1.1                          A bill for an act 
  1.2             relating to utilities; eliminating requirement for 
  1.3             alternative storage site for spent nuclear fuel in 
  1.4             Goodhue county; providing for customer-specific terms 
  1.5             in electric utility service contracts; modifying 
  1.6             provisions relating to the legislative electric energy 
  1.7             task force; requiring study on restructuring the 
  1.8             electric industry; allowing exception to prohibition 
  1.9             on natural gas outdoor lighting; exempting property 
  1.10            that produces hydroelectric or hydromechanical power 
  1.11            on federal land from property taxation; requiring 
  1.12            study of energy conservation improvement program as it 
  1.13            relates to large retail electric customers; requiring 
  1.14            reports on mercury emissions resulting from generation 
  1.15            of electricity and authorizing rules; amending 
  1.16            Minnesota Statutes 1996, sections 116C.771; 216B.05; 
  1.17            216B.162, subdivisions 1, 4, and by adding 
  1.18            subdivisions; 216C.051, subdivisions 2 and 6; 216C.19, 
  1.19            subdivision 5; 272.02, subdivision 1; and 295.44, 
  1.20            subdivision 1; proposing coding for new law in 
  1.21            Minnesota Statutes, chapter 116; repealing Minnesota 
  1.22            Statutes 1996, section 116C.80. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24                             ARTICLE 1
  1.25     Section 1.  Minnesota Statutes 1996, section 116C.771, is 
  1.26  amended to read: 
  1.27     116C.771 [ADDITIONAL CASK LIMITATIONS.] 
  1.28     (a) Five casks may be filled and used at Prairie Island on 
  1.29  May 11, 1994.  
  1.30     (b) An additional four casks may be filled and used at 
  1.31  Prairie Island if the environmental quality board determines 
  1.32  that, by December 31, 1996, the public utility operating the 
  1.33  Prairie Island plant has ~~filed a license application with the~~ 
  1.34  ~~United States Nuclear Regulatory Commission for a spent nuclear~~ 
  2.1   ~~fuel storage facility off of Prairie Island in Goodhue county,~~ 
  2.2   ~~is continuing to make a good faith effort to implement the site,~~ 
  2.3   ~~and has~~ constructed, contracted for construction and operation, 
  2.4   or purchased installed capacity of 100 megawatts of wind power 
  2.5   in addition to wind power under construction or contract on May 
  2.6   11, 1994. 
  2.7      (c)(1) An additional eight casks may be filled and placed 
  2.8   at Prairie Island if the legislature has not revoked the 
  2.9   authorization under clause (2) or the public utility has 
  2.10  satisfied the wind power and biomass mandate requirements in 
  2.11  sections 216B.2423, subdivision 1, clause (1), and 216B.2424, 
  2.12  clause (1)~~, and the alternative site in Goodhue county is~~ 
  2.13  ~~operational or under construction~~.  (2) If ~~the site is not under~~ 
  2.14  ~~construction or operational or~~ the wind mandates are not 
  2.15  satisfied, the legislature may revoke the authorization for the 
  2.16  additional eight casks by a law enacted prior to June 1, 1999. 
  2.17     (d) Except as provided under paragraph (e), dry cask 
  2.18  storage capacity for high-level nuclear waste within the state 
  2.19  may not be increased beyond the casks authorized by section 
  2.20  116C.77 or their equivalent storage capacity. 
  2.21     (e) This section does not prohibit a public utility from 
  2.22  applying for or the public utilities commission from granting a 
  2.23  certificate of need for dry cask storage to accommodate the 
  2.24  decommissioning of a nuclear power plant within this state. 
  2.25     Sec. 2.  Minnesota Statutes 1996, section 216B.05, is 
  2.26  amended to read: 
  2.27     216B.05 [FILING SCHEDULES, RULES, AND SERVICE AGREEMENTS.] 
  2.28     Subdivision 1.  [~~SCHEDULES~~ PUBLIC RATE FILINGS.] Every 
  2.29  public utility shall file with the commission schedules showing 
  2.30  all rates, tolls, tariffs and charges which it has established 
  2.31  and which are in force at the time for any service performed by 
  2.32  it within the state, or for any service in connection therewith 
  2.33  or performed by any public utility controlled or operated by it. 
  2.34     Subd. 2.  [SCHEDULES AND RULES ~~AND SERVICE~~ 
  2.35  ~~AGREEMENTS~~ FILINGS.] Every public utility shall file with and as 
  2.36  a part of the ~~schedule~~ filings under subdivision 1, all rules 
  3.1   that, in the judgment of the commission, in any manner affect 
  3.2   the service or product, or the rates charged or to be charged 
  3.3   for any service or product, as well as any contracts, agreements 
  3.4   or arrangements relating to the service or product or the rates 
  3.5   to be charged for any service or product to which the schedule 
  3.6   is applicable as the commission may by general or special order 
  3.7   direct; provided that contracts and agreements for electric 
  3.8   service must be filed as required by subdivision 2a of this 
  3.9   section.  
  3.10     Subd. 2a.  [ELECTRIC SERVICE CONTRACTS.] A contract for 
  3.11  electric service entered into between a public utility and one 
  3.12  of its customers, in which the public utility and the customer 
  3.13  agree to customer-specific rates, terms, or service conditions 
  3.14  not already contained in the approved schedules, tariffs, or 
  3.15  rules of the utility, must be filed for approval by the 
  3.16  commission pursuant to the commission's rules of practice.  
  3.17  Contracts between public utilities and customers that are 
  3.18  necessitated by specific statutes in this chapter must be filed 
  3.19  for approval under those statutes and any rules adopted by the 
  3.20  commission pursuant to those statutes. 
  3.21     Subd. 3.  [PUBLIC INSPECTION.] Every public utility shall 
  3.22  keep copies of the ~~schedules~~ filings under subdivisions 1, 2, 
  3.23  and 2a open to public inspection under rules as the commission 
  3.24  may prescribe.  
  3.25     Sec. 3.  Minnesota Statutes 1996, section 216B.162, 
  3.26  subdivision 1, is amended to read: 
  3.27     Subdivision 1.  [DEFINITIONS.] (a) The terms used in this 
  3.28  section have the meanings given them in this subdivision. 
  3.29     (b) "Effective competition" means a market situation in 
  3.30  which an electric utility serves a customer that: 
  3.31     (1) is located within the electric utility's assigned 
  3.32  service area determined under section 216B.39; and 
  3.33     (2) has the ability to obtain its energy requirements from 
  3.34  an energy supplier that is not regulated by the commission under 
  3.35  section 216B.16. 
  3.36     (c) "Competitive rate schedule" means a rate schedule under 
  4.1   which an electric utility may set or change the price for its 
  4.2   service to an individual customer or group of customers subject 
  4.3   to effective competition. 
  4.4      (d) "Competitive rate" means the actual rate offered by the 
  4.5   utility, and approved by the commission, to a customer subject 
  4.6   to effective competition. 
  4.7      (e) "Discretionary rate reduction" means a specific 
  4.8   reduction to an existing rate, offered voluntarily by the 
  4.9   utility to an individual customer or group of customers and 
  4.10  approved by the commission in accordance with subdivisions 9 and 
  4.11  10. 
  4.12     Sec. 4.  Minnesota Statutes 1996, section 216B.162, 
  4.13  subdivision 4, is amended to read: 
  4.14     Subd. 4.  [RATES AND TERMS OF COMPETITIVE RATE SCHEDULE.] 
  4.15  When the commission authorizes a competitive rate schedule for a 
  4.16  customer class, it shall set the terms and conditions of service 
  4.17  for that schedule, which must include: 
  4.18     (1) that the minimum rate for the schedule recover at least 
  4.19  the incremental cost of providing the service, including the 
  4.20  cost of additional capacity that is to be added while the rate 
  4.21  is in effect and any applicable on-peak or off-peak 
  4.22  differential; 
  4.23     (2) that the maximum possible rate reduction under a 
  4.24  competitive rate schedule does not exceed the difference between 
  4.25  the electric utility's applicable standard tariff and the cost 
  4.26  to the customer of the lowest cost competitive energy supply; 
  4.27     (3) ~~that the term of a contract for a customer who elects~~ 
  4.28  ~~to take service under a competitive rate must be no less than~~ 
  4.29  ~~one year and no longer than five years;~~ 
  4.30     ~~(4)~~ that the electric utility, within a general rate case, 
  4.31  be allowed to seek recovery of the difference between the 
  4.32  standard tariff and the competitive rate times the usage level 
  4.33  during the test year period; 
  4.34     ~~(5)~~ (4) a determination that a rate within a competitive 
  4.35  rate schedule meets the conditions of section 216B.03, for other 
  4.36  customers in the same customer class; 
  5.1      ~~(6)~~ (5) that the rate does not compete with district 
  5.2   heating or cooling provided by a district heating utility as 
  5.3   defined by section 216B.166, subdivision 2, paragraph (c); and 
  5.4      ~~(7)~~ (6) that the rate may not be offered to a customer in 
  5.5   which the utility has a financial interest greater than 50 
  5.6   percent. 
  5.7      Sec. 5.  Minnesota Statutes 1996, section 216B.162, is 
  5.8   amended by adding a subdivision to read: 
  5.9      Subd. 9.  [DISCRETIONARY RATE REDUCTIONS 
  5.10  PERMITTED.] Notwithstanding sections 216B.03, 216B.06, 216B.07, 
  5.11  and 216B.16, a public utility whose rates are regulated under 
  5.12  this chapter may, at its discretion, offer a reduced rate for 
  5.13  tariffed electric services to eligible customers.  The 
  5.14  commission may approve a discretionary rate reduction provided 
  5.15  that: 
  5.16     (1) the reduction is offered to customers who are located 
  5.17  within the exclusive service territory of the public utility 
  5.18  that offers discretionary rate reductions or to potential 
  5.19  customers who are not customers of a Minnesota electric utility, 
  5.20  as defined in section 216B.38, but who propose to be located 
  5.21  within the exclusive service territory of the public utility; 
  5.22     (2) the reduction applies to customers requiring electric 
  5.23  service with a connected load of at least 2,000 kilowatts; 
  5.24     (3) the reduced rate recovers at least the incremental cost 
  5.25  of providing the service, including the cost of additional 
  5.26  capacity that is to be added while the rate is in effect and any 
  5.27  applicable on-peak or off-peak differential; 
  5.28     (4) in the event the commission has approved unbundled 
  5.29  rates, the reduction is not offered for any unbundled service 
  5.30  other than generation, unless the unbundled service is available 
  5.31  to the customer from a competitive supplier; 
  5.32     (5) the reduced rate does not compete with district heating 
  5.33  or cooling services provided by a district heating utility as 
  5.34  defined by section 216B.166, subdivision 2, paragraph (c); and 
  5.35     (6) the reduced rate does not compete with a natural gas 
  5.36  service provided by a natural gas utility and regulated by the 
  6.1   commission. 
  6.2      Sec. 6.  Minnesota Statutes 1996, section 216B.162, is 
  6.3   amended by adding a subdivision to read: 
  6.4      Subd. 10.  [COMMISSION DETERMINATION.] (a) Proposals for 
  6.5   discretionary rate reductions offered by utilities must be filed 
  6.6   with the commission, with copies of the filing served upon the 
  6.7   department of public service and the office of attorney general 
  6.8   at the same time it is served upon the commission.  The 
  6.9   commission shall review the proposals according to procedures 
  6.10  developed under section 216B.05, subdivision 2a.  The commission 
  6.11  shall not approve discretionary rate reductions offered by 
  6.12  public utilities that do not have an accepted resource plan on 
  6.13  file with the commission.  The commission shall not approve 
  6.14  discretionary rate reductions unless the utility has made the 
  6.15  customer aware of all cost-effective opportunities for energy 
  6.16  efficiency improvements offered by the utility. 
  6.17     (b) Public utilities that provide service under 
  6.18  discretionary rate reductions shall not seek, through increased 
  6.19  revenue requirements or through prospective rate design changes, 
  6.20  recovery of any revenues foregone due to the discretionary rate 
  6.21  reductions, nor shall the commission grant such recovery. 
  6.22     Sec. 7.  Minnesota Statutes 1996, section 216C.051, 
  6.23  subdivision 2, is amended to read: 
  6.24     Subd. 2.  [ESTABLISHMENT.] (a) There is established a 
  6.25  legislative electric energy task force to study future electric 
  6.26  energy sources and costs and to make recommendations for 
  6.27  legislation for an environmentally and economically sustainable 
  6.28  and advantageous electric energy supply. 
  6.29     (b) The task force consists of: 
  6.30     (1) ~~eight~~ ten members of the house of representatives 
  6.31  including the chairs of the environment and natural resources 
  6.32  and regulated industries and energy committees and six members 
  6.33  to be appointed by the speaker of the house, ~~two~~ four of whom 
  6.34  must be from the minority caucus; 
  6.35     (2) ~~eight~~ ten members of the senate including the chairs of 
  6.36  the environment and natural resources and jobs, energy, and 
  7.1   community development committees and six members to be appointed 
  7.2   by the subcommittee on committees, ~~two~~ four of whom must be from 
  7.3   the minority caucus. 
  7.4      (c) The task force ~~may~~ shall employ staff, and may contract 
  7.5   for consulting services, and ~~may~~ reimburse the expenses of 
  7.6   persons requested to assist it in its duties other than state 
  7.7   employees or employees of electric utilities.  The director of 
  7.8   the legislative coordinating commission shall assist the task 
  7.9   force in administrative matters.  The task force shall elect 
  7.10  cochairs, one member of the house and one member of the senate 
  7.11  from among the ~~committee chairs~~ members named to the committee. 
  7.12  The task force members from the house shall elect the house 
  7.13  cochair, and the task force members from the senate shall elect 
  7.14  the senate cochair. 
  7.15     Sec. 8.  Minnesota Statutes 1996, section 216C.051, 
  7.16  subdivision 6, is amended to read: 
  7.17     Subd. 6.  [ASSESSMENT; APPROPRIATION.] On request by the 
  7.18  cochairs of the legislative task force and after approval of the 
  7.19  legislative coordinating commission, the commissioner of the 
  7.20  department of public service shall assess from electric 
  7.21  utilities, in addition to assessments made under section 
  7.22  216B.62, the amount requested for the ~~studies and analysis~~ 
  7.23  ~~required in subdivisions 3 and 4 and for~~ operation of the task 
  7.24  force ~~not to exceed $350,000.  This authority to assess~~ 
  7.25  ~~continues until the commissioner has assessed a total of~~ 
  7.26  ~~$350,000~~.  The amount assessed under this section is 
  7.27  appropriated to the director of the legislative coordinating 
  7.28  commission for those purposes, and is available until expended. 
  7.29     Sec. 9.  [LEGISLATIVE ELECTRIC ENERGY TASK FORCE; ELECTRIC 
  7.30  INDUSTRY RESTRUCTURING.] 
  7.31     The legislative electric energy task force shall review and 
  7.32  analyze issues relating to the restructuring of the electric 
  7.33  industry.  At a minimum, the task force shall study the 
  7.34  potential costs and benefits of restructuring on: 
  7.35     (1) low-income, residential, small business and large 
  7.36  commercial, and industrial electric consumer rates and services, 
  8.1   including the ability of all customers to participate in and 
  8.2   benefit from a restructured industry; 
  8.3      (2) the overall state's economy, as well as the economy of 
  8.4   regions within the state, and the cost of doing business in the 
  8.5   state; 
  8.6      (3) the reliability and safety of the electricity system, 
  8.7   including system planning and operation; 
  8.8      (4) the state's environment, including the cost-effective 
  8.9   promotion of conservation and renewable energy; and 
  8.10     (5) public, private, and cooperative utilities, and 
  8.11  alternative electricity suppliers, including the development of 
  8.12  competitively neutral markets. 
  8.13     The task force shall present recommendations to the 
  8.14  legislature regarding electric industry restructuring by January 
  8.15  15, 1998. 
  8.16     Sec. 10.  Minnesota Statutes 1996, section 216C.19, 
  8.17  subdivision 5, is amended to read: 
  8.18     Subd. 5.  [NATURAL GAS OUTDOOR LIGHTING PROHIBITED; 
  8.19  EXCEPTION.] After July 1, 1974, no new natural gas outdoor 
  8.20  lighting shall be installed in the state.  However, the 
  8.21  installation and use of natural gas outdoor lighting that is 
  8.22  equipped with either an automatic daytime shutoff device or is 
  8.23  otherwise capable of being switched on and off, is permitted. 
  8.24     Sec. 11.  Minnesota Statutes 1996, section 272.02, 
  8.25  subdivision 1, is amended to read: 
  8.26     Subdivision 1.  All property described in this section to 
  8.27  the extent herein limited shall be exempt from taxation: 
  8.28     (1) All public burying grounds. 
  8.29     (2) All public schoolhouses. 
  8.30     (3) All public hospitals. 
  8.31     (4) All academies, colleges, and universities, and all 
  8.32  seminaries of learning. 
  8.33     (5) All churches, church property, and houses of worship. 
  8.34     (6) Institutions of purely public charity except parcels of 
  8.35  property containing structures and the structures described in 
  8.36  section 273.13, subdivision 25, paragraph (c), clauses (1), (2), 
  9.1   and (3), or paragraph (d), other than those that qualify for 
  9.2   exemption under clause (25). 
  9.3      (7) All public property exclusively used for any public 
  9.4   purpose. 
  9.5      (8) Except for the taxable personal property enumerated 
  9.6   below, all personal property and the property described in 
  9.7   section 272.03, subdivision 1, paragraphs (c) and (d), shall be 
  9.8   exempt.  
  9.9      The following personal property shall be taxable:  
  9.10     (a) personal property which is part of an electric 
  9.11  generating, transmission, or distribution system or a pipeline 
  9.12  system transporting or distributing water, gas, crude oil, or 
  9.13  petroleum products or mains and pipes used in the distribution 
  9.14  of steam or hot or chilled water for heating or cooling 
  9.15  buildings and structures; 
  9.16     (b) railroad docks and wharves which are part of the 
  9.17  operating property of a railroad company as defined in section 
  9.18  270.80; 
  9.19     (c) personal property defined in section 272.03, 
  9.20  subdivision 2, clause (3); 
  9.21     (d) leasehold or other personal property interests which 
  9.22  are taxed pursuant to section 272.01, subdivision 2; 273.124, 
  9.23  subdivision 7; or 273.19, subdivision 1; or any other law 
  9.24  providing the property is taxable as if the lessee or user were 
  9.25  the fee owner; 
  9.26     (e) manufactured homes and sectional structures, including 
  9.27  storage sheds, decks, and similar removable improvements 
  9.28  constructed on the site of a manufactured home, sectional 
  9.29  structure, park trailer or travel trailer as provided in section 
  9.30  273.125, subdivision 8, paragraph (f); and 
  9.31     (f) flight property as defined in section 270.071.  
  9.32     (9) Personal property used primarily for the abatement and 
  9.33  control of air, water, or land pollution to the extent that it 
  9.34  is so used, and real property which is used primarily for 
  9.35  abatement and control of air, water, or land pollution as part 
  9.36  of an agricultural operation, as a part of a centralized 
 10.1   treatment and recovery facility operating under a permit issued 
 10.2   by the Minnesota pollution control agency pursuant to chapters 
 10.3   115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730, 
 10.4   and 7045.0020 to 7045.1260, as a wastewater treatment facility 
 10.5   and for the treatment, recovery, and stabilization of metals, 
 10.6   oils, chemicals, water, sludges, or inorganic materials from 
 10.7   hazardous industrial wastes, or as part of an electric 
 10.8   generation system.  For purposes of this clause, personal 
 10.9   property includes ponderous machinery and equipment used in a 
 10.10  business or production activity that at common law is considered 
 10.11  real property. 
 10.12     Any taxpayer requesting exemption of all or a portion of 
 10.13  any real property or any equipment or device, or part thereof, 
 10.14  operated primarily for the control or abatement of air or water 
 10.15  pollution shall file an application with the commissioner of 
 10.16  revenue.  The equipment or device shall meet standards, rules, 
 10.17  or criteria prescribed by the Minnesota pollution control 
 10.18  agency, and must be installed or operated in accordance with a 
 10.19  permit or order issued by that agency.  The Minnesota pollution 
 10.20  control agency shall upon request of the commissioner furnish 
 10.21  information or advice to the commissioner.  On determining that 
 10.22  property qualifies for exemption, the commissioner shall issue 
 10.23  an order exempting the property from taxation.  The equipment or 
 10.24  device shall continue to be exempt from taxation as long as the 
 10.25  permit issued by the Minnesota pollution control agency remains 
 10.26  in effect. 
 10.27     (10) Wetlands.  For purposes of this subdivision, 
 10.28  "wetlands" means:  (i) land described in section 103G.005, 
 10.29  subdivision 15a; (ii) land which is mostly under water, produces 
 10.30  little if any income, and has no use except for wildlife or 
 10.31  water conservation purposes, provided it is preserved in its 
 10.32  natural condition and drainage of it would be legal, feasible, 
 10.33  and economically practical for the production of livestock, 
 10.34  dairy animals, poultry, fruit, vegetables, forage and grains, 
 10.35  except wild rice; or (iii) land in a wetland preservation area 
 10.36  under sections 103F.612 to 103F.616.  "Wetlands" under items (i) 
 11.1   and (ii) include adjacent land which is not suitable for 
 11.2   agricultural purposes due to the presence of the wetlands, but 
 11.3   do not include woody swamps containing shrubs or trees, wet 
 11.4   meadows, meandered water, streams, rivers, and floodplains or 
 11.5   river bottoms.  Exemption of wetlands from taxation pursuant to 
 11.6   this section shall not grant the public any additional or 
 11.7   greater right of access to the wetlands or diminish any right of 
 11.8   ownership to the wetlands. 
 11.9      (11) Native prairie.  The commissioner of the department of
 11.10  natural resources shall determine lands in the state which are 
 11.11  native prairie and shall notify the county assessor of each 
 11.12  county in which the lands are located.  Pasture land used for 
 11.13  livestock grazing purposes shall not be considered native 
 11.14  prairie for the purposes of this clause.  Upon receipt of an 
 11.15  application for the exemption provided in this clause for lands 
 11.16  for which the assessor has no determination from the 
 11.17  commissioner of natural resources, the assessor shall refer the 
 11.18  application to the commissioner of natural resources who shall 
 11.19  determine within 30 days whether the land is native prairie and 
 11.20  notify the county assessor of the decision.  Exemption of native 
 11.21  prairie pursuant to this clause shall not grant the public any 
 11.22  additional or greater right of access to the native prairie or 
 11.23  diminish any right of ownership to it. 
 11.24     (12) Property used in a continuous program to provide 
 11.25  emergency shelter for victims of domestic abuse, provided the 
 11.26  organization that owns and sponsors the shelter is exempt from 
 11.27  federal income taxation pursuant to section 501(c)(3) of the 
 11.28  Internal Revenue Code of 1986, as amended through December 31, 
 11.29  1992, notwithstanding the fact that the sponsoring organization 
 11.30  receives funding under section 8 of the United States Housing 
 11.31  Act of 1937, as amended. 
 11.32     (13) If approved by the governing body of the municipality 
 11.33  in which the property is located, property not exceeding one 
 11.34  acre which is owned and operated by any senior citizen group or 
 11.35  association of groups that in general limits membership to 
 11.36  persons age 55 or older and is organized and operated 
 12.1   exclusively for pleasure, recreation, and other nonprofit 
 12.2   purposes, no part of the net earnings of which inures to the 
 12.3   benefit of any private shareholders; provided the property is 
 12.4   used primarily as a clubhouse, meeting facility, or recreational 
 12.5   facility by the group or association and the property is not 
 12.6   used for residential purposes on either a temporary or permanent 
 12.7   basis. 
 12.8      (14) To the extent provided by section 295.44, real and 
 12.9   personal property used or to be used primarily for the 
 12.10  production of hydroelectric or hydromechanical power on a site 
 12.11  owned by the federal government, the state, or a local 
 12.12  governmental unit which is developed and operated pursuant to 
 12.13  the provisions of section 103G.535. 
 12.14     (15) If approved by the governing body of the municipality 
 12.15  in which the property is located, and if construction is 
 12.16  commenced after June 30, 1983:  
 12.17     (a) a "direct satellite broadcasting facility" operated by 
 12.18  a corporation licensed by the federal communications commission 
 12.19  to provide direct satellite broadcasting services using direct 
 12.20  broadcast satellites operating in the 12-ghz. band; and 
 12.21     (b) a "fixed satellite regional or national program service 
 12.22  facility" operated by a corporation licensed by the federal 
 12.23  communications commission to provide fixed satellite-transmitted 
 12.24  regularly scheduled broadcasting services using satellites 
 12.25  operating in the 6-ghz. band. 
 12.26  An exemption provided by clause (15) shall apply for a period 
 12.27  not to exceed five years.  When the facility no longer qualifies 
 12.28  for exemption, it shall be placed on the assessment rolls as 
 12.29  provided in subdivision 4.  Before approving a tax exemption 
 12.30  pursuant to this paragraph, the governing body of the 
 12.31  municipality shall provide an opportunity to the members of the 
 12.32  county board of commissioners of the county in which the 
 12.33  facility is proposed to be located and the members of the school 
 12.34  board of the school district in which the facility is proposed 
 12.35  to be located to meet with the governing body.  The governing 
 12.36  body shall present to the members of those boards its estimate 
 13.1   of the fiscal impact of the proposed property tax exemption.  
 13.2   The tax exemption shall not be approved by the governing body 
 13.3   until the county board of commissioners has presented its 
 13.4   written comment on the proposal to the governing body or 30 days 
 13.5   have passed from the date of the transmittal by the governing 
 13.6   body to the board of the information on the fiscal impact, 
 13.7   whichever occurs first. 
 13.8      (16) Real and personal property owned and operated by a 
 13.9   private, nonprofit corporation exempt from federal income 
 13.10  taxation pursuant to United States Code, title 26, section 
 13.11  501(c)(3), primarily used in the generation and distribution of 
 13.12  hot water for heating buildings and structures.  
 13.13     (17) Notwithstanding section 273.19, state lands that are 
 13.14  leased from the department of natural resources under section 
 13.15  92.46. 
 13.16     (18) Electric power distribution lines and their 
 13.17  attachments and appurtenances, that are used primarily for 
 13.18  supplying electricity to farmers at retail.  
 13.19     (19) Transitional housing facilities.  "Transitional 
 13.20  housing facility" means a facility that meets the following 
 13.21  requirements.  (i) It provides temporary housing to individuals, 
 13.22  couples, or families.  (ii) It has the purpose of reuniting 
 13.23  families and enabling parents or individuals to obtain 
 13.24  self-sufficiency, advance their education, get job training, or 
 13.25  become employed in jobs that provide a living wage.  (iii) It 
 13.26  provides support services such as child care, work readiness 
 13.27  training, and career development counseling; and a 
 13.28  self-sufficiency program with periodic monitoring of each 
 13.29  resident's progress in completing the program's goals.  (iv) It 
 13.30  provides services to a resident of the facility for at least 
 13.31  three months but no longer than three years, except residents 
 13.32  enrolled in an educational or vocational institution or job 
 13.33  training program.  These residents may receive services during 
 13.34  the time they are enrolled but in no event longer than four 
 13.35  years.  (v) It is owned and operated or under lease from a unit 
 13.36  of government or governmental agency under a property 
 14.1   disposition program and operated by one or more organizations 
 14.2   exempt from federal income tax under section 501(c)(3) of the 
 14.3   Internal Revenue Code of 1986, as amended through December 31, 
 14.4   1992.  This exemption applies notwithstanding the fact that the 
 14.5   sponsoring organization receives financing by a direct federal 
 14.6   loan or federally insured loan or a loan made by the Minnesota 
 14.7   housing finance agency under the provisions of either Title II 
 14.8   of the National Housing Act or the Minnesota housing finance 
 14.9   agency law of 1971 or rules promulgated by the agency pursuant 
 14.10  to it, and notwithstanding the fact that the sponsoring 
 14.11  organization receives funding under Section 8 of the United 
 14.12  States Housing Act of 1937, as amended. 
 14.13     (20) Real and personal property, including leasehold or 
 14.14  other personal property interests, owned and operated by a 
 14.15  corporation if more than 50 percent of the total voting power of 
 14.16  the stock of the corporation is owned collectively by:  (i) the 
 14.17  board of regents of the University of Minnesota, (ii) the 
 14.18  University of Minnesota Foundation, an organization exempt from 
 14.19  federal income taxation under section 501(c)(3) of the Internal 
 14.20  Revenue Code of 1986, as amended through December 31, 1992, and 
 14.21  (iii) a corporation organized under chapter 317A, which by its 
 14.22  articles of incorporation is prohibited from providing pecuniary 
 14.23  gain to any person or entity other than the regents of the 
 14.24  University of Minnesota; which property is used primarily to 
 14.25  manage or provide goods, services, or facilities utilizing or 
 14.26  relating to large-scale advanced scientific computing resources 
 14.27  to the regents of the University of Minnesota and others. 
 14.28     (21)(a) Wind energy conversion systems, as defined in 
 14.29  section 216C.06, subdivision 12, installed after January 1, 
 14.30  1991, and before January 2, 1995, and used as an electric power 
 14.31  source, are exempt. 
 14.32     (b) Wind energy conversion systems, as defined in section 
 14.33  216C.06, subdivision 12, installed after January 1, 1995, 
 14.34  including the foundation or support pad, which are (i) used as 
 14.35  an electric power source; (ii) located within one county and 
 14.36  owned by the same owner; and (iii) produce two megawatts or less 
 15.1   of electricity as measured by nameplate ratings, are exempt. 
 15.2      (c) Wind energy conversion systems, as defined in section 
 15.3   216C.06, subdivision 12, installed after January 1, 1995, and 
 15.4   used as an electric power source but not exempt under item (b), 
 15.5   are treated as follows:  (i) the foundation and support pad are 
 15.6   taxable; (ii) the associated supporting and protective 
 15.7   structures are exempt for the first five assessment years after 
 15.8   they have been constructed, and thereafter, 30 percent of the 
 15.9   market value of the associated supporting and protective 
 15.10  structures are taxable; and (iii) the turbines, blades, 
 15.11  transformers, and its related equipment, are exempt. 
 15.12     (22) Containment tanks, cache basins, and that portion of 
 15.13  the structure needed for the containment facility used to 
 15.14  confine agricultural chemicals as defined in section 18D.01, 
 15.15  subdivision 3, as required by the commissioner of agriculture 
 15.16  under chapter 18B or 18C. 
 15.17     (23) Photovoltaic devices, as defined in section 216C.06, 
 15.18  subdivision 13, installed after January 1, 1992, and used to 
 15.19  produce or store electric power. 
 15.20     (24) Real and personal property owned and operated by a 
 15.21  private, nonprofit corporation exempt from federal income 
 15.22  taxation pursuant to United States Code, title 26, section 
 15.23  501(c)(3), primarily used for an ice arena or ice rink, and used 
 15.24  primarily for youth and high school programs. 
 15.25     (25) A structure that is situated on real property that is 
 15.26  used for: 
 15.27     (i) housing for the elderly or for low- and moderate-income 
 15.28  families as defined in Title II of the National Housing Act, as 
 15.29  amended through December 31, 1990, and funded by a direct 
 15.30  federal loan or federally insured loan made pursuant to Title II 
 15.31  of the act; or 
 15.32     (ii) housing lower income families or elderly or 
 15.33  handicapped persons, as defined in Section 8 of the United 
 15.34  States Housing Act of 1937, as amended. 
 15.35     In order for a structure to be exempt under (i) or (ii), it 
 15.36  must also meet each of the following criteria: 
 16.1      (A) is owned by an entity which is operated as a nonprofit 
 16.2   corporation organized under chapter 317A; 
 16.3      (B) is owned by an entity which has not entered into a 
 16.4   housing assistance payments contract under Section 8 of the 
 16.5   United States Housing Act of 1937, or, if the entity which owns 
 16.6   the structure has entered into a housing assistance payments 
 16.7   contract under Section 8 of the United States Housing Act of 
 16.8   1937, the contract provides assistance for less than 90 percent 
 16.9   of the dwelling units in the structure, excluding dwelling units 
 16.10  intended for management or maintenance personnel; 
 16.11     (C) operates an on-site congregate dining program in which 
 16.12  participation by residents is mandatory, and provides assisted 
 16.13  living or similar social and physical support services for 
 16.14  residents; and 
 16.15     (D) was not assessed and did not pay tax under chapter 273 
 16.16  prior to the 1991 levy, while meeting the other conditions of 
 16.17  this clause. 
 16.18     An exemption under this clause remains in effect for taxes 
 16.19  levied in each year or partial year of the term of its permanent 
 16.20  financing. 
 16.21     (26) Real and personal property that is located in the 
 16.22  Superior National Forest, and owned or leased and operated by a 
 16.23  nonprofit organization that is exempt from federal income 
 16.24  taxation under section 501(c)(3) of the Internal Revenue Code of 
 16.25  1986, as amended through December 31, 1992, and primarily used 
 16.26  to provide recreational opportunities for disabled veterans and 
 16.27  their families. 
 16.28     (27) Manure pits and appurtenances, which may include 
 16.29  slatted floors and pipes, installed or operated in accordance 
 16.30  with a permit, order, or certificate of compliance issued by the 
 16.31  Minnesota pollution control agency.  The exemption shall 
 16.32  continue for as long as the permit, order, or certificate issued 
 16.33  by the Minnesota pollution control agency remains in effect. 
 16.34     (28) Notwithstanding clause (8), item (a), attached 
 16.35  machinery and other personal property which is part of a 
 16.36  facility containing a cogeneration system as described in 
 17.1   section 216B.166, subdivision 2, paragraph (a), if the 
 17.2   cogeneration system has met the following criteria:  (i) the 
 17.3   system utilizes natural gas as a primary fuel and the 
 17.4   cogenerated steam initially replaces steam generated from 
 17.5   existing thermal boilers utilizing coal; (ii) the facility 
 17.6   developer is selected as a result of a procurement process 
 17.7   ordered by the public utilities commission; and (iii) 
 17.8   construction of the facility is commenced after July 1, 1994, 
 17.9   and before July 1, 1997. 
 17.10     (29) Real property acquired by a home rule charter city, 
 17.11  statutory city, county, town, or school district under a lease 
 17.12  purchase agreement or an installment purchase contract during 
 17.13  the term of the lease purchase agreement as long as and to the 
 17.14  extent that the property is used by the city, county, town, or 
 17.15  school district and devoted to a public use and to the extent it 
 17.16  is not subleased to any private individual, entity, association, 
 17.17  or corporation in connection with a business or enterprise 
 17.18  operated for profit. 
 17.19     Sec. 12.  Minnesota Statutes 1996, section 295.44, 
 17.20  subdivision 1, is amended to read: 
 17.21     Subdivision 1.  [EXEMPTION.] Notwithstanding the provisions 
 17.22  of sections 272.01, subdivision 2, 272.02, subdivision 5, and 
 17.23  273.19, subdivision 1, real or personal property used or to be 
 17.24  used primarily for the production of hydroelectric or 
 17.25  hydromechanical power on a site owned by the federal government, 
 17.26  the state, or a local governmental unit and developed and 
 17.27  operated pursuant to section 103G.535 may be exempt from 
 17.28  property taxation for all years during which the site is 
 17.29  developed and operated under the terms of a lease or agreement 
 17.30  authorized by section 103G.535. 
 17.31     Sec. 13.  [ASSESSMENT FOR OFFICE OF ATTORNEY GENERAL.] 
 17.32     The department of public service shall assess from a 
 17.33  natural gas utility submitting a plan under Minnesota Statutes, 
 17.34  section 216B.1675, to the commission for the commission's 
 17.35  approval: 
 17.36     (1) $15,000 in the first year from the date the plan is 
 18.1   submitted; and 
 18.2      (2) $15,000 in the second year from that date. 
 18.3      The amounts assessed under this section are appropriated to 
 18.4   the attorney general to offset the costs the office of attorney 
 18.5   general will incur in reviewing, analyzing, and advocating for 
 18.6   modifications to the plan and, once the plan is approved, 
 18.7   monitoring, evaluating, and ensuring that the plan achieves the 
 18.8   requirements of Minnesota Statutes, section 216B.1675, and is in 
 18.9   the interest of residential and small business ratepayers.  The 
 18.10  amounts appropriated under this section are available until 
 18.11  spent. 
 18.12     Sec. 14.  [CONSERVATION IMPROVEMENTS PROGRAM; REVIEW AND 
 18.13  REPORT.] 
 18.14     (a) The legislative electric energy task force shall 
 18.15  conduct a review and analysis of issues specific to retail 
 18.16  electric customers having a connected load of 10,000 kilowatts 
 18.17  or more regarding the applicability of provisions of the energy 
 18.18  conservation improvements program under Minnesota Statutes, 
 18.19  section 216B.241. 
 18.20     (b) Not later than February 1, 1998, the task force shall 
 18.21  report its findings and legislative recommendations to the 
 18.22  senate and house of representatives committees that deal with 
 18.23  energy and utility regulation policy. 
 18.24     Sec. 15.  [REPEALER.] 
 18.25     Minnesota Statutes 1996, section 116C.80, is repealed. 
 18.26     Sec. 16.  [EFFECTIVE DATE.] 
 18.27     Sections 1, 10, and 15 are effective the day following 
 18.28  final enactment.  Sections 11 and 12 are effective for taxes 
 18.29  payable in 1998 and thereafter. 
 18.30                             ARTICLE 2 
 18.31     Section 1.  [TITLE.] 
 18.32     Section 2 may be referred to as the Mercury Emissions 
 18.33  Consumer Information Act of 1997. 
 18.34     Sec. 2.  [116.925] [ELECTRIC ENERGY; MERCURY EMISSIONS 
 18.35  REPORT.] 
 18.36     Subdivision 1.  [REPORT.] To address the shared 
 19.1   responsibility between the providers and consumers of 
 19.2   electricity for the protection of Minnesota's lakes, each 
 19.3   electric utility, as defined in section 216B.38, subdivision 5, 
 19.4   and each person that generates electricity in this state for 
 19.5   that person's own use or for sale at retail or wholesale shall 
 19.6   provide the commissioner an annual report of the amount of 
 19.7   mercury emitted in generating that electricity at that person's 
 19.8   facilities. 
 19.9      Subd. 2.  [TERMS AND CONDITIONS.] (a) The report referenced 
 19.10  in subdivision 1 must be made to the commissioner annually.  
 19.11  This report must include: 
 19.12     (1) a list of all generation facilities owned or operated 
 19.13  by the utility or person subject to subdivision 1; 
 19.14     (2) all readily available information regarding the amount 
 19.15  of electricity purchased by the utility or person subject to 
 19.16  subdivision 1, for use in the state; and 
 19.17     (3) information for each facility owned or operated by the 
 19.18  utility or person subject to subdivision 1, stating:  (i) the 
 19.19  amount of electricity generated at the facility for use or for 
 19.20  sale in this state at retail or wholesale; (ii) the amount of 
 19.21  fuel used to generate that electricity at the facility; and 
 19.22  (iii) the amount of mercury emitted in generating that 
 19.23  electricity in the previous calendar year, using an emission 
 19.24  factor for a given fuel type for up to five years after a stack 
 19.25  test at the facility or the average mercury concentration in 
 19.26  each fuel used at that facility, either determined by the 
 19.27  facility or certified by the fuel supplier. 
 19.28     (b) The report, as well as the calculation of mercury 
 19.29  emissions, shall be made under terms and conditions established 
 19.30  by the commissioner.  The commissioner shall incorporate into 
 19.31  these terms and conditions the following de minimis standard for 
 19.32  small and little-used generation facilities: 
 19.33     (1) less than 120 hours of operation by the generation 
 19.34  facility per year; and 
 19.35     (2) a capacity output at the facility of less than 50 
 19.36  million British thermal units per hour.  
 20.1      A utility or person subject to this section who owns or 
 20.2   operates a generation facility that qualifies under this de 
 20.3   minimis standard is not required to provide the information 
 20.4   described in subdivision 2, paragraph (a), for that facility. 
 20.5      (c) The establishment of the terms and conditions for the 
 20.6   report is subject to chapter 14. 
 20.7      Subd. 3.  [REPORT TO CONSUMERS.] (a) By April 1, 1999, and 
 20.8   biennially thereafter in the report on air toxics required under 
 20.9   section 115D.15, the commissioner shall report the amount of 
 20.10  mercury emitted in the generation of electricity, based on the 
 20.11  information in the reports under this section. 
 20.12     (b) The commissioner shall issue an interim report, based 
 20.13  on the voluntary reporting by Minnesota Good Neighbors, Clean 
 20.14  Lakes Energy Producers under subdivision 4, by April 1, 1998. 
 20.15     Subd. 4.  [GOOD NEIGHBORS, CLEAN LAKES; VOLUNTARY 
 20.16  DISCLOSURE.] An electric utility, as defined in section 216B.38, 
 20.17  subdivision 5, or a person that generates electricity in the 
 20.18  state for that person's own use or for sale at retail or 
 20.19  wholesale, may identify themselves as a "Minnesota Good 
 20.20  Neighbors, Clean Lakes Energy Producer" in the person's 
 20.21  advertising, marketing, and other communications to customers if:
 20.22     (1) beginning January 1, 1998, and annually thereafter, the 
 20.23  person voluntarily provides the commissioner with the 
 20.24  information described in subdivision 2, paragraph (a), based on 
 20.25  best available data; or 
 20.26     (2) after the adoption of the terms and conditions for 
 20.27  required reports under this section, the person demonstrates a 
 20.28  25 percent reduction in mercury emissions. 
 20.29     Sec. 3.  [INITIAL REPORT.] 
 20.30     The commissioner shall issue the terms and conditions for 
 20.31  the required disclosure under section 2, subdivision 2, by July 
 20.32  1, 1998.  Persons subject to section 2 shall make the initial 
 20.33  report and all subsequent reports in accordance with those terms 
 20.34  and conditions. 
 20.35     Sec. 4.  [ASSESSMENT FOR RULEMAKING.] 
 20.36     Unless private entities voluntarily reimburse the pollution 
 21.1   control agency for the cost of rulemaking under section 2, 
 21.2   subdivision 2, paragraph (b), by July 1, 1998, the commissioner 
 21.3   of the pollution control agency shall certify to the department 
 21.4   of public service the costs the agency has incurred in 
 21.5   developing and adopting the rules required under section 2, 
 21.6   subdivision 2, paragraph (b).  The department shall assess the 
 21.7   utilities and persons referenced in section 2, subdivision 2, 
 21.8   the amount certified to the department by the commissioner under 
 21.9   this section.  Proportional assessments against electric 
 21.10  utilities shall be in addition to assessments made under 
 21.11  Minnesota Statutes, section 216B.62.  Amounts assessed under 
 21.12  this section are appropriated to the commissioner of the 
 21.13  pollution control agency and are available until spent. 
 21.14     Sec. 5.  [EFFECTIVE DATE.] 
 21.15     Sections 1 to 4 are effective the day following final 
 21.16  enactment.  Section 2, subdivision 4, expires June 30, 2002.