard Mitigation Plan, and relevant guidelines issued by 
3.18 	the National Association of State Energy Officials.
3.19 	(b) The protocols must:
3.20 	(1) include a plan for coordinating information and any required response actions 
3.21 	with private-sector energy providers;
3.22 	(2) include a plan for providing uniform, timely, and accurate information to the 
3.23 	public and to state agencies with responsibilities for emergency management and disaster 
3.24 	response; and
3.25 	(3) ensure that emergency energy conservation actions by private-sector energy 
3.26 	providers minimize disruption for critical facilities as identified by state and local 
3.27 	emergency management officials.
3.28 	(c) Whenever possible, the emergency energy conservation protocols should place a 
3.29 	priority on broader energy conservation activities that reduce the severity and duration of 
3.30 	an energy supply disruption, for the purpose of limiting the number of critical facilities 
3.31 	experiencing a complete disruption of energy at individual facilities.
3.32 		Subd. 4.Emergency energy allocation protocols. (a) The commissioner shall 
3.33 	establish guidelines and criteria for allocation of energy supplies to critical facilities 
3.34 	and priority users, in the case of a widespread or severe disruption to the state's energy 
3.35 	sector. The guidelines and criteria shall contain alternative conservation actions and 
3.36 	allocation plans to reasonably meet various foreseeable shortage circumstances and allow 
4.1 	a choice of appropriate responses, based on reasonable energy savings or transfers from 
4.2 	scarce energy resources.
4.3 	(b) Consistent with requirements of federal emergency energy conservation and 
4.4 	allocation laws and regulations, the guidelines and criteria must:
4.5 	(1) require that all individuals, state agencies, local subdivisions of government, 
4.6 	businesses, and public transit agencies requesting emergency allocation of energy 
4.7 	resources demonstrate they have adopted an emergency energy conservation plan and 
4.8 	have engaged in energy-saving measures;
4.9 	(2) ensure maintenance of reasonable job safety conditions and minimize 
4.10 	environmental sacrifices;
4.11 	(3) ensure the availability of energy resources to emergency authorities, including 
4.12 	state and local law enforcement, emergency medical services, and other first responders;
4.13 	(4) prioritize allocating fuel, electricity, and other available energy resources to those 
4.14 	critical facilities identified by state and local emergency management officials;
4.15 	(5) as necessary, control the use, sale, or distribution of commodities, materials, 
4.16 	goods, or services that will prevent the restoration of adequate energy supply conditions 
4.17 	to affected individuals, state agencies, local subdivisions of government, businesses, 
4.18 	and public transit agencies;
4.19 	(6) as necessary, determine at what level of an energy supply emergency the 
4.20 	Pollution Control Agency shall be requested to ask the governor to petition the president 
4.21 	for a temporary emergency suspension of air quality standards as required by the Clean 
4.22 	Air Act, United States Code, title 42, section 7410f; and
4.23 	(7) ensure all affected entities maintain their rights to due process, including a fair 
4.24 	and equitable review of complaints and requests for special exemptions.
4.25 		Subd. 5.Declaration of energy supply emergency. (a) The governor or the 
4.26 	Executive Council may declare an energy supply emergency when an acute shortage of 
4.27 	energy exists by issuing a declaration indicating the nature of the emergency, the area or 
4.28 	areas threatened if less than the whole state is threatened, and the conditions causing 
4.29 	the emergency.
4.30 	(b) An energy supply emergency exists only when the state and private sector energy 
4.31 	partners have exhausted all economical and reasonable means of meeting the energy 
4.32 	needs of the state and its citizens, including operating energy facilities at their emergency 
4.33 	capacity, importing additional external energy resources, and implementing all available 
4.34 	voluntary energy conservation measures.
4.35 	(c) An energy supply emergency declaration shall be disseminated promptly by 
4.36 	means calculated to bring its contents to the attention of the general public and shall 
5.1 	be promptly filed with the commissioner, the commissioner of public safety, and the 
5.2 	secretary of state. Upon a declaration of an energy supply emergency, the governor and 
5.3 	the commissioner, in consultation with the commissioner of public safety, shall implement 
5.4 	and enforce the emergency and energy allocation protocols or any part thereof.
5.5 	(d) The Executive Council may terminate an energy supply emergency at any time 
5.6 	by issuing a termination declaration and indicating the condition or conditions supporting 
5.7 	termination. No energy supply emergency may continue for longer than 30 days unless 
5.8 	renewed by the Executive Council. Each renewed energy supply emergency may not 
5.9 	continue for longer than 30 days unless otherwise provided by law. Each person shall 
5.10 	carry out the responsibilities specified in the emergency conservation allocation plan, and 
5.11 	violation of any provision of such emergency conservation or allocation requirements shall 
5.12 	be deemed a violation of sections 216C.05 to 216C.30 and the rules adopted thereunder 
5.13 	for purposes of enforcement under section 216C.30.

5.14 	Sec. 3. Minnesota Statutes 2014, section 216C.16, subdivision 1, is amended to read:
5.15 		Subdivision 1.Purpose. The purpose of this section is to grant to the commissioner 
5.16 	authority to exercise specific power to deal with shortages of refined petroleum products. 
5.17 	Authority granted shall be exercised for the purpose of minimizing the adverse impacts 
5.18 	of prolonged petroleum shortages and dislocations upon the citizens and the economy of 
5.19 	the state and nation.

5.20 	Sec. 4. Minnesota Statutes 2014, section 216C.16, subdivision 2, is amended to read:
5.21 		Subd. 2.Establishment. The commissioner shall establish and is responsible for 
5.22 	a state set-aside system for motor gasoline and middle distillates to provide emergency 
5.23 	petroleum requirements and thereby relieve the hardship caused by shortage, prolonged 
5.24 	petroleum shortages and supply dislocations, or other emergencies. The commissioner, for 
5.25 	purposes of administration, may exercise all of the powers granted by this chapter.

5.26 	Sec. 5. [216C.165] PETROLEUM END USER PROGRAM.
5.27 		Subdivision 1.Purpose. The purpose of this section is to grant to the commissioner 
5.28 	authority to ensure availability of necessary supplies of motor gasoline, middle distillates, 
5.29 	and propane for priority end users essential to ensure the health, safety, and welfare of 
5.30 	the general public.
5.31 		Subd. 2.Establishment. The commissioner shall establish and is responsible for 
5.32 	a state priority end user program for motor gasoline, middle distillates, and propane to 
5.33 	provide emergency petroleum requirements and thereby relieve the hardship caused by 
6.1 	emergency petroleum shortages. The commissioner, for purposes of administration, may 
6.2 	exercise all of the powers granted by this chapter.
6.3 		Subd. 3.Definitions. (a) For the purposes of this section, the following terms have 
6.4 	the meaning given them.
6.5 	(b) "Current requirements" means the supply of motor gasoline, distillate fuel oil, 
6.6 	and propane needed by an end user or wholesale purchaser to meet its present priority 
6.7 	end use needs.
6.8 	(c) "End user" means any person who is an ultimate consumer of a petroleum 
6.9 	product other than a wholesale purchaser-consumer.
6.10 	(d) "Middle distillates" means distillates obtained between kerosene and lubricating 
6.11 	oil fractions in the refining process, including but not limited to kerosene, number one and 
6.12 	number two heating oil, and diesel fuel.
6.13 	(e) "Motor gasoline" means a liquid mixture of hydrocarbons produced by the 
6.14 	distillation of petroleum and used chiefly as a fuel in internal combustion engines.
6.15 	(f) "Prime supplier" means the producer or supplier now or hereafter making the first 
6.16 	sale of middle distillates or motor gasoline subject to the state set-aside for consumption 
6.17 	within the state.
6.18 	(g) "Propane" means a normally gaseous paraffinic compound that boils at a 
6.19 	temperature of -43.67 degrees Fahrenheit, and is used primarily for heating and cooking. 
6.20 	It does not include the propane portion of any natural gas liquid mixes, including a 
6.21 	butane-propane mix.
6.22 	(h) "Supplier" means any prime supplier or any other firm which presently, or during 
6.23 	the last 12 months, supplies, sells, transfers, or otherwise furnishes motor gasoline, 
6.24 	distillate oil, and propane to wholesale purchasers or end users, including but not limited 
6.25 	to a refiner, importer, reseller, jobber, or retailer.
6.26 		Subd. 4.Priority end user program; declaration. (a) The commissioner may 
6.27 	implement the priority end user program only upon:
6.28 	(1) declaration of an energy supply emergency under the authority of section 
6.29 	216C.155, or a declaration of an emergency under chapter 12; and
6.30 	(2) a finding by the commissioner that (i) major petroleum suppliers are unable to 
6.31 	fully satisfy contractually obligated volumes and have limited customers to a percentage 
6.32 	of their historical purchases or contractual volumes, and (ii) public services and public 
6.33 	health and safety are either interrupted or threatened due to insufficient supplies of 
6.34 	petroleum products.
6.35 	(b) A declaration implementing the priority end user program shall remain in effect 
6.36 	for 60 days from date of declaration unless otherwise amended, superseded, or rescinded.
7.1 		Subd. 5.Supplier responsibilities. Upon commissioner order implementing the 
7.2 	program and within 30 days of submission of the sworn statement required under this 
7.3 	section, petroleum suppliers shall supply 100 percent of the current requirements of motor 
7.4 	gasoline, middle distillates, and propane each month to certified priority end users.
7.5 		Subd. 6.Priority end users. (a) The commissioner shall certify as priority end 
7.6 	users those end users whose continuity of operations in an emergency is critical for public 
7.7 	health, safety, and welfare. Such priority end users shall include the Minnesota State 
7.8 	Patrol, local law enforcement, fire fighting units, emergency medical services, and any 
7.9 	other end users as certified by the commissioner.
7.10 	(b) Priority end users shall present to a petroleum supplier evidence of this 
7.11 	certification and the following information:
7.12 	(1) the most recent 12 months of fuel purchases, in gallons;
7.13 	(2) anticipated requirements for the next 12 months;
7.14 	(3) written justification explaining the need for any volumes in excess of historical 
7.15 	or contractual purchases; and
7.16 	(4) a sworn statement that the information provided in the certification is true and 
7.17 	accurate and that the petroleum product to be provided will only be used for priority 
7.18 	use as indicated.
7.19 		Subd. 7.Violation of order; penalty. Any supplier that knowingly violates this 
7.20 	directive is guilty of a gross misdemeanor. A court of competent jurisdiction may issue an 
7.21 	order to compel a supplier to perform such duties as imposed under this section.
7.22 		Subd. 8.Appeal process. (a) A person aggrieved by certification of priority end 
7.23 	use may file a written petition of appeal to the Office of Administrative Hearings. The 
7.24 	petition must include:
7.25 	(1) the name and address of the petitioner;
7.26 	(2) a concise statement of facts surrounding the case, including the reason for the 
7.27 	appeal and relief sought; and
7.28 	(3) the names and addresses of persons known to the petitioner who may be affected 
7.29 	adversely by the outcome of the appeal.
7.30 	(b) The petitioner shall attach a sworn statement to the petition which states that the 
7.31 	information provided in the petition is true to the best of the petitioner's knowledge.
7.32 	(c) The Office of Administrative Hearings shall, within three work days after the 
7.33 	filing of a petition, serve a copy of the petition on known persons who might be affected 
7.34 	adversely by the outcome of the appeal. Persons served with a petition may, not later 
7.35 	than five working days from service of the petition, file a written reply, supported by a 
8.1 	sworn statement to the effect that the information in the reply is true to the best of the 
8.2 	respondent's knowledge. A copy of the response shall be made available to the petitioner.
8.3 	(d) Within 20 working days after the petition of appeal is filed, the Office of 
8.4 	Administrative Hearings shall render a decision on the appeal and serve it upon all persons 
8.5 	who participated in the appellate proceeding and any other person who is aggrieved by the 
8.6 	decision and order. A supplier is deemed to have exhausted all administrative remedies 
8.7 	once a decision has been rendered on the appeal.

8.8 	Sec. 6. Minnesota Statutes 2014, section 216C.31, is amended to read:
8.9 	216C.31 ENERGY AUDIT PROGRAMS.
8.10 	The commissioner shall develop state or approve programs of for energy audits of 
8.11 	residential and commercial buildings including the training and qualifications necessary
8.12 	auditors for the auditing of residential and commercial buildings under the auspices of a 
8.13 	program created under section 216B.241, 216C.436, or any other energy program.

8.14 	Sec. 7. Minnesota Statutes 2014, section 216E.01, subdivision 5, is amended to read:
8.15 		Subd. 5.Large electric power generating plant. "Large electric power generating 
8.16 	plant" shall mean electric power generating equipment and associated facilities designed 
8.17 	for or capable of operation at a capacity of 50,000 kilowatts or more, or a solar energy 
8.18 	generating system designed for or capable of operation at a capacity of 10,000 kilowatts 
8.19 	or more.

8.20 	Sec. 8. Minnesota Statutes 2014, section 216E.021, is amended to read:
8.21 	216E.021 SOLAR ENERGY SYSTEM SIZE DETERMINATION.
8.22 	(a) This section must be used to determine whether a combination of solar energy 
8.23 	generating systems meets the definition of large electric power generating plant and is 
8.24 	subject to the commission's siting authority jurisdiction under this chapter. The alternating 
8.25 	current nameplate capacity of one solar energy generating system must be combined with 
8.26 	the alternating current nameplate capacity of any other solar energy generating system that:
8.27 	(1) is constructed within the same 12-month period as the solar energy generating 
8.28 	system; and
8.29 	(2) exhibits characteristics of being a single development, including but not limited 
8.30 	to ownership structure, an umbrella sales arrangement, shared interconnection, revenue 
8.31 	sharing arrangements, and common debt or equity financing.
9.1 	(b) An application to a county for a permit to construct a solar energy generating 
9.2 	system with a capacity of 1,000 kilowatts or greater is not complete unless it includes a 
9.3 	solar energy system size determination under this section.
9.4 	(b) (c) The commissioner of commerce shall provide forms and assistance for 
9.5 	applicants to make a request for a size determination. Upon written request of an applicant, 
9.6 	the commissioner shall provide a written size determination within 30 days of receipt of 
9.7 	the request and of any information requested by the commissioner. In the case of a dispute, 
9.8 	the chair of the Public Utilities Commission shall make the final size determination.

9.9 	Sec. 9. Minnesota Statutes 2014, section 216E.03, subdivision 3, is amended to read:
9.10 		Subd. 3.Application. Any person seeking to construct a large electric power 
9.11 	generating plant or a high-voltage transmission line must apply to the commission for a 
9.12 	site or route permit. The application shall contain such information as the commission may 
9.13 	require. The applicant shall propose at least two sites for a large electric power generating 
9.14 	plant and two routes for a high-voltage transmission line, except that an applicant shall 
9.15 	only be required to propose one site for a large electric power generating plant that is a 
9.16 	solar energy generating system. Neither of the two proposed routes may be designated as 
9.17 	a preferred route and all proposed routes must be numbered and designated as alternatives. 
9.18 	The commission shall determine whether an application is complete and advise the 
9.19 	applicant of any deficiencies within ten days of receipt. An application is not incomplete if 
9.20 	information not in the application can be obtained from the applicant during the first phase 
9.21 	of the process and that information is not essential for notice and initial public meetings.

9.22 	Sec. 10. Minnesota Statutes 2014, section 216E.05, subdivision 2, is amended to read:
9.23 		Subd. 2.Applicable projects. Applicants may seek approval from local units of 
9.24 	government to construct the following projects:
9.25 	(1) large electric power generating plants, except solar energy generating systems,
9.26 	with a capacity of less than 80 megawatts;
9.27 	(2) large electric power generating plants of any size that burn natural gas and are 
9.28 	intended to be a peaking plant;
9.29 	(3) high-voltage transmission lines of between 100 and 200 kilovolts;
9.30 	(4) substations with a voltage designed for and capable of operation at a nominal 
9.31 	voltage of 100 kilovolts or more;
9.32 	(5) a high-voltage transmission line service extension to a single customer between 
9.33 	200 and 300 kilovolts and less than ten miles in length; and
10.1 	(6) a high-voltage transmission line rerouting to serve the demand of a single 
10.2 	customer when the rerouted line will be located at least 80 percent on property owned or 
10.3 	controlled by the customer or the owner of the transmission line.

10.4 	Sec. 11. [216E.055] SOLAR FACILITY PERMIT AUTHORITY; ASSUMPTION 
10.5 	BY COUNTIES.
10.6 	(a) A county board may, by resolution and upon written notice to the Public Utilities 
10.7 	Commission, assume responsibility for processing applications for permits required under 
10.8 	this chapter for large electric power generating plants that are solar energy generating 
10.9 	systems up to 25,000 kilowatts. The responsibility for permit application processing, if 
10.10 	assumed by a county, may be delegated by the county board to an appropriate county 
10.11 	officer or employee. Processing by a county shall be done in accordance with procedures 
10.12 	and processes established under chapter 394.
10.13 	(b) A county board that exercises its option under paragraph (a) may issue, deny, 
10.14 	modify, impose conditions upon, or revoke permits pursuant to this section. The action 
10.15 	of the county board about a permit application is final, subject to appeal as provided 
10.16 	in section 394.27.
10.17 	(c) The commission shall, by order, establish general permit standards, including 
10.18 	appropriate set-backs, governing site permits for solar energy generating systems under 
10.19 	this chapter. The order must consider existing and historic commission standards for 
10.20 	permits issued by the commission. The general permit standards shall apply to permits 
10.21 	issued by counties under this section and to permits issued by the commission under this 
10.22 	chapter. The commission or a county may grant a variance from a general permit standard 
10.23 	if the variance is found to be in the public interest.
10.24 	(d) A county may by ordinance adopt standards for solar energy generating systems 
10.25 	that are more stringent than standards in commission rules or in the commission's permit 
10.26 	standards. The commission, when considering a permit application for a solar energy 
10.27 	generating system in a county that has assumed permitting authority under this section, 
10.28 	shall consider and apply the county's more stringent standards unless the commission 
10.29 	finds good cause to not apply the standards.
10.30 	(e) The commission and the commissioner of commerce shall provide technical 
10.31 	assistance to a county with respect to the processing of site permit applications for solar 
10.32 	energy generating systems.
10.33 	(f) This section does not exempt applicants from the requirements under section 
10.34 	216E.021.

11.1 	Sec. 12.  REPEALER.
 11.2 	Minnesota Statutes 2014, section 216C.15, is repealed.