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Capital IconMinnesota Legislature

HF 3337

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/21/2022 01:42pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24
1.25 1.26
1.27 1.28 1.29 1.30 2.1 2.2 2.3 2.4 2.5 2.6
2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27
10.28 10.29 10.30 10.31 10.32 10.33 11.1 11.2 11.3 11.4 11.5 11.6 11.7
11.8 11.9
11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23
11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 13.35 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20
14.21 14.22
14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33
15.1
15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30
15.31
16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27
16.28
16.29 16.30 16.31 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20
22.21
22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34
24.1 24.2
24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14
24.15 24.16
24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20
26.21 26.22
26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31
27.1 27.2
27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 31.1 31.2 31.3 31.4 31.5 31.6 31.7
31.8
31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17
36.18
36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30
36.31
37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16
37.17
37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9
38.10
38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26
41.27
41.28 41.29 41.30 41.31 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18
42.19
42.20 42.21 42.22 42.23 42.24
42.25
42.26 42.27 42.28 42.29 42.30 43.1 43.2 43.3 43.4 43.5 43.6
43.7
43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21
43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16
48.17 48.18 48.19
48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 49.1 49.2 49.3 49.4 49.5 49.6
49.7
49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24
49.25 49.26 49.27
49.28 49.29
50.1 50.2
50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14
50.15
50.16 50.17 50.18 50.19 50.20 50.21
50.22
50.23 50.24 50.25 50.26 50.27 50.28 50.29 51.1 51.2 51.3 51.4
51.5
51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14
51.15
51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11
52.12
52.13 52.14
52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 53.1 53.2 53.3 53.4
53.5
53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24
53.25
53.26 53.27 53.28 53.29 53.30 53.31 53.32 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 55.1 55.2 55.3
55.4
55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21
56.22
56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12
61.13
61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 63.1
63.2 63.3 63.4 63.5
63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21
63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20
66.21
66.22 66.23 66.24 66.25 66.26 66.27
66.28
66.29 66.30 66.31 66.32 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13
67.14
67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16
69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26
69.27
69.28 69.29 69.30
69.31
70.1 70.2
70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22
70.23
70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10
71.11
71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27
71.28
72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17
72.18
72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 76.1 76.2
76.3
76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27
77.28
78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23
78.24
78.25 78.26 78.27 78.28 78.29 78.30
79.1 79.2 79.3 79.4 79.5
79.6 79.7 79.8 79.9 79.10
79.11 79.12 79.13 79.14
79.15 79.16 79.17 79.18 79.19 79.20 79.21
79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17
80.18
80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24
81.25
81.26 81.27
81.28 81.29 81.30 81.31 81.32 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10
86.11 86.12
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86.24 86.25 86.26 86.27 86.28 86.29
86.30
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87.16
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92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18
98.19
98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18
101.19
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103.19
103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13
105.14
105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 106.1 106.2
106.3 106.4 106.5
106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23
106.24 106.25 106.26
106.27 106.28 106.29 106.30 106.31 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8
107.9 107.10
107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 108.1 108.2 108.3 108.4 108.5 108.6
108.7 108.8
108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31
110.1
110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13
111.14
111.15 111.16
111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32 112.33 112.34 112.35 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 116.1 116.2 116.3 116.4 116.5
116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 118.1 118.2 118.3 118.4
118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13
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122.25 122.26 122.27 122.28 122.29 122.30 122.31
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123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15
124.16 124.17

A bill for an act
relating to energy; establishing a supplemental budget for energy and climate
change needs; adding and modifying provisions governing energy conservation,
Public Utility Commission proceedings, energy storage, renewable energy, electric
vehicles, energy-related economic development, greenhouse gas emissions, and
other energy and climate policy; creating accounts; establishing grant programs;
authorizing rulemaking; requiring reports; making technical changes; appropriating
and transferring money; amending Minnesota Statutes 2020, sections 16B.32,
subdivisions 1, 1a; 16C.137, subdivision 1; 116C.779, subdivision 1; 116J.55,
subdivision 5; 160.08, subdivision 7; 168.27, by adding a subdivision; 216B.16,
subdivision 13; 216B.1611, by adding a subdivision; 216B.1641; 216B.1645,
subdivision 2; 216B.1691, subdivision 9; 216B.17, subdivision 1; 216B.2422,
subdivisions 1, 3, 5, 7, by adding subdivisions; 216B.2425, subdivision 8;
216B.243, subdivision 8; 216B.50, subdivision 1; 216C.264, subdivision 5, by
adding a subdivision; 216C.435, subdivision 8; 216C.436, subdivision 2, by adding
a subdivision; 216E.01, subdivision 9a; 216E.03, subdivisions 1, 5, 7, 10, 11;
216E.04, subdivision 2; 216F.04; 326B.103, by adding subdivisions; 326B.106,
subdivision 1, by adding a subdivision; Minnesota Statutes 2021 Supplement,
sections 16C.135, subdivision 3; 116C.7792; 216C.375, subdivision 1; Laws 2020,
chapter 118, section 5, subdivision 1; proposing coding for new law in Minnesota
Statutes, chapters 116C; 216B; 216C; 500; repealing Minnesota Statutes 2020,
sections 16B.323, subdivisions 1, 2; 16B.326; 216B.16, subdivision 10; Laws
2017, chapter 5, section 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginAPPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2022" and "2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, or June 30, 2023, respectively.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2022
new text end
new text begin 2023
new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin -0-
new text end
new text begin $
new text end
new text begin 80,686,000
new text end

new text begin Subd. 2. new text end

new text begin Energy Resources
new text end

new text begin -0-
new text end
new text begin 80,285,000
new text end

new text begin (a) $4,000,000 in fiscal year 2023 is for
deposit in the solar on public buildings grant
program account for the grant program under
Minnesota Statutes, section 216C.377. The
appropriation must not be used to provide
grants to public buildings located within the
electric service area of the electric utility
subject to Minnesota Statutes, section
116C.779. This is a onetime appropriation and
remains available until December 31, 2025.
new text end

new text begin (b) $500,000 in fiscal year 2023 is for transfer
to the commissioner of employment and
economic development for a grant to Unidos
MN Education Fund and the New Justice
Project MN to address employment and
economic disparities for people of color,
immigrant communities, and low-income
unemployed or underemployed individuals.
The money must be used to support
preapprenticeship and workforce training,
career development, worker rights training,
employment placement and entrepreneurship
support, related support services, and the
development of transferable skills in
high-demand fields related to construction,
clean energy, and energy efficiency. Of this
amount, 50 percent is for a grant to Unidos
MN Education Fund and 50 percent is for a
grant to the New Justice Project MN. This is
a onetime appropriation and is available until
June 30, 2027.
new text end

new text begin (c) $30,000,000 in fiscal year 2023 is to
provide grants to community action agencies
and other agencies to weatherize residences
and to install preweatherization measures in
residential buildings occupied by eligible
low-income households, as provided under
Minnesota Statutes, sections 216B.2403,
subdivision 5; 216B.241, subdivision 7; and
216C.264. Of this amount:
new text end

new text begin (1) up to ten percent may be used to
supplement utility spending on
preweatherization measures as part of a
low-income conservation program; and
new text end

new text begin (2) up to ten percent may be used to:
new text end

new text begin (i) recruit and train energy auditors and
installers of weatherization assistance services;
and
new text end

new text begin (ii) provide financial incentives to contractors
and workers who install weatherization
assistance services.
new text end

new text begin The base in fiscal year 2024 is $15,000,000
and the base in fiscal year 2025 is
$15,000,000.
new text end

new text begin For the purposes of this paragraph:
new text end

new text begin (A) "low-income conservation program"
means a utility program that offers energy
conservation services to low-income
households as part of the utility's energy
conservation and optimization plan under
Minnesota Statutes, sections 216B.2403,
subdivision 5, and 216B.241, subdivision 7;
new text end

new text begin (B) "preweatherization measure" has the
meaning given in Minnesota Statutes, section
216B.2402, subdivision 20;
new text end

new text begin (C) "weatherization assistance program"
means the federal program described in Code
of Federal Regulations, title 10, part 440 et
seq., designed to assist low-income households
to cost-effectively reduce energy use; and
new text end

new text begin (D) "weatherization assistance services" means
the energy conservation measures installed in
households under the weatherization assistance
program and under low-income conservation
programs.
new text end

new text begin (d) $2,276,000 in fiscal year 2023 is for
residential electric panel upgrade grants under
Minnesota Statutes, section 216C.45, and to
pay the reasonable costs incurred by the
department to administer Minnesota Statutes,
section 216C.45. This is a onetime
appropriation and is available until June 30,
2025.
new text end

new text begin (e) $1,000,000 the first year is for transfer to
the Board of Regents of the University of
Minnesota for a program in the University of
Minnesota Extension Service that enhances
the capacity of the state's agricultural sector,
land and resource managers, and communities
to plan for and adapt to weather extremes like
droughts and floods. This appropriation must
be used to support existing extension service
staff members and to hire additional staff
members for a program with broad geographic
reach throughout the state. The program must:
new text end

new text begin (1) identify, develop, implement, and evaluate
educational programs that increase the
capacity of Minnesota's agricultural sector,
land and resource managers, and communities
to adapt and be prepared for projected physical
changes in temperature, precipitation, and
other weather parameters that affect crops,
lands, horticulture, pests, and wildlife in ways
that present challenges to Minnesota's
agricultural sector and the communities that
depend on Minnesota's agricultural sector; and
new text end

new text begin (2) communicate and interpret the latest
research on critical weather trends and the
science behind critical weather trends to
further prepare extension service staff
throughout Minnesota to educate the
agricultural sector, land and resource
managers, and community members at the
local level regarding technical information on
water resource management, agriculture and
forestry, engineering and infrastructure design,
and emergency management that is necessary
to develop strategies to mitigate the effects of
extreme weather change.
new text end

new text begin (f) $300,000 in fiscal year 2023 is for transfer
to the commissioner of the Pollution Control
Agency for a report describing potential
strategies to reduce statewide greenhouse gas
emissions in order to comply with the state's
greenhouse gas emissions reductions goals
established in Minnesota Statutes, section
216H.02, subdivision 1, and the 2030
emissions reduction goal established by the
United States under the United Nations
Framework Convention on Climate Change,
also known as the Paris Agreement. This is a
onetime appropriation.
new text end

new text begin (g) $600,000 in fiscal year 2023 is for transfer
to the commissioner of administration to
contract with the Board of Regents of the
University of Minnesota for a grant to the
Institute on the Environment to conduct
research examining how projections of future
weather trends may exacerbate conditions,
including drought, elevated temperatures, and
flooding, that:
new text end

new text begin (1) can be integrated into the design and
evaluation of buildings constructed by the state
of Minnesota and local units of government
to:
new text end

new text begin (i) reduce energy costs by deploying
cost-effective energy efficiency measures,
innovative construction materials and
techniques, and renewable energy sources;
and
new text end

new text begin (ii) prevent and minimize damage to buildings
caused by extreme weather conditions,
including but not limited to increased
frequency of intense precipitation events,
tornadoes, flooding, and elevated
temperatures; and
new text end

new text begin (2) may weaken the ability of natural systems
to mitigate conditions to the point where
human intervention in the form of building or
redesigning the scale and operation of
infrastructure is required to address the
conditions in order to:
new text end

new text begin (i) maintain and increase the amount and
quality of food and wood production;
new text end

new text begin (ii) reduce fire risk on forested land;
new text end

new text begin (iii) maintain and enhance water quality; and
new text end

new text begin (iv) maintain and enhance natural habitats.
new text end

new text begin The contract must provide that, no later than
February 1, 2025, the director of the Institute
on the Environment or the director's designee
submit a written report to the chairs and
ranking minority members of the legislative
committees with primary jurisdiction over
environment policy and capital investment
that summarizes the findings and
recommendations of the research, including
any recommendations for policy changes or
other legislation. This is a onetime
appropriation and is available until December
31, 2024.
new text end

new text begin (h) $146,000 in fiscal year 2023 is for transfer
to the commissioner of labor and industry to
implement new commercial energy codes
under Minnesota Statutes, section 326B.106,
subdivision 1. This is a onetime appropriation.
new text end

new text begin (i) $2,000,000 in fiscal year 2023 is for
transfer to the commissioner of employment
and economic development for the community
energy transition grant program under
Minnesota Statutes, section 116J.55. This is
a onetime appropriation and is available until
expended.
new text end

new text begin (j) $3,000,000 in fiscal year 2023 is for
transfer to the commissioner of the Pollution
Control Agency to award grants to political
subdivisions to encourage the formation of
organizations and plans to reduce contributions
to and mitigate the impacts of climate change.
This is a onetime appropriation and is
available until December 31, 2023.
new text end

new text begin (k) $500,000 in fiscal year 2023 is to award
grants to auto dealers to seek certification from
electric vehicle manufacturers to sell electric
vehicles. This is a onetime appropriation and
is available until December 31, 2024.
new text end

new text begin (l) $3,000,000 in fiscal year 2023 is for grants
under the solar for schools program
established in Minnesota Statutes, section
216C.375. This is a onetime appropriation and
is available until June 30, 2028.
new text end

new text begin (m) $10,000,000 in fiscal year 2023 is for
transfer to the state competitiveness account
established in Minnesota Statutes, section
216C.391, to leverage federal formula and
competitive funds for energy-related
infrastructure and clean energy investments
in Minnesota. This is a onetime appropriation
and is available until June 30, 2034.
new text end

new text begin (n) $5,000,000 in fiscal year 2023 is for grants
from the energy alley start-up fund established
in Minnesota Statutes, section 216C.46, to
businesses developing decarbonization
technologies. This is a onetime appropriation
and is available until December 31, 2024.
new text end

new text begin (o) $500,000 in fiscal year 2023 is to install a
network of electric vehicle charging stations
in public parking facilities in county
government centers. This is a onetime
appropriation and is available until December
31, 2024.
new text end

new text begin (p) $4,100,000 in fiscal year 2023 is to the
commissioner of natural resources to install
electric vehicle charging stations in public
parking facilities located in state and regional
parks. This is a onetime appropriation and is
available until December 31, 2024.
new text end

new text begin (q) Notwithstanding any other law to the
contrary, including any law prohibiting the
servicing of vehicles or the conduct of private
business on the right-of-way of a trunk
highway, $2,100,000 in fiscal year 2023 is to
the commissioner of transportation to install
electric vehicle charging stations at highway
safety rest areas. The charging stations may
be free or fee-based. This is a onetime
appropriation and is available until December
31, 2024.
new text end

new text begin (r) $133,000 in fiscal year 2023 is to the
commissioner of labor and industry to modify
the State Building Code to address needs for
electric vehicle charging in parking facilities
in new commercial and multifamily buildings
that provide on-site parking. This is a onetime
appropriation and is available until December
31, 2023.
new text end

new text begin (s) $531,000 in fiscal year 2023 is to develop
an energy benchmarking program under which
building owners report certain types of
buildings' annual energy use under Minnesota
Statutes, section 216C.331. This is a onetime
appropriation and is available until December
31, 2023.
new text end

new text begin (t) $314,000 in fiscal year 2023 is to the
commissioner of administration to staff a Buy
Clean Task Force to advise the commissioner
on developing environmental standards for
the state's procurement of certain building
materials. This is a onetime appropriation and
is available until June 30, 2024.
new text end

new text begin (u) $109,000 in fiscal year 2023 is for
participation in customer disputes before the
Public Utilities Commission under the
consumer dispute process established under
Minnesota Statutes, section 216B.172.
new text end

new text begin (v) $35,000 in fiscal year 2023 is to participate
in the intervenor compensation process under
Minnesota Statutes, section 216B.631.
new text end

new text begin (w) $10,000,000 the first year is for a grant to
the Minnesota Innovation Finance Authority
for organizational start-up costs and for the
purposes of Minnesota Statutes, section
216C.441. The commissioner of commerce is
the fiscal agent for the grant and must establish
reporting requirements with respect to the
authority's activities and expenditures. This is
a onetime appropriation and is available until
December 31, 2024.
new text end

new text begin (x) $141,000 in fiscal year 2023 is for
participation in proceedings of the Minnesota
Public Utilities Commission regarding energy
storage systems under Minnesota Statutes,
sections 216B.1616 and 216C.378.
new text end

Sec. 3. new text beginPUBLIC UTILITIES COMMISSION
new text end

new text begin $
new text end
new text begin -0-
new text end
new text begin $
new text end
new text begin 401,000
new text end

new text begin (a) $234,000 in fiscal year 2023 is to
administer the customer dispute process
established in Minnesota Statutes, section
216B.172. The base for this appropriation in
fiscal year 2024 and thereafter is $228,000.
new text end

new text begin (b) $32,000 in fiscal year 2023 is to administer
the intervenor compensation process under
Minnesota Statutes, section 216B.631.
new text end

new text begin (c) $135,000 in fiscal year 2023 is for
commission proceedings regarding energy
storage systems under Minnesota Statutes,
sections 216B.1616 and 216C.378.
new text end

ARTICLE 2

RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS

Section 1. new text beginAPPROPRIATIONS.
new text end

new text begin (a) The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable
development account in the special revenue fund established in Minnesota Statutes, section
116C.779, subdivision 1, and are available for the fiscal years indicated for each purpose.
The figures "2022" and "2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, or June 30, 2023, respectively.
new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2022 regular or
special legislative session, the appropriation must be given effect only once.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2022
new text end
new text begin 2023
new text end

Sec. 2. new text beginDEPARTMENT OF COMMERCE
new text end

new text begin $
new text end
new text begin -0-
new text end
new text begin $
new text end
new text begin 40,221,000
new text end

new text begin (a) $5,000,000 in fiscal year 2023 is to operate
the grants for renewable integration and
demonstration program under Minnesota
Statutes, section 216C.47, to award grants to
businesses to develop decarbonization
technologies for commercialization.
new text end

new text begin (b) $1,000,000 in fiscal year 2023 is to
implement a program that awards grants to
upgrade electrical panels in single-family and
multifamily residences under Minnesota
Statutes, section 216C.45. This is a onetime
appropriation and is available until June 30,
2025.
new text end

new text begin (c) $3,000,000 in fiscal year 2023 is for the
Metropolitan Council to purchase buses that
operate solely on electric propulsion provided
by electric motors and rechargeable on-board
batteries. This is a onetime appropriation and
is available until June 30, 2023.
new text end

new text begin (d) $1,000,000 in fiscal year 2023 is for
deposit in a contingency fund for disbursement
to the owner of a solar energy generating
system installed on land on the former Ford
Motor Company in St. Paul known as Area C.
Disbursement under this paragraph must occur
only if the Pollution Control Agency requires
actions to be taken to remediate contaminated
land at the site that requires the solar energy
generating system to be removed while
remediation takes place, as provided in
Minnesota Statutes, section 116C.7793. The
base in fiscal year 2024 is $1,000,000. The
base in fiscal year 2025 is $1,000,000.
new text end

new text begin (e) $6,500,000 in fiscal year 2023 is for a grant
to the Independent School District No. 11,
Anoka-Hennepin, to construct a geothermal
energy system at the Sorteberg Early
Childhood Center that uses the constant
temperature of the earth, in conjunction with
a heat pump, new HVAC system, and new
boilers, to provide space heating and cooling
to the building. This is a onetime appropriation
and is available until December 31, 2027.
new text end

new text begin (f) The base for fiscal year 2024 is $531,000
to implement an energy benchmarking
program under which building owners report
certain types of buildings' annual energy use
under Minnesota Statutes, section 216C.331.
The base in fiscal year 2025 and thereafter is
$431,000.
new text end

new text begin (g) $500,000 in fiscal year 2023 is to install a
network of electric vehicle charging stations
in public parking facilities located in county
government centers. This is a onetime
appropriation and is available until June 30,
2024.
new text end

new text begin (h) $5,000,000 in fiscal year 2023 is to be
withheld by the public utility subject to
Minnesota Statutes, section 116C.779, from
deposit in the renewable development account,
as provided in Minnesota Statutes, section
116C.7792, for a financial incentive to install
solar energy generating systems under
Minnesota Statutes, section 116C.7792. The
amount to be withheld for this purpose in
fiscal year 2024 is $5,000,000 and in fiscal
year 2025 is $10,000,000.
new text end

new text begin (i) $4,000,000 in fiscal year 2023 is for a
financial incentive for the installation of
energy storage systems under Minnesota
Statutes, section 116C.7792.
new text end

new text begin (j) $4,000,000 in fiscal year 2023 is for the
solar on public buildings grant program
described under Minnesota Statutes, section
216C.377. The appropriation must be used to
provide grants to public buildings located
within the electric service area of the electric
utility subject to Minnesota Statutes, section
116C.779. The base in fiscal year 2024 and
thereafter is $2,000,000.
new text end

new text begin (k) $10,000,000 in fiscal year 2023 is for
transfer to the state competitiveness account
established in Minnesota Statutes, section
216C.391, to leverage federal formula and
competitive funds for energy-related
infrastructure and clean energy investments
in Minnesota. This appropriation must be used
to obtain federal funds that benefit Minnesota
ratepayers receiving electric service from the
utility that owns a nuclear-powered electric
generating plant in Minnesota, the Prairie
Island Indian community, or Prairie Island
Indian community members. This is a onetime
appropriation and is available until June 30,
2034.
new text end

new text begin (l) $221,000 in fiscal year 2023 is for
participation in proceedings of the Minnesota
Public Utilities Commission regarding energy
storage systems under Minnesota Statutes,
sections 216B.1616 and 216C.378.
new text end

ARTICLE 3

ENERGY CONSERVATION

Section 1.

Minnesota Statutes 2020, section 216C.264, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin State supplementary weatherization grants account. new text end

new text begin (a) A state
supplementary weatherization grants account is established as a separate account in the
special revenue fund in the state treasury. The commissioner must credit appropriations and
transfers to the account. Earnings, such as interest, dividends, and any other earnings arising
from assets of the account, must be credited to the account. Money remaining in the account
at the end of a fiscal year does not cancel to the general fund, but remains in the account
until expended. The commissioner must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner for the purposes of
subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2020, section 216C.264, subdivision 5, is amended to read:


Subd. 5.

Grant allocation.

new text begin(a) new text endThe commissioner must distribute supplementary state
grants in a manner consistent with the goal of producing the maximum number of weatherized
units. Supplementary state grants deleted text beginare provided primarily for the payment ofdeleted text end new text beginmay be used
for the following purposes:
new text end

new text begin (1) to address physical deficiencies in a residence that increase heat loss, including
deficiencies that prohibit the residence from being eligible to receive federal weatherization
assistance;
new text end

new text begin (2) to install preweatherization measures, as defined in section 216B.2402, subdivision
20, established by the commissioner under section 216B.241, subdivision 7, paragraph (g);
new text end

new text begin (3) to increase the number of weatherized residences;
new text end

new text begin (4) to conduct outreach activities to make income-eligible households aware of the
weatherization services available to income-eligible households, to assist applicants to fill
out applications for weatherization assistance, and to provide translation services where
necessary;
new text end

new text begin (5) to enable projects in multifamily buildings to proceed even if projects cannot comply
with the federal requirement that projects must be completed within the same federal fiscal
year in which the project begins;
new text end

new text begin (6) to address shortages of workers trained to provide weatherization services, including
expanding training opportunities in existing and new training programs;
new text end

new text begin (7) to support the operation of the weatherization training program under section
216C.2641;
new text end

new text begin (8) to pay new text endadditional labor costs for the federal weatherization programdeleted text begin,deleted text endnew text begin;new text end and

new text begin (9)new text end as an incentive for the increased production of weatherized units.

new text begin (b) new text endCriteria for the allocation of state grants to local agencies include existing local
agency production levels, emergency needs, and the potential for maintaining or increasing
acceptable levels of production in the area.

new text begin (c) new text endAn eligible local agency may receive advance funding for 90 days' production, but
thereafter must receive grants solely on the basis of program criteria.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [216C.2641] WEATHERIZATION TRAINING GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of commerce must establish a
weatherization training grant program to award grants to train workers for careers in the
weatherization industry.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin (a) The commissioner must award grants through a competitive grant
process.
new text end

new text begin (b) An eligible entity under paragraph (c) seeking a grant under this section must submit
a written application to the commissioner, using a form developed by the commissioner.
new text end

new text begin (c) Grants may be awarded under this section only to:
new text end

new text begin (1) a nonprofit organization exempt from taxation under section 501(c)(3) of the United
States Internal Revenue Code;
new text end

new text begin (2) a labor organization, as defined in section 179.01, subdivision 6; or
new text end

new text begin (3) a job training center or educational institution that the commissioner of commerce
determines has the ability to train workers for weatherization careers.
new text end

new text begin (d) Grant funds must be used to pay costs associated with training workers for careers
in the weatherization industry, including related supplies, materials, instruction, and
infrastructure.
new text end

new text begin (e) When awarding grants under this section, the commissioner must give priority to
applications that provide the highest quality training to prepare trainees for weatherization
employment opportunities that meet technical standards and certifications developed by the
Building Performance Institute, Inc. or the Standard Work Specifications developed by the
United States Department of Energy for the federal Weatherization Assistance Program.
new text end

new text begin Subd. 3. new text end

new text begin Reports. new text end

new text begin By January 15, 2024, and each January 15 thereafter, the commissioner
must submit a report to the chairs and ranking minority members of the senate and house
of representatives committees with jurisdiction over energy policy that details the use of
grant funds under this section, including data on the number of trainees trained and the
career progress of trainees supported by prior grants.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [216C.331] ENERGY BENCHMARKING.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Benchmark" means to electronically input into a benchmarking tool the total energy
use data and other descriptive information about a building that is required by a benchmarking
tool.
new text end

new text begin (c) "Benchmarking information" means data related to a building's energy use generated
by a benchmarking tool and other information about the building's physical and operational
characteristics. Benchmarking information includes but is not limited to the building's:
new text end

new text begin (1) address;
new text end

new text begin (2) owner and, if applicable, the building manager responsible for operating the building's
physical systems;
new text end

new text begin (3) total floor area, expressed in square feet;
new text end

new text begin (4) energy use intensity;
new text end

new text begin (5) greenhouse gas emissions; and
new text end

new text begin (6) energy performance score comparing the building's energy use with that of similar
buildings.
new text end

new text begin (d) "Benchmarking tool" means the United States Environmental Protection Agency's
Energy Star Portfolio Manager tool or an equivalent tool determined by the commissioner.
new text end

new text begin (e) "Covered property" means a building whose total floor area is equal to or greater
than 50,000 square feet. Covered property does not include:
new text end

new text begin (1) a residential property containing fewer than five dwelling units;
new text end

new text begin (2) a property classified as mining or manufacturing under the North American Industrial
Classification System (NAICS); or
new text end

new text begin (3) other property types that do not meet the purposes of this section, as determined by
the commissioner.
new text end

new text begin (f) "Energy" means electricity, natural gas, steam, or another product used to (1) provide
heating, cooling, lighting, or water heating, or (2) power other end uses in a building.
new text end

new text begin (g) "Energy audit" has the meaning given in section 216C.435, subdivision 4.
new text end

new text begin (h) "Energy intensity" means the total annual energy consumed in a building divided by
the building's total floor area.
new text end

new text begin (i) "Energy performance score" means a numerical value from one to 100 that the Energy
Star Portfolio Manager tool calculates to rate a building's energy efficiency against that of
comparable buildings nationwide.
new text end

new text begin (j) "Energy Star Portfolio Manager" means an interactive resource management tool
developed by the United States Environmental Protection Agency that (1) enables the
periodic entry of a building's energy use data and other descriptive information about a
building, and (2) rates a building's energy efficiency against that of comparable buildings
nationwide.
new text end

new text begin (k) "Financial distress" means a covered property that, at the time benchmarking is
conducted:
new text end

new text begin (1) is the subject of a qualified tax lien sale or public auction due to property tax
arrearages;
new text end

new text begin (2) is controlled by a court-appointed receiver based on financial distress;
new text end

new text begin (3) is owned by a financial institution through default by the borrower;
new text end

new text begin (4) has been acquired by deed in lieu of foreclosure; or
new text end

new text begin (5) has a senior mortgage that is subject to a notice of default.
new text end

new text begin (l) "Owner" means (1) an individual or entity that possesses title to a covered property,
or (2) an agent authorized to act on behalf of the covered property owner.
new text end

new text begin (m) "Total floor area" means the sum of gross square footage inside a building's envelope,
measured between the outside exterior walls of the building. Total floor area includes covered
parking structures.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A building energy benchmarking program is established in the
department. The purpose of the program is to:
new text end

new text begin (1) make a building's owners, tenants, and potential tenants aware of (i) the building's
energy consumption levels and patterns, and (ii) how the building's energy use compares
with that of similar buildings nationwide; and
new text end

new text begin (2) enhance the likelihood that owners adopt energy conservation measures in the owners'
buildings as a way to reduce energy use, operating costs, and greenhouse gas emissions.
new text end

new text begin Subd. 3. new text end

new text begin Classification of covered properties. new text end

new text begin For the purposes of this section, a covered
property is classified as follows:
new text end

new text begin Class
new text end
new text begin Total Floor Area (sq. ft.)
new text end
new text begin 1
new text end
new text begin 150,000 or more
new text end
new text begin 2
new text end
new text begin 100,000 to 149,999
new text end
new text begin 3
new text end
new text begin 75,000 to 99,999
new text end
new text begin 4
new text end
new text begin 50,000 to 74,999
new text end

new text begin Subd. 4. new text end

new text begin Benchmarking requirement. new text end

new text begin (a) In conformity with the schedule in subdivision
6, an owner must annually benchmark all covered property owned as of December 31 during
the previous calendar year. Energy use data must be compiled by:
new text end

new text begin (1) obtaining the data from the utility providing the energy; or
new text end

new text begin (2) reading a master meter.
new text end

new text begin (b) Before entering information in a benchmarking tool, an owner must run all automated
data quality assurance functions available within the benchmarking tool and must correct
all missing or incorrect data identified.
new text end

new text begin (c) An owner who becomes aware that any information entered into a benchmarking
tool is inaccurate or incomplete must amend the information in the benchmarking tool within
30 days of the date the owner learned of the inaccuracy.
new text end

new text begin Subd. 5. new text end

new text begin Exemption. new text end

new text begin (a) The commissioner may exempt an owner from the requirements
of subdivision 4 for a covered property if the owner provides evidence satisfying the
commissioner that the covered property:
new text end

new text begin (1) is presently experiencing financial distress;
new text end

new text begin (2) has been less than 50 percent occupied during the previous calendar year;
new text end

new text begin (3) does not have a certificate of occupancy or temporary certificate of occupancy for
the full previous calendar year;
new text end

new text begin (4) was issued a demolition permit during the previous calendar year that remains current;
new text end

new text begin (5) received no energy services for at least 30 days during the previous calendar year;
or
new text end

new text begin (6) is participating in a benchmarking program operated by a city or other political
subdivision that the commissioner determines is equivalent to the benchmarking program
established in this section.
new text end

new text begin (b) An exemption granted under this subdivision applies only to a single calendar year.
An owner must reapply to the commissioner each year an extension is sought.
new text end

new text begin (c) Within 30 days of the date an owner makes a request under this paragraph, each
tenant of a covered property subject to this section must provide the owner with any
information regarding energy use of the tenant's rental unit that the property owner cannot
otherwise obtain and that is needed by the owner to comply with this section. The tenant
must provide the information required under this paragraph in a format approved by the
commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Benchmarking schedule. new text end

new text begin An owner must annually benchmark each covered
property for the previous calendar year according to the following schedule:
new text end

new text begin (1) all Class 1 properties by June 1, 2023, and by every June 1 thereafter;
new text end

new text begin (2) all Class 2 properties by June 1, 2024, and by every June 1 thereafter;
new text end

new text begin (3) all Class 3 properties by June 1, 2025, and by every June 1 thereafter; and
new text end

new text begin (4) all Class 4 properties by June 1, 2026, and by every June 1 thereafter.
new text end

new text begin Subd. 7. new text end

new text begin Energy audit. new text end

new text begin (a) The commissioner must notify in writing an owner of a
building whose energy performance score is 25 or lower or whose calculated energy intensity
is among the highest 25 percent compared to similar building types within the building's
class, as determined by the commissioner, that, except as provided in paragraph (c), the
owner is required to contract for an energy audit of the building no later than one year after
the notice is issued, unless the commissioner extends the deadline.
new text end

new text begin (b) The commissioner must award a grant to an owner who completes an energy audit
after receiving notice under this subdivision. The grant amount must be the lower of $2,000
or 50 percent of the cost of the audit. An owner must not receive more than one grant under
this subdivision.
new text end

new text begin (c) If a building owner that receives notice under this subdivision submits evidence to
the commissioner's satisfaction that an energy audit of the building that is the subject of the
notice was conducted within the previous five years, the owner is exempt from the
requirement to conduct an energy audit.
new text end

new text begin Subd. 8. new text end

new text begin Data collection and management. new text end

new text begin (a) The commissioner must:
new text end

new text begin (1) collect benchmarking information generated by a benchmarking tool and other related
information for each covered property;
new text end

new text begin (2) provide technical assistance to owners entering data into a benchmarking tool; and
new text end

new text begin (3) collaborate with utilities regarding the provision of energy use information to owners
and tenants to enable owners to comply with this section.
new text end

new text begin (b) A utility must comply with a request from the commissioner to provide to the
commissioner or to an owner energy use information that is needed to effectively operate
the energy benchmarking program.
new text end

new text begin (c) The commissioner must:
new text end

new text begin (1) rank benchmarked covered properties in each property class from highest to lowest
performance score, or, if a performance score is unavailable for a covered property, from
lowest to highest energy use intensity;
new text end

new text begin (2) divide covered properties in each property class into four quartiles based on the
applicable measure in clause (1);
new text end

new text begin (3) assign four stars to each covered property in the quartile of each property class with
the highest performance scores or lowest energy use intensities, as applicable;
new text end

new text begin (4) assign three stars to each covered property in the quartile of each property class with
the second highest performance scores or second lowest energy use intensities, as applicable;
new text end

new text begin (5) assign two stars to each covered property in the quartile of each property class with
the third highest performance scores or third lowest energy use intensities, as applicable;
new text end

new text begin (6) assign one star to each covered property in the quartile of each property class with
the lowest performance scores or highest energy use intensities, as applicable; and
new text end

new text begin (7) serve notice in writing to each owner identifying the number of stars assigned the
commissioner to each of the owner's covered properties.
new text end

new text begin Subd. 9. new text end

new text begin Data disclosure to public. new text end

new text begin (a) The commissioner must post on the department's
website and update annually the following information for the previous calendar year:
new text end

new text begin (1) annual summary statistics on energy use for all covered properties in Minnesota;
new text end

new text begin (2) annual summary statistics on energy use for all covered properties, aggregated by
(i) covered property class, as defined in subdivision 3, (ii) city, and (iii) county;
new text end

new text begin (3) the percentage of covered properties in each building class listed in subdivision 3
that are in compliance with the benchmarking requirements under subdivisions 4 to 6; and
new text end

new text begin (4) for each covered property, at a minimum, the total energy use, energy use per square
foot of total floor area, annual greenhouse gas emissions, and an energy performance score,
if available.
new text end

new text begin (b) The commissioner must post the information required under this subdivision for each
class of covered property beginning one year after the date the initial benchmarking
submission is made by the owner under the schedule in subdivision 6.
new text end

new text begin Subd. 10. new text end

new text begin Building performance disclosure to potential tenants. new text end

new text begin An owner must, on
any application provided to a potential tenant seeking to rent a unit in a covered property,
include the following language in a 12-point or larger font on the first page of the application:
"This building has received a [insert number of stars assigned to the building by the
commissioner under subdivision 8, paragraph (c)] star rating of the building's energy
efficiency from the Minnesota Department of Commerce, where four stars represents the
most energy efficient buildings and one star represents the least energy efficient buildings."
new text end

new text begin Subd. 11. new text end

new text begin Notifications. new text end

new text begin (a) By March 1 each year, the commissioner must notify the
owner of each covered property required to benchmark for the previous calendar year of
the requirement to benchmark by June 1 of that year.
new text end

new text begin (b) By July 15 each year, the commissioner must notify the owner of each covered
property required to benchmark for the previous calendar year that failed to benchmark that
the owner has 30 days to comply with the benchmarking requirement.
new text end

new text begin Subd. 12. new text end

new text begin Program implementation. new text end

new text begin The commissioner may contract with an
independent third party to implement any or all of the duties the commissioner is required
to perform under subdivisions 2 to 10.
new text end

new text begin Subd. 13. new text end

new text begin Enforcement. new text end

new text begin If the commissioner determines that an owner has failed to
benchmark in a timely, complete, and accurate fashion as required under this section, the
commissioner may impose on the owner a civil fine of up to $1,000. Each day that the owner
fails to benchmark to the satisfaction of the commissioner for each covered property owned
by the owner may be deemed a separate offense and the commissioner may impose a separate
civil penalty.
new text end

new text begin Subd. 14. new text end

new text begin Rules. new text end

new text begin The commissioner is authorized to adopt rules under chapter 14 to
implement this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2020, section 326B.106, subdivision 1, is amended to read:


Subdivision 1.

Adoption of code.

(a) Subject to paragraphs (c) and (d) and sections
326B.101 to 326B.194, the commissioner shall by rule and in consultation with the
Construction Codes Advisory Council establish a code of standards for the construction,
reconstruction, alteration, and repair of buildings, governing matters of structural materials,
design and construction, fire protection, health, sanitation, and safety, including design and
construction standards regarding heat loss control, illumination, and climate control. The
code must also include duties and responsibilities for code administration, including
procedures for administrative action, penalties, and suspension and revocation of certification.
The code must conform insofar as practicable to model building codes generally accepted
and in use throughout the United States, including a code for building conservation. In the
preparation of the code, consideration must be given to the existing statewide specialty
codes presently in use in the state. Model codes with necessary modifications and statewide
specialty codes may be adopted by reference. The code must be based on the application
of scientific principles, approved tests, and professional judgment. To the extent possible,
the code must be adopted in terms of desired results instead of the means of achieving those
results, avoiding wherever possible the incorporation of specifications of particular methods
or materials. To that end the code must encourage the use of new methods and new materials.
Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall
administer and enforce the provisions of those sections.

(b) The commissioner shall develop rules addressing the plan review fee assessed to
similar buildings without significant modifications including provisions for use of building
systems as specified in the industrial/modular program specified in section 326B.194.
Additional plan review fees associated with similar plans must be based on costs
commensurate with the direct and indirect costs of the service.

(c) Beginning with the 2018 edition of the model building codes and every six years
thereafter, the commissioner shall review the new model building codes and adopt the model
codes as amended for use in Minnesota, within two years of the published edition date. The
commissioner may adopt amendments to the building codes prior to the adoption of the
new building codes to advance construction methods, technology, or materials, or, where
necessary to protect the health, safety, and welfare of the public, or to improve the efficiency
or the use of a building.

(d) Notwithstanding paragraph (c), the commissioner shall act on each new model
residential energy code and the new model commercial energy code in accordance with
federal law for which the United States Department of Energy has issued an affirmative
determination in compliance with United States Code, title 42, section 6833. new text beginA municipality
may adopt the most recently published new model commercial energy code ASHRAE 90.1
until a more energy efficient code is adopted by the commissioner. A municipality may not
amend or otherwise change any provisions of the most recent ASHRAE 90.1 standard,
except that a municipality is required to adopt amendments to the previous version of
ASHRAE 90.1 in the current commercial energy code adopted by the commissioner.
new text endThe
commissioner may adopt amendments prior to adoption of the new energy codes, as amended
for use in Minnesota, to advance construction methods, technology, or materials, or, where
necessary to protect the health, safety, and welfare of the public, or to improve the efficiency
or use of a building.new text begin The commissioner of commerce may include energy code support
measures in the technical guidance developed under section 216B.241, subdivision 1d.
new text end

ARTICLE 4

COMMISSION PROCEEDINGS

Section 1.

Minnesota Statutes 2020, section 216B.17, subdivision 1, is amended to read:


Subdivision 1.

Investigation.

On deleted text beginitsdeleted text endnew text begin the commission'snew text end own motion or upon a complaint
made against any public utilitydeleted text begin,deleted text end by the governing body of any political subdivision, by
another public utility, by the department, deleted text beginordeleted text end by any 50 consumers of deleted text beginthedeleted text endnew text begin anew text end particular utilitynew text begin,
or by a complainant under section 216B.172
new text end that any of the rates, tolls, tariffs, charges, or
schedules or any joint rate or any regulation, measurement, practice, act, or omission affecting
or relating to the production, transmission, delivery, or furnishing of natural gas or electricity
or any service in connection therewith is in any respect unreasonable, insufficient, or unjustly
discriminatory, or that any service is inadequate or cannot be obtained, the commission
shall proceed, with notice, to make such investigation as it may deem necessary. The
commission may dismiss any complaint without a hearing if in its opinion a hearing is not
in the public interest.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any complaint filed with the commission on or after that date.
new text end

Sec. 2.

new text begin [216B.172] CONSUMER DISPUTES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Appeal" means a request filed with the commission by a complainant to review and
make a final decision regarding the resolution of the complainant's complaint by the consumer
affairs office.
new text end

new text begin (c) "Complainant" means an individual residential customer of a public utility who has
filed a complaint with the consumer affairs office.
new text end

new text begin (d) "Complaint" means an allegation submitted to the consumer affairs office by a
complainant that a public utility's action or practice regarding billing or terms and conditions
of service:
new text end

new text begin (1) violates a statute, rule, tariff, service contract, or other provision of law;
new text end

new text begin (2) is unreasonable; or
new text end

new text begin (3) has harmed or, if not addressed, will harm a complainant.
new text end

new text begin Complaint does not include an objection to or a request to modify a natural gas or electricity
rate contained in a tariff that has been approved by the commission. A complaint under this
section is an informal complaint under Minnesota Rules, chapter 7829.
new text end

new text begin (e) "Consumer affairs office" means the staff unit of the commission that is organized
to receive and respond to complaints.
new text end

new text begin (f) "Informal proceeding" has the meaning given in Minnesota Rules, part 7829.0100,
subpart 8.
new text end

new text begin (g) "Public assistance" has the meaning given in section 550.37, subdivision 14.
new text end

new text begin (h) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Complaint resolution procedure. new text end

new text begin A complainant must first attempt to resolve
a dispute with a public utility by filing a complaint with the consumer affairs office. The
consumer affairs office must (1) notify the complainant of the resolution of the complaint,
(2) provide written notice of the complainant's right to appeal the resolution to the
commission, and (3) provide steps the complainant may take to appeal the resolution. Upon
request, the consumer affairs office must provide to the complainant a written notice
containing the substance of and basis for the resolution.
new text end

new text begin Subd. 3. new text end

new text begin Appeal; final commission decision. new text end

new text begin (a) If a complainant is not satisfied with
the resolution of a complaint by the consumer affairs office, the complainant may file an
appeal with the commission requesting the commission to make a final decision on the
complaint. The commission's response to an appeal filed under this subdivision must comply
with the notice requirements under section 216B.17, subdivisions 2 to 5.
new text end

new text begin (b) Upon the commission's receipt of an appeal filed under paragraph (a), the chair of
the commission or a subcommittee delegated under section 216A.03, subdivision 8, to
review the resolution of the complaint must decide whether the complaint should be:
new text end

new text begin (1) dismissed because there is no reasonable basis on which to proceed;
new text end

new text begin (2) resolved through an informal commission proceeding; or
new text end

new text begin (3) referred to the Office of Administrative Hearings for a contested case proceeding
under chapter 14.
new text end

new text begin A decision made under this paragraph must be provided in writing to the complainant and
the public utility.
new text end

new text begin (c) If the commission decides that the complaint should be resolved through an informal
commission proceeding or referred to the Office of Administrative Hearings for a contested
case proceeding, the executive secretary must issue a procedural schedule and any notices
or orders required to initiate a contested case proceeding under chapter 14.
new text end

new text begin (d) The commission's dismissal of an appeal request or a decision rendered after
conducting an informal proceeding is a final decision constituting an order or determination
of the commission.
new text end

new text begin Subd. 4. new text end

new text begin Judicial review. new text end

new text begin Notwithstanding section 216B.27, a complainant may seek
judicial review in district court of an adverse final decision under subdivision 3, paragraph
(b), clause (1) or (2). Judicial review of the commission's decision in a contested case referred
under subdivision 3, paragraph (b), clause (3), is governed by chapter 14.
new text end

new text begin Subd. 5. new text end

new text begin Right to service during pendency of dispute. new text end

new text begin A public utility must continue
or promptly restore service to a complainant during the pendency of an administrative or
judicial procedure pursued by a complainant under this section, provided that the
complainant:
new text end

new text begin (1) agrees to enter into a payment agreement under section 216B.098, subdivision 3;
new text end

new text begin (2) posts the full disputed payment in escrow;
new text end

new text begin (3) demonstrates receipt of public assistance or eligibility for legal aid services; or
new text end

new text begin (4) demonstrates the complainant's household income is at or below 50 percent of state
median income.
new text end

new text begin Subd. 6. new text end

new text begin Rulemaking authority. new text end

new text begin The commission may adopt rules to carry out the
purposes of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any complaint filed with the commission on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Transmission planning in advance of generation retirement. new text end

new text begin A utility must
identify in a resource plan each nonrenewable energy facility on the utility's system that
has a depreciation term, probable service life, or operating license term that ends within 15
years of the resource plan filing date. For each nonrenewable energy facility identified, the
utility must include in the resource plan an initial plan to: (1) replace the nonrenewable
energy facility; and (2) upgrade any transmission or other grid capabilities needed to support
the retirement of that nonrenewable energy facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to an integrated resource plan filed with the commission on or after that date.
new text end

Sec. 4.

new text begin [216B.491] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 216B.491 to 216B.499, the terms
defined in this subdivision have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Ancillary agreement. new text end

new text begin "Ancillary agreement" means any bond, insurance policy,
letter of credit, reserve account, surety bond, interest rate lock or swap arrangement, liquidity
or credit support arrangement, or other financial arrangement entered into in connection
with extraordinary event bonds that is designed to promote the credit quality and
marketability of extraordinary event bonds or to mitigate the risk of an increase in interest
rates.
new text end

new text begin Subd. 3. new text end

new text begin Assignee. new text end

new text begin "Assignee" means any person to which an interest in extraordinary
event property is sold, assigned, transferred, or conveyed, other than as security, and any
successor to or subsequent assignee of the person.
new text end

new text begin Subd. 4. new text end

new text begin Bondholder. new text end

new text begin "Bondholder" means any holder or owner of extraordinary event
bonds.
new text end

new text begin Subd. 5. new text end

new text begin Customer. new text end

new text begin "Customer" means a person who takes natural gas service from a
natural gas utility for consumption of natural gas in Minnesota.
new text end

new text begin Subd. 6. new text end

new text begin Extraordinary event. new text end

new text begin (a) "Extraordinary event" means an event arising from
unforeseen circumstances and of sufficient magnitude, as determined by the commission:
new text end

new text begin (1) to impose significant costs on customers; and
new text end

new text begin (2) for which the issuance of extraordinary event bonds in response to the event meets
the conditions of section 216B.492, subdivision 2, as determined by the commission.
new text end

new text begin (b) Extraordinary event includes but is not limited to a storm event or other natural
disaster, an act of God, war, terrorism, sabotage or vandalism, a cybersecurity attack, or a
temporary significant increase in the wholesale price of natural gas.
new text end

new text begin Subd. 7. new text end

new text begin Extraordinary event activity. new text end

new text begin "Extraordinary event activity" means an activity
undertaken by or on behalf of a utility to restore or maintain the utility's ability to provide
natural gas service following one or more extraordinary events, including but not limited
to activities related to mobilization, staging, construction, reconstruction, replacement, or
repair of natural gas transmission, distribution, storage, or general facilities.
new text end

new text begin Subd. 8. new text end

new text begin Extraordinary event bonds. new text end

new text begin "Extraordinary event bonds" means low-cost
corporate securities, including but not limited to senior secured bonds, debentures, notes,
certificates of participation, certificates of beneficial interest, certificates of ownership, or
other evidences of indebtedness or ownership that have a scheduled maturity of no longer
than 30 years and a final legal maturity date that is not later than 32 years from the issue
date, that are rated AA or Aa2 or better by a major independent credit rating agency at the
time of issuance, and that are issued by a utility or an assignee under a financing order.
new text end

new text begin Subd. 9. new text end

new text begin Extraordinary event charge. new text end

new text begin "Extraordinary event charge" means a
nonbypassable charge that:
new text end

new text begin (1) is imposed on all customer bills by a utility that is the subject of a financing order
or the utility's successors or assignees;
new text end

new text begin (2) is separate from the utility's base rates; and
new text end

new text begin (3) provides a source of revenue solely to repay, finance, or refinance extraordinary
event costs.
new text end

new text begin Subd. 10. new text end

new text begin Extraordinary event costs. new text end

new text begin "Extraordinary event costs":
new text end

new text begin (1) means all incremental costs of extraordinary event activities that are approved by
the commission in a financing order issued under section 216B.492 as being:
new text end

new text begin (i) necessary to enable the utility to restore or maintain natural gas service to customers
after the utility experiences an extraordinary event; and
new text end

new text begin (ii) prudent and reasonable;
new text end

new text begin (2) includes costs to repurchase equity or retire any indebtedness relating to extraordinary
event activities;
new text end

new text begin (3) shall be net of applicable insurance proceeds, tax benefits, and any other amounts
intended to reimburse the utility for extraordinary event activities, including government
grants or aid of any kind;
new text end

new text begin (4) do not include any monetary penalty, fine, or forfeiture assessed against a utility by
a government agency or court under a federal or state environmental statute, rule, or
regulation; and
new text end

new text begin (5) must be adjusted to reflect:
new text end

new text begin (i) the difference, as determined by the commission, between extraordinary event costs
that the utility expects to incur and actual, reasonable, and prudent costs incurred; or
new text end

new text begin (ii) a more fair or reasonable allocation of extraordinary event costs to customers over
time, as expressed in a commission order.
new text end

new text begin Subd. 11. new text end

new text begin Extraordinary event property. new text end

new text begin "Extraordinary event property" means:
new text end

new text begin (1) all rights and interests of a utility or the utility's successor or assignee under a
financing order for the right to impose, bill, collect, receive, and obtain periodic adjustments
to extraordinary event charges authorized under a financing order issued by the commission;
and
new text end

new text begin (2) all revenue, collections, claims, rights to payments, payments, money, or proceeds
arising from the rights and interests specified in clause (1), regardless of whether any are
commingled with other revenue, collections, rights to payment, payments, money, or
proceeds.
new text end

new text begin Subd. 12. new text end

new text begin Extraordinary event revenue. new text end

new text begin "Extraordinary event revenue" means revenue,
receipts, collections, payments, money, claims, or other proceeds arising from extraordinary
event property.
new text end

new text begin Subd. 13. new text end

new text begin Financing costs. new text end

new text begin "Financing costs" means:
new text end

new text begin (1) principal, interest, and redemption premiums that are payable on extraordinary event
bonds;
new text end

new text begin (2) payments required under an ancillary agreement and amounts required to fund or
replenish a reserve account or other accounts established under the terms of any indenture,
ancillary agreement, or other financing document pertaining to the bonds;
new text end

new text begin (3) other demonstrable costs related to issuing, supporting, repaying, refunding, and
servicing the bonds, including but not limited to servicing fees, accounting and auditing
fees, trustee fees, legal fees, consulting fees, financial adviser fees, administrative fees,
placement and underwriting fees, capitalized interest, rating agency fees, stock exchange
listing and compliance fees, security registration fees, filing fees, information technology
programming costs, and any other demonstrable costs necessary to otherwise ensure and
guarantee the timely payment of the bonds or other amounts or charges payable in connection
with the bonds;
new text end

new text begin (4) taxes and license fees imposed on the revenue generated from collecting an
extraordinary event charge;
new text end

new text begin (5) state and local taxes, including franchise, sales and use, and other taxes or similar
charges, including but not limited to regulatory assessment fees, whether paid, payable, or
accrued; and
new text end

new text begin (6) costs incurred by the commission to hire and compensate additional temporary staff
needed to perform the commission's responsibilities under this section and, in accordance
with section 216B.494, to engage specialized counsel and expert consultants experienced
in securitized utility ratepayer-backed bond financing similar to extraordinary event bonds.
new text end

new text begin Subd. 14. new text end

new text begin Financing order. new text end

new text begin "Financing order" means an order issued by the commission
under section 216B.492 that authorizes an applicant to:
new text end

new text begin (1) issue extraordinary event bonds in one or more series;
new text end

new text begin (2) impose, charge, and collect extraordinary event charges; and
new text end

new text begin (3) create extraordinary event property.
new text end

new text begin Subd. 15. new text end

new text begin Financing party. new text end

new text begin "Financing party" means a holder of extraordinary event
bonds and a trustee, a collateral agent, a party under an ancillary agreement, or any other
person acting for the benefit of extraordinary event bondholders.
new text end

new text begin Subd. 16. new text end

new text begin Natural gas facility. new text end

new text begin "Natural gas facility" means natural gas pipelines,
including distribution lines, underground storage areas, liquefied natural gas facilities,
propane storage tanks, and other facilities the commission determines are used and useful
to provide natural gas service to retail and transportation customers in Minnesota.
new text end

new text begin Subd. 17. new text end

new text begin Nonbypassable. new text end

new text begin "Nonbypassable" means that the payment of an extraordinary
event charge required to repay bonds and related costs may not be avoided by any retail
customer located within a utility service area.
new text end

new text begin Subd. 18. new text end

new text begin Pretax costs. new text end

new text begin "Pretax costs" means costs incurred by a utility and approved
by the commission, including but not limited to:
new text end

new text begin (1) unrecovered capitalized costs of replaced natural gas facilities damaged or destroyed
by a storm event;
new text end

new text begin (2) costs to decommission and restore the site of a natural gas facility damaged or
destroyed by an extraordinary event;
new text end

new text begin (3) other applicable capital and operating costs, accrued carrying charges, deferred
expenses, reductions for applicable insurance, and salvage proceeds; and
new text end

new text begin (4) costs to retire any existing indebtedness, fees, costs, and expenses to modify existing
debt agreements, or for waivers or consents related to existing debt agreements.
new text end

new text begin Subd. 19. new text end

new text begin Storm event. new text end

new text begin "Storm event" means a tornado, derecho, ice or snow storm,
flood, earthquake, or other significant weather or natural disaster that causes substantial
damage to a utility's infrastructure.
new text end

new text begin Subd. 20. new text end

new text begin Successor. new text end

new text begin "Successor" means a legal entity that succeeds by operation of law
to the rights and obligations of another legal entity as a result of bankruptcy, reorganization,
restructuring, other insolvency proceeding, merger, acquisition, consolidation, or sale or
transfer of assets.
new text end

new text begin Subd. 21. new text end

new text begin Utility. new text end

new text begin "Utility" means a public utility, as defined in section 216B.02,
subdivision 4, that provides natural gas service to Minnesota customers. Utility includes
the utility's successors or assignees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

new text begin [216B.492] FINANCING ORDER.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin (a) A utility may file an application with the commission
for the issuance of a financing order to enable the utility to recover extraordinary event costs
through the issuance of extraordinary event bonds under this section.
new text end

new text begin (b) The application must include the following information, as applicable:
new text end

new text begin (1) a description of each natural gas facility to be repaired or replaced;
new text end

new text begin (2) the undepreciated value remaining in the natural gas facility whose repair or
replacement is proposed to be financed through the issuance of bonds under sections
216B.491 to 216B.499, and the method used to calculate the amount;
new text end

new text begin (3) the estimated amount of costs imposed on customers resulting from an extraordinary
event that involves no physical damage to natural gas facilities;
new text end

new text begin (4) the estimated savings or estimated mitigation of rate impacts to utility customers if
the financing order is issued as requested in the application, calculated by comparing the
costs to customers that are expected to result from implementing the financing order and
the estimated costs associated with implementing traditional utility financing mechanisms
with respect to the same undepreciated balance, expressed in net present value terms;
new text end

new text begin (5) a description of (i) the nonbypassable extraordinary event charge utility customers
would be required to pay in order to fully recover financing costs, and (ii) the method and
assumptions used to calculate the amount;
new text end

new text begin (6) a proposed methodology to allocate the revenue requirement for the extraordinary
event charge among the utility's customer classes;
new text end

new text begin (7) a description of a proposed adjustment mechanism to be implemented when necessary
to correct any overcollection or undercollection of extraordinary event charges, in order to
complete payment of scheduled principal and interest on extraordinary event bonds and
other financing costs in a timely fashion;
new text end

new text begin (8) a memorandum with supporting exhibits, from a securities firm that is experienced
in the marketing of bonds and that is approved by the commissioner of management and
budget, indicating the proposed issuance satisfies the current published AA or Aa2 or higher
rating or equivalent rating criteria of at least one nationally recognized securities rating
organization for issuances similar to the proposed extraordinary event bonds;
new text end

new text begin (9) an estimate of the timing of the issuance and the term of the extraordinary event
bonds, or series of bonds, provided that the scheduled final maturity for each bond issuance
does not exceed 30 years;
new text end

new text begin (10) identification of plans to sell, assign, transfer, or convey, other than as a security,
interest in extraordinary event property, including identification of an assignee, and
demonstration that the assignee is a financing entity wholly owned, directly or indirectly,
by the utility;
new text end

new text begin (11) identification of ancillary agreements that may be necessary or appropriate;
new text end

new text begin (12) one or more alternative financing scenarios in addition to the preferred scenario
contained in the application;
new text end

new text begin (13) the extent of damage to the utility's infrastructure caused by an extraordinary event
and the estimated costs to repair or replace the damaged infrastructure;
new text end

new text begin (14) a schedule of the proposed repairs to and replacement of damaged infrastructure;
new text end

new text begin (15) a description of the steps taken to provide customers interim natural gas service
while the damaged infrastructure is being repaired or replaced; and
new text end

new text begin (16) a description of the impacts on the utility's current workforce resulting from
implementing an infrastructure repair or replacement plan following an extraordinary event.
new text end

new text begin Subd. 2. new text end

new text begin Findings. new text end

new text begin After providing notice and holding a public hearing on an application
filed under subdivision 1, the commission may issue a financing order if the commission
finds that:
new text end

new text begin (1) the extraordinary event costs described in the application are reasonable;
new text end

new text begin (2) the proposed issuance of extraordinary event bonds and the imposition and collection
of extraordinary event charges:
new text end

new text begin (i) are just and reasonable;
new text end

new text begin (ii) are consistent with the public interest;
new text end

new text begin (iii) constitute a prudent and reasonable mechanism to finance the extraordinary event
costs; and
new text end

new text begin (iv) provide tangible and quantifiable benefits to customers that exceed the benefits that
would have been achieved absent the issuance of extraordinary event bonds; and
new text end

new text begin (3) the proposed structuring, marketing, and pricing of the extraordinary event bonds:
new text end

new text begin (i) significantly lower overall costs to customers or significantly mitigate rate impacts
to customers relative to traditional methods of financing; and
new text end

new text begin (ii) achieve significant customer savings or significant mitigation of rate impacts to
customers, as determined by the commission in a financing order, consistent with market
conditions at the time of sale and the terms of the financing order.
new text end

new text begin Subd. 3. new text end

new text begin Contents. new text end

new text begin (a) A financing order issued under this section must:
new text end

new text begin (1) determine the maximum amount of extraordinary event costs that may be financed
from proceeds of extraordinary event bonds issued pursuant to the financing order;
new text end

new text begin (2) describe the proposed customer billing mechanism for extraordinary event charges
and include a finding that the mechanism is just and reasonable;
new text end

new text begin (3) describe the financing costs that may be recovered through extraordinary event
charges and the period over which the costs may be recovered, which must end no earlier
than the date of final legal maturity of the extraordinary event bonds;
new text end

new text begin (4) describe the extraordinary event property that is created and that may be used to pay,
and secure the payment of, the extraordinary event bonds and financing costs authorized in
the financing order;
new text end

new text begin (5) authorize the utility to finance extraordinary event costs through the issuance of one
or more series of extraordinary event bonds. A utility is not required to secure a separate
financing order for each issuance of extraordinary event bonds or for each scheduled phase
of the replacement of natural gas facilities approved in the financing order;
new text end

new text begin (6) include a formula-based mechanism that must be used to make expeditious periodic
adjustments to the extraordinary event charge authorized by the financing order that are
necessary to correct for any overcollection or undercollection, or to otherwise guarantee
the timely payment of extraordinary event bonds, financing costs, and other required amounts
and charges payable in connection with extraordinary event bonds;
new text end

new text begin (7) specify the degree of flexibility afforded to the utility in establishing the terms and
conditions of the extraordinary event bonds, including but not limited to repayment schedules,
expected interest rates, and other financing costs;
new text end

new text begin (8) specify that the extraordinary event bonds must be issued as soon as feasible following
issuance of the financing order;
new text end

new text begin (9) require the utility, at the same time as extraordinary event charges are initially
collected and independent of the schedule to close and decommission any natural gas facility
replaced as the result of an extraordinary event, to remove the natural gas facility from the
utility's rate base and commensurately reduce the utility's base rates;
new text end

new text begin (10) specify a future ratemaking process to reconcile any difference between the projected
pretax costs included in the amount financed by extraordinary event bonds and the final
actual pretax costs incurred by the utility to retire or replace the natural gas facility;
new text end

new text begin (11) specify information regarding bond issuance and repayments, financing costs,
energy transaction charges, extraordinary event property, and related matters that the natural
gas utility is required to provide to the commission on a schedule determined by the
commission;
new text end

new text begin (12) allow and may require the creation of a utility's extraordinary event property to be
conditioned on, and occur simultaneously with, the sale or other transfer of the extraordinary
event property to an assignee and the pledge of the extraordinary event property to secure
the extraordinary event bonds;
new text end

new text begin (13) ensure that the structuring, marketing, and pricing of extraordinary event bonds
result in reasonable securitization bond charges and significant customer savings or rate
impact mitigation, consistent with market conditions and the terms of the financing order;
and
new text end

new text begin (14) specify that a utility financing the replacement of one or more natural gas facilities
after the natural gas facilities subject to the finance order are removed from the utility's rate
base is prohibited from:
new text end

new text begin (i) operating the natural gas facilities; or
new text end

new text begin (ii) selling the natural gas facilities to another entity to be operated as natural gas facilities.
new text end

new text begin (b) A financing order issued under this section may:
new text end

new text begin (1) include conditions different from those requested in the application that the
commission determines are necessary to:
new text end

new text begin (i) promote the public interest; and
new text end

new text begin (ii) maximize the financial benefits or minimize the financial risks of the transaction to
customers and to directly impacted Minnesota workers and communities; and
new text end

new text begin (2) specify the selection of one or more underwriters of the extraordinary event bonds.
new text end

new text begin Subd. 4. new text end

new text begin Duration; irrevocability; subsequent order. new text end

new text begin (a) A financing order remains
in effect until the extraordinary event bonds issued under the financing order and all financing
costs related to the bonds have been paid in full.
new text end

new text begin (b) A financing order remains in effect and unabated notwithstanding the bankruptcy,
reorganization, or insolvency of the utility to which the financing order applies or any
affiliate, successor, or assignee of the utility to which the financing order applies.
new text end

new text begin (c) Subject to judicial review under section 216B.52, a financing order is irrevocable
and is not reviewable by a future commission. The commission may not reduce, impair,
postpone, or terminate extraordinary event charges approved in a financing order, or impair
extraordinary event property or the collection or recovery of extraordinary event revenue.
new text end

new text begin (d) Notwithstanding paragraph (c), the commission may, on the commission's own
motion or at the request of a utility or any other person, commence a proceeding and issue
a subsequent financing order that provides for refinancing, retiring, or refunding extraordinary
event bonds issued under the original financing order if:
new text end

new text begin (1) the commission makes all of the findings specified in subdivision 2 with respect to
the subsequent financing order; and
new text end

new text begin (2) the modification contained in the subsequent financing order does not in any way
impair the covenants and terms of the extraordinary event bonds being refinanced, retired,
or refunded.
new text end

new text begin Subd. 5. new text end

new text begin Effect on commission jurisdiction. new text end

new text begin (a) Except as provided in paragraph (b),
the commission, in exercising the powers and carrying out the duties under this section, is
prohibited from:
new text end

new text begin (1) considering extraordinary event bonds issued under this section to be debt of the
utility other than for income tax purposes, unless it is necessary to consider the extraordinary
event bonds to be debt in order to achieve consistency with prevailing utility debt rating
methodologies;
new text end

new text begin (2) considering the extraordinary event charges paid under the financing order to be
revenue of the utility;
new text end

new text begin (3) considering the extraordinary event or financing costs specified in the financing
order to be the regulated costs or assets of the utility; or
new text end

new text begin (4) determining that any prudent action taken by a utility that is consistent with the
financing order is unjust or unreasonable.
new text end

new text begin (b) Nothing in this subdivision:
new text end

new text begin (1) affects the authority of the commission to apply or modify any billing mechanism
designed to recover extraordinary event charges;
new text end

new text begin (2) prevents or precludes the commission from (i) investigating a utility's compliance
with the terms and conditions of a financing order, and (ii) requiring compliance with the
financing order; or
new text end

new text begin (3) prevents or precludes the commission from imposing regulatory sanctions against a
utility for failure to comply with the terms and conditions of a financing order or the
requirements of this section.
new text end

new text begin (c) The commission is prohibited from refusing to allow a utility to recover any costs
associated with the replacement of natural gas facilities solely because the utility has elected
to finance the natural gas facility replacement through a financing mechanism other than
extraordinary event bonds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

new text begin [216B.493] POSTORDER COMMISSION DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Financing cost review. new text end

new text begin Within 120 days after the date extraordinary
event bonds are issued, a utility subject to a financing order must file with the commission
the actual initial and ongoing financing costs, the final structure and pricing of the
extraordinary event bonds, and the actual extraordinary event charge. The commission must
review the prudence of the natural gas utility's actions to determine whether the actual
financing costs were the lowest that could reasonably be achieved given the terms of the
financing order and market conditions prevailing at the time of the bond's issuance.
new text end

new text begin Subd. 2. new text end

new text begin Enforcement. new text end

new text begin If the commission determines that a utility's actions under this
section are not prudent or are inconsistent with the financing order, the commission may
apply any remedies available, provided that any remedy applied may not directly or indirectly
impair the security for the extraordinary event bonds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

new text begin [216B.494] USE OF OUTSIDE EXPERTS.
new text end

new text begin (a) In carrying out the duties under this section, the commission may:
new text end

new text begin (1) contract with outside consultants and counsel experienced in securitized utility
customer-backed bond financing similar to extraordinary event bonds; and
new text end

new text begin (2) hire and compensate additional temporary staff as needed.
new text end

new text begin Expenses incurred by the commission under this paragraph must be treated as financing
costs and included in the extraordinary event charge. The costs incurred under clause (1)
are not an obligation of the state and are assigned solely to the transaction.
new text end

new text begin (b) A utility presented with a written request from the commission for reimbursement
of the commission's expenses incurred under paragraph (a), accompanied by a detailed
account of those expenses, must remit full payment of the expenses to the commission
within 30 days of receiving the request.
new text end

new text begin (c) If a utility's application for a financing order is denied or withdrawn for any reason
and extraordinary event bonds are not issued, the commission's costs to retain expert
consultants under this section must be paid by the applicant utility and are deemed to be
prudent deferred expenses eligible for recovery in the utility's future rates.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

new text begin [216B.495] EXTRAORDINARY EVENT CHARGE; BILLING TREATMENT.
new text end

new text begin (a) A utility that obtains a financing order and causes extraordinary event bonds to be
issued must:
new text end

new text begin (1) include on each customer's monthly natural gas bill:
new text end

new text begin (i) a statement that a portion of the charges represents extraordinary event charges
approved in a financing order;
new text end

new text begin (ii) the amount and rate of the extraordinary event charge as a separate line item titled
"extraordinary event charge"; and
new text end

new text begin (iii) if extraordinary event property has been transferred to an assignee, a statement that
the assignee is the owner of the rights to extraordinary event charges and that the utility or
other entity, if applicable, is acting as a collection agent or servicer for the assignee; and
new text end

new text begin (2) file annually with the commission:
new text end

new text begin (i) a calculation of the impact of financing the retirement or replacement of natural gas
facilities on customer rates, itemized by customer class; and
new text end

new text begin (ii) evidence demonstrating that extraordinary event revenues are applied solely to the
repayment of extraordinary event bonds and other financing costs.
new text end

new text begin (b) Extraordinary event charges are nonbypassable and must be paid by all existing and
future customers receiving service from the utility or the utility's successors or assignees
under commission-approved rate schedules or special contracts.
new text end

new text begin (c) A utility's failure to comply with this section does not invalidate, impair, or affect
any financing order, extraordinary event property, extraordinary event charge, or
extraordinary event bonds, but does subject the utility to penalties under applicable
commission rules.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

new text begin [216B.496] EXTRAORDINARY EVENT PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin (a) Extraordinary event property is an existing present property
right or interest in a property right, even though the imposition and collection of extraordinary
event charges depend on the utility collecting extraordinary event charges and on future
natural gas consumption. The property right or interest exists regardless of whether the
revenues or proceeds arising from the extraordinary event property have been billed, have
accrued, or have been collected.
new text end

new text begin (b) Extraordinary event property exists until all extraordinary event bonds issued under
a financing order are paid in full and all financing costs and other costs of the extraordinary
event bonds have been recovered in full.
new text end

new text begin (c) All or any portion of extraordinary event property described in a financing order
issued to a utility may be transferred, sold, conveyed, or assigned to a successor or assignee
that is wholly owned, directly or indirectly, by the utility and is created for the limited
purpose of acquiring, owning, or administering extraordinary event property or issuing
extraordinary event bonds authorized by the financing order. All or any portion of
extraordinary event property may be pledged to secure extraordinary event bonds issued
under a financing order, amounts payable to financing parties and to counterparties under
any ancillary agreements, and other financing costs. Each transfer, sale, conveyance,
assignment, or pledge by a utility or an affiliate of extraordinary event property is a
transaction in the ordinary course of business.
new text end

new text begin (d) If a utility defaults on any required payment of charges arising from extraordinary
event property described in a financing order, a court, upon petition by an interested party
and without limiting any other remedies available to the petitioner, must order the
sequestration and payment of the revenues arising from the extraordinary event property to
the financing parties.
new text end

new text begin (e) The interest of a transferee, purchaser, acquirer, assignee, or pledgee in extraordinary
event property specified in a financing order issued to a utility, and in the revenue and
collections arising from the property, is not subject to setoff, counterclaim, surcharge, or
defense by the utility or any other person, or in connection with the reorganization,
bankruptcy, or other insolvency of the utility or any other entity.
new text end

new text begin (f) A successor to a utility, whether resulting from a reorganization, bankruptcy, or other
insolvency proceeding; merger or acquisition; sale; other business combination; transfer by
operation of law; utility restructuring; or otherwise, must perform and satisfy all obligations
of, and has the same duties and rights under, a financing order as the utility to which the
financing order applies. A successor to a utility must perform the duties and exercise the
rights in the same manner and to the same extent as the utility, including collecting and
paying to any person entitled to receive revenues, collections, payments, or proceeds of
extraordinary event property.
new text end

new text begin Subd. 2. new text end

new text begin Security interests in extraordinary event property. new text end

new text begin (a) The creation,
perfection, and enforcement of any security interest in extraordinary event property to secure
the repayment of the principal and interest on extraordinary event bonds, amounts payable
under any ancillary agreement, and other financing costs are governed solely by this section.
new text end

new text begin (b) A security interest in extraordinary event property is created, valid, and binding
when:
new text end

new text begin (1) the financing order that describes the extraordinary event property is issued;
new text end

new text begin (2) a security agreement is executed and delivered; and
new text end

new text begin (3) value is received for the extraordinary event bonds.
new text end

new text begin (c) Once a security interest in extraordinary event property is created, the security interest
attaches without any physical delivery of collateral or any other act. The lien of the security
interest is valid, binding, and perfected against all parties having claims of any kind in tort,
contract, or otherwise against the person granting the security interest, regardless of whether
the parties have notice of the lien, upon the filing of a financing statement with the secretary
of state.
new text end

new text begin (d) The description or indication of extraordinary event property in a transfer or security
agreement and a financing statement is sufficient only if the description or indication refers
to this section and the financing order creating the extraordinary event property.
new text end

new text begin (e) A security interest in extraordinary event property is a continuously perfected security
interest and has priority over any other lien, created by operation of law or otherwise, which
may subsequently attach to the extraordinary event property unless the holder of the security
interest has agreed otherwise in writing.
new text end

new text begin (f) The priority of a security interest in extraordinary event property is not affected by
the commingling of extraordinary event property or extraordinary event revenue with other
money. An assignee, bondholder, or financing party has a perfected security interest in the
amount of all extraordinary event property or extraordinary event revenue that is pledged
to pay extraordinary event bonds, even if the extraordinary event property or extraordinary
event revenue is deposited in a cash or deposit account of the utility in which the
extraordinary event revenue is commingled with other money. Any other security interest
that applies to the other money does not apply to the extraordinary event revenue.
new text end

new text begin (g) Neither a subsequent commission order amending a financing order under section
216B.492, subdivision 4, nor application of an adjustment mechanism authorized by a
financing order under section 216B.492, subdivision 3, affects the validity, perfection, or
priority of a security interest in or transfer of extraordinary event property.
new text end

new text begin (h) A valid and enforceable security interest in extraordinary event property is perfected
only when the security interest has attached and when a financing order has been filed with
the secretary of state in accordance with procedures established by the secretary of state.
The financing order must name the pledgor of the extraordinary event property as debtor
and identify the property.
new text end

new text begin Subd. 3. new text end

new text begin Sales of extraordinary event property. new text end

new text begin (a) A sale, assignment, or transfer of
extraordinary event property is an absolute transfer and true sale of, and not a pledge of or
secured transaction relating to, the seller's right, title, and interest in, to, and under the
extraordinary event property if the documents governing the transaction expressly state that
the transaction is a sale or other absolute transfer. A transfer of an interest in extraordinary
event property may be created when:
new text end

new text begin (1) the financing order creating and describing the extraordinary event property is
effective;
new text end

new text begin (2) the documents evidencing the transfer of the extraordinary event property are executed
and delivered to the assignee; and
new text end

new text begin (3) value is received.
new text end

new text begin (b) A transfer of an interest in extraordinary event property must be filed with the
secretary of state against all third persons and perfected under sections 336.3-301 to
336.3-312, including any judicial lien or other lien creditors or any claims of the seller or
creditors of the seller, other than creditors holding a prior security interest, ownership
interest, or assignment in the extraordinary event property previously perfected under this
subdivision or subdivision 2.
new text end

new text begin (c) The characterization of a sale, assignment, or transfer as an absolute transfer and
true sale, and the corresponding characterization of the property interest of the assignee, is
not affected or impaired by:
new text end

new text begin (1) commingling of extraordinary event revenue with other money;
new text end

new text begin (2) the retention by the seller of:
new text end

new text begin (i) a partial or residual interest, including an equity interest, in the extraordinary event
property, whether direct or indirect, or whether subordinate or otherwise; or
new text end

new text begin (ii) the right to recover costs associated with taxes, franchise fees, or license fees imposed
on the collection of extraordinary event revenue;
new text end

new text begin (3) any recourse that the purchaser may have against the seller;
new text end

new text begin (4) any indemnification rights, obligations, or repurchase rights made or provided by
the seller;
new text end

new text begin (5) an obligation of the seller to collect extraordinary event revenues on behalf of an
assignee;
new text end

new text begin (6) the treatment of the sale, assignment, or transfer for tax, financial reporting, or other
purposes;
new text end

new text begin (7) any subsequent financing order amending a financing order under section 216B.492,
subdivision 4, paragraph (d); or
new text end

new text begin (8) any application of an adjustment mechanism under section 216B.492, subdivision
3, paragraph (a), clause (6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

new text begin [216B.497] EXTRAORDINARY EVENT BONDS.
new text end

new text begin (a) Banks, trust companies, savings and loan associations, insurance companies, executors,
administrators, guardians, trustees, and other fiduciaries may legally invest any money
within the individual's or entity's control in extraordinary event bonds.
new text end

new text begin (b) Extraordinary event bonds issued under a financing order are not debt of or a pledge
of the faith and credit or taxing power of the state, any agency of the state, or any political
subdivision. Holders of extraordinary event bonds may not have taxes levied by the state
or a political subdivision in order to pay the principal or interest on extraordinary event
bonds. The issuance of extraordinary event bonds does not directly, indirectly, or contingently
obligate the state or a political subdivision to levy any tax or make any appropriation to pay
principal or interest on the extraordinary event bonds.
new text end

new text begin (c) The state pledges to and agrees with holders of extraordinary event bonds, any
assignee, and any financing parties that the state will not:
new text end

new text begin (1) take or permit any action that impairs the value of extraordinary event property; or
new text end

new text begin (2) reduce, alter, or impair extraordinary event charges that are imposed, collected, and
remitted for the benefit of holders of extraordinary event bonds, any assignee, and any
financing parties until any principal, interest, and redemption premium payable on
extraordinary event bonds, all financing costs, and all amounts to be paid to an assignee or
financing party under an ancillary agreement are paid in full.
new text end

new text begin (d) A person who issues extraordinary event bonds may include the pledge specified in
paragraph (c) in the extraordinary event bonds, ancillary agreements, and documentation
related to the issuance and marketing of the extraordinary event bonds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

new text begin [216B.498] ASSIGNEE OF FINANCING PARTY NOT SUBJECT TO
COMMISSION REGULATION.
new text end

new text begin An assignee or financing party that is not already regulated by the commission does not
become subject to commission regulation solely as a result of engaging in any transaction
authorized by or described in sections 216B.491 to 216B.499.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

new text begin [216B.499] EFFECT ON OTHER LAWS.
new text end

new text begin (a) If any provision of sections 216B.491 to 216B.499 conflicts with any other law
regarding the attachment, assignment, perfection, effect of perfection, or priority of any
security interest in or transfer of extraordinary event property, sections 216B.491 to 216B.499
govern.
new text end

new text begin (b) Nothing in this section precludes a utility for which the commission has initially
issued a financing order from applying to the commission for:
new text end

new text begin (1) a subsequent financing order amending the financing order under section 216B.492,
subdivision 4, paragraph (d); or
new text end

new text begin (2) approval to issue extraordinary event bonds to refund all or a portion of an outstanding
series of extraordinary event bonds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2020, section 216B.50, subdivision 1, is amended to read:


Subdivision 1.

Commission approval required.

No public utility shall sell, acquire,
lease, or rent any plant as an operating unit or system in this state for a total consideration
in excess of deleted text begin$100,000deleted text endnew text begin $1,000,000new text end, or merge or consolidate with another public utility or
transmission company operating in this state, without first being authorized so to do by the
commission. Upon the filing of an application for the approval and consent of the
commission, the commission shall investigate, with or without public hearing. The
commission shall hold a public hearing, upon such notice as the commission may require.
If the commission finds that the proposed action is consistent with the public interest, it
shall give its consent and approval by order in writing. In reaching its determination, the
commission shall take into consideration the reasonable value of the property, plant, or
securities to be acquired or disposed of, or merged and consolidated.

This section does not apply to the purchase of property to replace or add to the plant of
the public utility by construction.

Sec. 14.

new text begin [216B.631] COMPENSATION FOR PARTICIPANTS IN PROCEEDINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Participant" means a person who:
new text end

new text begin (1) meets the requirements of subdivision 2;
new text end

new text begin (2) either (i) files comments or appears in a commission proceeding concerning one or
more public utilities, excluding public hearings held in contested cases and commission
proceedings conducted to receive general public comments; or (ii) is permitted by the
commission to intervene in a commission proceeding concerning one or more public utilities;
and
new text end

new text begin (3) files a request for compensation under this section.
new text end

new text begin (c) "Party" means a person who files comments or appears in a commission proceeding,
other than public hearings, concerning one or more public utilities.
new text end

new text begin (d) "Proceeding" means an undertaking of the commission in which the commission
seeks to resolve an issue affecting one or more public utilities and which results in a
commission order.
new text end

new text begin (e) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Participants; eligibility. new text end

new text begin The following participants are eligible to receive
compensation under this section:
new text end

new text begin (1) a nonprofit organization that is:
new text end

new text begin (i) exempt from taxation under section 501(c)(3) of the United States Internal Revenue
Code;
new text end

new text begin (ii) incorporated or organized in Minnesota;
new text end

new text begin (iii) governed under chapter 317A or section 322C.1101; and
new text end

new text begin (iv) determined by the commission under subdivision 3, paragraph (c), to suffer financial
hardship if not compensated for the nonprofit organization's participation in the applicable
proceeding;
new text end

new text begin (2) a Tribal government of a federally recognized Indian Tribe that is located in
Minnesota; or
new text end

new text begin (3) a Minnesota resident, except that an individual who owns a for-profit business that
has earned revenue from a Minnesota utility in the past two years is not eligible for
compensation.
new text end

new text begin Subd. 3. new text end

new text begin Compensation; conditions. new text end

new text begin (a) The commission may order a public utility to
compensate all or part of a participant's reasonable costs to participate in a proceeding before
the commission if the commission finds:
new text end

new text begin (1) that the participant has materially assisted the commission's deliberation; and
new text end

new text begin (2) if the participant is a nonprofit organization, that the participant would suffer financial
hardship if the nonprofit organization's participation in the proceeding was not compensated.
new text end

new text begin (b) When determining whether a participant has materially assisted the commission's
deliberation, the commission must find that:
new text end

new text begin (1) the participant made a unique contribution to the record and represented an interest
that would not otherwise have been adequately represented;
new text end

new text begin (2) the evidence or arguments presented or the positions taken by the participant were
an important factor in producing a fair decision;
new text end

new text begin (3) the participant's position promoted a public purpose or policy;
new text end

new text begin (4) the evidence presented, arguments made, issues raised, or positions taken by the
participant would not otherwise have been part of the record;
new text end

new text begin (5) the participant was active in any stakeholder process included in the proceeding; and
new text end

new text begin (6) the proceeding resulted in a commission order that adopted, in whole or in part, a
position advocated by the participant.
new text end

new text begin (c) When determining whether a nonprofit participant has demonstrated that a lack of
compensation would present financial hardship, the commission must find that the nonprofit
participant:
new text end

new text begin (1) incorporated or organized within three years of the date the applicable proceeding
began;
new text end

new text begin (2) has payroll expenses below $750,000; or
new text end

new text begin (3) has secured less than $100,000 in current year funding dedicated to participation in
commission proceedings, not including any participant compensation awarded under this
section.
new text end

new text begin (d) When reviewing a compensation request, the commission must consider whether
the costs presented in the participant's claim are reasonable.
new text end

new text begin Subd. 4. new text end

new text begin Compensation; amount. new text end

new text begin (a) Compensation must not exceed $50,000 for a
single participant in any proceeding, except that:
new text end

new text begin (1) if a proceeding extends longer than 12 months, a participant may request compensation
of up to $50,000 for costs incurred in each calendar year; and
new text end

new text begin (2) in a general rate case proceeding under section 216B.16 or an integrated resource
plan proceeding under section 216B.2422, the maximum single participant compensation
per proceeding under this section must not exceed $75,000.
new text end

new text begin (b) A single participant must not be granted more than $200,000 under this section in a
single calendar year.
new text end

new text begin (c) Compensation requests from joint participants must be presented as a single request.
new text end

new text begin (d) Notwithstanding paragraphs (a) and (b), the commission must not, in any calendar
year, require a single public utility to pay aggregate compensation under this section that
exceeds the following amounts:
new text end

new text begin (1) $100,000, for a public utility with up to $300,000,000 annual gross operating revenue
in Minnesota;
new text end

new text begin (2) $275,000, for a public utility with at least $300,000,000 but less than $900,000,000
annual gross operating revenue in Minnesota;
new text end

new text begin (3) $375,000, for a public utility with at least $900,000,000 but less than $2,000,000,000
annual gross operating revenue in Minnesota; and
new text end

new text begin (4) $1,250,000, for a public utility with $2,000,000,000 or more annual gross operating
revenue in Minnesota.
new text end

new text begin (e) When requests for compensation from any public utility approach the limits established
in paragraph (d), the commission may prioritize requests from participants that received
less than $150,000 in total compensation during the previous two years.
new text end

new text begin Subd. 5. new text end

new text begin Compensation; process. new text end

new text begin (a) A participant seeking compensation must file a
request and an affidavit of service with the commission, and serve a copy of the request on
each party to the proceeding. The request must be filed no more than 30 days after the later
of: (1) the expiration of the period within which a petition for rehearing, amendment,
vacation, reconsideration, or reargument must be filed; or (2) the date the commission issues
an order following rehearing, amendment, vacation, reconsideration, or reargument.
new text end

new text begin (b) A compensation request must include:
new text end

new text begin (1) the name and address of the participant or nonprofit organization the participant is
representing;
new text end

new text begin (2) evidence of the organization's nonprofit, tax-exempt status, if applicable;
new text end

new text begin (3) the name and docket number of the proceeding for which compensation is requested;
new text end

new text begin (4) for a nonprofit participant, evidence supporting the nonprofit's eligibility for
compensation under the financial hardship test under subdivision 3, paragraph (c);
new text end

new text begin (5) amounts of compensation awarded to the participant under this section during the
current year and any pending requests for compensation, itemized by docket;
new text end

new text begin (6) an itemization of the participant's costs, including (i) hours worked and associated
hourly rates for each individual contributing to the participation, not including overhead
costs; (ii) participant revenues dedicated for the proceeding; and (iii) the total compensation
request; and
new text end

new text begin (7) a narrative describing the unique contribution made to the proceeding by the
participant.
new text end

new text begin (c) A participant must comply with reasonable requests for information by the commission
and other parties or participants. A participant must reply to information requests within
ten calendar days of the date the request is received, unless doing so would place an extreme
hardship upon the replying participant. The replying participant must provide a copy of the
information to any other participant or interested person upon request. Disputes regarding
information requests may be resolved by the commission.
new text end

new text begin (d) A party objecting to a request for compensation must, within 30 days after service
of the request for compensation, file a response and an affidavit of service with the
commission. A copy of the response must be served on the requesting participant and all
other parties to the proceeding.
new text end

new text begin (e) The requesting participant may file a reply with the commission within 15 days after
the date a response is filed under paragraph (d). A copy of the reply and an affidavit of
service must be served on all other parties to the proceeding.
new text end

new text begin (f) If additional costs are incurred by a participant as a result of additional proceedings
following the commission's initial order, the participant may file an amended request within
30 days after the date the commission issues an amended order. Paragraphs (b) to (e) apply
to an amended request.
new text end

new text begin (g) The commission must issue a decision on participant compensation within 120 days
of the date a request for compensation is filed by a participant.
new text end

new text begin (h) The commission may extend the deadlines in paragraphs (d), (e), and (g) for up to
30 days upon the request of a participant or on the commission's own initiative.
new text end

new text begin (i) A participant may request reconsideration of the commission's compensation decision
within 30 days of the decision date.
new text end

new text begin Subd. 6. new text end

new text begin Compensation; orders. new text end

new text begin (a) If the commission issues an order requiring payment
of participant compensation, the public utility that was the subject of the proceeding must
pay the full compensation to the participant and file proof of payment with the commission
within 30 days after the later of: (1) the expiration of the period within which a petition for
reconsideration of the commission's compensation decision must be filed; or (2) the date
the commission issues an order following reconsideration of the commission's order on
participant compensation.
new text end

new text begin (b) If the commission issues an order requiring payment of participant compensation in
a proceeding involving multiple public utilities, the commission must apportion costs among
the public utilities in proportion to each public utility's annual revenue.
new text end

new text begin (c) The commission may issue orders necessary to allow a public utility to recover the
costs of participant compensation on a timely basis.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin By July 1, 2025, the commission must report to the chairs and ranking
minority members of the senate and house of representatives committees with primary
jurisdiction over energy policy on the operation of this section, including but not limited
to:
new text end

new text begin (1) the amount of compensation paid each year by each utility;
new text end

new text begin (2) each recipient of compensation, the commission dockets in which compensation was
awarded, and the compensation amounts; and
new text end

new text begin (3) the impact resulting from the commission's adoption of positions advocated by
compensated participants.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any proceeding in which the commission has not issued a final order as of that
date.
new text end

Sec. 15.

Minnesota Statutes 2020, section 216E.03, subdivision 11, is amended to read:


Subd. 11.

Department of Commerce to provide technical expertise and other
assistance.

new text begin(a) new text endThe commissioner of the Department of Commerce shall consult with other
state agencies and provide technical expertise and other assistance to the commission or to
individual members of the commission for activities and proceedings under this chapter
and chapters 216F and 216G. This assistance shall include the sharing of power plant siting
and routing staff and other resources as necessary. The commissioner shall periodically
report to the commission concerning the Department of Commerce's costs of providing
assistance. The report shall conform to the schedule and include the required contents
specified by the commission. The commission shall include the costs of the assistance in
assessments for activities and proceedings under those sections and reimburse the special
revenue fund for those costs. If either the commissioner or the commission deems it
necessary, the department and the commission shall enter into an interagency agreement
establishing terms and conditions for the provision of assistance and sharing of resources
under this subdivision.

new text begin (b) Notwithstanding the requirements of section 216B.33, the commissioner may take
any action required or requested by the commission related to the environmental review
requirements under chapter 216E or 216F immediately following a hearing and vote by the
commission, prior to issuing a written order, finding, authorization, or certificate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16.

Minnesota Statutes 2020, section 216E.04, subdivision 2, is amended to read:


Subd. 2.

Applicable projects.

The requirements and procedures in this section apply to
the following projects:

(1) large electric power generating plants with a capacity of less than 80 megawatts;

(2) large electric power generating plants that are fueled by natural gas;

(3) high-voltage transmission lines of between 100 and 200 kilovolts;

(4) high-voltage transmission lines in excess of 200 kilovolts and less than deleted text beginfivedeleted text endnew text begin 30new text end miles
in length in Minnesota;

(5) high-voltage transmission lines in excess of 200 kilovolts if at least 80 percent of
the distance of the line in Minnesota will be located along existing high-voltage transmission
line right-of-way;

(6) a high-voltage transmission line service extension to a single customer between 200
and 300 kilovolts and less than ten miles in length;

(7) a high-voltage transmission line rerouting to serve the demand of a single customer
when the rerouted line will be located at least 80 percent on property owned or controlled
by the customer or the owner of the transmission line; and

(8) large electric power generating plants that are powered by solar energy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to a high-voltage transmission line in excess of 200 kilovolts whose owner has filed
an application for a route permit with the Public Utilities Commission on or after that date.
new text end

Sec. 17. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, section 216B.16, subdivision 10, new text end new text begin is repealed.
new text end

ARTICLE 5

ENERGY STORAGE

Section 1.

Minnesota Statutes 2020, section 216B.1611, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Energy storage; capacity; treatment. new text end

new text begin This subdivision applies to a public
utility, as defined in section 216B.02, subdivision 4. For the purpose of interconnecting a
distributed generation facility that operates in conjunction with an energy storage system,
as defined in section 216B.2422, subdivision 1, paragraph (f), the system capacity must be
calculated as the alternating current capacity of the distributed generation facility alone,
provided that the energy storage system is connected to the distributed generating facility:
new text end

new text begin (1) by direct current; or
new text end

new text begin (2) by alternating current and is configured to limit the maximum export of electricity
beyond the common point of coupling with the utility to an amount no greater than the
capacity of the distributed generation facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [216B.1616] ENERGY STORAGE; PEAK SHAVING TARIFF.
new text end

new text begin No later than September 15, 2022, the commission must initiate a docket designed to
determine fair compensation paid to customer-owners of on-site energy storage systems,
as defined in section 216B.2422, subdivision 1, paragraph (f), for voluntarily discharging
stored energy and capacity during periods of peak electricity demand or at other times as
dispatched or requested by a public utility, as defined in section 216B.02, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2020, section 216B.2422, subdivision 7, is amended to read:


Subd. 7.

Energy storage systems assessment.

(a) Each public utility required to file a
resource plan under subdivision 2 must include in the filing an assessment of energy storage
systems that analyzes how the deployment of energy storage systems contributes to:

(1) meeting identified generation and capacity needs; and

(2) evaluating ancillary services.

(b) The assessment mustnew text begin:
new text end

new text begin (1)new text end employ appropriate modeling methods to enable the analysis required in paragraph
(a)deleted text begin.deleted text endnew text begin; and
new text end

new text begin (2) address how energy storage systems may contribute to achieving the goals under
subdivision 4, clause (1).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2020, section 216B.2425, subdivision 8, is amended to read:


Subd. 8.

Distribution study for distributed generation.

Each entity subject to this
section that is operating under a multiyear rate plan approved under section 216B.16,
subdivision 19, shall conduct a distribution study to identify interconnection points on its
distribution system for small-scale distributed generation resources and shall identify
necessary distribution upgradesnew text begin, including the deployment of energy storage systems, as
defined in section 216B.2422, subdivision 1, paragraph (f),
new text end to support the continued
development of distributed generation resources, and shall include the study in its report
required under subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

new text begin [216C.378] STORAGE REWARDS INCENTIVE PROGRAM.
new text end

new text begin (a) The electric utility subject to section 116C.779 must develop and operate a program
to provide a lump-sum grant to customers to reduce the cost of purchasing and installing
an on-site energy storage system, as defined in section 216B.2422, subdivision 1, paragraph
(f). The utility subject to this section must file a plan with the commissioner to operate the
program no later than October 1, 2022. The utility may not operate the program until the
program is approved by the commissioner. Any change to an operating program must be
approved by the commissioner.
new text end

new text begin (b) To be eligible to receive a grant under this section, an energy storage system must:
new text end

new text begin (1) have a capacity no greater than 50 kilowatt hours; and
new text end

new text begin (2) be located within the electric service area of the utility subject to this section.
new text end

new text begin (c) An owner of an energy storage system is eligible to receive a grant under this section
if:
new text end

new text begin (1) a solar energy generating system is operating at the same site as the proposed energy
storage system; or
new text end

new text begin (2) the owner has filed an application with the utility subject to this section to interconnect
a solar energy generating system at the same site as the proposed energy storage system.
new text end

new text begin (d) The commissioner must annually review and may adjust the amount of grants awarded
under this section, but must not increase the amount over that awarded in previous years
unless the commissioner demonstrates in writing that an upward adjustment is warranted
by market conditions.
new text end

new text begin (e) A customer who receives a grant under this section is eligible to receive financial
assistance under programs operated by the state or the utility for the solar energy generating
system operating in conjunction with the energy storage system.
new text end

new text begin (f) For the purposes of this section, "solar energy generating system" has the meaning
given in section 216E.01, subdivision 9a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 6

RENEWABLE ENERGY

Section 1.

Minnesota Statutes 2020, section 16B.32, subdivision 1, is amended to read:


Subdivision 1.

Alternative energy sources.

deleted text begin Plans prepared by the commissioner for a
new building or for a renovation of 50 percent or more of an existing building or its energy
systems must include designs which use active and passive solar energy systems, earth
sheltered construction, and other alternative energy sources where feasible.
deleted text end new text begin (a) If
incorporating cost-effective energy efficiency measures into the design, materials, and
operations of a building or major building renovation subject to section 16B.325 is not
sufficient to meet Sustainable Building 2030 energy performance standards required under
section 216B.241, subdivision 9, cost-effective renewable energy sources or solar thermal
energy systems, or both, must be deployed to achieve the standards.
new text end

new text begin (b) The commissioners of administration and commerce must review compliance of
building designs and plans subject to this section with Sustainable Building 2030 performance
standards developed under section 216B.241, subdivision 9, and must make recommendations
to the legislature as necessary to ensure that the performance standards are met.
new text end

new text begin (c) For the purposes of this section:
new text end

new text begin (1) "energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f);
new text end

new text begin (2) "renewable energy" has the meaning given in section 216B.2422, subdivision 1,
paragraph (c), and includes hydrogen generated from wind, solar, or hydroelectric; and
new text end

new text begin (3) "solar thermal energy systems" has the meaning given to "qualifying solar thermal
project" in section 216B.2411, subdivision 2, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2020, section 16B.32, subdivision 1a, is amended to read:


Subd. 1a.

Onsite energy generation from renewable sources.

deleted text begin A state agency that
prepares a predesign for a new building must consider meeting at least two percent of the
energy needs of the building from renewable sources located on the building site. For
purposes of this subdivision, "renewable sources" are limited to wind and the sun. The
predesign must include an explicit cost and price analysis of complying with the two-percent
requirement compared with the present and future costs of energy supplied by a public
utility from a location away from the building site and the present and future costs of
controlling carbon emissions. If the analysis concludes that the building should not meet at
least two percent of its energy needs from renewable sources located on the building site,
the analysis must provide explicit reasons why not. The building may not receive further
state appropriations for design or construction unless at least two percent of its energy needs
are designed to be met from renewable sources, unless the commissioner finds that the
reasons given by the agency for not meeting the two-percent requirement were supported
by evidence in the record.
deleted text end new text begin The total aggregate nameplate capacity of all renewable energy
sources utilized to meet Sustainable Building 2030 standards in a state-owned building or
facility, including any subscription to a community solar garden under section 216B.1641,
must not exceed 120 percent of the state-owned building's or facility's average annual electric
energy consumption.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2021 Supplement, section 116C.7792, is amended to read:


116C.7792 SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM.

(a) The utility subject to section 116C.779 shall operate a program to provide solar
energy production incentives for solar energy systems of no more than a total aggregate
nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar
energy system installed before June 1, 2018, is eligible to receive a production incentive
under this section for any additional solar energy systems constructed at the same customer
location, provided that the aggregate capacity of all systems at the customer location does
not exceed 40 kilowatts.

(b) The program is funded by money withheld from transfer to the renewable development
account under section 116C.779, subdivision 1, paragraphs (b) and (e). Program funds must
be placed in a separate account for the purpose of the solar energy production incentive
program operated by the utility and not for any other program or purpose.

(c) Funds allocated to the solar energy production incentive program in 2019 and 2020
remain available to the solar energy production incentive program.

(d) The following amounts are allocated to the solar energy production incentive program:

(1) $10,000,000 in 2021;

(2) $10,000,000 in 2022;

(3) deleted text begin$5,000,000deleted text endnew text begin $10,000,000new text end in 2023; deleted text beginand
deleted text end

(4) deleted text begin$5,000,000deleted text endnew text begin $10,000,000new text end in 2024new text begin; and
new text end

new text begin (5) $10,000,000 in 2025new text end.

(e) Funds allocated to the solar energy production incentive program that have not been
committed to a specific project at the end of a program year remain available to the solar
energy production incentive program.

(f) Any unspent amount remaining on January 1, deleted text begin2025deleted text endnew text begin 2027new text end, must be transferred to the
renewable development account.

(g) A solar energy system receiving a production incentive under this section must be
sized to less than 120 percent of the customer's on-site annual energy consumption when
combined with other distributed generation resources and subscriptions provided under
section 216B.1641 associated with the premise. The production incentive must be paid for
ten years commencing with the commissioning of the system.

(h) The utility must file a plan to operate the program with the commissioner of
commerce. The utility may not operate the program until it is approved by the commissioner.
A change to the program to include projects up to a nameplate capacity of 40 kilowatts or
less does not require the utility to file a plan with the commissioner. Any plan approved by
the commissioner of commerce must not provide an increased incentive scale over prior
years unless the commissioner demonstrates that changes in the market for solar energy
facilities require an increase.

new text begin (i) Contractors and subcontractors installing a solar energy generating system awarded
financial assistance under this section must comply with sections 177.41 to 177.43 with
respect to the installation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [116C.7793] SOLAR ENERGY; CONTINGENCY ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Agency" means the Pollution Control Agency.
new text end

new text begin (c) "Area C" means the site located west of Mississippi River Boulevard in St. Paul that
served as an industrial waste dump for the former Ford Twin Cities Assembly Plant.
new text end

new text begin (d) "Corrective action determination" means a decision by the agency regarding actions
to be taken to remediate contaminated soil and groundwater at Area C.
new text end

new text begin (e) "Owner" means the owner of a solar energy generating system planned to be deployed
at Area C.
new text end

new text begin (f) "Solar energy generating system" has the meaning given in section 216E.01,
subdivision 9a.
new text end

new text begin Subd. 2. new text end

new text begin Account established. new text end

new text begin The Area C contingency account is established as a
separate account in the special revenue fund in the state treasury. Transfers and appropriations
to the account, and any earnings or dividends accruing to assets in the account, must be
credited to the account. The commissioner must serve as fiscal agent and must manage the
account.
new text end

new text begin Subd. 3. new text end

new text begin Distribution of funds; conditions. new text end

new text begin Money from the account may be distributed
by the commissioner to the owner of a solar energy generating system planned to be deployed
on Area C under the following conditions:
new text end

new text begin (1) the agency issues a corrective action determination after the owner has begun to
design or construct the project, and the nature of the corrective action determination requires
the project to be redesigned or construction to be interrupted or altered; or
new text end

new text begin (2) the agency issues a corrective action determination whose work plan requires
temporary cessation or partial or complete removal of the solar energy generating system
after the solar energy generating system has become operational.
new text end

new text begin Subd. 4. new text end

new text begin Distribution of funds; process. new text end

new text begin (a) The owner may file a request for distribution
of funds from the commissioner if either of the conditions in subdivision 3 occur. The filing
must describe (1) the nature of the impact of the agency's work plan that results in economic
losses to the owner, and (2) a reasonable estimate of the amount of the economic losses.
new text end

new text begin (b) The owner must provide the commissioner with information the commissioner
determines to be necessary to assist in reviewing the filing required under this subdivision.
new text end

new text begin (c) The commissioner must review the owner's filing within 60 days of submission and
must approve a request the commissioner determines is reasonable.
new text end

new text begin Subd. 5. new text end

new text begin Expenditures. new text end

new text begin Money distributed by the commissioner to the owner under this
section may be used by the owner only to pay for:
new text end

new text begin (1) removal, storage, and transportation costs incurred for equipment removed, and any
costs to reinstall equipment;
new text end

new text begin (2) costs of redesign or new equipment made necessary by the activities under the
agency's work plan;
new text end

new text begin (3) lost revenues resulting from the inability of the solar energy generating system to
generate sufficient electricity to fulfill the terms of the power purchase agreement between
the owner and the purchaser of electricity generated by the solar energy generating system;
new text end

new text begin (4) other damages incurred under the power purchase agreement resulting from the
cessation of operations made necessary by the activities of the agency's work plan; and
new text end

new text begin (5) the cost of energy required to replace the energy that would have been generated by
the solar energy generating system and purchased under the power purchase agreement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2020, section 216B.1641, is amended to read:


216B.1641 COMMUNITY SOLAR GARDEN.

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Subscribed energy" means electricity generated by the community solar garden that
is attributable to a subscriber's subscription.
new text end

new text begin (c) "Subscriber" means a retail customer who owns one or more subscriptions of a
community solar garden interconnected with the retail customer's utility.
new text end

new text begin (d) "Subscription" means a contract between a subscriber and the owner of a solar garden.
new text end

new text begin Subd. 2. new text end

new text begin Solar garden; project requirements. new text end

(a) The public utility subject to section
116C.779 shall file by September 30, 2013, a plan with the commission to operate a
community solar garden program which shall begin operations within 90 days after
commission approval of the plan. Other public utilities may file an application at their
election. The community solar garden program must be designed to offset the energy use
of not less than five subscribers in each community solar garden facility of which no single
subscriber has more than a 40 percent interest. The owner of the community solar garden
may be a public utility or any other entity or organization that contracts to sell the output
from the community solar garden to the utility under section 216B.164. There shall be no
limitation on the number or cumulative generating capacity of community solar garden
facilities other than the limitations imposed under section 216B.164, subdivision 4c, or
other limitations provided in law or regulations.

(b) A solar garden is a facility that generates electricity by means of a ground-mounted
or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the
electricity generated in proportion to the size of their subscription. The solar garden must
have a nameplate capacity of no more than deleted text beginone megawattdeleted text endnew text begin three megawattsnew text end. Each subscription
shall be sized to represent at least 200 watts of the community solar garden's generating
capacity and to supply, when combined with other distributed generation resources serving
the premises, no more than 120 percent of the average annual consumption of electricity
by each subscriber at the premises to which the subscription is attributed.

(c) The solar generation facility must be located in the service territory of the public
utility filing the plan. Subscribers must be retail customers of the public utility new text beginand, unless
the facility has a minimum setback of 100 feet from the nearest residential property, must
be
new text endlocated in the same county or a county contiguous to where the facility is located.

(d) The public utility must purchase from the community solar garden all energy generated
by the solar garden. new text beginUnless specified elsewhere in this section, new text endthe purchase shall be at the
new text begin most recent three-year average of the new text endrate calculated under section 216B.164, subdivision
10
, or, until that rate for the public utility has been approved by the commission, the
applicable retail rate. A solar garden is eligible for any incentive programs offered under
section 116C.7792. A subscriber's portion of the purchase shall be provided by a credit on
the subscriber's bill.

new text begin Subd. 3. new text end

new text begin Solar garden plan; requirements; nonutility status. new text end

deleted text begin(e)deleted text endnew text begin (a)new text end The commission
may approve, disapprove, or modify a community solar garden deleted text beginprogramdeleted text endnew text begin plannew text end. Any plan
approved by the commission must:

(1) reasonably allow for the creation, financing, and accessibility of community solar
gardens;

(2) establish uniform standards, fees, and processes for the interconnection of community
solar garden facilities that allow the utility to recover reasonable interconnection costs for
each community solar garden;

(3) not apply different requirements to utility and nonutility community solar garden
facilities;

(4) be consistent with the public interest;

(5) identify the information that must be provided to potential subscribers to ensure fair
disclosure of future costs and benefits of subscriptions;

(6) include a program implementation schedule;

(7) identify all proposed rules, fees, and charges; deleted text beginand
deleted text end

(8) identify the means by which the program will be promoteddeleted text begin.deleted text endnew text begin;
new text end

new text begin (9) require that residential subscribers have a right to cancel a community solar garden
subscription within three business days, as provided under section 325G.07;
new text end

new text begin (10) require that the following information is provided by the solar garden owner in
writing to any prospective subscriber asked to make a prepayment to the solar garden owner
prior to the delivery of subscribed energy by the solar garden:
new text end

new text begin (i) an estimate of the annual generation of subscribed energy, based on the methodology
approved by the commission; and
new text end

new text begin (ii) an estimate of the length of time required to fully recover a subscriber's prepayments
made to the owner of the solar garden prior to the delivery of subscribed energy, calculated
using the formula developed by the commission under paragraph (d); and
new text end

new text begin (11) require new residential subscription agreements that require a prepayment to allow
the subscriber to, on commercially reasonable terms, (i) transfer the subscription to other
new or current subscribers, or (ii) cancel the subscription; and
new text end

new text begin (12) require an owner of a solar garden to submit a report that meets the requirements
of section 216C.51, subdivisions 3 and 4, each year the solar garden is in operation.
new text end

deleted text begin (f)deleted text endnew text begin (b)new text end Notwithstanding any other law, neither the manager of nor the subscribers to a
community solar garden facility shall be considered a utility solely as a result of their
participation in the community solar garden facility.

deleted text begin (g)deleted text endnew text begin (c)new text end Within 180 days of commission approval of a plan under this section, a utility
shall begin crediting subscriber accounts for each community solar garden facility in its
service territory, and shall file with the commissioner of commerce a description of its
crediting system.

deleted text begin (h) For the purposes of this section, the following terms have the meanings given:
deleted text end

deleted text begin (1) "subscriber" means a retail customer of a utility who owns one or more subscriptions
of a community solar garden facility interconnected with that utility; and
deleted text end

deleted text begin (2) "subscription" means a contract between a subscriber and the owner of a solar garden.
deleted text end

new text begin Subd. 4. new text end

new text begin Community access project; eligibility. new text end

new text begin (a) An owner of a community solar
garden may apply to the utility to be designated as a community access project at any time:
new text end

new text begin (1) before the owner makes an initial payment under an interconnection agreement
entered into with a public utility; or
new text end

new text begin (2) if the owner made an initial payment under an interconnection agreement between
January 1, 2021, and the effective date of this act, before commercial operation begins.
new text end

new text begin (b) The utility must designate a solar garden as a community access project if the owner
of a solar garden commits in writing to meet the following conditions:
new text end

new text begin (1) at least 50 percent of the solar garden's generating capacity is subscribed by residential
customers;
new text end

new text begin (2) the contract between the owner of the solar garden and the public utility that purchases
the garden's electricity, and any agreement between the utility or owner of the solar garden
and subscribers, states that the owner of the solar garden does not discriminate against or
screen subscribers based on income or credit score and that any customer of a utility with
a community solar garden plan approved by the commission under subdivision 3 is eligible
to become a subscriber;
new text end

new text begin (3) the solar garden is operated by an entity that maintains a physical address in Minnesota
and has designated a contact person in Minnesota who responds to subscriber inquiries; and
new text end

new text begin (4) the agreement between the owner of the solar garden and subscribers states that the
owner must adequately publicize and convene at least one meeting annually to provide an
opportunity for subscribers to pose questions to the manager or owner.
new text end

new text begin Subd. 5. new text end

new text begin Community access project; financial arrangements. new text end

new text begin (a) If a solar garden is
approved by the utility as a community access project:
new text end

new text begin (1) the public utility purchasing the electricity generated by the community access project
may charge the owner of the community access project no more than one cent per watt
alternating current based on the solar garden's generating capacity for any refundable deposit
the utility requires of a solar garden during the application process;
new text end

new text begin (2) notwithstanding subdivision 2, paragraph (d), the public utility must purchase all
energy generated by the community access project at the retail rate; and
new text end

new text begin (3) all renewable energy credits generated by the community access project belong to
subscribers unless the owner of the solar garden:
new text end

new text begin (i) contracts to:
new text end

new text begin (A) sell the credits to a third party; or
new text end

new text begin (B) sell or transfer the credits to the utility; and
new text end

new text begin (ii) discloses a sale or transfer to subscribers at the time the subscribers enter into a
subscription.
new text end

new text begin (b) If at any time after commercial operation begins a solar garden approved by the
utility as a community access project fails to meet the conditions under subdivision 4, the
solar garden (1) is no longer subject to the provisions of this subdivision and subdivision
6, and (2) must operate under the program rules established by the commission for a solar
garden that does not qualify as a community access project.
new text end

new text begin (c) An owner of a solar garden whose designation as a community access project is
revoked under this subdivision may reapply to the commission at any time to have the
designation as a community access project reinstated under subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Community access project; reporting. new text end

new text begin The owner of a community access
project must include the following information in an annual report to the community access
project subscribers and the utility:
new text end

new text begin (1) a description of the process by which subscribers can provide input to solar garden
policy and decision making;
new text end

new text begin (2) the amount of revenues received by the solar garden in the previous year that were
allocated to categories that include but are not limited to operating costs, debt service, profits
distributed to subscribers, and profits distributed to others; and
new text end

new text begin (3) an estimate of the proportion of low- and moderate-income subscribers, and a
description of one or more of the following methods used to make the estimate:
new text end

new text begin (i) evidence provided by a subscriber that the subscriber or a member of the subscriber's
household receives assistance from any of the following sources:
new text end

new text begin (A) the federal Low-Income Home Energy Assistance Program;
new text end

new text begin (B) federal Section 8 housing assistance;
new text end

new text begin (C) medical assistance;
new text end

new text begin (D) the federal Supplemental Nutrition Assistance Program; or
new text end

new text begin (E) the federal National School Lunch Program;
new text end

new text begin (ii) characterization of the census tract where the subscriber resides as low- or
moderate-income by the Federal Financial Institutions Examination Council; or
new text end

new text begin (iii) other methods approved by the commission.
new text end

new text begin Subd. 7. new text end

new text begin Commission order. new text end

new text begin Within 180 days of the effective date of this section, the
commission must issue an order addressing the requirements of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2020, section 216B.243, subdivision 8, is amended to read:


Subd. 8.

Exemptions.

(a) This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined after being advised by the attorney general
that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to serve
the demand of a single customer at a single location, unless the applicant opts to request
that the commission determine need under this section or section 216B.2425;

(3) the upgrade to a higher voltage of an existing transmission line that serves the demand
of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
request that the commission determine need under this section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less required to connect a new or
upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using natural
gas;

(6) the modification of an existing electric generating plant to increase efficiency, as
long as the capacity of the plant is not increased more than ten percent or more than 100
megawatts, whichever is greater;

(7) a new text beginlarge new text endwind energy conversion systemnew text begin, as defined in section 216F.01, subdivision
2,
new text end or new text begina new text endsolar deleted text beginelectric generation facilitydeleted text endnew text begin energy generating system, as defined in section
216E.01, subdivision 9a,
new text end if the system deleted text beginor facilitydeleted text end is owned and operated by an independent
power producer and the electric output of the system deleted text beginor facilitydeleted text endnew text begin:
new text end

new text begin (i)new text end is not sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator; or

new text begin (ii) is sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator, provided that the system
represents solar or wind capacity that the entity purchasing the system's electric output was
ordered by the commission to develop in the entity's most recent integrated resource plan
approved under section 216B.2422; or
new text end

(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating new text beginsystem that is a new text endlarge energy facility, as defined in section
216B.2421, subdivision 2, engaging in a repowering project that:

(i) will not result in the deleted text beginfacilitydeleted text endnew text begin systemnew text end exceeding the nameplate capacity under its most
recent interconnection agreement; or

(ii) will result in the deleted text beginfacilitydeleted text endnew text begin systemnew text end exceeding the nameplate capacity under its most
recent interconnection agreement, provided that the Midcontinent Independent System
Operator has provided a signed generator interconnection agreement that reflects the expected
net power increase.

(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating new text beginsystem
that is a
new text endlarge energy facility to increase its efficiency without increasing its nameplate
capacity;

(2) replacing turbines in a large wind energy conversion system without increasing the
nameplate capacity of the system; or

(3) increasing the nameplate capacity of a large wind energy conversion system.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to a large wind energy conversion system or a solar energy generating system whose
owner has filed an application for a certificate of need with the Public Utilities Commission
on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2021 Supplement, section 216C.375, subdivision 1, is amended
to read:


Subdivision 1.

Definitions.

(a) For the purposes of this section and section 216C.376,
the following terms have the meanings given them.

(b) "Developer" means an entity that installs a solar energy system on a school building
that has been awarded a grant under this section.

(c) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.

(d) "School" means: (1) a school that operates as part of an independent or special school
district;new text begin (2) a Tribal contract school;new text end or deleted text begin(2)deleted text endnew text begin (3)new text end a state college or university that is under the
jurisdiction of the Board of Trustees of the Minnesota State Colleges and Universities.

(e) "School district" means an independent or special school district.

(f) "Solar energy system" means photovoltaic or solar thermal devices.

(g) "Solar thermal" has the meaning given to "qualifying solar thermal project" in section
216B.2411, subdivision 2, paragraph (d).

(h) "State colleges and universities" has the meaning given in section 136F.01, subdivision
4.

Sec. 8.

new text begin [216C.377] SOLAR GRANT PROGRAM; PUBLIC BUILDINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Developer" means an entity that applies for a grant on behalf of a public building
under this section to install a solar energy generating system on the public building.
new text end

new text begin (c) "Local unit of government" means a county, statutory or home rule charter city, town,
or other local government jurisdiction, excluding a school district eligible to receive financial
assistance under section 216C.375 or 216C.376.
new text end

new text begin (d) "Municipal electric utility" means a utility that provides electric service to retail
customers in Minnesota and is governed by a city council or a local utilities commission.
new text end

new text begin (e) "Public building" means a building owned and operated by a local unit of government.
new text end

new text begin (f) "Solar energy generating system" has the meaning given in section 216E.01,
subdivision 9a.
new text end

new text begin (g) "Utility" means a public utility, as defined in section 216B.02, subdivision 4, that
provides electric service, or a municipal electric utility.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A solar on public buildings grant program is
established in the Department of Commerce. The purpose of the program is to provide grants
to stimulate the installation of solar energy generating systems on public buildings.
new text end

new text begin Subd. 3. new text end

new text begin Establishment of account. new text end

new text begin A solar on public buildings grant program account
is established in the special revenue fund. Money received from the general fund and the
renewable development account established in section 116C.779, subdivision 1, must be
transferred to the commissioner of commerce and credited to the account. Earnings, including
interest, dividends, and any other earnings arising from the assets of the account, must be
credited to the account. Earnings remaining in the account at the end of a fiscal year do not
cancel to the general fund or renewable development account but remain in the account
until expended. The commissioner must manage the account.
new text end

new text begin Subd. 4. new text end

new text begin Expenditures. new text end

new text begin Money in the account must be used only:
new text end

new text begin (1) for grant awards made under this section; and
new text end

new text begin (2) to pay the reasonable costs incurred by the department to administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Eligible applicants. new text end

new text begin Only a local unit of government or a municipal electric
utility may apply for or be awarded a grant under this section.
new text end

new text begin Subd. 6. new text end

new text begin Eligible system. new text end

new text begin (a) A grant may be awarded under this section only if the solar
energy system that is the subject of the grant:
new text end

new text begin (1) is installed on or adjacent to a public building that consumes the electricity generated
by the solar energy generating system, on property within the service territory of the utility
currently providing electric service to the public building; and
new text end

new text begin (2) has a capacity that does not exceed the lesser of 40 kilowatts or 120 percent of the
average annual electricity consumption of the public building, measured over the most
recent three calendar years, at which the solar energy generating system is installed.
new text end

new text begin (b) A public building that receives a rebate or other financial incentive under section
216B.241 for a solar energy system is eligible for a grant under this section for the same
solar energy generating system.
new text end

new text begin (c) Before filing an application for a grant under this section, a local unit of government
or public building that is served by a municipal electric utility must inform the municipal
electric utility of the local unit of government's or public building's intention to do so. A
municipal electric utility may, under an agreement with a local unit of government, own
and operate a solar energy generating system awarded a grant under this section on behalf
of and for the benefit of the local unit of government.
new text end

new text begin Subd. 7. new text end

new text begin Application process. new text end

new text begin (a) The commissioner must issue a request for proposals
to utilities, local units of government, and developers who may wish to apply for a grant
under this section on behalf of a public building.
new text end

new text begin (b) A utility or developer must submit an application to the commissioner on behalf of
a public building on a form prescribed by the commissioner. The form must include, at a
minimum, the following information:
new text end

new text begin (1) the capacity of the proposed solar energy system and the amount of electricity that
is expected to be generated;
new text end

new text begin (2) the current energy demand of the public building on which the solar energy generating
system is to be installed, information regarding any distributed energy resource that currently
provides electricity to the public building, and the size of the public building's subscription
to a community solar garden, if applicable;
new text end

new text begin (3) information sufficient to estimate the energy and monetary savings that are projected
to result from installation of the solar energy generating system over the system's useful
life;
new text end

new text begin (4) the total cost to purchase and install the solar energy system and the solar energy
system's lifecycle cost, including removal and disposal at the end of the system's life; and
new text end

new text begin (5) a copy of the proposed contract agreement between the local unit of government and
the public utility or developer that includes provisions addressing the responsibility to
maintain, remove, and dispose of the solar energy system.
new text end

new text begin (c) The commissioner must administer an open application process under this section
at least twice annually.
new text end

new text begin (d) The commissioner must develop administrative procedures governing the application
and grant award process under this section.
new text end

new text begin Subd. 8. new text end

new text begin Energy conservation review. new text end

new text begin At the commissioner's request, a local unit of
government awarded a grant under this section must provide the commissioner with
information regarding energy conservation measures implemented at the public building at
which the solar energy generating system is to be installed. The commissioner may make
recommendations to the local unit of government regarding cost-effective conservation
measures the local unit of government can implement and may provide technical assistance
and direct the local unit of government to available financial assistance programs.
new text end

new text begin Subd. 9. new text end

new text begin Technical assistance. new text end

new text begin The commissioner must provide technical assistance to
local units of government to develop and execute projects under this section.
new text end

new text begin Subd. 10. new text end

new text begin Grant payments. new text end

new text begin A grant awarded under this section must be used only to
pay the necessary and reasonable costs associated with purchasing and installing a solar
energy system.
new text end

new text begin Subd. 11. new text end

new text begin Installation. new text end

new text begin Contractors and subcontractors installing a solar energy generating
system funded by a grant awarded under this section must comply with sections 177.41 to
177.43 with respect to the installation.
new text end

new text begin Subd. 12. new text end

new text begin Reporting. new text end

new text begin Beginning January 15, 2023, and each year thereafter until January
15, 2026, the commissioner must report to the chairs and ranking minority members of the
legislative committees with jurisdiction over energy finance and policy regarding (1) grants
and amounts awarded to local units of government under this section during the previous
year, and (2) any remaining balance available in the account established under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2020, section 216E.01, subdivision 9a, is amended to read:


Subd. 9a.

Solar energy generating system.

"Solar energy generating system" means a
set of devices whose primary purpose is to produce electricity by means of any combination
of collecting, transferring, or converting solar-generated energynew text begin, and may include
transmission lines designed for and capable of operating at 100 kilovolts or less that
interconnect a solar energy generating system with a high-voltage transmission line
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2020, section 216E.03, subdivision 5, is amended to read:


Subd. 5.

Environmental review.

(a) The commissioner of the Department of Commerce
shall prepare for the commission an environmental impact statement on each proposed large
electricnew text begin powernew text end generating plant or high-voltage transmission line for which a complete
application has been submitted. The commissioner shall not consider whether or not the
project is needed. No other state environmental review documents shall be required. The
commissioner shall study and evaluate any site or route proposed by an applicant and any
other sitenew text begin, other than a site for a solar energy generating system,new text end or route the commission
deems necessary that was proposed in a manner consistent with rules concerning the form,
content, and timeliness of proposals for alternate sites or routes.

(b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is a
large electric power generating plant and is not proposed by a utility, the commissioner
must make a finding in the environmental impact statement whether the project is likely to
result in a net reduction of carbon dioxide emissions, considering both the utility providing
electric service to the proposed cogeneration facility and any reduction in carbon dioxide
emissions as a result of increased efficiency from the production of thermal energy on the
part of the customer operating or owning the proposed cogeneration facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

new text begin [500.216] LIMITS ON CERTAIN RESIDENTIAL SOLAR ENERGY
SYSTEMS PROHIBITED.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Private entity" means a homeowners association, community association, or other
association that is subject to a homeowners association document.
new text end

new text begin (c) "Homeowners association document" means a document containing the declaration,
articles of incorporation, bylaws, or rules and regulations of:
new text end

new text begin (1) a common interest community, as defined in section 515B.1-103, regardless of
whether the common interest community is subject to chapter 515B; and
new text end

new text begin (2) a residential community that is not a common interest community.
new text end

new text begin (d) "Solar energy system" has the meaning given in section 216C.06, subdivision 17.
new text end

new text begin Subd. 2. new text end

new text begin General rule. new text end

new text begin A private entity must not prohibit or refuse to permit installation,
maintenance, or use of a roof-mounted solar energy system by the owner of a single-family
dwelling, notwithstanding any covenant, restriction, or condition contained in a deed, security
instrument, homeowners association document, or any other instrument affecting the transfer,
sale of, or an interest in real property, except as provided in this section.
new text end

new text begin Subd. 3. new text end

new text begin Applicability. new text end

new text begin This section applies to single-family detached dwellings whose
owner is the sole owner of the entire building in which the dwelling is located and who is
solely responsible to maintain, repair, replace, and insure the entire building.
new text end

new text begin Subd. 4. new text end

new text begin Allowable conditions. new text end

new text begin (a) This section does not prohibit a private entity from
requiring that:
new text end

new text begin (1) a licensed contractor install a solar energy system;
new text end

new text begin (2) a roof-mounted solar energy system not extend above the peak of a pitched roof or
beyond the edge of the roof;
new text end

new text begin (3) the owner or installer of a solar energy system indemnify or reimburse the private
entity or the private entity's members for loss or damage caused by the installation,
maintenance, use, repair, or removal of a solar energy system;
new text end

new text begin (4) the owner and each successive owner of a solar energy system list the private entity
as a certificate holder on the homeowner's insurance policy; or
new text end

new text begin (5) the owner and each successive owner of a solar energy system be responsible for
removing the system if reasonably necessary to repair, maintain, or replace common elements
or limited common elements, as defined in section 515B.1-103.
new text end

new text begin (b) A private entity may impose other reasonable restrictions on the installation,
maintenance, or use of solar energy systems, provided that those restrictions do not decrease
the projected generation of energy by a solar energy system by more than 20 percent or
increase the solar energy system's cost by more than (1) 20 percent for a solar water heater,
or (2) $2,000 for a solar photovoltaic system, compared with the generation of energy and
the cost of labor and materials certified by the designer or installer of the solar energy system
as originally proposed without the restrictions. A private entity may obtain an alternative
bid and design from a solar energy system designer or installer for the purposes of this
paragraph.
new text end

new text begin (c) A solar energy system must meet applicable standards and requirements imposed by
the state and by governmental units, as defined in section 462.384.
new text end

new text begin (d) A solar energy system for heating water must be certified by the Solar Rating
Certification Corporation or an equivalent certification agency. A solar energy system for
producing electricity must meet all applicable safety and performance standards established
by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and
accredited testing laboratories, including but not limited to Underwriters Laboratories and,
where applicable, Public Utilities Commission rules regarding safety and reliability.
new text end

new text begin (e) If approval by a private entity is required to install or use a solar energy system, the
application for approval (1) must be processed and approved in the same manner as an
application for approval of an architectural modification to the property, and (2) must not
be willfully avoided or delayed.
new text end

new text begin (f) An application for approval must be made in writing and must contain certification
that the applicant meets any conditions required by a private entity under this subdivision.
An application must include a copy of the interconnection application submitted to the
applicable electric utility.
new text end

new text begin (g) A private entity shall approve or deny an application in writing. If an application is
not denied in writing within 60 days from the date the application is received, the application
is deemed approved unless the delay is the result of a reasonable request for additional
information. If a private entity receives an incomplete application that the private entity
determines prevents a decision to approve or disapprove the application, a new 60-day limit
begins only if the private entity sends written notice to the applicant, within 15 business
days of the date the incomplete application is received, informing the applicant what
additional information is required.
new text end

Sec. 12. new text beginPHOTOVOLTAIC DEMAND CREDIT RIDER.
new text end

new text begin By October 1, 2022, an investor-owned utility that has not already done so must submit
to the Public Utilities Commission a photovoltaic demand credit rider that reimburses all
demand-metered customers with solar photovoltaic systems greater than 40 kilowatts
alternating current for the demand charge overbilling that occurs. The utility may submit
to the commission multiple options to calculate reimbursement for demand charge overbilling.
At least one submission must use a capacity value stack methodology. The commission is
prohibited from approving a photovoltaic demand credit rider unless the rider allows
stand-alone photovoltaic systems and photovoltaic systems coupled with storage. The
commission must approve the photovoltaic demand credit rider by June 30, 2023.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, sections 16B.323, subdivisions 1 and 2; and 16B.326, new text end new text begin are
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 7

ELECTRIC VEHICLES

Section 1.

Minnesota Statutes 2021 Supplement, section 16C.135, subdivision 3, is amended
to read:


Subd. 3.

Vehicle purchases.

new text begin(a) new text endConsistent with section 16C.137, subdivision 1, when
purchasing a motor vehicle for the enterprise fleet or for use by an agency, the commissioner
or the agency shall purchase deleted text begina motor vehicle that is capable of being powered by cleaner
fuels, or a motor vehicle powered by electricity or by a combination of electricity and liquid
fuel, if the total life-cycle cost of ownership is less than or comparable to that of other
vehicles and if the vehicle is capable
deleted text endnew text begin the motor vehicle in conformity with the following
vehicle preference hierarchy, with clause (1) representing the top of the hierarchy:
new text end

new text begin (1) an electric vehicle;
new text end

new text begin (2) a hybrid electric vehicle;
new text end

new text begin (3) a vehicle capable of being powered by cleaner fuels; and
new text end

new text begin (4) a vehicle powered by gasoline or diesel fuel.
new text end

new text begin (b) The commissioner or agency may only reject a vehicle type that is higher on the
vehicle preference hierarchy if:
new text end

new text begin (1) the vehicle type is incapablenew text end of carrying out the purpose for which it is purchaseddeleted text begin.deleted text endnew text begin;
or
new text end

new text begin (2) the total life-cycle cost of ownership of a vehicle type that is higher on the vehicle
preference hierarchy is more than ten percent higher than the next lower vehicle type or the
vehicle preference hierarchy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2020, section 16C.137, subdivision 1, is amended to read:


Subdivision 1.

Goals and actions.

Each state department must, whenever legally,
technically, and economically feasible, subject to the specific needs of the department and
responsible management of agency finances:

(1) ensure that all new on-road vehicles deleted text beginpurchaseddeleted text end, excluding emergency and law
enforcement vehiclesdeleted text begin:deleted text endnew text begin, are purchased in conformity with the hierarchy of preferences
established in section 16C.135, subdivision 3;
new text end

deleted text begin (i) use "cleaner fuels" as that term is defined in section 16C.135, subdivision 1;
deleted text end

deleted text begin (ii) have fuel efficiency ratings that exceed 30 miles per gallon for city usage or 35 miles
per gallon for highway usage, including but not limited to hybrid electric cars and
hydrogen-powered vehicles; or
deleted text end

deleted text begin (iii) are powered solely by electricity;
deleted text end

(2) increase its use of renewable transportation fuels, including ethanol, biodiesel, and
hydrogen from agricultural products; and

(3) increase its use of web-based Internet applications and other electronic information
technologies to enhance the access to and delivery of government information and services
to the public, and reduce the reliance on the department's fleet for the delivery of such
information and services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2020, section 160.08, subdivision 7, is amended to read:


Subd. 7.

No commercial establishment within right-of-way; exceptions.

No
commercial establishment, including but not limited to automotive service stations, for
serving motor vehicle users shall be constructed or located within the right-of-way of, or
on publicly owned or publicly leased land acquired or used for or in connection with, a
controlled-access highwaydeleted text begin;deleted text endnew text begin,new text end except thatnew text begin:
new text end

(1) structures may be built within safety rest and travel information center areas;

(2) space within state-owned buildings in those areas may be leased for the purpose of
providing information to travelers through advertising as provided in section 160.276;

(3) advertising signs may be erected within the right-of-way of interstate or
controlled-access trunk highways by franchise agreements under section 160.80;

(4) vending machines may be placed in rest areas, travel information centers, or weigh
stations constructed or located within trunk highway rights-of-way; deleted text beginand
deleted text end

(5) acknowledgment signs may be erected under sections 160.272 and 160.2735deleted text begin.deleted text endnew text begin; and
new text end

new text begin (6) electric vehicle charging stations may be installed, operated, and maintained in safety
rest areas.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2020, section 168.27, is amended by adding a subdivision to
read:


new text begin Subd. 2a. new text end

new text begin Dealer training; electric vehicles. new text end

new text begin (a) A new motor vehicle dealer licensed
under this chapter that operates under an agreement or franchise from a manufacturer and
sells electric vehicles must maintain at least one employee who is certified as having
completed a training course offered by a Minnesota motor vehicle dealership association
that addresses at least the following elements:
new text end

new text begin (1) fundamentals of electric vehicles;
new text end

new text begin (2) electric vehicle charging options and costs;
new text end

new text begin (3) publicly available electric vehicle incentives;
new text end

new text begin (4) projected maintenance and fueling costs for electric vehicles;
new text end

new text begin (5) reduced tailpipe emissions, including greenhouse gas emissions, produced by electric
vehicles;
new text end

new text begin (6) the impacts of Minnesota's cold climate on electric vehicle operation; and
new text end

new text begin (7) best practices to sell electric vehicles.
new text end

new text begin (b) For the purposes of this section, "electric vehicle" has the meaning given in section
169.011, subdivision 26a, paragraphs (a) and (b), clause (3).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2023.
new text end

Sec. 5.

new text begin [216B.1615] ELECTRIC VEHICLE DEPLOYMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Battery exchange station" means a physical location deploying equipment that
enables a used electric vehicle battery to be removed and exchanged for a fresh electric
vehicle battery.
new text end

new text begin (c) "Electric vehicle" means any device or contrivance that transports persons or property
and is capable of being powered by an electric motor drawing current from rechargeable
storage batteries, fuel cells, or other portable sources of electricity. Electric vehicle includes
but is not limited to:
new text end

new text begin (1) an electric vehicle, as defined in section 169.011, subdivision 26a;
new text end

new text begin (2) an electric-assisted bicycle, as defined in section 169.011, subdivision 27;
new text end

new text begin (3) an off-road vehicle, as defined in section 84.797, subdivision 7;
new text end

new text begin (4) a motorboat, as defined in section 86B.005, subdivision 9; or
new text end

new text begin (5) an aircraft, as defined in section 360.013, subdivision 37.
new text end

new text begin (d) "Electric vehicle charging station" means a physical location deploying equipment
that:
new text end

new text begin (1) transfers electricity to an electric vehicle battery;
new text end

new text begin (2) dispenses hydrogen into an electric vehicle powered by a fuel cell;
new text end

new text begin (3) exchanges electric vehicle batteries; or
new text end

new text begin (4) provides other equipment used to charge or fuel electric vehicles.
new text end

new text begin (e) "Electric vehicle infrastructure" means electric vehicle charging stations and any
associated machinery, equipment, and infrastructure necessary for a public utility to supply
electricity or hydrogen to an electric vehicle charging station and to support electric vehicle
operation.
new text end

new text begin (f) "Fuel cell" means a cell that converts the chemical energy of hydrogen directly into
electricity through electrochemical reactions.
new text end

new text begin (g) "Government entity" means the state, a state agency, or a political subdivision, as
defined in section 13.02, subdivision 11.
new text end

new text begin (h) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Transportation electrification plan; contents. new text end

new text begin (a) By June 1, 2023, and at
least every three years thereafter, a public utility must file a transportation electrification
plan with the commission that is designed to (1) maximize the overall benefits of electric
vehicles and other electrified transportation while minimizing overall costs, and (2) promote
the:
new text end

new text begin (i) purchase of electric vehicles by the public utility's customers; and
new text end

new text begin (ii) deployment of electric vehicle infrastructure in the public utility's service territory.
new text end

new text begin (b) A transportation electrification plan may include but is not limited to the following
elements:
new text end

new text begin (1) programs to educate and increase the awareness and benefits of electric vehicles and
electric vehicle charging equipment among individuals, electric vehicle dealers, single-family
and multifamily housing developers and property management companies, building owners
and tenants, vehicle service stations, vehicle fleet owners and managers, and other potential
users of electric vehicles;
new text end

new text begin (2) utility investments and incentives the utility provides and offers to support
transportation electrification across all customer classes, including but not limited to
investments and incentives to facilitate:
new text end

new text begin (i) the deployment of electric vehicles for personal and commercial use; customer- and
utility-owned electric vehicle charging stations; electric vehicle infrastructure to support
light-duty, medium-duty, and heavy-duty vehicle electrification; and other electric utility
infrastructure;
new text end

new text begin (ii) widespread access to publicly available electric vehicle charging stations; and
new text end

new text begin (iii) the electrification of public transit and vehicle fleets owned or operated by a
government entity;
new text end

new text begin (3) research and demonstration projects to increase access to electricity as a transportation
fuel, minimize the system costs of electric transportation, and inform future transportation
electrification plans;
new text end

new text begin (4) rate structures or programs that encourage electric vehicle charging that optimizes
electric grid operation, including time-varying rates and charging optimization programs;
new text end

new text begin (5) programs to increase access to the benefits of electricity as a transportation fuel for
low- or moderate-income customers and communities and in neighborhoods most affected
by transportation-related air emissions; and
new text end

new text begin (6) proposals to expedite commission consideration of program adjustments requested
during the term of an approved transportation electrification plan.
new text end

new text begin (c) If funding is limited, a public utility must give priority under this section to
investments in communities whose governing body has enacted a resolution or goal
supporting electric vehicle adoption. A public utility must cooperate with local communities
to identify suitable locations, consistent with a community's local development plans, where
electric vehicle infrastructure may be strategically deployed.
new text end

new text begin Subd. 3. new text end

new text begin Transportation electrification plan; review and implementation. new text end

new text begin The
commission may approve, modify, or reject a transportation electrification plan. When
reviewing a transportation electrification plan, the commission must consider whether the
programs, investments, and expenditures as a whole are reasonably expected to:
new text end

new text begin (1) improve the operation of the electric grid;
new text end

new text begin (2) increase access to the use of electricity as a transportation fuel for all customers,
including those in low- or moderate-income communities, rural communities, and
communities most affected by emissions from the transportation sector;
new text end

new text begin (3) increase access to publicly available electric vehicle charging and destination charging
for all types of electric vehicles;
new text end

new text begin (4) support the electrification of medium-duty and heavy-duty vehicles and associated
charging infrastructure;
new text end

new text begin (5) reduce statewide greenhouse gas emissions, as defined in section 216H.01, and
emissions of other air pollutants that impair the environment and public health;
new text end

new text begin (6) stimulate private capital investment and the creation of skilled jobs;
new text end

new text begin (7) educate the public about the benefits of electric vehicles and related infrastructure;
and
new text end

new text begin (8) be transparent and incorporate reasonable public reporting of program activities,
consistent with existing technology and data capabilities, to inform program design and
commission policy with respect to electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Cost recovery. new text end

new text begin (a) Notwithstanding any other provision of this chapter, the
commission may approve, with respect to any prudent and reasonable investments made or
expenses incurred by a public utility to administer and implement a transportation
electrification plan approved under subdivision 3:
new text end

new text begin (1) a rider or other tariff mechanism to automatically adjust charges annually;
new text end

new text begin (2) performance-based incentives;
new text end

new text begin (3) placing the investment, including rebates, in the public utility's rate base and allowing
the public utility to earn a rate of return on the investment at:
new text end

new text begin (i) the public utility's average weighted cost of capital, including the rate of return on
equity, approved by the commission in the public utility's most recent general rate case; or
new text end

new text begin (ii) another rate determined by the commission; or
new text end

new text begin (4) any other recovery mechanism that the commission determines is fair, reasonable,
and supports the objectives of this section.
new text end

new text begin (b) Notwithstanding section 216B.16, subdivision 8, paragraph (a), clause (3), the
commission must approve recovery costs for expenses reasonably incurred by a public
utility to provide public advertisement as part of a transportation electrification plan approved
by the commission under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

new text begin [216B.1617] ELECTRIC SCHOOL BUS DEPLOYMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Battery exchange station" means a physical location where equipment is deployed
that enables a used electric vehicle battery to be exchanged for a fully charged battery.
new text end

new text begin (c) "Electric school bus" means an electric vehicle that is a school bus.
new text end

new text begin (d) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
new text end

new text begin (e) "Electric vehicle charging station" means a physical location deploying equipment
that provides electricity to charge a battery in an electric vehicle.
new text end

new text begin (f) "Electric vehicle infrastructure" means electric vehicle charging stations and battery
exchange stations, and includes any infrastructure necessary to make electricity from a
public utility's electric distribution system available to electric vehicle charging stations or
battery exchange stations.
new text end

new text begin (g) "Poor air quality" means: (1) ambient air levels that air monitoring data reveals
approach or exceed state or federal air quality standards or chronic health inhalation risk
benchmarks for total suspended particulates, particulate matter less than ten microns wide
(PM-10), particulate matter less than 2.5 microns wide (PM-2.5), sulfur dioxide, or nitrogen
dioxide; or (2) levels of asthma among children that significantly exceed the statewide
average.
new text end

new text begin (h) "School bus" has the meaning given in section 169.011, subdivision 71.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin (a) A public utility may file with the commission a program to
promote deployment of electric school buses.
new text end

new text begin (b) The program may include but is not limited to the following elements:
new text end

new text begin (1) a school district may purchase one or more electric school buses;
new text end

new text begin (2) the public utility may provide a rebate to the school district for the incremental cost
the school district incurs to purchase one or more electric school buses when compared with
fossil-fuel-powered school buses;
new text end

new text begin (3) at the request of a school district, the public utility may deploy on the school district's
real property electric vehicle infrastructure required to charge electric school buses;
new text end

new text begin (4) for any electric school bus purchased by a school district with a rebate provided by
the public utility, the school district must enter into a contract with the public utility under
which the school district:
new text end

new text begin (i) accepts any and all liability for operating the electric school bus;
new text end

new text begin (ii) accepts responsibility to maintain and repair the electric school bus; and
new text end

new text begin (iii) must allow the public utility an option to own the electric school bus's battery at the
time the battery is retired from the electric school bus; and
new text end

new text begin (5) in collaboration with a school district, prioritize the deployment of electric school
buses in areas of the school district that suffer from poor air quality.
new text end

new text begin Subd. 3. new text end

new text begin Program review and implementation. new text end

new text begin The commission must approve, modify,
or reject a proposal for a program filed under this section within 180 days of the date the
proposal is received. The commission's approval, modification, or rejection must be based
on the proposal's likelihood to, through prudent and reasonable utility investments:
new text end

new text begin (1) accelerate deployment of electric school buses in the public utility's service territory,
particularly in areas with poor air quality; and
new text end

new text begin (2) reduce emissions of greenhouse gases and particulates compared to
fossil-fuel-powered school buses.
new text end

new text begin Subd. 4. new text end

new text begin Cost recovery. new text end

new text begin (a) Any prudent and reasonable investment made by a public
utility on electric vehicle infrastructure installed on a school district's real property may be
placed in the public utility's rate base and earn a rate of return, as determined by the
commission.
new text end

new text begin (b) Notwithstanding any other provision of this chapter, the commission may approve
a tariff mechanism to automatically adjust annual charges for prudent and reasonable
investments made by a public utility to implement and administer a program approved by
the commission under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

new text begin [216C.402] GRANT PROGRAM; MANUFACTURERS' CERTIFICATION
OF AUTO DEALERS TO SELL ELECTRIC VEHICLES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program is established in the Department of
Commerce to award grants to dealers to offset the costs to obtain the necessary training and
equipment that is required by electric vehicle manufacturers in order to certify a dealer to
sell electric vehicles produced by the manufacturer.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin An application for a grant under this section must be made to the
commissioner on a form developed by the commissioner. The commissioner must develop
administrative procedures and processes to review applications and award grants under this
section.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicants. new text end

new text begin An applicant for a grant awarded under this section must
be a dealer of new motor vehicles licensed under chapter 168 operating under a franchise
from a manufacturer of electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section must be used only to reimburse:
new text end

new text begin (1) a dealer for the reasonable costs to obtain training and certification for the dealer's
employees from the electric vehicle manufacturer that awarded the franchise to the dealer;
new text end

new text begin (2) a dealer for the reasonable costs to purchase and install equipment to service and
repair electric vehicles, as required by the electric vehicle manufacturer that awarded the
franchise to the dealer; and
new text end

new text begin (3) the department for the reasonable costs incurred to administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Limitation. new text end

new text begin A grant awarded under this section to a single dealer must not
exceed $40,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2020, section 326B.103, is amended by adding a subdivision
to read:


new text begin Subd. 6a. new text end

new text begin Electric vehicle capable space. new text end

new text begin "Electric vehicle capable space" means a
designated automobile parking space that has electrical infrastructure, including but not
limited to raceways, cables, electrical capacity, and panelboard or other electrical distribution
space, necessary to install an electric vehicle charging station.
new text end

Sec. 9.

Minnesota Statutes 2020, section 326B.103, is amended by adding a subdivision
to read:


new text begin Subd. 6b. new text end

new text begin Electric vehicle charging station. new text end

new text begin "Electric vehicle charging station" means
a designated automobile parking space that has a dedicated connection for charging an
electric vehicle.
new text end

Sec. 10.

Minnesota Statutes 2020, section 326B.103, is amended by adding a subdivision
to read:


new text begin Subd. 6c. new text end

new text begin Electric vehicle ready space. new text end

new text begin "Electric vehicle ready space" means a designated
automobile parking space that has a branch circuit capable of supporting the installation of
an electric vehicle charging station.
new text end

Sec. 11.

Minnesota Statutes 2020, section 326B.103, is amended by adding a subdivision
to read:


new text begin Subd. 10a. new text end

new text begin Parking facilities. new text end

new text begin "Parking facilities" includes parking lots, garages, ramps,
or decks.
new text end

Sec. 12.

Minnesota Statutes 2020, section 326B.106, is amended by adding a subdivision
to read:


new text begin Subd. 16. new text end

new text begin Electric vehicle charging. new text end

new text begin The code shall require a minimum number of
electric vehicle-ready spaces, electric vehicle capable spaces, and electric vehicle charging
stations either within or adjacent to new commercial and multifamily structures that provide
on-site parking facilities. Residential structures with fewer than four dwelling units are
exempt from this subdivision.
new text end

Sec. 13. new text beginELECTRIC VEHICLE CHARGING STATIONS; INSTALLATIONS IN
STATE AND REGIONAL PARKS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "DC fast charger" means electric vehicle charging station equipment that transfers
direct current electricity directly to an electric vehicle's battery.
new text end

new text begin (c) "Electric vehicle" has the meaning given in Minnesota Statutes, section 169.011,
subdivision 26a.
new text end

new text begin (d) "Electric vehicle charging station" means infrastructure that connects an electric
vehicle to a Level 2 or DC fast charger to recharge the electric vehicle's batteries.
new text end

new text begin (e) "Level 2 charger" means electric vehicle charging station equipment that transfers
208- to 240-volt alternating current electricity to a device in an electric vehicle that converts
alternating current to direct current to recharge an electric vehicle battery.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin The commissioner of natural resources, in consultation with the
commissioners of the Pollution Control Agency, administration, and commerce, must
develop and fund the installation of a network of electric vehicle charging stations in
Minnesota state parks. The commissioners must issue a request for proposals to entities that
have experience installing, owning, operating, and maintaining electric vehicle charging
stations. The request for proposal must establish technical specifications that electric vehicle
charging stations are required to meet and must request responders to address:
new text end

new text begin (1) the optimal number and location of charging stations installed in a given state park;
new text end

new text begin (2) alternative arrangements that may be made to allocate responsibility for electric
vehicle charging station (i) ownership, operation, and maintenance, and (ii) billing
procedures; and
new text end

new text begin (3) any other issues deemed relevant by the commissioners.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14. new text beginELECTRIC VEHICLE CHARGING STATIONS; INSTALLATIONS AT
COUNTY GOVERNMENT CENTERS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "DC fast charger" means electric vehicle charging station equipment that transfers
direct current electricity directly to an electric vehicle's battery.
new text end

new text begin (c) "Electric vehicle" has the meaning given in Minnesota Statutes, section 169.011,
subdivision 26a.
new text end

new text begin (d) "Electric vehicle charging station" means infrastructure that connects an electric
vehicle to a Level 2 or DC fast charger to recharge the electric vehicle's batteries.
new text end

new text begin (e) "Level 2 charger" means electric vehicle charging station equipment that transfers
208- to 240-volt alternating current electricity to a device in an electric vehicle that converts
alternating current to direct current to recharge an electric vehicle battery.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin The commissioner of commerce must develop and fund the installation
of a network of electric vehicle charging stations in public parking facilities at county
government centers located in Minnesota. The commissioner must issue a request for
proposals to entities that have experience installing, owning, operating, and maintaining
electric vehicle charging stations. The request for proposal must establish technical
specifications that electric vehicle charging stations are required to meet and must request
responders to address:
new text end

new text begin (1) the optimal number and location of charging stations installed at each county
government center;
new text end

new text begin (2) alternative arrangements that may be made to allocate responsibility for electric
vehicle charging station (i) ownership, operation, and maintenance, and (ii) billing
procedures;
new text end

new text begin (3) software used to allow payment for electricity consumed at the charging stations;
and
new text end

new text begin (4) any other issues deemed relevant by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin County role. new text end

new text begin (a) A county has a right of first refusal with respect to ownership
of electric vehicle charging stations receiving funding under this section and installed at the
county government center.
new text end

new text begin (b) A county may enter into agreements to (1) wholly or partially own, operate, or
maintain an electric vehicle charging system receiving funding under this section and
installed at the county government center, or (2) receive reports on the electric vehicle
charging system operations.
new text end

new text begin (c) A county must authorize and approve the installation and location of an electric
vehicle charging station at a county government center under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 8

ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2020, section 116C.779, subdivision 1, is amended to read:


Subdivision 1.

Renewable development account.

(a) The renewable development
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account shall be credited to the account. Earnings, such
as interest, dividends, and any other earnings arising from assets of the account, shall be
credited to the account. Funds remaining in the account at the end of a fiscal year are not
canceled to the general fund but remain in the account until expended. The account shall
be administered by the commissioner of management and budget as provided under this
section.

(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the renewable development
account established in paragraph (a). Funds awarded to grantees in previous grant cycles
that have not yet been expended and unencumbered funds required to be paid in calendar
year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject
to transfer under this paragraph.

(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
plant must transfer to the renewable development account $500,000 each year for each dry
cask containing spent fuel that is located at the Prairie Island power plant for each year the
plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by
the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste
is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any
part of a year.

(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Monticello nuclear generating
plant must transfer to the renewable development account $350,000 each year for each dry
cask containing spent fuel that is located at the Monticello nuclear power plant for each
year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.

(e) Each year, the public utility shall withhold from the funds transferred to the renewable
development account under paragraphs (c) and (d) the amount necessary to pay its obligations
under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.

(f) If the commission approves a new or amended power purchase agreement, the
termination of a power purchase agreement, or the purchase and closure of a facility under
section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
the public utility subject to this section shall enter into a contract with the city in which the
poultry litter plant is located to provide grants to the city for the purposes of economic
development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
by the public utility from funds withheld from the transfer to the renewable development
account, as provided in paragraphs (b) and (e).

(g) If the commission approves a new or amended power purchase agreement, or the
termination of a power purchase agreement under section 216B.2424, subdivision 9, with
an entity owned or controlled, directly or indirectly, by two municipal utilities located north
of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
grant contract with such entity to provide $6,800,000 per year for five years, commencing
30 days after the commission approves the new or amended power purchase agreement, or
the termination of the power purchase agreement, and on each June 1 thereafter through
2021, to assist the transition required by the new, amended, or terminated power purchase
agreement. The grant shall be paid by the public utility from funds withheld from the transfer
to the renewable development account as provided in paragraphs (b) and (e).

(h) The collective amount paid under the grant contracts awarded under paragraphs (f)
and (g) is limited to the amount deposited into the renewable development account, and its
predecessor, the renewable development account, established under this section, that was
not required to be deposited into the account under Laws 1994, chapter 641, article 1, section
10.

(i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello
nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued
facility, the commission shall require the public utility to pay $7,500,000 for the discontinued
Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year
in which the commission finds, by the preponderance of the evidence, that the public utility
did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a
permanent or interim storage site out of the state. This determination shall be made at least
every two years.

(j) Funds in the account may be expended only for any of the following purposes:

(1) to stimulate research and development of renewable electric energy technologies;

(2) to encourage grid modernization, including, but not limited to, projects that implement
electricity storage, load control, and smart meter technology; and

(3) to stimulate other innovative energy projects that reduce demand and increase system
efficiency and flexibility.

Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
from the utility that owns a nuclear-powered electric generating plant in this state or the
Prairie Island Indian community or its members.

The utility that owns a nuclear generating plant is eligible to apply for grants under this
subdivision.

(k) For the purposes of paragraph (j), the following terms have the meanings given:

(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
(c), clauses (1), (2), (4), and (5); and

(2) "grid modernization" means:

(i) enhancing the reliability of the electrical grid;

(ii) improving the security of the electrical grid against cyberthreats and physical threats;
and

(iii) increasing energy conservation opportunities by facilitating communication between
the utility and its customers through the use of two-way meters, control technologies, energy
storage and microgrids, technologies to enable demand response, and other innovative
technologies.

(l) A renewable development account advisory group that includes, among others,
representatives of the public utility and its ratepayers, and includes at least one representative
of the Prairie Island Indian community appointed by that community's tribal council, shall
develop recommendations on account expenditures. The advisory group must design a
request for proposal and evaluate projects submitted in response to a request for proposals.
The advisory group must utilize an independent third-party expert to evaluate proposals
submitted in response to a request for proposal, including all proposals made by the public
utility. A request for proposal for research and development under paragraph (j), clause (1),
may be limited to or include a request to higher education institutions located in Minnesota
for multiple projects authorized under paragraph (j), clause (1). The request for multiple
projects may include a provision that exempts the projects from the third-party expert review
and instead provides for project evaluation and selection by a merit peer review grant system.
In the process of determining request for proposal scope and subject and in evaluating
responses to request for proposals, the advisory group must strongly consider, where
reasonable, potential benefit to Minnesota citizens and businesses and the utility's ratepayers.

(m) The advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted by
the advisory group to the legislature. The commission may approve proposed expenditures,
may disapprove proposed expenditures that it finds not to be in compliance with this
subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,
modify proposed expenditures. The commission shall, by order, submit its funding
recommendations to the legislature as provided under paragraph (n).

(n) The commission shall present its recommended appropriations from the account to
the senate and house of representatives committees with jurisdiction over energy policy and
finance annually by February 15. Expenditures from the account must be appropriated by
law. In enacting appropriations from the account, the legislature:

(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and

(2) may not appropriate money for a project the commission has not recommended
funding.

(o) A request for proposal for renewable energy generation projects must, when feasible
and reasonable, give preference to projects that are most cost-effective for a particular energy
source.

(p) The advisory group must annually, by February 15, report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy policy on
projects funded by the account for the prior year and all previous years. The report must,
to the extent possible and reasonable, itemize the actual and projected financial benefit to
the public utility's ratepayers of each project.

(q) By February 1, 2018, and each February 1 thereafter, the commissioner of
management and budget shall submit a written report regarding the availability of funds in
and obligations of the account to the chairs and ranking minority members of the senate
and house committees with jurisdiction over energy policy and finance, the public utility,
and the advisory group.

(r) A project receiving funds from the account must produce a written final report that
includes sufficient detail for technical readers and a clearly written summary for nontechnical
readers. The report must include an evaluation of the project's financial, environmental, and
other benefits to the state and the public utility's ratepayers.

(s) Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public website designated by the commissioner
of commerce.

(t) All final reports must acknowledge that the project was made possible in whole or
part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.

(u) Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.

new text begin (v) A construction project funded from an appropriation made under this section must
comply with sections 177.41 to 177.43.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to appropriations made on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2020, section 116J.55, subdivision 5, is amended to read:


Subd. 5.

Grant awards; limitations.

deleted text begin (a) The commissioner must award grants under
this section to eligible communities through a competitive grant process.
deleted text end

deleted text begin (b)deleted text endnew text begin (a)new text end A grant awarded to an eligible community under this section must not exceed
$500,000new text begin in any calendar year. The commissioner may accept grant applications on an
ongoing or rolling basis
new text end.

deleted text begin (c)deleted text endnew text begin (b)new text end Grants funded with revenues from the renewable development account established
in section 116C.779 must be awarded to an eligible community located within the retail
electric service territory of the public utility that is subject to section 116C.779 or to an
eligible community in which an electric generating plant owned by that public utility is
located.

Sec. 3.

Minnesota Statutes 2020, section 216B.16, subdivision 13, is amended to read:


Subd. 13.

Economic and community development.

The commission may allow a
public utility to recover from ratepayers thenew text begin reasonablenew text end expenses incurrednew text begin (1)new text end for economic
and community developmentnew text begin, and (2) to employ local workers, as defined in section
216B.2422, subdivision 1, to construct and maintain generation facilities that supply power
to the utility's customers
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2020, section 216B.1645, subdivision 2, is amended to read:


Subd. 2.

Cost recovery.

The expenses incurred by the utility over the duration of the
approved contract or useful life of the investment deleted text beginanddeleted text endnew text begin,new text end expenditures made pursuant to section
116C.779 deleted text beginshall bedeleted text endnew text begin, and the expenses incurred to employ local workers to construct and
maintain generation facilities that supply power to the utility's customers are
new text end recoverable
from the ratepayers of the utilitydeleted text begin,deleted text end new text begin(1) new text endto the extent deleted text begintheydeleted text endnew text begin the expenses or expendituresnew text end are not
offset by utility revenues attributable to the contracts, investments, or expendituresnew text begin, and (2)
if the expenses or expenditures are deemed reasonable by the commission
new text end. Upon petition
by a public utility, the commission shall approve or approve as modified a rate schedule
providing for the automatic adjustment of charges to recover the expenses or costs approved
by the commission under subdivision 1, which, in the case of transmission expenditures,
are limited to the portion of actual transmission costs that are directly allocable to the need
to transmit power from the renewable sources of energy. The commission may not approve
recovery of the costs for that portion of the power generated from sources governed by this
section that the utility sells into the wholesale market.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2020, section 216B.1691, subdivision 9, is amended to read:


Subd. 9.

Local benefits.

The commission shall take all reasonable actions within deleted text beginitsdeleted text endnew text begin the
commission's
new text end statutory authority to ensure this section is implemented to maximize benefits
to Minnesota citizensnew text begin and local workers, as defined in section 216B.2422, subdivision 1new text end,
balancing factors such as local ownership of or participation in energy productiondeleted text begin,deleted text endnew text begin; local
job impacts, as defined in section 216B.2422, subdivision 1;
new text end development and ownership
of eligible energy technology facilities by independent power producersdeleted text begin,deleted text endnew text begin;new text end Minnesota utility
ownership of eligible energy technology facilitiesdeleted text begin,deleted text endnew text begin;new text end the costs of energy generation to satisfy
the renewable standarddeleted text begin,deleted text endnew text begin;new text end and the reliability of electric service to Minnesotans.

Sec. 6.

Minnesota Statutes 2020, section 216B.2422, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more
of electric power and serving, either directly or indirectly, the needs of 10,000 retail
customers in Minnesota. Utility does not include federal power agencies.

(c) "Renewable energy" means electricity generated through use of any of the following
resources:

(1) wind;

(2) solar;

(3) geothermal;

(4) hydro;

(5) trees or other vegetation;

(6) landfill gas; or

(7) predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge.

(d) "Resource plan" means a set of resource options that a utility could use to meet the
service needs of its customers over a forecast period, including an explanation of the supply
and demand circumstances under which, and the extent to which, each resource option
would be used to meet those service needs. These resource options include using,
refurbishing, and constructing utility plant and equipment, buying power generated by other
entities, controlling customer loads, and implementing customer energy conservation.

(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating
resource of 30 megawatts or greater.

(f) "Energy storage system" means a commercially available technology that:

(1) uses mechanical, chemical, or thermal processes to:

(i) store energy, including energy generated from renewable resources and energy that
would otherwise be wasted, and deliver the stored energy for use at a later time; or

(ii) store thermal energy for direct use for heating or cooling at a later time in a manner
that reduces the demand for electricity at the later time;

(2) is composed of stationary equipment;

(3) if being used for electric grid benefits, is operationally visible and capable of being
controlled by the distribution or transmission entity managing it, to enable and optimize the
safe and reliable operation of the electric system; and

(4) achieves any of the following:

(i) reduces peak or electrical demand;

(ii) defers the need or substitutes for an investment in electric generation, transmission,
or distribution assets;

(iii) improves the reliable operation of the electrical transmission or distribution systems,
while ensuring transmission or distribution needs are not created; or

(iv) lowers customer costs by storing energy when the cost of generating or purchasing
it is low and delivering it to customers when the costs are high.

new text begin (g) "Local job impacts" means the impacts of a certificate of need, a power purchase
agreement, or commission approval of a new or refurbished energy facility on the availability
of construction employment opportunities to local workers.
new text end

new text begin (h) "Local workers" means workers who (1) are employed to construct and maintain
energy infrastructure; and (2) are Minnesota residents, are residents of the utility's service
territory, or permanently reside within 150 miles of a proposed new or refurbished energy
facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:


new text begin Subd. 4a. new text end

new text begin Preference for local job creation. new text end

new text begin As part of a resource plan filing, a utility
must report on associated local job impacts and the steps the utility and the utility's energy
suppliers and contractors are taking to maximize the availability of construction employment
opportunities for local workers. The commission must consider local job impacts and give
preference to proposals that maximize the creation of construction employment opportunities
for local workers, consistent with the public interest, when evaluating any utility proposal
that involves the selection or construction of facilities used to generate or deliver energy to
serve the utility's customers, including but not limited to an integrated resource plan, a
certificate of need, a power purchase agreement, or commission approval of a new or
refurbished electric generation facility. The commission must, to the maximum extent
possible, prioritize the hiring of workers from communities hosting retiring electric generation
facilities, including workers previously employed at the retiring facilities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to an integrated resource plan filed with the commission on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2020, section 216B.2422, subdivision 5, is amended to read:


Subd. 5.

Bidding; exemption from certificate of need proceeding.

(a) A utility may
select resources to meet its projected energy demand through a bidding process approved
or established by the commission. A utility shall use the environmental cost estimates
determined under subdivision 3 deleted text beginindeleted text endnew text begin and consider local job impacts whennew text end evaluating bids
submitted in a process established under this subdivision.

(b) Notwithstanding any other provision of this section, if an electric power generating
plant, as described in section 216B.2421, subdivision 2, clause (1), is selected in a bidding
process approved or established by the commission, a certificate of need proceeding under
section 216B.243 is not required.

(c) A certificate of need proceeding is also not required for an electric power generating
plant that has been selected in a bidding process approved or established by the commission,
or such other selection process approved by the commission, to satisfy, in whole or in part,
the wind power mandate of section 216B.2423 or the biomass mandate of section 216B.2424.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to an integrated resource plan filed with the commission on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2020, section 216C.435, subdivision 8, is amended to read:


Subd. 8.

Qualifying commercial real property.

"Qualifying commercial real property"
means a multifamily residential dwelling, deleted text beginordeleted text end a commercial or industrial building,new text begin or farmland,
as defined in section 216C.436, subdivision 1b,
new text end that the implementing entity has determined,
after review of an energy audit deleted text beginordeleted text endnew text begin,new text end renewable energy system feasibility study,new text begin or agronomic
assessment, as defined in section 216C.436, subdivision 1b,
new text end can deleted text beginbe benefited bydeleted text endnew text begin benefit
from the
new text end installation of cost-effective energy improvementsnew text begin or land and water improvements,
as defined in section 216C.436, subdivision 1b
new text end. Qualifying commercial real property includes
new construction.

Sec. 10.

Minnesota Statutes 2020, section 216C.436, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Agronomic assessment" means a study by an independent third party that assesses
the environmental impacts of proposed land and water improvements on farmland.
new text end

new text begin (c) "Farmland" means land classified as 2a, 2b, or 2c for property tax purposes under
section 273.13, subdivision 23.
new text end

new text begin (d) "Land and water improvement" means:
new text end

new text begin (1) an improvement to farmland that is permanent, results in improved agricultural
profitability or resiliency, and reduces the environmental impact of agricultural production;
or
new text end

new text begin (2) water conservation and quality measures, which include permanently affixed
equipment, appliances, or improvements that reduce a property's water consumption or that
enable water to be managed more efficiently.
new text end

new text begin Land and water improvement does not include drainage.
new text end

new text begin (e) "Resiliency" means the ability of farmland to maintain and enhance profitability,
soil health, and water quality.
new text end

Sec. 11.

Minnesota Statutes 2020, section 216C.436, subdivision 2, is amended to read:


Subd. 2.

Program requirements.

A commercial PACE loan program must:

(1) impose requirements and conditions on financing arrangements to ensure timely
repayment;

(2) require an energy audit deleted text beginordeleted text endnew text begin,new text end renewable energy system feasibility studynew text begin, or agronomic
or soil health assessment
new text end to be conducted on the qualifying commercial real property and
reviewed by the implementing entity prior to approval of the financing;

(3) require the inspection of all installations and a performance verification of at least
ten percent of the cost-effective energy improvementsnew text begin or land and water improvementsnew text end
financed by the program;

(4) not prohibit the financing of all cost-effective energy improvementsnew text begin or land and
water improvements
new text end not otherwise prohibited by this section;

(5) require that all cost-effective energy improvementsnew text begin or land and water improvementsnew text end
be made to a qualifying commercial real property prior to, or in conjunction with, an
applicant's repayment of financing for cost-effective energy improvementsnew text begin or land and water
improvements
new text end for that property;

(6) have cost-effective energy improvementsnew text begin or land and water improvementsnew text end financed
by the program performed by a licensed contractor as required by chapter 326B or other
law or ordinance;

(7) require disclosures to borrowers by the implementing entity of the risks involved in
borrowing, including the risk of foreclosure if a tax delinquency results from a default;

(8) provide financing only to those who demonstrate an ability to repay;

(9) not provide financing for a qualifying commercial real property in which the owner
is not current on mortgage or real property tax payments;

(10) require a petition to the implementing entity by all owners of the qualifying
commercial real property requesting collections of repayments as a special assessment under
section 429.101;

(11) provide that payments and assessments are not accelerated due to a default and that
a tax delinquency exists only for assessments not paid when due; deleted text beginand
deleted text end

(12) require that liability for special assessments related to the financing runs with the
qualifying commercial real propertydeleted text begin.deleted text endnew text begin; and
new text end

new text begin (13) prior to financing any improvements to or imposing any assessment upon qualifying
commercial real property, require notice to and written consent from the mortgage lender
of any mortgage encumbering or otherwise secured by the qualifying commercial real
property.
new text end

Sec. 12.

new text begin [216C.441] MINNESOTA INNOVATION FINANCE AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Advisory task force" means the Minnesota Innovation Finance Authority advisory
task force.
new text end

new text begin (c) "Authority" means the Minnesota Innovation Finance Authority.
new text end

new text begin (d) "Clean energy project" has the meaning given to "qualified project" in paragraph
(k), clauses (1) to (4).
new text end

new text begin (e) "Credit enhancement" means a pool of capital set aside to cover potential losses on
loans made by private lenders. Credit enhancement includes but is not limited to loan loss
reserves and loan guarantees.
new text end

new text begin (f) "Energy storage system" has the meaning given in section 216B.2422, subdivision
1, paragraph (f).
new text end

new text begin (g) "Fuel cell" means a cell that converts the chemical energy of hydrogen directly into
electricity through electrochemical reactions.
new text end

new text begin (h) "Greenhouse gas emissions" has the meaning given to "statewide greenhouse gas
emissions" in section 216H.01, subdivision 2.
new text end

new text begin (i) "Loan loss reserve" means a pool of capital set aside to reimburse a private lender if
a customer defaults on a loan, up to an agreed-upon percentage of loans originated by the
private lender.
new text end

new text begin (j) "Microgrid system" means an electrical grid that (1) serves a discrete geographical
area from distributed energy resources, and (2) can operate independently from the central
electric grid on a temporary basis.
new text end

new text begin (k) "Qualified project" means a project, technology, product, service, or measure
predominantly focused on clean energy, electrification, or energy or climate resilience as
follows:
new text end

new text begin (1) a project, technology, product, service, or measure that:
new text end

new text begin (i) results in the reduction of energy use while providing the same level of service or
output obtained before the project, technology, product, service, function, or measure was
applied;
new text end

new text begin (ii) shifts the use of electricity by retail customers in response to changes in the price of
electricity that vary over time or provides other incentives designed to shift electricity
demand from times when market prices are high or when system reliability is jeopardized;
or
new text end

new text begin (iii) significantly reduces greenhouse gas emissions relative to greenhouse gas emissions
produced before the project is implemented, excluding projects that generate power from
the combustion of fossil fuels;
new text end

new text begin (2) the development, construction, deployment, alteration, or repair of any:
new text end

new text begin (i) project, technology, product, service, or measure that generates electric power from
renewable energy; or
new text end

new text begin (ii) distributed generation system, energy storage system, smart grid technology, microgrid
system, fuel cell system, or combined heat and power system;
new text end

new text begin (3) the installation, construction, or use of end-use electric technology that replaces
existing fossil-fuel-based technology;
new text end

new text begin (4) a project, technology, product, service, or measure that supports the development
and deployment of electric vehicle charging stations and associated infrastructure;
new text end

new text begin (5) a project that reduces net greenhouse gas emissions or improves climate resiliency,
including but not limited to reforestation, afforestation, forestry management, and
regenerative agriculture;
new text end

new text begin (6) the construction or enhancement of infrastructure that is planned, designed, and
operated in a manner that anticipates, prepares for, and adapts to current and projected
changing climate conditions so that the infrastructure withstands, responds to, and more
readily recovers from disruptions caused by the current and projected changing climate
conditions; and
new text end

new text begin (7) the development, construction, deployment, alteration, or repair of any project,
technology, product, service, or measure that: (i) reduces water use while providing the
same or better level and quality of service or output that was obtained before implementing
the water-saving approach; or (ii) protects, restores, or preserves the quality of groundwater
and surface waters, including but not limited to actions that further the purposes of the Clean
Water Legacy Act, as provided in section 114D.10, subdivision 1.
new text end

new text begin (l) "Regenerative agriculture" means farming methods that reduce agriculture's
contribution to climate change by increasing the soil's ability to absorb atmospheric carbon
and convert the atmospheric carbon to soil carbon.
new text end

new text begin (m) "Renewable energy" has the meaning given in section 216B.2422 and includes fuel
cells generated from renewable energy.
new text end

new text begin (n) "Smart grid" means a digital technology that (1) allows for two-way communication
between a utility and the utility's customers, and (2) enables the utility to control power
flow and load in real time.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin (a) By September 1, 2022, the department must
establish and convene a Minnesota Innovation Finance Authority Advisory Task Force.
new text end

new text begin (b) By February 1, 2023, the Minnesota Innovation Finance Authority Advisory Task
Force convened by the department must establish the Minnesota innovation finance authority
as a nonprofit corporation, including the development of the nonprofit board under chapter
317A, and must seek designation as a charitable tax-exempt organization under section
501(c)(3) of the Internal Revenue Code of 1986, as amended. The advisory task force must
engage independent legal counsel with relevant experience in nonprofit corporate law to
help establish the nonprofit corporation. The nonprofit corporation must be governed by a
board of directors.
new text end

new text begin (c) The authority must establish bylaws, subject to the prior approval by the
commissioner.
new text end

new text begin (d) The initial board of directors must include at least a majority of the members of the
advisory task force established under subdivision 5.
new text end

new text begin (e) When incorporated, the authority must serve as an independent, nonprofit corporation
for public benefit whose purpose is to (1) promote investments in qualified clean energy,
efficiency, electrification, and other climate-mitigation-related projects, and (2) accelerate
the deployment of qualified projects by reducing the up-front and total cost of adoption.
The authority may achieve the purposes under this paragraph by leveraging public sources
and additional private sources of capital through the strategic deployment of public money
in the form of loans, credit enhancements, and other financing mechanisms, along with
strategies that stimulate demand.
new text end

new text begin (f) The authority must:
new text end

new text begin (1) identify underserved markets for qualified projects in Minnesota, develop programs
to overcome market impediments, and provide access to financing to serve the projects and
underserved markets;
new text end

new text begin (2) except in cases of projects within identified disadvantaged communities, as determined
by the commissioner, that may limit an investment, strategically prioritize money to leverage
private investment in qualified projects, achieving a high ratio of private to public money
invested through funding mechanisms that support, enhance, and complement private
investment;
new text end

new text begin (3) coordinate with existing government- and utility-based programs to ensure (i) the
most effective use of the authority's resources, (ii) that financing terms and conditions
offered are well-suited to qualified projects, (iii) coordination of communication with respect
to all financing options under this section and other state and utility programs, and (iv) the
authority's activities add to and complement the efforts of state and utility partners;
new text end

new text begin (4) serve as an informational resource for contractors interested in installing qualified
projects by forming partnerships with and educating contractors regarding the authority's
financing programs and coordinating multiple contractors on projects that install multiple
qualifying technologies;
new text end

new text begin (5) develop innovative and inclusive marketing strategies to stimulate project owner
interest in targeted underserved markets;
new text end

new text begin (6) serve as a financial resource to reduce the up-front and total costs to borrowers;
new text end

new text begin (7) prioritize projects that maximize greenhouse gas emission reductions or address
disparities in access to clean energy projects for underserved communities;
new text end

new text begin (8) ensure that workers employed by contractors and subcontractors performing
construction work on projects over $100,000, financed all or in part by the authority, are
paid wages not less than the prevailing wage on similar construction projects in the applicable
locality;
new text end

new text begin (9) develop rules, policies, and procedures specifying borrower eligibility and other
terms and conditions for financial support offered by the fund that must be met before
financing support is provided for any qualified clean energy project;
new text end

new text begin (10) develop and administer (i) policies to collect reasonable fees for authority services,
and (ii) risk management activities that are sufficient to support ongoing authority activities;
new text end

new text begin (11) subject to review by the department, develop and adopt a work plan to accomplish
all of the activities required of the authority and update the work plan on an annual basis;
new text end

new text begin (12) develop consumer protection standards governing the authority's investments to
ensure the authority and partners provide financial support in a responsible and transparent
manner that is in the financial interest of participating project owners and serves the defined
underserved markets and disadvantaged communities; or
new text end

new text begin (13) establish and maintain an online and mobile-access portal that provides access to
all authority programs and financial products, including rates, terms, and conditions of all
financing support programs, unless disclosure of the information constitutes a trade secret
or confidential commercial or financial information.
new text end

new text begin Subd. 3. new text end

new text begin Additional department responsibilities. new text end

new text begin In addition to the responsibilities
listed in this chapter, the department must:
new text end

new text begin (1) review consumer protection standards established by the authority; and
new text end

new text begin (2) provide standard state oversight to money appropriated under this section.
new text end

new text begin Subd. 4. new text end

new text begin Additional authorized activities. new text end

new text begin The authority is authorized to:
new text end

new text begin (1) engage in any activities of a Minnesota nonprofit corporation operating under chapter
317A;
new text end

new text begin (2) develop and employ financing methods to support qualified projects, including:
new text end

new text begin (i) credit enhancement mechanisms that reduce financial risk for private lenders by
providing assurance that a limited portion of a loan is assumed by the fund via a loan loss
reserve, loan guarantee, or other mechanism;
new text end

new text begin (ii) co-investment, where the fund invests directly in a clean energy project by providing
senior or subordinated debt, equity, or other mechanisms in conjunction with a private
financier's investment; and
new text end

new text begin (iii) serving as an aggregator of many small and geographically dispersed qualified
projects, where the authority may provide direct lending, investment, or other financial
support in order to diversify risk; and
new text end

new text begin (3) seek to qualify as a community development financial institution under United States
Code, title 12, section 4702, in which case the authority must be treated as a qualified
community development entity for the purposes of sections 45D and 1400(m) of the Internal
Revenue Code.
new text end

new text begin Subd. 5. new text end

new text begin Advisory task force; membership. new text end

new text begin (a) The Minnesota Innovation Finance
Authority Advisory Task Force is established and consists of 15 members as follows:
new text end

new text begin (1) the commissioner of commerce or the commissioner's designee, who serves as chair
of the advisory task force;
new text end

new text begin (2) the commissioner of employment and economic development or the commissioner's
designee;
new text end

new text begin (3) the commissioner of the Pollution Control Agency or the commissioner's designee;
new text end

new text begin (4) the commissioner of agriculture or the commissioner's designee;
new text end

new text begin (5) two additional members appointed by the governor;
new text end

new text begin (6) two additional members appointed by the speaker of the house;
new text end

new text begin (7) two additional members appointed by the president of the senate; and
new text end

new text begin (8) five members that have extensive life or work experience within economically
disadvantaged communities that the authority aims to serve, appointed by the governor and
the commissioners identified in clauses (1) to (4).
new text end

new text begin (b) The members appointed to the advisory task force under paragraph (a), clauses (6)
and (7), must have expertise in matters relating to energy conservation, clean energy,
economic development, banking, law, finance, or other matters relevant to the work of the
advisory task force.
new text end

new text begin (c) When appointing a member to the advisory task force, consideration must be given
to whether the advisory task force members collectively reflect the geographical and ethnic
diversity of Minnesota.
new text end

new text begin (d) Members of the advisory task force must abide by the conflict of interest provisions
in section 43A.38.
new text end

new text begin (e) In order to ensure participation, the commissioner may provide a nominal grant to
any advisory task force member that demonstrates financial need in order to participate.
new text end

new text begin Subd. 6. new text end

new text begin Report; audit. new text end

new text begin Beginning February 1, 2024, the authority must annually submit
a comprehensive report on the authority's activities for the previous fiscal year to the governor
and the chairs and ranking minority members of the legislative committees with primary
jurisdiction over energy policy. The report must contain, at a minimum, information on:
new text end

new text begin (1) the amount of authority capital invested, itemized by project type;
new text end

new text begin (2) the amount of private capital leveraged as a result of authority investments, itemized
by project type;
new text end

new text begin (3) the number of qualified projects supported, itemized by project type and location
within Minnesota;
new text end

new text begin (4) the estimated number of jobs created and tax revenue generated as a result of the
authority's activities;
new text end

new text begin (5) the number of clean energy projects financed in low- and moderate-income
households; and
new text end

new text begin (6) the authority's financial statements.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

new text begin [216C.46] ENERGY ALLEY START-UP FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Decarbonization technology" means a technology whose implementation results in
a reduction in statewide greenhouse gas emissions, as defined in section 216H.01, subdivision
2.
new text end

new text begin (c) "Emerging energy technology" means carbon-reducing energy technologies, systems,
or practices that are not yet at the commercialization stage.
new text end

new text begin (d) "Qualified equity business" means a minority-, women-, or veteran-owned business,
as the terms are defined in section 116J.8737.
new text end

new text begin (e) "Qualified greater Minnesota business" means a business that is certified by the
commissioner as a qualified small business and as a qualified greater Minnesota business
under section 116J.8737, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin An energy alley start-up fund account is established
in the Department of Commerce to provide loans and grants to qualified businesses to:
new text end

new text begin (1) promote the start-up, expansion, and attraction of emerging energy technologies and
businesses within Minnesota; and
new text end

new text begin (2) stimulate other innovative decarbonization technology projects that are capable of
being developed at a large scale.
new text end

new text begin Subd. 3. new text end

new text begin Account established. new text end

new text begin An energy alley start-up fund account is established in
the special revenue fund in the state treasury. Earnings, including interest, dividends, and
any other earnings arising from assets of the account, must be credited to the account.
Nonstate money obtained by the commissioner for the purposes of this section must be
credited to the account. The commissioner must manage the account. Money in the account
is appropriated to the commissioner for the purposes of this section and must be expended
only as provided in this section.
new text end

new text begin Subd. 4. new text end

new text begin Nonstate contributions; influence prohibited. new text end

new text begin (a) The commissioner must
ensure any nonstate money deposited in the account, and the sources of nonstate money,
have no influence over (1) awarding grants or loans, or (2) other activities conducted under
this section.
new text end

new text begin (b) The commissioner may retain no more than three percent annually of money credited
to the account for the department's administrative expenses.
new text end

new text begin Subd. 5. new text end

new text begin Allocation of funds. new text end

new text begin Money in the account must be allocated as follows:
new text end

new text begin (1) at least 50 percent to qualified greater Minnesota businesses or qualified equity
businesses;
new text end

new text begin (2) up to 65 percent to establish a low-interest loan fund and loan loss reserve;
new text end

new text begin (3) at least 35 percent to provide grants under this section.
new text end

new text begin Subd. 6. new text end

new text begin Loans. new text end

new text begin (a) Loan recipients must repay loan amounts awarded under this section
by the end of the loan term. Loan repayment amounts must be credited to the account. The
department may use up to ten percent of the low-interest land funds or 6.5 percent of total
money available, whichever is greater, under this section to: (1) establish a loan loss reserve
in order to leverage additional investments; (2) ensure funding for emerging, innovative
energy products; and (3) ensure accessibility by small businesses.
new text end

new text begin (b) No loans may be awarded under this section after June 30, 2025.
new text end

new text begin Subd. 7. new text end

new text begin Application process. new text end

new text begin (a) An application for a grant or loan under this section
must be made to the commissioner on a form developed by the commissioner.
new text end

new text begin (b) An application made under this section must be evaluated by the investment committee
established under subdivision 10.
new text end

new text begin (c) The commissioner must develop administrative procedures necessary to implement
this section.
new text end

new text begin Subd. 8. new text end

new text begin Grant awards; limitations. new text end

new text begin (a) The commissioner must award grants under
this section to eligible applicants through a competitive process.
new text end

new text begin (b) An eligible entity must be (1) located in Minnesota, or (2) able to demonstrate how
the grant directly and significantly benefits Minnesotans in a manner that meets criteria
established by the commissioner.
new text end

new text begin Subd. 9. new text end

new text begin Technical advisory committee; membership. new text end

new text begin (a) The commissioner must
establish and appoint members to the technical advisory committee to assist in the
development of criteria governing the award of grants under this section. The technical
advisory committee must have expertise in energy research and development, energy
conservation, clean energy technology development, economic development, or energy
project financing.
new text end

new text begin (b) The commissioner must appoint members to the technical advisory committee who
collectively reflect the geographic and ethnic diversity of Minnesota.
new text end

new text begin (c) Members of the technical advisory committee must comply with the conflicts of
interest provisions under section 43A.38.
new text end

new text begin Subd. 10. new text end

new text begin Investment committee; duties; membership. new text end

new text begin (a) The commissioner, in
consultation with the commissioner of employment and economic development, must
establish and appoint members to an investment committee to review and recommend
applications for grant and loan awards under this section.
new text end

new text begin (b) The investment committee must consist of seven members with expertise and
experience in investments and finance. The commissioner or the commissioner's designee,
and the commissioner of employment and economic development or the commissioner of
employment and economic development's designee, must serve as members of the investment
committee. The commissioner or the commissioner's designee serves as chair of the
investment committee.
new text end

new text begin (c) The commissioner must appoint members of the investment committee who
collectively reflect the geographic and ethnic diversity of Minnesota.
new text end

new text begin (d) Members of the investment committee must comply with the conflicts of interest
provisions under section 43A.38. Entities represented by members of the investment
committee are ineligible to receive grants under this section.
new text end

new text begin Subd. 11. new text end

new text begin Annual report; audit. new text end

new text begin On or before February 15, 2024, and by February 15
each year thereafter, the commissioner must report on the activities of the fund for the
preceding calendar year to the chairs and ranking minority members of the senate and house
of representatives committees with jurisdiction over energy finance and policy and economic
development finance. The report must include but is not limited to information specifying:
new text end

new text begin (1) the number of applications for funding received;
new text end

new text begin (2) the number of applications selected for grants and loans;
new text end

new text begin (3) the total amount of grants and loans issued in the previous year and to date, itemized
by project type; and
new text end

new text begin (4) a complete operating and financial statement covering the fund's operations for the
preceding year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

new text begin [216C.47] GRANTS FOR RENEWABLE INTEGRATION AND
DEMONSTRATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Grid modernization" means:
new text end

new text begin (1) enhancing electric grid service quality and reliability;
new text end

new text begin (2) improving the security of the electric grid and critical infrastructure against
cyberthreats and physical threats; and
new text end

new text begin (3) increasing energy conservation opportunities by facilitating communication between
the utility and the utility's customers through the use of two-way meters, control technologies,
energy storage and microgrids, technologies that enable demand flexibility, and other
innovative technologies.
new text end

new text begin (c) "Renewable energy" has the meaning given in section 216B.2422, subdivision 1,
paragraph (c).
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A grants for renewable integration and demonstration
program is established in the department. The purpose of the program is to provide grants
for projects to:
new text end

new text begin (1) stimulate research, deployment, and grid integration of renewable electric energy
technologies;
new text end

new text begin (2) encourage grid modernization, including but not limited to projects that implement
electricity storage, generation control, load control, and smart meter technology; and
new text end

new text begin (3) stimulate other innovative energy projects that (i) reduce demand, and (ii) increase
system efficiency and flexibility to benefit customers of the utility that owns nuclear
generating units in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Program account. new text end

new text begin A grants for renewable integration and demonstration
program account is established as a separate account in the special revenue fund in the state
treasury.
new text end

new text begin Subd. 4. new text end

new text begin Expenditures. new text end

new text begin Money in the account may be used only:
new text end

new text begin (1) for grant awards made under this section;
new text end

new text begin (2) for costs to procure technical evaluation services; and
new text end

new text begin (3) to pay reasonable costs incurred by the department to administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Eligibility. new text end

new text begin The commissioner must determine whether a project is eligible for
a grant under this section. When evaluating a project for approval, the commissioner must
consider:
new text end

new text begin (1) diversity, equity, and inclusion;
new text end

new text begin (2) greenhouse gas emissions;
new text end

new text begin (3) resiliency value;
new text end

new text begin (4) grid security;
new text end

new text begin (5) jobs and economic development; and
new text end

new text begin (6) other potential benefits to Minnesota citizens and businesses, ratepayers receiving
electric service from the utility that owns a nuclear-powered electric generating plant in
Minnesota, the Prairie Island Indian community, or Prairie Island Indian community
members.
new text end

new text begin Subd. 6. new text end

new text begin Reporting. new text end

new text begin (a) A project that receives money from a grant approved under this
section must produce a written final report that includes sufficient detail for technical readers
and a clearly written summary for nontechnical readers. The report must include an evaluation
of the project's financial, environmental, and other benefits to Minnesota and the public
utility's ratepayers.
new text end

new text begin (b) Final reports, any project status reports, and grants for renewable integration and
demonstration program balances must be posted on a public website designated by the
commissioner.
new text end

new text begin (c) All final reports must acknowledge that the project was made possible in whole or
part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.
new text end

new text begin (d) By February 15 each year, the commissioner must report to the chairs and ranking
minority members of the legislative committees with primary jurisdiction over energy
regarding: (1) grants issued under this section during the previous calendar year; and (2)
any remaining balance available under this section.
new text end

new text begin Subd. 7. new text end

new text begin Gifts; grants; donations. new text end

new text begin The program may accept gifts and grants on behalf
of the state that constitute donations to the state. Money received under this subdivision is
appropriated to the commissioner of commerce to support the program under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

Minnesota Statutes 2020, section 216E.03, subdivision 7, is amended to read:


Subd. 7.

Considerations in designating sites and routes.

(a) The commission's site
and route permit determinations must be guided by the state's goals to conserve resources,
minimize environmental impacts, minimize human settlement and other land use conflicts,
and ensure the state's electric energy security through efficient, cost-effective power supply
and electric transmission infrastructure.

(b) To facilitate the study, research, evaluation, and designation of sites and routes, the
commission shall be guided by, but not limited to, the following considerations:

(1) evaluation of research and investigations relating to the effects on land, water and
air resources of large electric power generating plants and high-voltage transmission lines
and the effects of water and air discharges and electric and magnetic fields resulting from
such facilities on public health and welfare, vegetation, animals, materials and aesthetic
values, including baseline studies, predictive modeling, and evaluation of new or improved
methods for minimizing adverse impacts of water and air discharges and other matters
pertaining to the effects of power plants on the water and air environment;

(2) environmental evaluation of sites and routes proposed for future development and
expansion and their relationship to the land, water, air and human resources of the state;

(3) evaluation of the effects of new electric power generation and transmission
technologies and systems related to power plants designed to minimize adverse environmental
effects;

(4) evaluation of the potential for beneficial uses of waste energy from proposed large
electric power generating plants;

(5) analysis of the direct and indirect economic impact of proposed sites and routes
including, but not limited to, productive agricultural land lost or impaired;

(6) evaluation of adverse direct and indirect environmental effects that cannot be avoided
should the proposed site and route be accepted;

(7) evaluation of alternatives to the applicant's proposed site or route proposed pursuant
to subdivisions 1 and 2;

(8) evaluation of potential routes that would use or parallel existing railroad and highway
rights-of-way;

(9) evaluation of governmental survey lines and other natural division lines of agricultural
land so as to minimize interference with agricultural operations;

(10) evaluation of the future needs for additional high-voltage transmission lines in the
same general area as any proposed route, and the advisability of ordering the construction
of structures capable of expansion in transmission capacity through multiple circuiting or
design modifications;

(11) evaluation of irreversible and irretrievable commitments of resources should the
proposed site or route be approved; deleted text beginand
deleted text end

(12) when appropriate, consideration of problems raised by other state and federal
agencies and local entitiesdeleted text begin.deleted text endnew text begin;
new text end

new text begin (13) evaluation of the benefits of the proposed facility with respect to protecting and
enhancing environmental quality, and to the reliability of state and regional energy supplies;
new text end

new text begin (14) evaluation of the proposed facility's impact on socioeconomic factors; and
new text end

new text begin (15) evaluation of the proposed facility's employment and economic impacts in the
vicinity of the facility site and throughout the state, including the quantity and quality of
construction and permanent jobs and the jobs' compensation levels. The commission must
consider a facility's local employment and economic impacts, and may reject or place
conditions on a site or route permit based on the factors under this clause.
new text end

(c) If the commission's rules are substantially similar to existing regulations of a federal
agency to which the utility in the state is subject, the federal regulations must be applied by
the commission.

(d) No site or route shall be designated which violates state agency rules.

(e) The commission must make specific findings that it has considered locating a route
for a high-voltage transmission line on an existing high-voltage transmission route and the
use of parallel existing highway right-of-way and, to the extent those are not used for the
route, the commission must state the reasons.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16.

Minnesota Statutes 2020, section 216E.03, subdivision 10, is amended to read:


Subd. 10.

Final decision.

(a) No site permit shall be issued in violation of the site
selection standards and criteria established in this section and in rules adopted by the
commission. When the commission designates a site, it shall issue a site permit to the
applicant with any appropriate conditions. The commission shall publish a notice of its
decision in the State Register within 30 days of issuance of the site permit.

(b) No route permit shall be issued in violation of the route selection standards and
criteria established in this section and in rules adopted by the commission. When the
commission designates a route, it shall issue a permit for the construction of a high-voltage
transmission line specifying the design, routing, right-of-way preparation, and facility
construction it deems necessary, and with any other appropriate conditions. The commission
may order the construction of high-voltage transmission line facilities that are capable of
expansion in transmission capacity through multiple circuiting or design modifications. The
commission shall publish a notice of its decision in the State Register within 30 days of
issuance of the permit.

new text begin (c) No site permit may be issued under this chapter for a large electric power generating
plant, including the modification of a site permit for a repowering project, as defined in
section 216B.243, subdivision 8, paragraph (b), unless the applicant certifies to the
commission in writing that all employees who perform construction work on the large
electric power generating plant, including the employees of contractors and subcontractors,
are paid no less than the prevailing wage, as defined in section 177.42.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to a site permit, or the modification of a site permit for a repowering project, whose
application is filed with the commission on or after that date.
new text end

Sec. 17.

Minnesota Statutes 2020, section 216F.04, is amended to read:


216F.04 SITE PERMIT.

(a) No person may construct an LWECS without a site permit issued by the Public
Utilities Commission.

(b) Any person seeking to construct an LWECS shall submit an application to the
commission for a site permit in accordance with this chapter and any rules adopted by the
commission. The permitted site need not be contiguous land.

(c) The commission shall make a final decision on an application for a site permit for
an LWECS within 180 days after acceptance of a complete application by the commission.
The commission may extend this deadline for cause.

(d) The commission may place conditions in a permit and may deny, modify, suspend,
or revoke a permit.

new text begin (e) No site permit may be issued for an LWECS with a combined nameplate capacity
of 25,000 kilowatts or more under this chapter, including the modification of a site permit
for a repowering project, as defined in section 216B.243, subdivision 8, paragraph (b),
unless the applicant certifies in writing to the commission that all employees who perform
construction work on the LWECS, including the employees of contractors and subcontractors,
are paid no less than the prevailing wage, as defined in section 177.42.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to a site permit, or the modification of a site permit for a repowering project, whose
application is filed with the commission on or after that date.
new text end

Sec. 18.

Laws 2020, chapter 118, section 5, subdivision 1, is amended to read:


Subdivision 1.

Community energy transition grants.

(a) Notwithstanding Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2021 is
appropriated from the renewable development account established in Minnesota Statutes,
section 116C.779, subdivision 1, to the commissioner of employment and economic
development for deposit in the community energy transition account established in Minnesota
Statutes, section 116J.55, subdivision 3. This is a onetime appropriation and is available
until June 30, deleted text begin2022deleted text endnew text begin 2025new text end.

(b) If another bill is enacted during the 2020 regular legislative session that appropriates
money from the renewable development account established in Minnesota Statutes, section
116C.779, subdivision 1, for the same general purpose as provided under Minnesota Statutes,
section 116J.55, the appropriation under this subdivision cancels to the renewable
development account under Minnesota Statutes, section 116C.779, subdivision 1.

ARTICLE 9

GREENHOUSE GAS EMISSIONS

Section 1.

Minnesota Statutes 2020, section 216B.2422, subdivision 3, is amended to read:


Subd. 3.

Environmental costs.

(a) The commission shall, deleted text beginto the extent practicabledeleted text endnew text begin using
the best available scientific and economic information and data
new text end, quantify and establish a
range of environmental costs associated with each method of electricity generation. new text beginThe
commission must (1) adopt and apply the interim cost of greenhouse gas emissions valuations
presented in Technical Support Document: Social Cost of Carbon, Methane, and Nitrous
Oxide Interim Estimates, released by the federal government in February 2021, adopting
the 300-year time horizon and the full range of discount rates from 2.5 to five percent, with
three percent as the central estimate; and (2) update the parameters as necessary to conform
with updates released by the federal Interagency Working Group on the Social Cost of
Greenhouse Gases, or the working group's successors, that are above the February 2021
interim valuations.
new text end

new text begin (b) When evaluating and selecting resource options in all proceedings before the
commission, including but not limited to proceedings regarding power purchase agreements,
resource plans, and certificates of need,
new text enda utility deleted text beginshalldeleted text endnew text begin mustnew text end use the values established by
the commission deleted text beginin conjunction with other external factors, including socioeconomic costs,
when evaluating and selecting resource options in all proceedings before the commission,
including resource plan and certificate of need proceedings.
deleted text endnew text begin under this subdivision to quantify
and monetize greenhouse gas and other emissions from the full lifecycle of fuels used for
in-state or imported electricity generation, including extraction, processing, transport, and
combustion.
new text end

new text begin (c) When evaluating resource options, the commission must include and consider the
environmental cost values adopted under this subdivision. When considering the costs of a
nonrenewable energy facility under this section, the commission must consider only nonzero
values for the environmental costs analyzed under this subdivision, including both the low
and high values of any cost range adopted by the commission.
new text end

deleted text begin (b) The commission shall establish interim environmental cost values associated with
each method of electricity generation by March 1, 1994. These values expire on the date
the commission establishes environmental cost values under paragraph (a).
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2022, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 2. new text beginENVIRONMENTAL STANDARDS PROCUREMENT TASK FORCE.
new text end

new text begin (a) No later than June 30, 2022, the commissioners of administration and transportation
must establish an environmental standards procurement task force to examine issues
surrounding the implementation of a program requiring vendors of certain construction
materials purchased by the state to:
new text end

new text begin (1) submit environmental product declarations that assess the lifecycle environmental
impacts of the construction materials to state officials as part of the procurement process;
and
new text end

new text begin (2) meet standards established by the commissioner of administration that limit
greenhouse gas emissions impacts of the construction materials.
new text end

new text begin (b) The task force must examine, at a minimum, the following issues:
new text end

new text begin (1) which construction materials should be subject to the program requirements;
new text end

new text begin (2) what factors should be considered in establishing greenhouse gas emissions standards;
new text end

new text begin (3) a schedule to develop standards for specific materials and incorporate the standards
into the purchasing process;
new text end

new text begin (4) the development and use of financial incentives to reward vendors for developing
products whose greenhouse gas emissions are below the standards;
new text end

new text begin (5) the provision of grants to defer a vendor's cost to obtain environmental product
declarations;
new text end

new text begin (6) how the issues in clauses (1) to (5) are addressed by existing programs in other states
and countries; and
new text end

new text begin (7) any other issues the task force deems relevant.
new text end

new text begin (c) The advisory committee must include two members of the house of representatives
appointed by the speaker of the house of representatives and two members of the senate
appointed by the senate majority leader. The commissioners of administration and
transportation must appoint additional members of the advisory committee, who must include
but may not be limited to representatives of:
new text end

new text begin (1) the Departments of Administration and Transportation;
new text end

new text begin (2) the Center for Sustainable Building Research at the University of Minnesota;
new text end

new text begin (3) manufacturers of eligible materials;
new text end

new text begin (4) suppliers of eligible materials;
new text end

new text begin (5) building and transportation construction firms;
new text end

new text begin (6) organized labor in the construction trades;
new text end

new text begin (7) organized labor representing materials manufacturing workers; and
new text end

new text begin (8) environmental advocacy organizations.
new text end

new text begin (d) The Department of Administration must provide meeting space and serve as staff to
the advisory committee.
new text end

new text begin (e) The commissioner of administration, or the commissioner's designee, shall serve as
chair of the advisory committee. The advisory committee must meet at least four times
annually and must convene additional meetings at the call of the chair.
new text end

new text begin (f) The commissioner of administration must summarize the findings and
recommendations of the task force in a report submitted to the chairs and ranking minority
members of the senate and house of representatives committees with primary jurisdiction
over state government, transportation, and energy no later than January 1, 2023.
new text end

new text begin (g) The advisory committee is subject to section 15.059, subdivision 6.
new text end

new text begin (h) For the purposes of this section, "environmental product declaration" means a
supply-chain-specific type III environmental product declaration that:
new text end

new text begin (1) contains a lifecycle assessment of the environmental impacts of manufacturing a
specific product by a specific firm, including the impacts of extracting and producing the
raw materials and components that compose the product;
new text end

new text begin (2) is verified and registered by a third party; and
new text end

new text begin (3) meets the ISO 14025 standard developed and maintained by the International
Organization for Standardization (ISO).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text beginLOCAL CLIMATE ACTION GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purpose of this section, the following terms have
the meanings given:
new text end

new text begin (1) "climate change" means a change in global or regional climate patterns associated
with increased levels of greenhouse gas emissions entering the atmosphere largely as a
result of human activity;
new text end

new text begin (2) "commissioner" means the commissioner of the Pollution Control Agency;
new text end

new text begin (3) "greenhouse gas emission" means an emission of carbon dioxide, methane, nitrous
oxide, chlorofluorocarbons, hydrofluorocarbons, sulfur hexafluoride, and other gases that
trap heat in the atmosphere; and
new text end

new text begin (4) "political subdivision" means a county, home rule charter or statutory city, town, or
school district.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish a local climate action grant
program in the Pollution Control Agency. The purpose of the program is to provide grants
to encourage political subdivisions to address climate change by developing and
implementing plans of action or creating new organizations and institutions to devise policies
and programs that:
new text end

new text begin (1) seek to mitigate the impacts of climate change on the political subdivision; or
new text end

new text begin (2) reduce the political subdivision's contributions to the causes of climate change.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) Application for a grant under this section must be made to the
commissioner on a form developed by the commissioner. The commissioner must develop
procedures to (1) solicit and review applications, and (2) award grants under this section.
new text end

new text begin (b) Eligible applicants for a grant under this section must be located in or conduct the
preponderance of the applicant's work in the locality where the grant activities are to take
place. Eligible applicants include political subdivisions, organizations that are exempt from
taxation under section 501(c)(3) of the Internal Revenue Code, and educational institutions.
new text end

new text begin Subd. 4. new text end

new text begin Awarding grants. new text end

new text begin When awarding grants under this section, the commissioner
must give preference to proposals that seek to involve a broad array of community residents,
organizations, and institutions in the political subdivision's efforts to address climate change.
new text end

new text begin Subd. 5. new text end

new text begin Grant amounts. new text end

new text begin (a) A grant awarded under this section must not exceed
$50,000.
new text end

new text begin (b) A grant awarded under this section for activities taking place at a county-wide level
or in a city or town with a population that exceeds 20,000 must be matched 100 percent
with local funding.
new text end

new text begin (c) A grant awarded under this section for activities taking place in a city or town with
a population that is less than 20,000 or in a school district must be matched a minimum of
five percent with local funding or equivalent in-kind services.
new text end

new text begin Subd. 6. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section may be used only to:
new text end

new text begin (1) provide grants under this section; and
new text end

new text begin (2) reimburse the reasonable expenses incurred by the Pollution Control Agency to
administer the grant program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 10

MISCELLANEOUS

Section 1.

Minnesota Statutes 2020, section 116C.779, subdivision 1, is amended to read:


Subdivision 1.

Renewable development account.

(a) The renewable development
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account shall be credited to the account. Earnings, such
as interest, dividends, and any other earnings arising from assets of the account, shall be
credited to the account. Funds remaining in the account at the end of a fiscal year are not
canceled to the general fund but remain in the account until expended. The account shall
be administered by the commissioner of management and budget as provided under this
section.

(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the renewable development
account established in paragraph (a). Funds awarded to grantees in previous grant cycles
that have not yet been expended and unencumbered funds required to be paid in calendar
year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject
to transfer under this paragraph.

(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
plant must transfer to the renewable development account $500,000 each year for each dry
cask containing spent fuel that is located at the Prairie Island power plant for each year the
plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by
the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste
is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any
part of a year.

(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Monticello nuclear generating
plant must transfer to the renewable development account $350,000 each year for each dry
cask containing spent fuel that is located at the Monticello nuclear power plant for each
year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.

(e) Each year, the public utility shall withhold from the funds transferred to the renewable
development account under paragraphs (c) and (d) the amount necessary to pay its obligations
under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.

(f) If the commission approves a new or amended power purchase agreement, the
termination of a power purchase agreement, or the purchase and closure of a facility under
section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
the public utility subject to this section shall enter into a contract with the city in which the
poultry litter plant is located to provide grants to the city for the purposes of economic
development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
by the public utility from funds withheld from the transfer to the renewable development
account, as provided in paragraphs (b) and (e).

(g) If the commission approves a new or amended power purchase agreement, or the
termination of a power purchase agreement under section 216B.2424, subdivision 9, with
an entity owned or controlled, directly or indirectly, by two municipal utilities located north
of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
grant contract with such entity to provide $6,800,000 per year for five years, commencing
30 days after the commission approves the new or amended power purchase agreement, or
the termination of the power purchase agreement, and on each June 1 thereafter through
2021, to assist the transition required by the new, amended, or terminated power purchase
agreement. The grant shall be paid by the public utility from funds withheld from the transfer
to the renewable development account as provided in paragraphs (b) and (e).

(h) The collective amount paid under the grant contracts awarded under paragraphs (f)
and (g) is limited to the amount deposited into the renewable development account, and its
predecessor, the renewable development account, established under this section, that was
not required to be deposited into the account under Laws 1994, chapter 641, article 1, section
10.

(i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello
nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued
facility, the commission shall require the public utility to pay $7,500,000 for the discontinued
Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year
in which the commission finds, by the preponderance of the evidence, that the public utility
did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a
permanent or interim storage site out of the state. This determination shall be made at least
every two years.

(j) Funds in the account may be expended only for any of the following purposes:

(1) to stimulate research and development of renewable electric energy technologies;

(2) to encourage grid modernization, including, but not limited to, projects that implement
electricity storage, load control, and smart meter technology; and

(3) to stimulate other innovative energy projects that reduce demand and increase system
efficiency and flexibility.

Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
from the utility that owns a nuclear-powered electric generating plant in this state or the
Prairie Island Indian community or its members.

The utility that owns a nuclear generating plant is eligible to apply for grants under this
subdivision.

(k) For the purposes of paragraph (j), the following terms have the meanings given:

(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
(c), clauses (1), (2), (4), and (5); and

(2) "grid modernization" means:

(i) enhancing the reliability of the electrical grid;

(ii) improving the security of the electrical grid against cyberthreats and physical threats;
and

(iii) increasing energy conservation opportunities by facilitating communication between
the utility and its customers through the use of two-way meters, control technologies, energy
storage and microgrids, technologies to enable demand response, and other innovative
technologies.

(l) A renewable development account advisory group that includes, among others,
representatives of the public utility and its ratepayers, and includes at least one representative
of the Prairie Island Indian community appointed by that community's Tribal council, shall
develop recommendations on account expenditures. The advisory group must design a
request for proposal and evaluate projects submitted in response to a request for proposals.
The advisory group must utilize an independent third-party expert to evaluate proposals
submitted in response to a request for proposal, including all proposals made by the public
utility. A request for proposal for research and development under paragraph (j), clause (1),
may be limited to or include a request to higher education institutions located in Minnesota
for multiple projects authorized under paragraph (j), clause (1). The request for multiple
projects may include a provision that exempts the projects from the third-party expert review
and instead provides for project evaluation and selection by a merit peer review grant system.
In the process of determining request for proposal scope and subject and in evaluating
responses to request for proposals, the advisory group must strongly consider, where
reasonabledeleted text begin,deleted text endnew text begin:
new text end

new text begin (1)new text end potential benefit to Minnesota citizens and businesses and the utility's ratepayersdeleted text begin.deleted text endnew text begin;
and
new text end

new text begin (2) the proposer's commitment to increasing the diversity of the proposer's workforce
and vendors.
new text end

(m) The advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted by
the advisory group to the legislature. The commission may approve proposed expenditures,
may disapprove proposed expenditures that it finds not to be in compliance with this
subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,
modify proposed expenditures. The commission shall, by order, submit its funding
recommendations to the legislature as provided under paragraph (n).

(n) The commission shall present its recommended appropriations from the account to
the senate and house of representatives committees with jurisdiction over energy policy and
finance annually by February 15new text begin following any year in which the commission has acted on
recommendations submitted by the advisory group and the public utility
new text end. Expenditures from
the account must be appropriated by law. In enacting appropriations from the account, the
legislature:

(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and

(2) may not appropriate money for a project the commission has not recommended
funding.

(o) A request for proposal for renewable energy generation projects must, when feasible
and reasonable, give preference to projects that are most cost-effective for a particular energy
source.

(p) The advisory group must annually, by February 15, report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy policy on
projects funded by the account for the prior year and all previous years. The report must,
to the extent possible and reasonable, itemize the actual and projected financial benefit to
the public utility's ratepayers of each project.

(q) By February 1, 2018, and each February 1 thereafter, the commissioner of
management and budget shall submit a written report regarding the availability of funds in
and obligations of the account to the chairs and ranking minority members of the senate
and house committees with jurisdiction over energy policy and finance, the public utility,
and the advisory group.

(r) A project receiving funds from the account must produce a written final report that
includes sufficient detail for technical readers and a clearly written summary for nontechnical
readers. The report must include an evaluation of the project's financial, environmental, and
other benefits to the state and the public utility's ratepayers.new text begin A project receiving money from
the account must submit a report that meets the requirements of section 216C.51, subdivisions
3 and 4, each year the project funded by the account is in progress.
new text end

(s) Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public website designated by the commissioner
of commerce.

(t) All final reports must acknowledge that the project was made possible in whole or
part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.

(u) Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.

Sec. 2.

new text begin [216C.391] MINNESOTA STATE COMPETITIVENESS FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin (a) A state competitiveness fund account is
created in the special revenue fund of the state treasury. The commissioner must credit to
the account appropriations and transfers to the account. Earnings, such as interest, dividends,
and any other earnings arising from assets of the account, must be credited to the account.
Money remaining in the account at the end of a fiscal year does not cancel to the general
fund but remains in the account until expended. The commissioner must manage the account.
new text end

new text begin (b) The money in the account must be used to:
new text end

new text begin (1) meet requirements to match federal funds awarded to the state by the United States
Department of Energy or another federal entity;
new text end

new text begin (2) increase Minnesota's ability to successfully compete for federal funds;
new text end

new text begin (3) assist eligible entities to access available federal funds; or
new text end

new text begin (4) pay the reasonable costs incurred by the department to:
new text end

new text begin (i) pursue and administer energy-related federal funds; and
new text end

new text begin (ii) assist eligible grantees in the pursuit and management of energy-related federal
funds.
new text end

new text begin (c) State matching grants may be awarded to eligible entities, as defined by the federal
fund source, with priority given in the following order:
new text end

new text begin (1) federal formula funds directed to the state that require a match;
new text end

new text begin (2) federal formula or competitive funds in which a state match allows disadvantaged
communities, utilities, or businesses to be competitive in the pursuit of funding; and
new text end

new text begin (3) all other competitive or formula grant opportunities in which matching state funds
enhance or enable federal dollars to be leveraged.
new text end

new text begin (d) By August 1, 2022, the department must establish and convene a Minnesota State
Competitiveness Fund Advisory Task Force.
new text end

new text begin (e) By October 1, 2022, the advisory task force must develop administrative procedures
governing the determination of state grants so that the grant money is prioritized, to the
extent practicable, in an equitable manner.
new text end

new text begin Subd. 2. new text end

new text begin Advisory task force; membership. new text end

new text begin (a) The Minnesota State Competitiveness
Fund Advisory Task Force is established and consists of 13 members as follows:
new text end

new text begin (1) the commissioner of commerce or the commissioner's designee, who serves as a
nonvoting chair of the advisory task force;
new text end

new text begin (2) the chair of the house of representatives committee having jurisdiction over energy
finance and policy or the chair's designee;
new text end

new text begin (3) the chair of the senate committee having jurisdiction over energy finance and policy
or the chair's designee;
new text end

new text begin (4) the chair of the Public Utilities Commission or the chair's designee, as a nonvoting
member; and
new text end

new text begin (5) nine members determined by the commissioner and chairs that represent the following
interests and entities:
new text end

new text begin (i) two members representing Minnesota utilities;
new text end

new text begin (ii) one member representing labor;
new text end

new text begin (iii) two members representing energy justice, rural, low-income, or historically
disadvantaged communities;
new text end

new text begin (iv) one member representing clean energy businesses;
new text end

new text begin (v) one member representing manufacturing;
new text end

new text begin (vi) one member representing higher education; and
new text end

new text begin (vii) one member with policy or implementation expertise on workforce development
for displaced energy workers or persons from low-income or environmental justice
communities.
new text end

new text begin (b) A voting member serving on the Minnesota State Competitiveness Fund Advisory
Task Force and the voting member's respective organization are ineligible from receiving
state matching funds authorized under this section. A nominal stipend may be provided
from grant funds to participating members who would otherwise be unable to attend.
new text end

new text begin Subd. 3. new text end

new text begin Report; audit. new text end

new text begin Beginning February 15, 2024, and each year thereafter until
February 15, 2035, the commissioner must report to the chairs and ranking minority members
of the legislative committees with jurisdiction over energy finance and policy regarding:
(1) grants and amounts awarded under this section during the previous year; and (2) the
remaining balance available under this section and any additional funding opportunities
that require additional funding beyond the remaining balance.
new text end

Sec. 3.

new text begin [216C.45] RESIDENTIAL ELECTRIC PANEL UPGRADE GRANTS; PILOT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Contractor" means a person licensed under section 326B.33 to perform work required
under this section, or the licensed person's employer.
new text end

new text begin (c) "Electric panel" means a panel, including any subpanels, that consists of a main
circuit breaker that regulates several other circuit breakers to prevent overloading and
distributes electricity throughout a building.
new text end

new text begin (d) "Income eligible" means:
new text end

new text begin (1) a single-family residence whose residents received assistance from the federal
Low-Income Home Energy Assistance Program during the most recent program year or
who the commissioner determines are eligible to receive assistance under the federal
Low-Income Home Energy Assistance Program; or
new text end

new text begin (2) a multifamily building in which at least 66 percent of the units are occupied by
households whose income is 60 percent or less of the state median individual or household
income, as applicable.
new text end

new text begin (e) "Multifamily building" means a building that contains two or more units.
new text end

new text begin (f) "Phase I" means the phase of the program established in this section that begins when
the first grant application is received by the department and ends the later of one year after
the date the first grant application is received or when 40 percent of funds appropriated to
the program have been expended.
new text end

new text begin (g) "Phase II" means the phase of the program established in this section that begins
when Phase I terminates and ends when the appropriation made under article 1, section 2,
subdivision 2, paragraph (d), is exhausted.
new text end

new text begin (h) "Single-family residence" means a building that contains one unit or a manufactured
home, as defined in section 327.31, subdivision 6.
new text end

new text begin (i) "Unit" means a residential living space occupied by an individual or a household.
new text end

new text begin (j) "Upgrade" means:
new text end

new text begin (1) for a single-family residence:
new text end

new text begin (i) the installation of equipment or devices required to bring an electrical panel to a total
rating of not less than 200 amperes; and
new text end

new text begin (ii) the repair or replacement of the wiring attached to the equipment or devices in item
(i) to ensure safe operation; or
new text end

new text begin (2) for a multifamily building:
new text end

new text begin (i) the installation of equipment or devices required to bring an electrical panel to a rating
that allows for full electrification of the building, as described in National Electrical Code
Section 220; and
new text end

new text begin (ii) the repair or replacement of the wiring attached to the equipment or devices in item
(i) to ensure safe operation.
new text end

new text begin Subd. 2. new text end

new text begin Program establishment. new text end

new text begin A residential electric panel upgrade grant program
is established as a pilot program in the department to provide financial assistance to owners
of single-family residences and multifamily buildings to upgrade a residence's electric panel.
new text end

new text begin Subd. 3. new text end

new text begin Application process. new text end

new text begin An applicant seeking a grant under this section must
submit an application to the commissioner on a form developed by the commissioner. The
commissioner must develop administrative procedures to govern how eligibility is
determined, applications are reviewed, and grants are awarded. The commissioner is the
fiscal agent for the grant program and is responsible for reviewing applications and awarding
grants under this section. The commissioner may contract with a third party to conduct some
or all of the pilot program's operations.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin (a) In Phase I, an owner of a single-family residence that is
income-eligible is eligible to receive a grant under this section.
new text end

new text begin (b) In Phase I, an owner of a multifamily building that is income-eligible is eligible to
receive a grant under this section.
new text end

new text begin (c) In Phase II, all owners of single-family residences and multifamily buildings are
eligible to receive a grant under this section, regardless of the income of the occupants of
the building.
new text end

new text begin Subd. 5. new text end

new text begin Grant awards. new text end

new text begin (a) A grant may be awarded under this section to:
new text end

new text begin (1) an owner of a single-family residence or multifamily building;
new text end

new text begin (2) a contractor performing an upgrade, provided that the contractor submits to the
commissioner written consent from the owner of the single-family residence or multifamily
building receiving the upgrade to receive a grant on behalf of the owner; or
new text end

new text begin (3) a third party, provided that the third party submits to the commissioner written consent
from the owner of the single-family residence or multifamily building receiving the upgrade
to receive a grant on behalf of the owner.
new text end

new text begin (b) At the discretion of the commissioner, a grant may be awarded for a single-family
home or multifamily building that is not income eligible under this section to reimburse the
cost of an upgrade that has previously been installed.
new text end

new text begin Subd. 6. new text end

new text begin Grant amount. new text end

new text begin (a) A grant issued under this section must be used only to pay
the full equipment and installation costs of an upgrade made by an owner, subject to the
limits established in this subdivision.
new text end

new text begin (b) The maximum grant amount under this section that may be awarded per single-family
residence that is:
new text end

new text begin (1) income eligible is $10,000; and
new text end

new text begin (2) not income eligible is $1,000.
new text end

new text begin (c) The grant amount under this section that may be awarded per multifamily building
that is:
new text end

new text begin (1) income eligible is the sum of (i) $9,500, plus (ii) $500 multiplied by the number of
units containing a separate electric panel that received an upgrade in the multifamily building,
not to exceed $50,000 per multifamily building; and
new text end

new text begin (2) not income eligible is the sum of (i) $1,000, plus (ii) $500 multiplied by the number
of units containing a separate electric panel that received an upgrade in the multifamily
building, not to exceed $10,000 per multifamily building.
new text end

new text begin Subd. 7. new text end

new text begin Limitation. new text end

new text begin No more than one grant may be awarded to an owner under this
section for work conducted at the same single-family residence or multifamily building.
new text end

new text begin Subd. 8. new text end

new text begin Outreach. new text end

new text begin The department must publicize the availability of grants under this
section to, at a minimum:
new text end

new text begin (1) income-eligible households;
new text end

new text begin (2) community action agencies and other public and private nonprofit organizations that
provide weatherization and other energy services to income-eligible households; and
new text end

new text begin (3) multifamily property owners and property managers.
new text end

new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin (a) No later than 120 days after the date each of Phases I and II of the
pilot program ends, the department must submit a report to the chairs and ranking minority
members of the legislative committees with primary jurisdiction over climate and energy
policy.
new text end

new text begin (b) The report must summarize program outcomes and must report separately, at a
minimum:
new text end

new text begin (1) the number of units in multifamily buildings and the number of single-family
residences whose owners received grants;
new text end

new text begin (2) the median income of the households in multifamily buildings and in single-family
residences whose owners received grants; and
new text end

new text begin (3) the average amount of grants awarded in multifamily buildings and in single-family
residences.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [216C.51] UTILITY DIVERSITY REPORTING.
new text end

new text begin Subdivision 1. new text end

new text begin Policy. new text end

new text begin It is the policy of the state of Minnesota to encourage each utility
that serves Minnesota residents to focus on and improve the diversity of the utility's
workforce and suppliers.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Certification" means official recognition by a governmental unit that a business is
a preferred vendor as a result of the characteristics of the business owner or owners or the
location of the business.
new text end

new text begin (c) "Utility" has the meaning given in section 216C.06, subdivision 18.
new text end

new text begin Subd. 3. new text end

new text begin Annual report. new text end

new text begin (a) Beginning March 15, 2023, and each March 15 thereafter,
each utility authorized to do business in Minnesota must file an annual diversity report to
the commissioner on:
new text end

new text begin (1) the utility's goals and efforts to increase diversity in the workplace, including current
workforce representation numbers and percentages; and
new text end

new text begin (2) all procurement goals and actual spending for female-owned, minority-owned,
veteran-owned, and small business enterprises during the previous calendar year.
new text end

new text begin (b) The goals under paragraph (a), clause (2), must be expressed as a percentage of the
total work performed by the utility submitting the report. The actual spending for
female-owned, minority-owned, veteran-owned, and small business enterprises must also
be expressed as a percentage of the total work performed by the utility submitting the report.
new text end

new text begin Subd. 4. new text end

new text begin Report elements. new text end

new text begin Each utility required to report under this section must include
the following in the annual report:
new text end

new text begin (1) an explanation of the plan to increase diversity in the utility's workforce and suppliers
during the next year;
new text end

new text begin (2) an explanation of the plan to increase the goals;
new text end

new text begin (3) an explanation of the challenges faced to increase workforce and supplier diversity,
including suggestions regarding actions the department could take to help identify potential
employees and vendors;
new text end

new text begin (4) a list of the certifications the company recognizes;
new text end

new text begin (5) a point of contact for a potential employee or vendor that wishes to work for or do
business with the utility; and
new text end

new text begin (6) a list of successful actions taken to increase workforce and supplier diversity, in
order to encourage other companies to emulate best practices.
new text end

new text begin Subd. 5. new text end

new text begin State data. new text end

new text begin Each annual report must include as much state-specific data as
possible. If a utility does not submit state-specific data, the utility must include any relevant
national data the utility possesses, explain why the utility could not submit state-specific
data, and explain how the utility intends to include state-specific data in future reports, if
possible.
new text end

new text begin Subd. 6. new text end

new text begin Publication; retention. new text end

new text begin The department must publish an annual report on the
department's website and must maintain each annual report for at least five years.
new text end

Sec. 5.

Minnesota Statutes 2020, section 216E.03, subdivision 1, is amended to read:


Subdivision 1.

Site permit.

No person may construct a large electricnew text begin powernew text end generating
plant without a site permit from the commission. A large electric generating plant may be
constructed only on a site approved by the commission. The commission must incorporate
into one proceeding the route selection for a high-voltage transmission line that is directly
associated with and necessary to interconnect the large electric generating plant to the
transmission system and whose need is certified under section 216B.243.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6. new text beginDECOMMISSIONING AND DEMOLITION PLAN FOR COAL-FIRED
PLANT.
new text end

new text begin As a part of the next resource plan filing under Minnesota Statutes, section 216B.2422,
subdivision 2, but no later than December 31, 2025, the public utility that owns an electric
generation facility that is powered by coal, scheduled for retirement in 2028, and located
within the St. Croix National Scenic Riverway must provide, to the extent known, the public
utility's plan and detailed timeline to decommission and demolish the electric generation
facility and remediate pollution at the electric generation facility site. The public utility
must also provide a copy of the plan and timeline to the governing body of the municipality
where the electric generation facility is located on the same date the plan and timeline are
submitted to the Public Utilities Commission. If a resource plan is not filed or required
before December 31, 2025, the plan and timeline must be submitted to the Public Utilities
Commission and the municipality as a separate filing by December 31, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7. new text beginTRIBAL ADVOCACY COUNCIL ON ENERGY; DEPARTMENT OF
COMMERCE SUPPORT.
new text end

new text begin (a) The Department of Commerce must provide technical support and subject matter
expertise to help facilitate efforts taken by the 11 federally recognized Indian Tribes in
Minnesota to establish and operate a Tribal advocacy council on energy.
new text end

new text begin (b) When requested by a Tribal advocacy council on energy, the Department of Commerce
must assist the council to:
new text end

new text begin (1) assess and evaluate common Tribal energy issues, including:
new text end

new text begin (i) identifying and prioritizing energy issues;
new text end

new text begin (ii) facilitating idea sharing among the Tribes to generate solutions to energy issues; and
new text end

new text begin (iii) assisting decision making with respect to resolving energy issues;
new text end

new text begin (2) develop new statewide energy policies or proposed legislation, including:
new text end

new text begin (i) organizing stakeholder meetings;
new text end

new text begin (ii) gathering input and other relevant information;
new text end

new text begin (iii) assisting with policy proposal development, evaluation, and decision making; and
new text end

new text begin (iv) helping facilitate actions taken to submit, and obtain approval for or have enacted,
policies or legislation approved by the council;
new text end

new text begin (3) make efforts to raise awareness of and provide educational opportunities with respect
to Tribal energy issues among Tribal members by:
new text end

new text begin (i) identifying information resources;
new text end

new text begin (ii) gathering feedback on issues and topics the council identifies as areas of interest;
and
new text end

new text begin (iii) identifying topics for and helping to facilitate educational forums; and
new text end

new text begin (4) identify, evaluate, disseminate, and implement successful energy-related practices.
new text end

new text begin (c) Nothing in this section requires or otherwise obligates the 11 federally recognized
Indian Tribes in Minnesota to establish a Tribal advocacy council on energy, nor does it
require or obligate a federally recognized Indian Tribe in Minnesota to participate in or
implement a decision or support an effort made by a Tribal advocacy council on energy.
new text end

new text begin (d) Any support provided by the Department of Commerce to a Tribal advocacy council
on energy under this section must be provided only upon request of the council and is limited
to issues and areas where the Department of Commerce's expertise and assistance is
requested.
new text end

Sec. 8. new text beginREPEALER.
new text end

new text begin Laws 2017, chapter 5, section 1, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H3337-1

16B.323 SOLAR ENERGY IN STATE BUILDINGS.

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have the meanings given.

(b) "Major renovation" means a substantial addition to an existing building, or a substantial change to the interior configuration or the energy system of an existing building.

(c) "Solar energy system" means photovoltaic devices alone or installed in conjunction with a solar thermal system.

(d) "Photovoltaic device " has the meaning given in section 216C.06, subdivision 16.

(e) "Solar thermal system" has the meaning given "qualifying solar thermal project" in section 216B.2411, subdivision 2, paragraph (e).

(f) "State building" means a building whose construction or renovation is paid wholly or in part by the state from the bond proceeds fund.

Subd. 2.

Solar energy system.

(a) As provided in paragraphs (b) and (c), a project for the construction or major renovation of a state building, after the completion of a cost-benefit analysis, may include installation of solar energy systems of up to 300 kilowatts capacity on, adjacent, or in proximity to the state building.

(b) The capacity of a solar energy system must be less than 300 kilowatts to the extent necessary to match the electrical load of the building, or the capacity must be no more than necessary to keep the costs for the installation below the five percent maximum set by paragraph (c).

(c) The cost of the solar energy system must not exceed five percent of the appropriations from the bond proceeds fund for the construction or renovation of the state building. Purchase and installation of a solar thermal system may account for no more than 25 percent of the cost of a solar energy system installation.

(d) A project subject to this section is ineligible to receive a rebate for the installation of a solar energy system under section 116C.7791 or from any utility.

16B.326 HEATING AND COOLING SYSTEMS; STATE-FUNDED BUILDINGS.

The commissioner must review project proposer's study for geothermal and solar thermal applications as possible uses for heating or cooling for all building projects subject to a predesign review under section 16B.335 that receive any state funding for replacement of heating or cooling systems. When practicable, geothermal and solar thermal heating and cooling systems must be considered when designing, planning, or letting bids for necessary replacement or initial installation of cooling or heating systems in new or existing buildings that are constructed or maintained with state funds. The predesign review must include a written plan for compliance with this section from a project proposer.

For the purposes of this section, "solar thermal" means a flat plate or evacuated tube with a fixed orientation that collects the sun's radiant energy and transfers it to a storage medium for distribution as energy for heating and cooling.

216B.16 RATE CHANGE; PROCEDURE; HEARING.

Subd. 10.

Intervenor compensation.

(a) A nonprofit organization or an individual granted formal intervenor status by the commission is eligible to receive compensation.

(b) The commission may order a utility to compensate all or part of an eligible intervenor's reasonable costs of participation in a general rate case that comes before the commission when the commission finds that the intervenor has materially assisted the commission's deliberation and when a lack of compensation would present financial hardship to the intervenor. Compensation may not exceed $50,000 for a single intervenor in any proceeding. For the purpose of this subdivision, "materially assisted" means that the intervenor's participation and presentation was useful and seriously considered, or otherwise substantially contributed to the commission's deliberations in the proceeding.

(c) In determining whether an intervenor has materially assisted the commission's deliberation, the commission must consider, among other factors, whether:

(1) the intervenor represented an interest that would not otherwise have been adequately represented;

(2) the evidence or arguments presented or the positions taken by the intervenor were an important factor in producing a fair decision;

(3) the intervenor's position promoted a public purpose or policy;

(4) the evidence presented, arguments made, issues raised, or positions taken by the intervenor would not have been a part of the record without the intervenor's participation; and

(5) the administrative law judge or the commission adopted, in whole or in part, a position advocated by the intervenor.

(d) In determining whether the absence of compensation would present financial hardship to the intervenor, the commission must consider:

(1) whether the costs presented in the intervenor's claim reflect reasonable fees for attorneys and expert witnesses and other reasonable costs; and

(2) the ratio between the costs of intervention and the intervenor's unrestricted funds.

(e) An intervenor seeking compensation must file a request and an affidavit of service with the commission, and serve a copy of the request on each party to the proceeding. The request must be filed 30 days after the later of (1) the expiration of the period within which a petition for rehearing, amendment, vacation, reconsideration, or reargument must be filed or (2) the date the commission issues an order following rehearing, amendment, vacation, reconsideration, or reargument.

(f) The compensation request must include:

(1) the name and address of the intervenor or representative of the nonprofit organization the intervenor is representing;

(2) proof of the organization's nonprofit, tax-exempt status;

(3) the name and docket number of the proceeding for which compensation is requested;

(4) a list of actual annual revenues and expenses of the organization the intervenor is representing for the preceding year and projected revenues, revenue sources, and expenses for the current year;

(5) the organization's balance sheet for the preceding year and a current monthly balance sheet;

(6) an itemization of intervenor costs and the total compensation request; and

(7) a narrative explaining why additional organizational funds cannot be devoted to the intervention.

(g) Within 30 days after service of the request for compensation, a party may file a response, together with an affidavit of service, with the commission. A copy of the response must be served on the intervenor and all other parties to the proceeding.

(h) Within 15 days after the response is filed, the intervenor may file a reply with the commission. A copy of the reply and an affidavit of service must be served on all other parties to the proceeding.

(i) If additional costs are incurred as a result of additional proceedings following the commission's initial order, the intervenor may file an amended request within 30 days after the commission issues an amended order. Paragraphs (e) to (h) apply to an amended request.

(j) The commission must issue a decision on intervenor compensation within 60 days of a filing by an intervenor.

(k) A party may request reconsideration of the commission's compensation decision within 30 days of the decision.

(l) If the commission issues an order requiring payment of intervenor compensation, the utility that was the subject of the proceeding must pay the compensation to the intervenor, and file with the commission proof of payment, within 30 days after the later of (1) the expiration of the period within which a petition for reconsideration of the commission's compensation decision must be filed or (2) the date the commission issues an order following reconsideration of its order on intervenor compensation.

Repealed Minnesota Session Laws: H3337-1

Laws 2017, chapter 5, section 1

Section 1. new text beginNATURAL GAS COMBINED CYCLE ELECTRIC GENERATION PLANT.new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 216B.243 and Minnesota Statutes, chapter 216E, a public utility may, at its sole discretion, construct, own, and operate a natural gas combined cycle electric generation plant as the utility proposed to the Public Utilities Commission in docket number E-002/RP-15-21, or as revised by the utility and approved by the Public Utilities Commission in the latest resource plan filed after the effective date of this section, provided that the plant is located on property in Sherburne County, Minnesota, already owned by the public utility, and will be constructed after January 1, 2018. new text end

new text begin (b) Reasonable and prudently incurred costs and investments by a public utility under this section may be recovered pursuant to the provisions of Minnesota Statutes, section 216B.16. new text end

new text begin (c) No less than 20 months prior to the start of construction, a public utility intending to construct a plant under this section shall file with the commission an evaluation of the utility's forecasted costs prepared by an independent evaluator and may ask the commission to establish a sliding scale rate of return mechanism for this capital investment to provide an incentive for the utility to complete the project at or under the forecasted costs. new text end