1.1 	A bill for an act
1.2 	relating to energy; enacting the Next Generation Energy Act of 2007; establishing 
1.3 	state energy policy goals for fossil fuel-use reduction and renewable energy use; 
1.4 	providing for electric utility renewable energy obligations of 25 percent by 2025; 
1.5 	establishing provisions to promote community energy development; providing 
1.6 	for transition to an energy savings requirement for electric and natural gas 
1.7 	utilities; enacting provisions to address climate change; providing for delegation 
1.8 	to counties for permitting wind projects under 25 megawatts;amending 
1.9 	Minnesota Statutes 2006, sections 123B.65, subdivision 2; 216B.16, subdivisions 
1.10 	6b, 6c; 216B.1612, subdivision 2, by adding a subdivision; 216B.1691, 
1.11 	subdivisions 1, 2, 3, by adding subdivisions; 216B.2426; 216B.243, subdivisions 
1.12 	2, 3, 3a, 5; 216C.05; 216C.31; 471.345, subdivision 13; 504B.161, subdivision 1; 
1.13 	proposing coding for new law in Minnesota Statutes, chapters 216B; 216C; 216F; 
1.14 	repealing Minnesota Statutes 2006, sections 216B.165; 216B.241; 216B.2411; 
1.15 	216C.27; 216C.30, subdivision 5; Minnesota Rules, parts 4635.0110; 4635.0130; 
1.16 	7365.0210; 7635.0100; 7635.0120; 7635.0140; 7635.0150; 7635.0160; 
1.17 	7635.0170; 7635.0180; 7635.0200; 7635.0210; 7635.0220; 7635.0230; 
1.18 	7635.0240; 7635.0250; 7635.0260; 7635.0300; 7635.0310; 7635.0320; 
1.19 	7635.0330; 7635.0340; 7635.0400; 7635.0410; 7635.0420; 7635.0500; 
1.20 	7635.0510; 7635.0520; 7635.0530; 7635.0600; 7635.0610; 7635.0620; 
1.21 	7635.0630; 7635.0640; 7635.1000; 7635.1010; 7635.1020; 7635.1030; 
1.22 	7655.0100; 7655.0120; 7655.0200; 7655.0220; 7655.0230; 7655.0240; 
1.23 	7655.0250; 7655.0260; 7655.0270; 7655.0280; 7655.0290; 7655.0300; 
1.24 	7655.0310; 7655.0320; 7655.0330; 7655.0400; 7655.0410; 7655.0420.
1.25 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.26 	ARTICLE 1
1.27 	GENERAL PROVISIONS

1.28 	Section 1. TITLE.
 1.29 	This act may be cited as the Next Generation Energy Act of 2007.

2.1 	Sec. 2. Minnesota Statutes 2006, section 216C.05, is amended to read:
2.2 	216C.05 FINDINGS AND PURPOSE.
2.3 		Subdivision 1.Energy planning. The legislature finds and declares that continued 
2.4 	growth in demand for energy will cause severe social and economic dislocations, and that 
2.5 	the state has a vital interest in providing for: increased efficiency in energy consumption, 
2.6 	the development and use of renewable energy resources wherever possible, and the 
2.7 	creation of an effective energy forecasting, planning, and education program.
2.8 	The legislature further finds and declares that the protection of life, safety, and 
2.9 	financial security for citizens during an energy crisis is of paramount importance.
2.10 	Therefore, the legislature finds that it is in the public interest to review, analyze, and 
2.11 	encourage those energy programs that will minimize the need for annual increases in 
2.12 	fossil fuel consumption by 1990 and the need for additional electrical generating plants, 
2.13 	and provide for an optimum combination of energy sources consistent with environmental 
2.14 	protection and the protection of citizens.
2.15 	The legislature intends to monitor, through energy policy planning and 
2.16 	implementation, the transition from historic growth in energy demand to a period when 
2.17 	demand for traditional fuels becomes stable and the supply of renewable energy resources 
2.18 	is readily available and adequately utilized.
2.19 		Subd. 2.Energy policy goals. It is the energy policy of the state of Minnesota that:
2.20 	(1) the per capita use of fossil fuel as an energy input be reduced by 15 percent by 
2.21 	the year 2015, through increased reliance on energy efficiency and renewable energy 
2.22 	alternatives; and
2.23 	(2) 25 percent of the total energy used in the state be derived from renewable energy 
2.24 	resources by the year 2025.

2.25 	ARTICLE 2
2.26 	RENEWABLE ENERGY

2.27 	Section 1. Minnesota Statutes 2006, section 216B.1691, subdivision 1, is amended to 
2.28 	read:
2.29 		Subdivision 1.Definitions. (a) Unless otherwise specified in law, "eligible energy 
2.30 	technology" means an energy technology that:
2.31 	(1) generates electricity from the following renewable energy sources: solar; wind; 
2.32 	hydroelectric with a capacity of less than 60 100 megawatts; hydrogen, provided that 
2.33 	after January 1, 2010, the hydrogen must be generated from the resources listed in this 
2.34 	clause; or biomass, which includes an energy recovery facility used to capture the heat 
3.1 	value of mixed municipal solid waste or refuse-derived fuel from mixed municipal solid 
3.2 	waste as a primary fuel; and
3.3 	(2) was not mandated by Laws 1994, chapter 641, or by commission order issued 
3.4 	pursuant to that chapter prior to August 1, 2001.
3.5 	(b) "Electric utility" means a public utility providing electric service, a generation 
3.6 	and transmission cooperative electric association, or a municipal power agency.
3.7 	(c) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year 
3.8 	by an electric utility to retail customers of the electric utility or to a distribution utility for 
3.9 	distribution to the retail customers of the distribution utility.

3.10 	Sec. 2. Minnesota Statutes 2006, section 216B.1691, subdivision 2, is amended to read:
3.11 		Subd. 2.Eligible Next generation renewable energy objectives. (a) Each electric 
3.12 	utility shall make a good faith effort to generate or procure sufficient electricity generated 
3.13 	by an eligible energy technology to provide its retail consumers, or the retail customers of a 
3.14 	distribution utility to which the electric utility provides wholesale electric service, so that:
3.15 	(1) commencing in 2005 by 2010, at least one ten percent of the electric utility's total 
3.16 	retail electric sales is generated by eligible energy technologies; and
3.17 	(2) the amount provided under clause (1) is increased by one percent of the utility's 
3.18 	total retail electric sales each year until 2025, with interim goals of 15 percent by 2015; 
3.19 	and 20 percent by 2020.
3.20 	(3) ten These objectives apply to each individual electric utility and apply statewide, 
3.21 	so that by the end of 2025 and beyond, at least 25 percent of the electric energy provided 
3.22 	to retail customers in Minnesota is generated by eligible energy technologies.
3.23 	(b) Of the eligible energy technology generation required under paragraph (a), 
3.24 	clauses (1) and (2), not less than 0.5 percent of the energy must be generated by biomass 
3.25 	energy technologies, including an energy recovery facility used to capture the heat value 
3.26 	of mixed municipal solid waste or refuse-derived fuel from mixed municipal solid waste 
3.27 	as a primary fuel, by 2005. By 2010, one percent of the eligible technology generation 
3.28 	required under paragraph (a), clauses (1) and (2), shall be generated by biomass energy 
3.29 	technologies. Notwithstanding subdivision 1, paragraph (a), clause (1):
3.30 	(1) the commission may authorize an energy technology that generates electricity 
3.31 	from a hydroelectric resource with a capacity of 60 megawatts or greater as an eligible 
3.32 	energy technology for an individual electric utility if the commission finds that 
3.33 	authorization to be necessary to minimize an excessive rate impact on the utilitya??s 
3.34 	customers under this section; and
4.1 	(2) an energy recovery facility used to capture the heat value of mixed municipal 
4.2 	solid waste or refuse-derived fuel from mixed municipal solid waste, with a power sales 
4.3 	agreement in effect as of May 29, 2003, that terminates after December 31, 2010, does not 
4.4 	qualify as an eligible energy technology unless the agreement provides for rate adjustment 
4.5 	in the event the facility qualifies as a renewable energy source.
4.6 	(c) By June 1, 2004, and As needed thereafter, the commission shall issue an order 
4.7 	detailing the criteria and standards by which it will measure an electric utility's efforts 
4.8 	to meet the renewable energy objectives of this section to determine whether the utility 
4.9 	is making the required good faith effort, taking into consideration the provisions of 
4.10 	subdivision 7. In this order, the commission shall include criteria and standards that 
4.11 	protect against undesirable impacts on the reliability of the utility's system and economic 
4.12 	impacts on the utility's ratepayers and that consider technical feasibility.
4.13 	(d) In its order under paragraph (c), the commission shall provide for a weighted 
4.14 	scale of how energy produced by various eligible energy technologies shall count toward a 
4.15 	utility's objective. In establishing this scale, the commission shall consider the attributes 
4.16 	of various technologies and fuels, and shall establish a system that grants multiple credits 
4.17 	toward the objectives for those technologies and fuels the commission determines is in 
4.18 	the public interest to encourage.

4.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

4.20 	Sec. 3. Minnesota Statutes 2006, section 216B.1691, subdivision 3, is amended to read:
4.21 		Subd. 3.Utility plans filed with commission. (a) Each electric utility shall report 
4.22 	on its plans, activities, and progress with regard to these objectives in its filings under 
4.23 	section 216B.2422 or in a separate report submitted to the commission every two years, 
4.24 	whichever is more frequent, demonstrating to the commission that the utility is making the 
4.25 	required good faith effort. In its resource plan or a separate report, each electric utility 
4.26 	shall provide a description of: 
4.27 	(1) the status of the utility's renewable energy mix relative to the good faith objective;
4.28 	(2) efforts taken to meet the objective;
4.29 	(3) any obstacles encountered or anticipated in meeting the objective; and
4.30 	(4) potential solutions to the obstacles.
4.31 	(b) The commission shall review the compliance filings of each electric utility under 
4.32 	paragraph (a), and make a determination as to whether the utility is in compliance with 
4.33 	the requirements of this section.  A utility that the commission has determined to have 
4.34 	made the required good faith effort for the reporting period but that did not achieve the 
4.35 	objective specified for that reporting period shall file a plan with the commission to make 
5.1 	up the balance of the objective for that reporting period.  A utility that the commission has 
5.2 	determined has not made the required good faith effort for the reporting period is subject 
5.3 	to the penalty established under subdivision 8.
5.4 	(c) The commissioner shall compile the information provided to the commission 
5.5 	under paragraph paragraphs (a) and (b), and report to the chairs of the house of 
5.6 	representatives and senate committees with jurisdiction over energy and environment 
5.7 	policy issues as to the progress of utilities in the state in increasing the amount of 
5.8 	renewable energy provided to retail customers, with any recommendations for regulatory 
5.9 	or legislative action, by January 15 of each odd-numbered year.

5.10 	Sec. 4. Minnesota Statutes 2006, section 216B.1691, is amended by adding a 
5.11 	subdivision to read:
5.12 		Subd. 7.Good faith effort. For the purposes of this section, "good faith effort" 
5.13 	means that an electric utility subject to this section has taken all reasonable steps to meet 
5.14 	the renewable energy objective established in subdivision 2, while minimizing adverse 
5.15 	reliability and cost impacts to its Minnesota consumers.  Evidence of that good faith 
5.16 	effort may include, but is not limited to:
5.17 	(1) demonstrated commitment to a comprehensive and specific plan to meet the 
5.18 	renewable energy objective, detailing the steps to be taken to reach the renewable energy 
5.19 	objective, with an accompanying timetable. Each electric utility is responsible for 
5.20 	conducting sufficient advance planning to comply with this section;
5.21 	(2) demonstrated financial commitments to build or to purchase energy or credits to 
5.22 	meet the renewable energy objective, including project financing, purchase and ordering 
5.23 	of equipment, and expenditures to hire construction firms if needed;
5.24 	(3) demonstrated commitments to construction of physical infrastructure to meet the 
5.25 	renewable energy objective, including ordering equipment, hiring construction firms, and 
5.26 	contracting for construction sites;
5.27 	(4) demonstrated legal and contractual commitments to purchase or build the 
5.28 	facilities to meet the renewable energy objective including, but not limited to, contracts for 
5.29 	sites on which to build; contracts for labor and equipment; arrangements for insurance and 
5.30 	liability; or, in the case of contracts for purchases to meet the renewable energy objective, 
5.31 	a negotiated power purchase agreement;
5.32 	(5) demonstrated commitment to meet regulatory requirements in a timely fashion, 
5.33 	including all permitting and other regulatory obligations;
5.34 	(6) demonstrated commitment to acquiring or building transmission access for 
5.35 	generation facilities to meet the renewable energy objective, including the initiation or 
6.1 	participation in transmission studies, construction of needed transmission infrastructure, 
6.2 	or otherwise providing for interconnection and transmission service for those facilities;
6.3 	(7) demonstrated commitment to openness and transparency, including full public 
6.4 	access to all nonproprietary information related to meeting the renewable energy 
6.5 	objective; and
6.6 	(8) demonstrated analysis of the technical feasibility and potential for negative 
6.7 	impacts on reliability and rates for each project proposed to meet the utilitya??s objective.

6.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.9 	Sec. 5. Minnesota Statutes 2006, section 216B.1691, is amended by adding a 
6.10 	subdivision to read:
6.11 		Subd. 8.Penalty for noncompliance. If the commission finds that an electric utility 
6.12 	has failed to make a good faith effort for the previous reporting period under subdivision 
6.13 	3, the commission shall impose an administrative penalty of $50 per megawatt-hour 
6.14 	for the amount of eligible renewable energy generation the utility is in deficit.  The 
6.15 	commission may not impose a penalty on the electric utility if it finds that the utilitya??s 
6.16 	failure to meet the renewable energy objectives is due to circumstances outside of the 
6.17 	utilitya??s reasonable control, such as weather-related damage, mechanical failure, strikes, 
6.18 	lockouts, and actions of a governmental authority that adversely affect the generation, 
6.19 	transmission, or distribution of renewable energy from an eligible resource. Penalty 
6.20 	payments under this subdivision must be deposited to the next generation energy fund 
6.21 	established under section 216C.054.

6.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.23 	Sec. 6. Minnesota Statutes 2006, section 216B.1691, is amended by adding a 
6.24 	subdivision to read:
6.25 		Subd. 9.Compliance payment option. In lieu of adding eligible energy resources 
6.26 	or purchasing renewable credits to meet an electric utilitya??s objectives under this section, 
6.27 	a utility may petition the commission to make a compliance payment equal to the value 
6.28 	of eligible energy resources necessary to meet that planning perioda??s objective. The 
6.29 	commission may approve the petition if it finds that a compliance payment would be in 
6.30 	the best interest of the utility and its ratepayers. The commission may, by order, establish 
6.31 	the amount of the payment based on the market price for renewable energy credits for the 
6.32 	Midwest region. Payments under this subdivision must be deposited to the next generation 
6.33 	energy fund established under section 216C.054.

7.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.2 	Sec. 7. Minnesota Statutes 2006, section 216B.1691, is amended by adding a 
7.3 	subdivision to read:
7.4 		Subd. 10.Community energy projects. (a) Each electric utility subject to this 
7.5 	section shall make a good faith effort to manage the power purchase agreements it enters 
7.6 	into after July 1, 2007, to satisfy the renewable energy objective in such a way that at 
7.7 	least 25 percent of the amounts paid out under those power purchase agreements, in 
7.8 	the aggregate, are distributed to Minnesota community investors, defined as qualifying 
7.9 	owners under section 216B.1612, subdivision 2, paragraph (c).
7.10 	(b) The commission shall allow an electric utility to count one kilowatt-hour of 
7.11 	electricity generated by a community energy project and purchased directly by the utility 
7.12 	as 1.2 kilowatt-hours of electricity towards the utilitya??s obligation under this section.
7.13 	(c) For the purposes of this subdivision, community energy project has the meaning 
7.14 	given to it under section 216B.2426, subdivision 1, paragraph (b).

7.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.16 	Sec. 8. [216C.054] NEXT GENERATION ENERGY FUND.
7.17 		Subdivision 1.Fund established. A next generation energy fund is established 
7.18 	as an account in the state treasury. Earnings, such as interest, dividends, and any other 
7.19 	earnings arising from fund assets, must be credited to the fund.
7.20 		Subd. 2.Appropriation and expenditures. Money in the fund is appropriated to 
7.21 	the commissioner of commerce, and may only be used:
7.22 	(1) for amounts deposited to the fund under section 216B.1691, to encourage the 
7.23 	development of new renewable energy projects in the state; and
7.24 	(2) for amounts deposited to the fund under section 216B.2412, subdivision 12, for 
7.25 	the purposes specified in that subdivision.

7.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.27 	Sec. 9. TRANSMISSION PLANNING AND DEVELOPMENT.
 7.28 		Subdivision 1.Transmission necessary to serve the next generation renewable 
7.29 	energy objective. Transmission-owning utilities subject to Minnesota Statutes, section 
7.30 	216B.2425, shall analyze and identify specific transmission solutions for serving the 
7.31 	renewable energy resources necessary to comply with the expanded and accelerated 
7.32 	renewable energy objective under this article, with particular focus on the transmission 
8.1 	infrastructure needed by the year 2010.  The utilities shall take into account the analysis 
8.2 	being conducted under Minnesota Statutes, section 216B.2426, subdivision 3, and shall 
8.3 	issue the analysis required under this subdivision in the November 1, 2007, filing under 
8.4 	Minnesota Statutes, section 216B.2425.
8.5 		Subd. 2.Extra-high-voltage transmission for the Midwest. In order to assist 
8.6 	attaining the national goal of having 20 percent of the electricity used nationally come 
8.7 	from wind energy resources, the transmission-owning utilities subject to Minnesota 
8.8 	Statutes, section 216B.2425, shall participate in a transmission analysis to identify 
8.9 	extra-high-voltage transmission solutions to transmit energy from 20,000 megawatts of 
8.10 	new wind energy facilities located in the Midwest, and shall report their findings to the 
8.11 	Public Utilities Commission by January 15, 2008.

8.12 	ARTICLE 3
8.13 	COMMUNITY ENERGY

8.14 	Section 1. Minnesota Statutes 2006, section 216B.1612, subdivision 2, is amended to 
8.15 	read:
8.16 		Subd. 2.Definitions. (a) The terms used in this section have the meanings given 
8.17 	them in this subdivision.
8.18 	(b) "C-BED tariff" or "tariff" means a community-based energy development tariff.
8.19 	(c) "Qualifying owner" means:
8.20 	(1) a Minnesota resident;
8.21 	(2) a limited liability  company that is organized under the laws of this state and that 
8.22 	is made up of members who are Minnesota residents;
8.23 	(3) a Minnesota nonprofit organization organized under chapter 317A;
8.24 	(4) a Minnesota cooperative association organized under chapter 308A or 308B, 
8.25 	other than a rural electric cooperative association or a generation and transmission 
8.26 	cooperative;
8.27 	(5) a Minnesota political subdivision or local government other than a municipal 
8.28 	electric utility or municipal power agency, including, but not limited to, a county, statutory 
8.29 	or home rule charter city, town, school district, or public or private higher education 
8.30 	institution or any other local or regional governmental organization such as a board, 
8.31 	commission, or association; or
8.32 	(6) a tribal council.
8.33 	(d) "Net present value rate" means a rate equal to the net present value of the 
8.34 	nominal payments to a project divided by the total expected energy production of the 
8.35 	project over the life of its power purchase agreement.
9.1 	(e) "Standard reliability criteria" means:
9.2 	(1) can be safely integrated into and operated within the utility's grid without causing 
9.3 	any adverse or unsafe consequences; and
9.4 	(2) is consistent with the utility's resource needs as identified in its most recent 
9.5 	resource plan submitted under section 216B.2422.
9.6 	(f) "Community-based energy project" or "C-BED project" means a new
9.7 	community-based wind energy project that: became operational after July 1, 2005.
9.8 	(1) has No single qualifying owner owningof a C-BED project with more than 
9.9 	two turbines may own more than 15 percent of athat C-BED project that consists of 
9.10 	more than two turbines; or.
9.11 	(2) for C-BED projects of one or two turbines, is owned entirely by one or more 
9.12 	qualifying owners, with at least 51 percent of the total financial benefits over the life of the 
9.13 	project flowing to qualifying owners; and
9.14 	(3)(g) "Community-based" means a project:
9.15 	(1) in which at least 35 percent of the amount paid to the project under a utility 
9.16 	power purchase agreement over the term of the agreement goes to the qualified owners 
9.17 	directly or to the surrounding community in the form of management fees, service 
9.18 	contracts, taxes paid by the project to local units of government, easement lease payments, 
9.19 	and other revenues paid directly to qualified owners; and
9.20 	(2) that has a resolution of support adopted by the county board of each county in 
9.21 	which the project is to be located, or in the case of a project located within the boundaries 
9.22 	of a reservation, the tribal council for that reservation.

9.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

9.24 	Sec. 2. Minnesota Statutes 2006, section 216B.1612, is amended by adding a 
9.25 	subdivision to read:
9.26 		Subd. 8.Certification. For the purposes of this section, section 216B.1691, 
9.27 	subdivision 10, and section 216B.2426, a project developer of a proposed project may 
9.28 	apply to the commissioner of commerce for an initial certification that the project meets 
9.29 	the criteria for a community energy project. The commissioner shall issue a decision 
9.30 	within 30 business days from the date all information necessary to make the determination 
9.31 	is received by the department. An initial certification by the commissioner is appealable 
9.32 	to the commission if the appeal is made within 14 business days. If no appeal is made 
9.33 	within that period, the initial certification becomes final.

9.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.1 	Sec. 3. Minnesota Statutes 2006, section 216B.2426, is amended to read:
10.2 	216B.2426 COMMUNITY ENERGY PROJECTS; OPPORTUNITIES FOR 
10.3 	DISTRIBUTED GENERATION, INTERCONNECTION.
10.4 		Subdivision 1.Definitions. (a) The definitions in this subdivision and in section 
10.5 	216B.1612 apply to this section. 
10.6 	(b) "Community energy project" means a community-based energy project; or 
10.7 	a community-based distributed generation facility of no more than ten megawatts of 
10.8 	interconnected capacity that is an eligible energy technology other than wind.
10.9 	(c) "Utility" or "utilities" includes entities defined in section 216B.1691, subdivision 
10.10 	1, paragraph (b), subject to state renewable energy objectives.
10.11 		Subd. 2.Consideration in proceedings. The commission shall ensure that 
10.12 	opportunities for the installation of distributed generation, as that term is defined in section 
10.13 	216B.169, subdivision 1, paragraph (c), community energy projects are considered in 
10.14 	any proceeding under section 216B.2422, 216B.2425, or 216B.243, and may, by order, 
10.15 	establish standards and procedures to comply with this subdivision.
10.16 		Subd. 3.Statewide study of potential for community energy; assessment. (a) 
10.17 	Each electric utility subject to section 216B.1691 shall participate in a statewide study 
10.18 	that identifies the potential for community energy projects that can be developed within 
10.19 	each Minnesota electric transmission planning zone to serve retail electric customers 
10.20 	within the state.  This study must:
10.21 	(1) identify the general location of each substation that has transformer secondary 
10.22 	voltage of 34.5 kV or higher;
10.23 	(2) identify the potential amount of capacity that could reasonably be developed at 
10.24 	each substation identified in clause (1), considering wind resources, land use constraints, 
10.25 	and other site-specific characteristics;
10.26 	(3) identify enhancements to existing transformer and infrastructure needed to 
10.27 	interconnect the projects of the capacity identified in clause (2) so as to optimize efficient 
10.28 	use of existing infrastructure to meet the needs of community energy projects;
10.29 	(4) identify community energy enhancement zones in geographic areas where the 
10.30 	cumulative potential for community energy development is sufficiently great to justify the 
10.31 	construction of transformer and transmission infrastructure enhancements in anticipation 
10.32 	of future community energy projects;
10.33 	(5) identify the transformer and infrastructure needs of community energy projects 
10.34 	under subdivision 4;
11.1 	(6) be conducted at a level of detail sufficient for project proposal development 
11.2 	through certificate of need under section 216B.243, or the transmission planning priority 
11.3 	process under section 216B.2425.
11.4 	(b) The utilities shall consult with a stakeholder group for each transmission 
11.5 	planning zone to provide input into the scope and nature of the analysis and review 
11.6 	results. The commission shall convene the stakeholder group for each planning zone and 
11.7 	shall select and engage an independent engineering firm to provide technical support to 
11.8 	the stakeholder groups.
11.9 	(c) The utilities shall complete the initial study under this subdivision by November 
11.10 	1, 2007, and the commission shall issue the results by January 1, 2008. Any enhancements 
11.11 	identified must be submitted for certification in the biennial transmission plan filing, or 
11.12 	submitted for approval under 216B.243 within six months of completion of the study.
11.13 	(d) Thereafter, the utilities, utilizing input from the stakeholder groups, shall provide 
11.14 	updates of this statewide study in the statea??s transmission planning processes under 
11.15 	216B.2425.  The report must include a system map showing the location and thermal 
11.16 	megawatt loading rating of each of its facilities over 34.5 kV operating voltage, and also 
11.17 	include a report on community energy projects and related transmission infrastructure 
11.18 	constructed in the proceeding periods.
11.19 	(e) Each utility subject to section 216B.1691 shall participate fully and in a timely 
11.20 	manner in conducting the analysis, study, and report required in this subdivision, and the 
11.21 	commission shall assess these utilities for the commissiona??s costs incurred under this 
11.22 	section. Amounts assessed under this paragraph are appropriated to the commission, and 
11.23 	its biennial appropriation is increased by a like amount.
11.24 		Subd. 4Interconnection of priority community energy projects. (a) The 
11.25 	commission shall initiate a proceeding and by an order issued by January 15, 2008, to 
11.26 	establish a process to identify priority community energy projects of 25 megawatts of 
11.27 	capacity or less, and establish standards to assure their prompt and orderly interconnection. 
11.28 	This process must:
11.29 	(1) identify as priority projects those community energy projects with completed 
11.30 	power purchase agreements and demonstrations of financial feasibility;
11.31 	(2) establish (i) a standard interconnection agreement that sets forth the contractual 
11.32 	conditions under which a company and a customer agree that one or more facilities may 
11.33 	be interconnected with the company's utility system, and (ii) a standard application form 
11.34 	and process for interconnection and parallel operation with the utility system;
11.35 	(3) set reasonable terms and conditions to ensure the reliable, safe, and efficient 
11.36 	operation of interconnected equipment;
12.1 	(4) assign interconnection costs of community energy projects to the distribution 
12.2 	system owner to the maximum extent permitted by federal law, such costs not to exceed 
12.3 	five percent of the total project costs;
12.4 	(5) include provisions for expedited construction of interconnection facilities by 
12.5 	utilities, and provision for damage payments to interconnecting projects if schedules 
12.6 	are delayed; and
12.7 	(6) provide for the expedited, low-cost, orderly, safe, and standardized 
12.8 	interconnection of community energy project facilities including establishing a statewide 
12.9 	two-tiered queue process that includes:
12.10 	(i) a priority queue for projects with completed power purchase agreements and 
12.11 	demonstrated financial feasibility; and
12.12 	(ii) a preliminary queue that includes a feasibility analysis of each proposed project 
12.13 	and allows projects in the preliminary queue with newly completed power purchase 
12.14 	agreements to move to the bottom of the priority queue.
12.15 	(b) Each utility shall identify transmission system enhancements required by 
12.16 	priority community energy projects identified under this subdivision and submit those 
12.17 	enhancements for permitting approval under section 216B.2425. These enhancements 
12.18 	must be considered certified as priority projects under that section, or under section 
12.19 	216B.243. 
12.20 		Subd. 5.Costs recoverable. Expenditures by utilities required to comply with this 
12.21 	section, including any costs allocated under subdivision 4, paragraph (a), clause (5), 
12.22 	are recoverable pursuant to 216B.1645.

12.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

12.24 	ARTICLE 4
12.25 	DEMAND EFFICIENCY

12.26 	Section 1. Minnesota Statutes 2006, section 216B.16, subdivision 6b, is amended to 
12.27 	read:
12.28 		Subd. 6b.Energy efficiency and conservation improvement. (a) Except as 
12.29 	otherwise provided in this subdivision, all investments and expenses of a public utility 
12.30 	as defined in section 216B.241 216B.2412, subdivision 1, paragraph (e), incurred in 
12.31 	connection with energy efficiency and conservation improvements shall be recognized 
12.32 	and included by the commission in the determination of just and reasonable rates as if 
12.33 	the investments and expenses were directly made or incurred by the utility in furnishing 
12.34 	utility service. 
13.1 	(b) After December 31, 1999, Investments and expenses for energy efficiency and 
13.2 	conservation improvements shall not be included by the commission in the determination 
13.3 	of just and reasonable electric and gas rates for retail electric and gas service provided 
13.4 	to large electric customer facilities that have been exempted by the commissioner of the 
13.5 	department pursuant to section 216B.241, subdivision 1a, paragraph (b) 216B.2412, 
13.6 	subdivision 2, paragraph (b). However, no public utility shall be prevented from recovering 
13.7 	its investment in energy conservation improvements from all customers that were made on 
13.8 	or before December 31, 1999, in compliance with the requirements of section 216B.241. 
13.9 	(c) The commission may permit a public utility to file rate schedules providing 
13.10 	for annual recovery of the costs of energy efficiency and conservation improvements. 
13.11 	These rate schedules may be applicable to less than all the customers in a class of retail 
13.12 	customers if necessary to reflect the differing minimum spending requirements of section 
13.13 	216B.241, subdivision 1a 216B.2412, subdivision 3. After December 31, 1999, The 
13.14 	commission shall allow a public utility, without requiring a general rate filing under this 
13.15 	section, to reduce the electric and gas rates applicable to large electric customer facilities 
13.16 	that have been exempted by the commissioner of the department pursuant to section 
13.17 	216B.241, subdivision 1a 216B.2412, subdivision 2, paragraph (b), by an amount that 
13.18 	reflects the elimination of energy efficiency and conservation improvement investments 
13.19 	or expenditures for those facilities required on or before December 31, 1999. In the 
13.20 	event that the commission has set electric or gas rates based on the use of an accounting 
13.21 	methodology that results in the cost of conservation improvements being recovered from 
13.22 	utility customers over a period of years, the rate reduction may occur in a series of steps to 
13.23 	coincide with the recovery of balances due to the utility for conservation improvements 
13.24 	made by the utility on or before December 31, 1999. 

13.25 	EFFECTIVE DATE. This section is effective July 1, 2008.

13.26 	Sec. 2. Minnesota Statutes 2006, section 216B.16, subdivision 6c, is amended to read:
13.27 		Subd. 6c.Incentive plan for energy efficiency and conservation improvement.
 13.28 	(a) The commission may order public utilities to develop and submit for commission 
13.29 	approval incentive plans that describe the method of recovery and accounting for utility 
13.30 	conservation expenditures and savings. In developing the incentive plans the commission 
13.31 	shall ensure the effective involvement of interested parties.
13.32 	(b) In approving incentive plans, the commission shall consider:
13.33 	(1) whether the plan is likely to increase utility investment in cost-effective energy 
13.34 	efficiency and conservation;
14.1 	(2) whether the plan is compatible with the interest of utility ratepayers and other 
14.2 	interested parties;
14.3 	(3) whether the plan links the incentive to the utility's performance in achieving 
14.4 	cost-effective conservation; and
14.5 	(4) whether the plan is in conflict with other provisions of this chapter.
14.6 	(c) The commission may set rates to encourage the vigorous and effective 
14.7 	implementation of utility energy efficiency and conservation programs. The commission 
14.8 	may:
14.9 	(1) increase or decrease any otherwise allowed rate of return on net investment based 
14.10 	upon the utility's skill, efforts, and success in conserving energy;
14.11 	(2) share between ratepayers and utilities the net savings resulting from energy 
14.12 	efficiency and conservation programs to the extent justified by the utility's skill, efforts, 
14.13 	and success in conserving energy; and
14.14 	(3) compensate the utility for earnings lost as a result of its conservation programs.

14.15 	EFFECTIVE DATE. This section is effective July 1, 2008.

14.16 	Sec. 3. [216B.2412] DEMAND EFFICIENCY PROGRAM.
14.17 		Subdivision 1.Definitions. For purposes of this section and section 216B.16, 
14.18 	subdivision 6b, the terms defined in this subdivision have the meanings given them.
14.19 	(a) "Customer facility" means all buildings, structures, equipment, and installations 
14.20 	at a single site.
14.21 	(b) "Energy conservation" means demand-side management of energy supplies 
14.22 	resulting in a net reduction in energy use. Load management that reduces overall energy 
14.23 	use is energy conservation.
14.24 	(c) "Energy efficiency" means measures or programs, including energy conservation 
14.25 	measures or programs, that target consumer behavior, equipment, processes, or devices to 
14.26 	result in a decrease in consumption of electric energy or natural gas without a reduction in 
14.27 	the quality or level of service provided to the energy consumer.
14.28 	(d) "Energy efficiency and conservation improvement" means a project that results 
14.29 	in energy efficiency or energy conservation.
14.30 	(e) "Investments and expenses of a public utility" includes the investments and 
14.31 	expenses incurred by a public utility in connection with an energy efficiency and 
14.32 	conservation improvement, including but not limited to:
14.33 	(1) the differential in interest cost between the market rate and the rate charged on a 
14.34 	no-interest or below-market interest loan made by a public utility to a customer for the 
14.35 	purchase or installation of an energy efficiency and conservation improvement; 
15.1 	(2) the difference between the utility's cost of purchase or installation of energy 
15.2 	efficiency and conservation improvements and any price charged by a public utility to a 
15.3 	customer for such improvements.
15.4 	(f) "Large electric customer facility" means a customer facility that imposes a 
15.5 	peak electrical demand on an electric utility's system of not less than 20,000 kilowatts, 
15.6 	measured in the same way as the utility that serves the customer facility measures 
15.7 	electrical demand for billing purposes, and for which electric services are provided at 
15.8 	retail on a single bill by a utility operating in the state.
15.9 	(g) "Load management" means an activity, service, or technology to change the 
15.10 	timing or the efficiency of a customer's use of energy that allows a utility or a customer to 
15.11 	respond to wholesale market fluctuations or to reduce the overall demand for energy or 
15.12 	capacity.
15.13 		Subd. 2.Applicability. (a) This section applies to each:
15.14 	(1) public utility;
15.15 	(2) municipal utility that furnishes electric service in the state;
15.16 	(3) municipal utility with more than 1,000,000,000 cubic feet in annual throughput 
15.17 	sales from natural gas service provided in the state; and 
15.18 	(4) generation and transmission cooperative electric association that provides 
15.19 	energy services to cooperative electric associations that provide electric service at retail 
15.20 	to consumers in the state.
15.21 	(b) The owner of a large electric customer facility may petition the commissioner 
15.22 	to exempt both electric and gas utilities serving the large energy customer facility from 
15.23 	the energy savings requirements of subdivision 3 with respect to retail sales attributable 
15.24 	to the facility. At a minimum, the petition must be supported by evidence relating to 
15.25 	competitive or economic pressures on the customer and a showing by the customer 
15.26 	of reasonable efforts to identify, evaluate, and implement cost-effective conservation 
15.27 	improvements at the facility. If a petition is filed on or before October 1 of any year, the 
15.28 	order of the commissioner to exempt revenues attributable to the facility can be effective 
15.29 	no earlier than January 1 of the following year. The commissioner shall not grant an 
15.30 	exemption if the commissioner determines that granting the exemption is contrary to 
15.31 	the public interest. The commissioner may, after investigation, rescind any exemption 
15.32 	granted under this paragraph upon a determination that cost-effective energy efficiency 
15.33 	and conservation improvements are available at the large electric customer facility. For 
15.34 	the purposes of investigations by the commissioner under this paragraph, the owner of 
15.35 	any large electric customer facility shall, upon request, provide the commissioner with 
16.1 	updated information comparable to that originally supplied in or with the owner's original 
16.2 	petition under this paragraph.
16.3 	(c) A generation and transmission cooperative electric association or public utility 
16.4 	serving utilities with fewer than 500 aggregate retail customers in the state may petition 
16.5 	the commissioner for an exemption from this section. The commissioner shall grant an 
16.6 	exemption if the affected retail consumers in Minnesota have access to energy efficiency 
16.7 	and conservation programs provided by a utility or other entity under requirements of 
16.8 	another state.
16.9 		Subd. 3.Energy savings goals. (a) The commissioner shall establish annual 
16.10 	energy savings goals for each utility and association listed in subdivision 2. Unless the 
16.11 	commissioner determines the goal is not in the public interest, the energy savings goals 
16.12 	for programs established under subdivision 4 must equal:
16.13 	(1) at least 0.75 percent of gross annual retail energy sales by 2009;
16.14 	(2) at least 1.0 percent of gross annual retail energy sales by 2010; and
16.15 	(3) at least 1.5 percent of gross annual retail energy sales by 2012 and each year 
16.16 	thereafter.
16.17 	(b) For a generation and transmission electric cooperative association, the goals 
16.18 	listed in paragraph (a) apply to each associationa??s membersa?? aggregate gross annual 
16.19 	retail energy sales.
16.20 	(c) Municipal utilities may meet the energy savings goals established in paragraph 
16.21 	(a) on an aggregate basis through a municipal power agency, generation and transmission 
16.22 	electric cooperative association, or other not-for-profit entity. A municipal power agency, 
16.23 	generation and transmission electric cooperative association, or other not-for-profit entity 
16.24 	administering aggregate energy efficiency and conservation programs may invest in 
16.25 	energy efficiency and conservation improvements on behalf of the municipal utilities it 
16.26 	serves and shall fulfill the reporting and energy savings goals on an aggregate basis.
16.27 	(d) The commissioner may require a public utility to make an energy efficiency and 
16.28 	conservation improvement investment or expenditure whenever the commissioner finds 
16.29 	that the improvement will result in energy savings at a total cost to the utility less than the 
16.30 	cost to the utility to produce or purchase an equivalent amount of new supply of energy.
16.31 		Subd. 4.Demand efficiency programs. (a) Utilities and associations subject 
16.32 	to subdivision 2 shall file energy efficiency and conservation improvement plans by 
16.33 	June 1, on a schedule determined by order of the commissioner, but at least every four 
16.34 	years. Plans received by June 1 must be approved or approved as modified by the 
16.35 	commissioner by December 1 of that same year. The commissioner shall evaluate the 
16.36 	program on the basis of cost-effectiveness and the reliability of technologies employed. 
17.1 	The commissioner's order must provide to the extent practicable for a free choice, by 
17.2 	consumers participating in the program, of the device, method, material, or project 
17.3 	constituting the energy efficiency and conservation improvement and for a free choice of 
17.4 	the seller, installer, or contractor of the energy efficiency and conservation improvement; 
17.5 	provided that the device, method, material, or project seller, installer, or contractor is duly 
17.6 	licensed, certified, approved, or qualified.
17.7 	(b) A utility or association subject to this section under subdivision 2, paragraph 
17.8 	(a), may not spend for or invest in energy efficiency and conservation improvements that 
17.9 	directly benefit a large electric customer facility for which the commissioner has issued an 
17.10 	exemption pursuant to subdivision 2, paragraph (b).
17.11 	(c) The commissioner shall consider and may require a utility, association, or 
17.12 	other entity providing energy efficiency and conservation services under this section to 
17.13 	undertake a program suggested by an outside source, including a political subdivision 
17.14 	or a nonprofit or community organization.
17.15 	(d) The commissioner may, by order, establish a list of programs that may be 
17.16 	offered as energy efficiency and conservation improvements by a public utility, municipal 
17.17 	utility, cooperative electric association, or other entity providing energy efficiency and 
17.18 	conservation services pursuant to this section. The commissioner may, by order, change 
17.19 	this list to add or subtract programs as the commissioner determines is necessary to 
17.20 	promote efficient and effective conservation programs.
17.21 	(e) The commissioner may, by order, establish energy savings assumptions for 
17.22 	energy efficiency and conservation improvements that must be used when filing programs 
17.23 	under this subdivision.  The commissioner may contract with a third party to provide 
17.24 	technical assistance establishing these assumptions.
17.25 		Subd. 5.Manner of filing and service. (a) If subject to section 216B.2412, as 
17.26 	of January 1, 2008, any public utility, generation and transmission cooperative electric 
17.27 	association, municipal power agency, cooperative electric association and municipal utility 
17.28 	shall submit filings to the department via the departmenta??s electronic filing system. The 
17.29 	commissioner may approve an exemption from this requirement in the event an affected 
17.30 	utility is unable to submit filings via the departmenta??s electronic filing system. All other 
17.31 	interested parties shall submit filings to the department via the departmenta??s electronic 
17.32 	filing system whenever practicable but may also file by personal delivery or by mail.
17.33 	(b) Submission of a document to the departmenta??s electronic filing system constitutes 
17.34 	service on the department. When department rule requires service of a notice, order, or 
17.35 	other document by the department, utility, or interested party upon persons on a service 
17.36 	list maintained by the department, service may be made by personal delivery, mail, or 
18.1 	electronic service, except that electronic service may only be made upon persons on 
18.2 	the service list who have previously agreed in writing to accept electronic service at an 
18.3 	electronic address provided to the department for electronic service purposes.
18.4 		Subd. 6.Appeals. (a) A utility, a political subdivision, a nonprofit or community 
18.5 	organization, the attorney general acting on behalf of consumers and small business 
18.6 	interests, the owner of a large electric customer facility, or a utility customer that is not 
18.7 	represented by the attorney general under section 8.33, may petition the commission to 
18.8 	modify or revoke a department decision under this section, and the commission may do so 
18.9 	if it determines that the commissionera??s decision:
18.10 	(1) will not result in cost-effective energy efficiency and conservation improvements;
18.11 	(2) has a long-range negative effect on one or more classes of customers; or
18.12 	(3) is otherwise not in the public interest.
18.13 	(b) The commission shall reject a petition that, on its face, fails to make a reasonable 
18.14 	argument that a decision is not in the public interest.
18.15 		Subd. 7.Independent audit. The commissioner shall order a public utility to 
18.16 	file annually the results of an independent audit of the utility's energy efficiency and 
18.17 	conservation improvement programs and expenditures performed by the department or an 
18.18 	auditor with experience in the provision of energy efficiency and conservation services 
18.19 	approved by the commissioner and chosen by the utility. The audit must specify the energy 
18.20 	savings or increased efficiency in the use of energy within the service territory of the 
18.21 	utility that is the result of the investments. The audit must evaluate the cost-effectiveness 
18.22 	of the utility's energy efficiency and conservation programs.
18.23 		Subd. 8.Ownership of energy efficiency and conservation improvement. An 
18.24 	energy efficiency and conservation improvement made to or installed in a building in 
18.25 	accordance with this section, except systems owned by the utility and designed to turn 
18.26 	off, limit, or vary the delivery of energy, are the exclusive property of the owner of the 
18.27 	building except to the extent that the improvement is subjected to a security interest in 
18.28 	favor of the utility in case of a loan to the building owner. The utility has no liability 
18.29 	for loss, damage, or injury caused directly or indirectly by an energy efficiency and 
18.30 	conservation improvement except for negligence by the utility in the purchase, installation, 
18.31 	or modification of the product.
18.32 		Subd. 9.Low income programs. The commissioner shall establish and 
18.33 	implement low-income energy efficiency and conservation programs. In establishing 
18.34 	low-income energy efficiency and conservation programs, the commissioner shall consult 
18.35 	political subdivisions, utilities, and nonprofit and community organizations, especially 
18.36 	organizations engaged in providing energy and weatherization assistance to low-income 
19.1 	persons. To the extent practicable, money collected under subdivision 12 for this purpose 
19.2 	must serve low-income persons, including low-income renters, in the service territory of 
19.3 	the utility or association providing the funds. The commissioner shall record and report 
19.4 	expenditures and energy savings achieved as a result of low-income programs funded 
19.5 	through this account. The commissioner may contract with a political subdivision, a 
19.6 	nonprofit or community organization, a public utility, a municipality, or a cooperative 
19.7 	electric association to implement its programs.
19.8 		Subd. 10.Demand efficiency research and development grants. The 
19.9 	commissioner may provide grants to any person to conduct research and development of 
19.10 	energy efficiency and conservation improvements. In awarding research and development 
19.11 	grants, the commissioner shall consult with an advisory group consisting of utilities, 
19.12 	consumer advocates, and other interested parties.
19.13 		Subd. 11.Facilities demand efficiency. (a) The Department of Administration 
19.14 	and the Department of Commerce shall maintain and, as needed, revise the sustainable 
19.15 	building guidelines developed under section 16B.325.
19.16 	(b) The Department of Administration and the Department of Commerce shall 
19.17 	maintain and update the benchmarking tool developed under Laws 2001, chapter 212, 
19.18 	article 1, section 3, so that all public buildings can use the benchmarking tool to maintain 
19.19 	energy usage information for the purposes of establishing energy efficiency benchmarks 
19.20 	and tracking building performance and the results of energy efficiency and conservation 
19.21 	improvements.
19.22 	(c) The commissioner may provide grants to commercial building owners to 
19.23 	facilitate energy efficiency and conservation improvements and professional engineering 
19.24 	certification to reach the goal of 1,000 Energy Star-labeled commercial buildings in the 
19.25 	state by 2010.
19.26 		Subd. 12.Demand efficiency account. (a) A demand efficiency account is 
19.27 	established within the next generation energy fund established under section 216C.054. 
19.28 	Interest on money in the account accrues to the account.
19.29 	 (b) Subject to the limitations established in paragraph (c), the commissioner shall 
19.30 	assess energy utilities for costs related to execution of subdivision 4, paragraph (e), and 
19.31 	9, 10, and 11. The commissioner shall apportion the costs among all energy utilities in 
19.32 	proportion to their respective gross operating revenues from sales of gas or electric service 
19.33 	within the state during the last calendar year and shall then render a bill to each utility on a 
19.34 	regular basis. For purposes of administrative efficiency, the commissioner shall assess 
19.35 	energy utilities and issue bills in accordance with the billing and assessment procedures 
19.36 	provided in section 216B.62, to the extent that these procedures do not conflict with this 
20.1 	subdivision. The amount of the bills rendered by the commissioner under this paragraph 
20.2 	must be paid by the energy utility into the demand efficiency account within the next 
20.3 	generation energy fund within 30 days from the date of billing and is appropriated to the 
20.4 	commissioner for the purposes of executing subdivisions 4, paragraph (e), 9, 10, and 
20.5 	11. All amounts assessed under this section are in addition to amounts appropriated to 
20.6 	the commissioner by other law.
20.7 	(c) The commissioner may assess:
20.8 	(1) an amount equal to 0.20 percent of the gross operating revenue from annual retail 
20.9 	sales of electricity and natural gas in the state for the purpose of providing low-income 
20.10 	energy efficiency programs under subdivision 9;
20.11 	(2) up to $3,500,000 annually to establish energy savings assumptions under 
20.12 	subdivision 4, paragraph (e), to provide grants for research and development of energy 
20.13 	efficiency and conservation improvements under subdivision 10 and grants promoting 
20.14 	Energy Star-labeled commercial buildings under subdivision 11, paragraph (c); and
20.15 	(3) up to an additional $500,000 annually to carry out subdivision 11, paragraphs 
20.16 	(a) and (b). The amount assessed under this clause is appropriated to the commissioner, 
20.17 	and some or all of the amount assessed may be transferred to the commissioner of 
20.18 	administration, for the purposes specified in subdivision 11, paragraphs (a) and (b), as 
20.19 	needed to implement those paragraphs.
20.20 		Subd. 13.Recovery of expenses. The commission shall allow a utility to recover 
20.21 	expenses resulting from an energy efficiency and conservation improvement program 
20.22 	required by the department and contributions to the demand efficiency account, unless 
20.23 	the recovery would be inconsistent with a financial incentive proposal approved by the 
20.24 	commission. In addition, a utility may file annually or the Public Utilities Commission 
20.25 	may require the utility to file, and the commission may approve, rate schedules containing 
20.26 	provisions for the automatic adjustment of charges for utility service in direct relation 
20.27 	to changes in the expenses of the utility for real and personal property taxes, fees, and 
20.28 	permits, the amounts of which the utility cannot control. A public utility is eligible 
20.29 	to file for adjustment for real and personal property taxes, fees, and permits under this 
20.30 	subdivision only if, in the year previous to the year in which it files for adjustment, it has 
20.31 	saved an additional 0.15 percent over the amount specified in subdivision 3, excluding 
20.32 	large electric customer facilities for which the commissioner has issued an exemption 
20.33 	under subdivision 2, paragraph (b).

20.34 	EFFECTIVE DATE. This section is effective July 1, 2008, and applies to proposals 
20.35 	pending on that date.

21.1 	Sec. 4. [216B.2413] DECOUPLING OF ENERGY SALES FROM REVENUES.
21.2 	The commission may, by order, establish criteria and standards for decoupling, in 
21.3 	whole or in part, energy sales by public utilities from the revenues of those utilities. The 
21.4 	commission shall design the criteria and standards to mitigate the impact on the public 
21.5 	utilities of the energy efficiency objectives under section 216B.2412 without adversely 
21.6 	affecting utility ratepayers. Upon adoption of criteria and standards under this section, 
21.7 	the commission may approve utility proposals for decoupling that are consistent with 
21.8 	those criteria and standards.

21.9 	Sec. 5. Minnesota Statutes 2006, section 216B.243, subdivision 3, is amended to read:
21.10 		Subd. 3.Showing required for construction. No proposed large energy facility 
21.11 	shall be certified for construction unless the applicant can show that demand for electricity 
21.12 	cannot be met more cost effectively through energy conservation and load-management 
21.13 	measures and unless the applicant has otherwise justified its need. In assessing need, 
21.14 	the commission shall evaluate:
21.15 	(1) the accuracy of the long-range energy demand forecasts on which the necessity 
21.16 	for the facility is based;
21.17 	(2) the effect of existing or possible energy conservation programs under sections 
21.18 	216C.05 to 216C.30 and this section or other federal or state legislation on long-term 
21.19 	energy demand;
21.20 	(3) the relationship of the proposed facility to overall state energy needs, as 
21.21 	described in the most recent state energy policy and conservation report prepared under 
21.22 	section 216C.18, or, in the case of a high-voltage transmission line, the relationship of the 
21.23 	proposed line to regional energy needs, as presented in the transmission plan submitted 
21.24 	under section 216B.2425;
21.25 	(4) promotional activities that may have given rise to the demand for this facility;
21.26 	(5) benefits of this facility, including its uses to protect or enhance environmental 
21.27 	quality, and to increase reliability of energy supply in Minnesota and the region;
21.28 	(6) possible alternatives for satisfying the energy demand or transmission needs 
21.29 	including but not limited to potential for increased efficiency and upgrading of existing 
21.30 	energy generation and transmission facilities, load-management programs, and distributed 
21.31 	generation;
21.32 	(7) the policies, rules, and regulations of other state and federal agencies and local 
21.33 	governments;
21.34 	(8) whether the applicant or applicants are in compliance with section 216B.2412, 
21.35 	subdivision 3;
22.1 	(9) any feasible combination of energy conservation improvements, required under 
22.2 	section 216B.241 216B.2412, that can (i) replace part or all of the energy to be provided 
22.3 	by the proposed facility, and (ii) compete with it economically;
22.4 	(9) (10) with respect to a high-voltage transmission line, the benefits of enhanced 
22.5 	regional reliability, access, or deliverability to the extent these factors improve the 
22.6 	robustness of the transmission system or lower costs for electric consumers in Minnesota;
22.7 	(10) (11) whether the applicant or applicants are in compliance with applicable 
22.8 	provisions of sections 216B.1691 and 216B.2425, subdivision 7, and have filed or will file 
22.9 	by a date certain an application for certificate of need under this section or for certification 
22.10 	as a priority electric transmission project under section 216B.2425 for any transmission 
22.11 	facilities or upgrades identified under section 216B.2425, subdivision 7;
22.12 	(11) (12) whether the applicant has made the demonstrations required under 
22.13 	subdivision 3a; and
22.14 	(12) (13) if the applicant is proposing a nonrenewable generating plant, the 
22.15 	applicant's assessment of the risk of environmental costs and regulation on that proposed 
22.16 	facility over the expected useful life of the plant, including a proposed means of allocating 
22.17 	costs associated with that risk.

22.18 	EFFECTIVE DATE. This section is effective July 1, 2008.

22.19 	Sec. 6. REVISOR'S INSTRUCTION.
 22.20 	The revisor of statutes shall change all statutory references to all or parts of 
22.21 	section 216B.241 wherever found in Minnesota Statutes and Minnesota Rules to section 
22.22 	216B.2412.

22.23 	EFFECTIVE DATE. This section is effective July 1, 2008.

22.24 	Sec. 7.  REPEALER.
 22.25 	Minnesota Statutes 2006, sections 216B.241; and 216B.2411, are repealed effective 
22.26 	June 30, 2008.

22.27 	ARTICLE 5
22.28 	CLIMATE CHANGE

22.29 	Section 1. Minnesota Statutes 2006, section 216B.243, subdivision 2, is amended to 
22.30 	read:
22.31 		Subd. 2.Certificate required. (a) No large energy facility shall may be sited or 
22.32 	constructed in Minnesota and no nonrenewable resource power purchase agreement may 
23.1 	be entered into by an electric utility, without the issuance of a certificate of need by the 
23.2 	commission pursuant to sections 216C.05 to 216C.30 and this section and consistent 
23.3 	with the criteria for assessment of need. 
23.4 	(b) For the purposes of this section:
23.5 	(1) "nonrenewable resource power purchase agreement" means power purchase 
23.6 	agreement for 50 megawatts of capacity or more with a term exceeding five years from 
23.7 	a generation facility powered by nonrenewable fuel; and
23.8 	(2) "electric utility" has the meaning given to it in section 216B.38, subdivision 5.

23.9 	EFFECTIVE DATE. This section is effective the day following final enactment 
23.10 	and applies to proposals pending as of that date.

23.11 	Sec. 2. Minnesota Statutes 2006, section 216B.243, subdivision 3a, is amended to read:
23.12 		Subd. 3a.Use of renewable resource. (a) The commission may not issue a 
23.13 	certificate of need under this section for:
23.14 	(1) a large energy facility that:
23.15 	(i) generates electric power by means of a nonrenewable energy source,; or that
23.16 	(ii) transmits electric power generated by means of a nonrenewable energy source; or
23.17 	(2) a nonrenewable resource power purchase agreement, unless the applicant for the 
23.18 	certificate has demonstrated to the commission's satisfaction that:
23.19 	(i) the applicant has arranged to offset the carbon dioxide and other greenhouse gas 
23.20 	emissions from the nonrenewable resource through:
23.21 	(A) capture and geologic sequestration of those emissions;
23.22 	(B) the purchase of greenhouse gas emission-reduction credits issued by a tracking 
23.23 	and crediting organization approved by the commission; or
23.24 	(C) another method approved by the commission after notice and opportunity to 
23.25 	comment; and
23.26 	(ii) it has explored the possibility of generating power by means of renewable energy 
23.27 	sources and has demonstrated that the alternative selected is less expensive (, including 
23.28 	environmental costs) and the costs of compliance with item (i), than power generated by a 
23.29 	renewable energy source.
23.30 	(b) For purposes of this subdivision, "renewable energy source" includes hydro, 
23.31 	wind, solar, and geothermal energy and the use of trees or other vegetation as fuel.

23.32 	EFFECTIVE DATE. This section is effective the day following final enactment 
23.33 	and applies to proposals pending as of that date.

24.1 	Sec. 3. Minnesota Statutes 2006, section 216B.243, subdivision 5, is amended to read:
24.2 		Subd. 5.Approval, denial, or modification. (a) Within 12 months of the 
24.3 	submission of an application, the commission shall approve or deny a certificate of need 
24.4 	for the facility or power purchase agreement. Approval or denial of the certificate shall be 
24.5 	accompanied by a statement of the reasons for the decision. Issuance of the certificate may 
24.6 	be made contingent upon modifications required by the commission. If the commission 
24.7 	has not issued an order on the application within the 12 months provided, the commission 
24.8 	may extend the time period upon receiving the consent of the parties or on its own motion, 
24.9 	for good cause, by issuing an order explaining the good cause justification for extension.
24.10 	(b) The commission may modify proposals for nonrenewable projects or 
24.11 	nonrenewable resource power purchase agreements applied for under this section to 
24.12 	order the implementation of technically feasible, cost-effective energy conservation or 
24.13 	renewable energy projects, including community energy projects, as determined under 
24.14 	section 216B.2426, that are identified in the application review process.

24.15 	EFFECTIVE DATE. This section is effective the day following final enactment 
24.16 	and applies to proposals pending as of that date.

24.17 	Sec. 4. [216C.03] CLIMATE CHANGE; ENERGY PRODUCTION AND USE.
24.18 		Subdivision 1.Climate change action plan. The commissioner of commerce, on 
24.19 	behalf of the executive branch and in coordination with the Pollution Control Agency and 
24.20 	Departments of Natural Resources, Agriculture, Employment and Economic Development, 
24.21 	and Transportation, shall identify and invite a nationally recognized independent expert 
24.22 	entity to conduct a structured, broadly inclusive stakeholder-based review of potential 
24.23 	policies and initiatives that can be implemented in Minnesota to reduce greenhouse gas 
24.24 	emissions from activities in this state.  The purpose of this effort is to identify, develop, and 
24.25 	integrate a full range of state-level energy efficiency, renewable energy, and other climate 
24.26 	change actions, across all economic sectors, regions, and energy uses in the state and 
24.27 	develop a comprehensive climate action plan that also can provide substantial energy and 
24.28 	emissions savings and related benefits for Minnesotaa??s citizens.  The end product of this 
24.29 	technical, cost-benefit analysis should be a final report that includes a thorough inventory 
24.30 	and forecast of Minnesotaa??s greenhouse gas emissions, a series of individual policy 
24.31 	recommendations across all sectors and types of activities, and recommended statewide 
24.32 	goals for implementation.  The commissioner of commerce shall coordinate the activities 
24.33 	of the executive branch participation with this stakeholder process, and shall issue a 
24.34 	Minnesota climate change action plan to the Minnesota Legislature by February 1, 2008.
25.1 		Subd. 2.Regional activities. It shall be an executive branch responsibility to work 
25.2 	with other states in the Midwest region to develop and implement a regional approach 
25.3 	to reducing greenhouse gas emissions from activities in the region.  The commissioner 
25.4 	of commerce shall coordinate Minnesotaa??s regional activities under this subdivision 
25.5 	and report by February 1 of each year on the progress made and recommendations for 
25.6 	further action.

25.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.8 	ARTICLE 6
25.9 	WIND PROJECT PERMITTING

25.10 	Section 1. [216F.015] SIZE DETERMINATION.
25.11 	(a) The total size of a combination of wind energy conversion systems for the 
25.12 	purpose of determining jurisdictional siting authority under sections 216F.01 to 216F.07 
25.13 	must be determined according to this section. The nameplate capacity of one wind energy 
25.14 	conversion system must be combined with the nameplate capacity of any other wind 
25.15 	energy conversion system that is:
25.16 	(1) located within five miles of the wind energy conversion system; 
25.17 	(2) constructed within the same 12-month period as the wind energy conversion 
25.18 	system; and 
25.19 	(3) exhibits characteristics of being a single development, including but not limited 
25.20 	to ownership structure, an umbrella sales arrangement, shared interconnection, revenue 
25.21 	sharing arrangements, and common debt or equity financing.
25.22 	(b) Upon written request of a project developer, the commissioner of commerce shall 
25.23 	provide an initial written determination under this section within 30 days of receipt of the 
25.24 	request and information necessary to develop a determination.  The commissioner shall 
25.25 	prepare and make available the necessary forms and guidance for project developers to 
25.26 	make a request for determination.  In the case of a dispute, the chair of the Public Utilities 
25.27 	Commission shall determine the total size of the system and shall draw all reasonable 
25.28 	inferences in favor of combining the systems.
25.29 	(c) An application for a permit for a wind energy conversion system from a county is 
25.30 	not complete without a jurisdictional determination made pursuant to this section.

25.31 	Sec. 2. [216F.08] DELEGATION TO COUNTIES.
25.32 		Subdivision 1.Counties; processing of applications for LWECS site permits.
 25.33 	(a) Any Minnesota county board may, by resolution and upon written notice to the Public 
26.1 	Utilities Commission, assume responsibility for processing applications for permits 
26.2 	required under this chapter for LWECS with a combined nameplate capacity of less 
26.3 	than 25,000 kilowatts. The responsibility for permit application processing, if assumed 
26.4 	by a county, may be delegated by the county board to any appropriate county officer 
26.5 	or employee. Processing by a county must be done in accordance with procedures and 
26.6 	processes established under chapter 394.
26.7 	(b) For the purposes of this subdivision, the term "processing" includes: 
26.8 	(1) the distribution to applicants of application and determination forms provided 
26.9 	by the commission; 
26.10 	(2) the receipt and examination of completed application forms, and the certification, 
26.11 	in writing, to the commission either (i) that the LWECS for which a permit was issued by 
26.12 	the county will comply with applicable rules and standards, or (ii) if the facility will not 
26.13 	comply, the respects in which a variance was required for the issuance of a permit; and 
26.14 	(3) rendering to applicants, upon request, assistance for the proper completion of 
26.15 	an application.
26.16 	(c) A county board that exercises its option under paragraph (a) and assumes 
26.17 	responsibility for processing applications for permits for LWECS within its borders 
26.18 	is responsible for issuing, denying, modifying, imposing conditions upon, or revoking 
26.19 	permits pursuant to the provisions of this section or rules adopted pursuant to this section. 
26.20 	The action of the county board with regard to that permit application is final, subject 
26.21 	to appeal as provided in section 394.27.
26.22 	(d) In adopting and enforcing rules or standards under this subdivision, the 
26.23 	commission and the commissioner shall cooperate closely with the delegated county 
26.24 	and other governmental agencies.
26.25 	(e) The commission shall work with counties and wind developers to notify and 
26.26 	educate stakeholders with regard to rules or standards under this section at the time such 
26.27 	rules or standards are being developed and adopted and at least every two years thereafter.
26.28 	(f) The commission shall, by order, develop general permit standards to cover 
26.29 	requirements of site permits for LWECS pursuant to this section. These general permit 
26.30 	standards shall apply both to permits issued by counties and to permits issued by the 
26.31 	commission directly for LWECS with a combined nameplate capacity of less than 25,000 
26.32 	kilowatts. The order shall outline minimum standards necessary to ensure the protection 
26.33 	of human health and safety and wind resources on adjacent land. The initial order shall 
26.34 	contain standards that are consistent with the general provisions of wind permits issued by 
26.35 	the commission in the five years prior to enactment of this provision.
27.1 	(g) The commission and the commissioner of commerce shall  provide technical 
27.2 	assistance to a delegated county with respect to the processing of LWECS site permit 
27.3 	applications by that county.
27.4 	(h) A county may adopt by ordinance standards for LWECS that are more stringent 
27.5 	than standards in commission rules or in the general permit standards. The commission, in 
27.6 	considering a permit for LWECS in a county that has adopted more stringent standards, 
27.7 	shall incorporate and apply those more stringent standards, unless the commission finds 
27.8 	there is good cause not to do so.
27.9 		Subd. 2.Notice of application for LWECS site permits; public participation.
 27.10 	(a) A person who applies to a county board for a permit to construct or expand an LWECS 
27.11 	under this section shall follow the same notification requirements as applicants seeking 
27.12 	a permit from the commission.
27.13 	(b) The county board shall provide for public participation commensurate with that 
27.14 	afforded the public through the commission permitting process.
27.15 		Subd. 3.Wind turbine database. Any county assuming responsibility for 
27.16 	processing applications under this section shall provide the commission with an inventory 
27.17 	of all permitted LWECS in a format suitable for incorporation into a statewide wind 
27.18 	turbine database.

27.19 	EFFECTIVE DATE. This section is effective January 15, 2008.

27.20 	ARTICLE 7
27.21 	MISCELLANEOUS PROVISIONS

27.22 	Section 1. Minnesota Statutes 2006, section 123B.65, subdivision 2, is amended to read:
27.23 		Subd. 2.Energy efficiency contract. (a) Notwithstanding any law to the contrary, 
27.24 	a school district may enter into a guaranteed energy savings contract with a qualified 
27.25 	provider to significantly reduce energy or operating costs.
27.26 	(b) Before entering into a contract under this subdivision, the board shall comply 
27.27 	with clauses (1) to (5).
27.28 	(1) The board must seek proposals from multiple qualified providers by publishing 
27.29 	notice of the proposed guaranteed energy savings contract in the board's official newspaper 
27.30 	and in other publications if the board determines that additional publication is necessary to 
27.31 	notify multiple qualified providers.
27.32 	(2) The school board must select the qualified provider that best meets the needs of 
27.33 	the board. The board must provide public notice of the meeting at which it will select the 
27.34 	qualified provider.
28.1 	(3) The contract between the board and the qualified provider must describe the 
28.2 	methods that will be used to calculate the costs of the contract and the operational and 
28.3 	energy savings attributable to the contract.
28.4 	(4) The qualified provider shall issue a report to the board giving a description of all 
28.5 	costs of installations, modifications, or remodeling, including costs of design, engineering, 
28.6 	installation, maintenance, repairs, or debt service, and giving detailed calculations of the 
28.7 	amounts by which energy or operating costs will be reduced and the projected payback 
28.8 	schedule in years.
28.9 	(5) The board must provide published notice of the meeting in which it proposes to 
28.10 	award the contract, the names of the parties to the proposed contract, and the contract's 
28.11 	purpose.
28.12 	(c) The board must provide a copy of any contract entered into under paragraph (a) 
28.13 	to the commissioner within 30 days of the effective date of the contract.

28.14 	Sec. 2. Minnesota Statutes 2006, section 216C.31, is amended to read:
28.15 	216C.31 ENERGY AUDIT PROGRAMS.
28.16 	The commissioner shall develop and administer state programs of energy audits of 
28.17 	residential and commercial buildings including those required by United States Code, title 
28.18 	42, sections 8211 to 8222 and sections 8281 to 8284. The commissioner shall continue 
28.19 	to administer the residential energy audit program as originally established under the 
28.20 	provisions of United States Code, title 42, sections 8211 to 8222; through July 1, 1986 
28.21 	irrespective of any prior expiration date provided in United States Code, title 42, section 
28.22 	8216. The commissioner may approve temporary programs if they are likely to result 
28.23 	in the installation of as many conservation measures as would have been installed had 
28.24 	the utility met the requirements of United States Code, title 42, sections 8211 to 8222. 
28.25 	The Consumer Services Division and the attorney general may release information on 
28.26 	consumer comments about the operation of the program to the commissioner the training 
28.27 	and qualifications necessary for the auditing of residential and commercial buildings under 
28.28 	the auspices of a program created under section 216B.2412.

28.29 	Sec. 3. Minnesota Statutes 2006, section 471.345, subdivision 13, is amended to read:
28.30 		Subd. 13.Energy efficiency projects. The following definitions apply to this 
28.31 	subdivision.
28.32 	(a) "Energy conservation measure" means a training program or facility alteration 
28.33 	designed to reduce energy consumption or operating costs and includes:
28.34 	(1) insulation of the building structure and systems within the building;
29.1 	(2) storm windows and doors, caulking or weatherstripping, multiglazed windows 
29.2 	and doors, heat absorbing or heat reflective glazed and coated window and door 
29.3 	systems, additional glazing, reductions in glass area, and other window and door system 
29.4 	modifications that reduce energy consumption;
29.5 	(3) automatic energy control systems;
29.6 	(4) heating, ventilating, or air conditioning system modifications or replacements;
29.7 	(5) replacement or modifications of lighting fixtures to increase the energy efficiency 
29.8 	of the lighting system without increasing the overall illumination of a facility, unless an 
29.9 	increase in illumination is necessary to conform to the applicable state or local building 
29.10 	code for the lighting system after the proposed modifications are made;
29.11 	(6) energy recovery systems;
29.12 	(7) cogeneration systems that produce steam or forms of energy such as heat, as well 
29.13 	as electricity, for use primarily within a building or complex of buildings;
29.14 	(8) energy conservation measures that provide long-term operating cost reductions.
29.15 	(b) "Guaranteed energy savings contract" means a contract for the evaluation 
29.16 	and recommendations of energy conservation measures, and for one or more energy 
29.17 	conservation measures. The contract must provide that all payments, except obligations 
29.18 	on termination of the contract before its expiration, are to be made over time, but not to 
29.19 	exceed 15 years from the date of final installation, and the savings are guaranteed to the 
29.20 	extent necessary to make payments for the systems.
29.21 	(c) "Qualified provider" means a person or business experienced in the design, 
29.22 	implementation, and installation of energy conservation measures. A qualified provider 
29.23 	to whom the contract is awarded shall give a sufficient bond to the municipality for its 
29.24 	faithful performance.
29.25 	Notwithstanding any law to the contrary, a municipality may enter into a guaranteed 
29.26 	energy savings contract with a qualified provider to significantly reduce energy or 
29.27 	operating costs.
29.28 	Before entering into a contract under this subdivision, the municipality shall provide 
29.29 	published notice of the meeting in which it proposes to award the contract, the names of 
29.30 	the parties to the proposed contract, and the contract's purpose.
29.31 	Before installation of equipment, modification, or remodeling, the qualified provider 
29.32 	shall first issue a report, summarizing estimates of all costs of installations, modifications, 
29.33 	or remodeling, including costs of design, engineering, installation, maintenance, repairs, 
29.34 	or debt service, and estimates of the amounts by which energy or operating costs will be 
29.35 	reduced.
30.1 	A guaranteed energy savings contract that includes a written guarantee that savings 
30.2 	will meet or exceed the cost of energy conservation measures is not subject to competitive 
30.3 	bidding requirements of section 471.345 or other law or city charter. The contract is 
30.4 	not subject to section 123B.52. 
30.5 	A municipality may enter into a guaranteed energy savings contract with a qualified 
30.6 	provider if, after review of the report, it finds that the amount it would spend on the energy 
30.7 	conservation measures recommended in the report is not likely to exceed the amount 
30.8 	to be saved in energy and operation costs over 15 years from the date of installation if 
30.9 	the recommendations in the report were followed, and the qualified provider provides a 
30.10 	written guarantee that the energy or operating cost savings will meet or exceed the costs 
30.11 	of the system. The guaranteed energy savings contract may provide for payments over 
30.12 	a period of time, not to exceed 15 years.
30.13 	A municipality may enter into an installment payment contract for the purchase and 
30.14 	installation of energy conservation measures. The contract must provide for payments 
30.15 	of not less than 1/15 of the price to be paid within two years from the date of the first 
30.16 	operation, and the remaining costs to be paid monthly, not to exceed a 15-year term from 
30.17 	the date of the first operation.
30.18 	A municipality entering into a guaranteed energy savings contract shall provide a 
30.19 	copy of the contract to the commissioner of the Department of Commerce within 30 
30.20 	days of the effective date of the contract.
30.21 	Guaranteed energy savings contracts may extend beyond the fiscal year in which 
30.22 	they become effective. The municipality shall include in its annual appropriations measure 
30.23 	for each later fiscal year any amounts payable under guaranteed energy savings contracts 
30.24 	during the year. Failure of a municipality to make such an appropriation does not affect 
30.25 	the validity of the guaranteed energy savings contract or the municipality's obligations 
30.26 	under the contracts.

30.27 	Sec. 4. Minnesota Statutes 2006, section 504B.161, subdivision 1, is amended to read:
30.28 		Subdivision 1.Requirements. In every lease or license of residential premises, the 
30.29 	landlord or licensor covenants:
30.30 	(1) that the premises and all common areas are fit for the use intended by the parties;
30.31 	(2) to keep the premises in reasonable repair during the term of the lease or license, 
30.32 	except when the disrepair has been caused by the willful, malicious, or irresponsible 
30.33 	conduct of the tenant or licensee or a person under the direction or control of the tenant or 
30.34 	licensee; and
31.1 	(3) to make the premises reasonably energy efficient by installing such measures 
31.2 	as weatherstripping, caulking, storm windows, and storm doors, and to maintain the 
31.3 	premises in compliance with the applicable health and safety laws of the state, including 
31.4 	the weatherstripping, caulking, storm window, and storm door energy efficiency standards 
31.5 	for renter-occupied residences prescribed by section 216C.27, subdivisions 1 and 3, and of 
31.6 	the local units of government where the premises are located during the term of the lease 
31.7 	or license, except when violation of the health and safety laws has been caused by the 
31.8 	willful, malicious, or irresponsible conduct of the tenant or licensee or a person under the 
31.9 	direction or control of the tenant or licensee. 
31.10 	The parties to a lease or license of residential premises may not waive or modify the 
31.11 	covenants imposed by this section.

31.12 	Sec. 5.  REPEALER.
 31.13 	 Minnesota Statutes 2006, sections 216B.165; 216C.27; and 216C.30, subdivision 5,
31.14 	and Minnesota Rules, parts 4635.0110; 4635.0130; 7365.0210; 7635.0100; 7635.0120; 
31.15 	7635.0140; 7635.0150; 7635.0160; 7635.0170; 7635.0180; 7635.0200; 7635.0210; 
31.16 	7635.0220; 7635.0230; 7635.0240; 7635.0250; 7635.0260; 7635.0300; 7635.0310; 
31.17 	7635.0320; 7635.0330; 7635.0340; 7635.0400; 7635.0410; 7635.0420; 7635.0500; 
31.18 	7635.0510; 7635.0520; 7635.0530; 7635.0600; 7635.0610; 7635.0620; 7635.0630; 
31.19 	7635.0640; 7635.1000; 7635.1010; 7635.1020; 7635.1030; 7655.0100; 7655.0120; 
31.20 	7655.0200; 7655.0220; 7655.0230; 7655.0240; 7655.0250; 7655.0260; 7655.0270; 
31.21 	7655.0280; 7655.0290; 7655.0300; 7655.0310; 7655.0320; 7655.0330; 7655.0400; 
31.22 	7655.0410; and 7655.0420, are repealed effective July 1, 2007.