1.1 	CONFERENCE COMMITTEE REPORT ON S.F. No. 4942
1.2 	A bill for an act
1.3 	relating to state government; authorizing supplemental agriculture appropriations; 
1.4 	providing broadband appropriation transfer authority; making policy and technical 
1.5 	changes to agriculture provisions; establishing and modifying agriculture programs; 
1.6 	requiring an application for federal broadband aid; modifying appropriations to 
1.7 	the Office of Cannabis Management and the Department of Health; modifying 
1.8 	fees assessed by the Department of Commerce; adding the Minnesota Consumer 
1.9 	Data Privacy Act; adding and modifying consumer protection provisions; 
1.10 	appropriating money for energy, utilities, environment, and climate; requiring 
1.11 	utilities to accept an individual taxpayer identification number when new customers 
1.12 	apply for utility service; allowing public utilities providing electric service to 
1.13 	propose goals for fuel-switching improvement achievements to the commissioner 
1.14 	of commerce; modifying the commercial property assessed clean energy program; 
1.15 	making technical changes to various provisions governing or administered by the 
1.16 	Department of Commerce; requiring reports; appropriating money;amending 
1.17 	Minnesota Statutes 2022, sections 17.116, subdivision 2; 17.133, subdivision 1; 
1.18 	18C.70, subdivision 5; 18C.71, subdivision 4; 18C.80, subdivision 2; 28A.10; 
1.19 	31.94; 32D.30; 41B.047, subdivision 1; 45.0135, subdivision 7; 62Q.73, subdivision 
1.20 	3; 116J.396, by adding a subdivision; 216B.098, by adding a subdivision; 216B.16, 
1.21 	subdivisions 6c, 8; 216B.2402, subdivision 10, by adding a subdivision; 216B.2403, 
1.22 	subdivisions 2, 3, 5, 8; 216B.241, subdivisions 2, 11, 12; 216B.243, subdivision 
1.23 	3b; 216C.10; 216C.435, subdivisions 3a, 3b, 4, 10, by adding subdivisions; 
1.24 	216C.436, subdivisions 1, 4, 7, 8, 10; 325E.21, by adding a subdivision; Minnesota 
1.25 	Statutes 2023 Supplement, sections 17.055, subdivision 3; 17.133, subdivision 3; 
1.26 	18C.425, subdivision 6; 35.155, subdivision 12; 41B.0391, subdivisions 1, 2, 4, 
1.27 	6; 116C.779, subdivision 1; 144.197; 216B.1691, subdivision 1; 216C.08; 216C.09; 
1.28 	216C.435, subdivision 8; 216C.436, subdivisions 1b, 2; 325E.21, subdivision 1b; 
1.29 	342.72; Laws 2023, chapter 43, article 1, section 2, subdivisions 1, 2, 3, 4, 5; Laws 
1.30 	2023, chapter 63, article 9, sections 5; 10; 15, subdivision 4; 20; proposing coding 
1.31 	for new law in Minnesota Statutes, chapters 13; 58B; 62J; 216B; 216C; proposing 
1.32 	coding for new law as Minnesota Statutes, chapter 325O; repealing Minnesota 
1.33 	Statutes 2022, section 34.07.
1.34 	May 18, 2024
1.35 	The Honorable Bobby Joe Champion
1.36 	President of the Senate
1.37 	The Honorable Melissa Hortman
1.38 	Speaker of the House of Representatives
2.1 	We, the undersigned conferees for S.F. No. 4942 report that we have agreed upon the 
2.2 	items in dispute and recommend as follows:
2.3 	That the House recede from its amendments and that S.F. No. 4942 be further amended 
2.4 	as follows:
2.5 	Delete everything after the enacting clause and insert:

2.6 	ARTICLE 1
2.7 	AGRICULTURE APPROPRIATIONS

2.8 	Section 1. Laws 2023, chapter 43, article 1, section 2, is amended to read:

2.9 | Sec. 2. DEPARTMENT OF AGRICULTURE | | | |

2.112.10

Subdivision 1.Total Appropriation

$

~~92,025,000~~
88,325,000

$

~~72,223,000~~
80,243,000

2.12 | Appropriations by Fund
2.13 | | 2024 | 2025
2.152.14

General

~~91,626,000~~
87,926,000

~~71,824,000~~
79,844,000

2.16 | Remediation | 399,000 | 399,000
2.17 	The amounts that may be spent for each 
2.18 	purpose are specified in the following 
2.19 	subdivisions.

2.20 | Subd. 2.Protection Services | | | |

2.21 | Appropriations by Fund
2.22 | | 2024 | 2025
2.242.23

General

~~32,034,000~~
32,084,000

~~18,743,000~~
22,113,000

2.25 | Remediation | 399,000 | 399,000
2.26 	(a) $399,000 the first year and $399,000 the 
2.27 	second year are from the remediation fund for 
2.28 	administrative funding for the voluntary 
2.29 	cleanup program.
2.30 	(b) $625,000 the first year and ~~$625,000~~
2.31 	$1,120,000 the second year are for the soil 
2.32 	health financial assistance program under 
2.33 	Minnesota Statutes, section 17.134. The 
3.1 	commissioner may award no more than 
3.2 	$50,000 of the appropriation each year to a 
3.3 	single recipient. Of the second year amount, 
3.4 	$495,000 is for projects located in Dodge, 
3.5 	Fillmore, Goodhue, Houston, Mower, 
3.6 	Olmsted, Wabasha, or Winona County. The 
3.7 	commissioner may use up to 6.5 percent of 
3.8 	this appropriation for costs incurred to 
3.9 	administer the program. Any unencumbered 
3.10 	balance does not cancel at the end of the first 
3.11 	year and is available in the second year. 
3.12 	Appropriations encumbered under contract on 
3.13 	or before June 30, 2025, for soil health 
3.14 	financial assistance grants are available until 
3.15 	June 30, 2027. The base for this appropriation 
3.16 	is $639,000 in fiscal year 2026 and each year 
3.17 	thereafter.
3.18 	(c) $800,000 the first year ~~is~~ and $75,000 the 
3.19 	second year are for transfer to the pollinator 
3.20 	research account established under Minnesota 
3.21 	Statutes, section 18B.051. The base for this 
3.22 	transfer is $100,000 in fiscal year 2026 and 
3.23 	each year thereafter.
3.24 	(d) $150,000 the first year and $150,000 the 
3.25 	second year are for transfer to the noxious 
3.26 	weed and invasive plant species assistance 
3.27 	account established under Minnesota Statutes, 
3.28 	section 18.89, to award grants under 
3.29 	Minnesota Statutes, section 18.90, to counties, 
3.30 	municipalities, and other weed management 
3.31 	entities, including Minnesota Tribal 
3.32 	governments as defined in Minnesota Statutes, 
3.33 	section 10.65. This is a onetime appropriation.
3.34 	(e) $175,000 the first year and $175,000 the 
3.35 	second year are for compensation for 
4.1 	destroyed or crippled livestock under 
4.2 	Minnesota Statutes, section 3.737. The first 
4.3 	year appropriation may be spent to compensate 
4.4 	for livestock that were destroyed or crippled 
4.5 	during fiscal year 2023. If the amount in the 
4.6 	first year is insufficient, the amount in the 
4.7 	second year is available in the first year. The 
4.8 	commissioner may use up to $5,000 each year 
4.9 	to reimburse expenses incurred by university 
4.10 	extension educators to provide fair market 
4.11 	values of destroyed or crippled livestock. If 
4.12 	the commissioner receives federal dollars to 
4.13 	pay claims for destroyed or crippled livestock, 
4.14 	an equivalent amount of this appropriation 
4.15 	may be used to reimburse nonlethal prevention 
4.16 	methods performed by federal wildlife services 
4.17 	staff.
4.18 	(f) $155,000 the first year and $155,000 the 
4.19 	second year are for compensation for crop 
4.20 	damage under Minnesota Statutes, section 
4.21 	3.7371. If the amount in the first year is 
4.22 	insufficient, the amount in the second year is 
4.23 	available in the first year. The commissioner 
4.24 	may use up to $10,000 of the appropriation 
4.25 	each year to reimburse expenses incurred by 
4.26 	the commissioner or the commissioner's 
4.27 	approved agent to investigate and resolve 
4.28 	claims, as well as for costs associated with 
4.29 	training for approved agents. The 
4.30 	commissioner may use up to $40,000 of the 
4.31 	appropriation each year to make grants to 
4.32 	producers for measures to protect stored crops 
4.33 	from elk damage. If the commissioner 
4.34 	determines that claims made under Minnesota 
4.35 	Statutes, section 3.737 or 3.7371, are 
4.36 	unusually high, amounts appropriated for 
5.1 	either program may be transferred to the 
5.2 	appropriation for the other program.
5.3 	(g) $825,000 the first year and $825,000 the 
5.4 	second year are to replace capital equipment 
5.5 	in the Department of Agriculture's analytical 
5.6 	laboratory.
5.7 	(h) $75,000 the first year and $75,000 the 
5.8 	second year are to support a meat processing 
5.9 	liaison position to assist new or existing meat 
5.10 	and poultry processing operations in getting 
5.11 	started, expanding, growing, or transitioning 
5.12 	into new business models.
5.13 	(i) $2,200,000 the first year and $1,650,000 
5.14 	the second year are additional funding to 
5.15 	maintain the current level of service delivery 
5.16 	for programs under this subdivision. The base 
5.17 	for this appropriation is $1,925,000 for fiscal 
5.18 	year 2026 and each year thereafter.
5.19 	(j) $250,000 the first year and $250,000 the 
5.20 	second year are for grants to organizations in 
5.21 	Minnesota to develop enterprises, supply 
5.22 	chains, and markets for continuous-living 
5.23 	cover crops and cropping systems in the early 
5.24 	stages of commercial development. For the 
5.25 	purposes of this paragraph, "continuous-living 
5.26 	cover crops and cropping systems" refers to 
5.27 	agroforestry, perennial biomass, perennial 
5.28 	forage, perennial grains, and winter-annual 
5.29 	cereal grains and oilseeds that have market 
5.30 	value as harvested or grazed commodities. By 
5.31 	February 1 each year, the commissioner must 
5.32 	submit a report to the chairs and ranking 
5.33 	minority members of the legislative 
5.34 	committees with jurisdiction over agriculture 
5.35 	finance and policy detailing uses of the funds 
6.1 	in this paragraph, including administrative 
6.2 	costs, and the achievements these funds 
6.3 	contributed to. The commissioner may use up 
6.4 	to 6.5 percent of this appropriation for 
6.5 	administrative costs. This is a onetime 
6.6 	appropriation.
6.7 	(k) $45,000 the first year and $45,000 the 
6.8 	second year are appropriated for 
6.9 	wolf-livestock conflict-prevention grants. The 
6.10 	commissioner may use some of this 
6.11 	appropriation to support nonlethal prevention 
6.12 	work performed by federal wildlife services. 
6.13 	This is a onetime appropriation.
6.14 	(l) $10,000,000 the first year is for transfer to 
6.15 	the grain indemnity account established in 
6.16 	Minnesota Statutes, section 223.24. This is a 
6.17 	onetime transfer.
6.18 	(m) $125,000 the first year and $125,000 the 
6.19 	second year are for the PFAS in pesticides 
6.20 	review. This is a onetime appropriation.
6.21 	(n) $1,941,000 the first year is for transfer to 
6.22 	the food handler license account. This is a 
6.23 	onetime transfer.
6.24 	(o) $2,800,000 the second year is for nitrate 
6.25 	home water treatment, including reverse 
6.26 	osmosis, for private drinking-water wells with 
6.27 	nitrate in excess of the maximum contaminant 
6.28 	level of ten milligrams per liter and located in 
6.29 	Dodge, Fillmore, Goodhue, Houston, Mower, 
6.30 	Olmsted, Wabasha, or Winona County. The 
6.31 	commissioner must prioritize households at 
6.32 	or below 300 percent of the federal poverty 
6.33 	guideline and households with infants or 
6.34 	pregnant individuals. The commissioner may 
7.1 	also use this appropriation for education, 
7.2 	outreach, and technical assistance to 
7.3 	homeowners. The commissioner of agriculture 
7.4 	may transfer money to the commissioner of 
7.5 	health to establish and administer a mitigation 
7.6 	program for contaminated wells located in 
7.7 	Dodge, Fillmore, Goodhue, Houston, Mower, 
7.8 	Olmsted, Wabasha, or Winona County. 
7.9 	Notwithstanding Minnesota Statutes, section 
7.10 	16B.98, subdivision 14, the commissioner may 
7.11 	use up to 6.5 percent of this appropriation for 
7.12 	administrative costs. This is a onetime 
7.13 	appropriation and is available until June 30, 
7.14 	2027.
7.15 	(p) $50,000 the first year is to convene a 
7.16 	working group of interested parties, including 
7.17 	representatives from the Department of 
7.18 	Natural Resources, to investigate and 
7.19 	recommend options for addressing crop and 
7.20 	fence destruction due to Cervidae. By 
7.21 	February 1, 2025, the commissioner must 
7.22 	submit a report on the findings and 
7.23 	recommendations of the working group to the 
7.24 	chairs and ranking minority members of the 
7.25 	legislative committees with jurisdiction over 
7.26 	agriculture policy and finance. 
7.27 	Notwithstanding Minnesota Statutes, section 
7.28 	16A.28, any unencumbered balance does not 
7.29 	cancel at the end of the first year and is 
7.30 	available in the second year. This is a onetime 
7.31 	appropriation.

7.32

7.33

Subd. 3.Agricultural Marketing and 
Development

5,165,000

4,985,000

7.34 	(a) $150,000 the first year and $150,000 the 
7.35 	second year are to expand international trade 
8.1 	opportunities and markets for Minnesota 
8.2 	agricultural products.
8.3 	(b) $186,000 the first year and $186,000 the 
8.4 	second year are for transfer to the Minnesota 
8.5 	grown account and may be used as grants for 
8.6 	Minnesota grown promotion under Minnesota 
8.7 	Statutes, section 17.102. Notwithstanding 
8.8 	Minnesota Statutes, section 16A.28, the 
8.9 	appropriations encumbered under contract on 
8.10 	or before June 30, 2025, for Minnesota grown 
8.11 	grants in this paragraph are available until June 
8.12 	30, 2027.
8.13 	(c) $634,000 the first year and $634,000 the 
8.14 	second year are for the continuation of the 
8.15 	dairy development and profitability 
8.16 	enhancement programs, including dairy 
8.17 	profitability teams and dairy business planning 
8.18 	grants under Minnesota Statutes, section 
8.19 	32D.30.
8.20 	(d) The commissioner may use funds 
8.21 	appropriated in this subdivision for annual 
8.22 	cost-share payments to resident farmers or 
8.23 	entities that sell, process, or package 
8.24 	agricultural products in this state for the costs 
8.25 	of organic certification. The commissioner 
8.26 	may allocate these funds for assistance to 
8.27 	persons transitioning from conventional to 
8.28 	organic agriculture.
8.29 	(e) $600,000 the first year and $420,000 the 
8.30 	second year are to maintain the current level 
8.31 	of service delivery. The base for this 
8.32 	appropriation is ~~$490,000~~ $510,000 for fiscal 
8.33 	year 2026 and each year thereafter.
9.1 	(f) $100,000 the first year and $100,000 the 
9.2 	second year are for mental health outreach and 
9.3 	support to farmers, ranchers, and others in the 
9.4 	agricultural community and for farm safety 
9.5 	grant and outreach programs under Minnesota 
9.6 	Statutes, section 17.1195. Mental health 
9.7 	outreach and support may include a 24-hour 
9.8 	hotline, stigma reduction, and education. 
9.9 	Notwithstanding Minnesota Statutes, section 
9.10 	16A.28, any unencumbered balance does not 
9.11 	cancel at the end of the first year and is 
9.12 	available in the second year. This is a onetime 
9.13 	appropriation.
9.14 	(g) $100,000 the first year and $100,000 the 
9.15 	second year are to award and administer grants 
9.16 	~~for infrastructure~~ and other forms of financial 
9.17 	assistance to support EBT, SNAP, SFMNP, 
9.18 	and related programs at farmers markets. 
9.19 	Notwithstanding Minnesota Statutes, section 
9.20 	16A.28, any unencumbered balance does not 
9.21 	cancel at the end of the first year and is 
9.22 	available in the second year. This is a onetime 
9.23 	appropriation.
9.24 	(h) $200,000 the first year and $200,000 the 
9.25 	second year are to award cooperative grants 
9.26 	under Minnesota Statutes, section 17.1016. 
9.27 	The commissioner may use up to 6.5 percent 
9.28 	of the appropriation each year to administer 
9.29 	the grant program. Notwithstanding Minnesota 
9.30 	Statutes, section 16A.28, any unencumbered 
9.31 	balance does not cancel at the end of the first 
9.32 	year and is available in the second year. This 
9.33 	is a onetime appropriation.

10.1

10.2

Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement

~~37,809,000~~
34,034,000

~~33,809,000~~
38,159,000

10.3 	(a) $10,702,000 the first year and $10,702,000 
10.4 	the second year are for the agriculture 
10.5 	research, education, extension, and technology 
10.6 	transfer program under Minnesota Statutes, 
10.7 	section 41A.14. Except as provided below, 
10.8 	the appropriation each year is for transfer to 
10.9 	the agriculture research, education, extension, 
10.10 	and technology transfer account under 
10.11 	Minnesota Statutes, section 41A.14, 
10.12 	subdivision 3, and the commissioner shall 
10.13 	transfer funds each year to the Board of 
10.14 	Regents of the University of Minnesota for 
10.15 	purposes of Minnesota Statutes, section 
10.16 	41A.14. To the extent practicable, money 
10.17 	expended under Minnesota Statutes, section 
10.18 	41A.14, subdivision 1, clauses (1) and (2), 
10.19 	must supplement and not supplant existing 
10.20 	sources and levels of funding. The 
10.21 	commissioner may use up to one percent of 
10.22 	this appropriation for costs incurred to 
10.23 	administer the program.
10.24 	Of the amount appropriated for the agriculture 
10.25 	research, education, extension, and technology 
10.26 	transfer grant program under Minnesota 
10.27 	Statutes, section 41A.14:
10.28 	(1) $600,000 the first year and $600,000 the 
10.29 	second year are for the Minnesota Agricultural 
10.30 	Experiment Station's agriculture rapid 
10.31 	response fund under Minnesota Statutes, 
10.32 	section 41A.14, subdivision 1, clause (2);
10.33 	(2) up to $1,000,000 the first year and up to 
10.34 	$1,000,000 the second year are for research 
10.35 	on avian influenza, salmonella, and other 
11.1 	turkey-related diseases and disease prevention 
11.2 	measures;
11.3 	(3) $2,250,000 the first year and $2,250,000 
11.4 	the second year are for grants to the Minnesota 
11.5 	Agricultural Education Leadership Council to 
11.6 	enhance agricultural education with priority 
11.7 	given to Farm Business Management 
11.8 	challenge grants;
11.9 	(4) $450,000 the first year is for the cultivated 
11.10 	wild rice breeding project at the North Central 
11.11 	Research and Outreach Center to include a 
11.12 	tenure track/research associate plant breeder;
11.13 	(5) $350,000 the first year and $350,000 the 
11.14 	second year are for potato breeding;
11.15 	(6) $802,000 the first year and $802,000 the 
11.16 	second year are to fund the Forever Green 
11.17 	Initiative and protect the state's natural 
11.18 	resources while increasing the efficiency, 
11.19 	profitability, and productivity of Minnesota 
11.20 	farmers by incorporating perennial and 
11.21 	winter-annual crops into existing agricultural 
11.22 	practices. The base for the allocation under 
11.23 	this clause is $802,000 in fiscal year 2026 and 
11.24 	each year thereafter. By February 1 each year, 
11.25 	the dean of the College of Food, Agricultural 
11.26 	and Natural Resource Sciences must submit 
11.27 	a report to the chairs and ranking minority 
11.28 	members of the legislative committees with 
11.29 	jurisdiction over agriculture finance and policy 
11.30 	and higher education detailing uses of the 
11.31 	funds in this paragraph, including 
11.32 	administrative costs, and the achievements 
11.33 	these funds contributed to; ~~and~~
12.1 	(7) $350,000 each year is for farm-scale winter 
12.2 	greenhouse research and development 
12.3 	coordinated by University of Minnesota 
12.4 	Extension Regional Sustainable Development 
12.5 	Partnerships. The allocation in this clause is 
12.6 	onetime~~.~~;
12.7 	(8) $200,000 the second year is for research 
12.8 	on natural stands of wild rice; and
12.9 	(9) $250,000 the second year is for the 
12.10 	cultivated wild rice forward selection project 
12.11 	at the North Central Research and Outreach 
12.12 	Center, including a tenure track or research 
12.13 	associate plant scientist.
12.14 	(b) The base for the agriculture research, 
12.15 	education, extension, and technology transfer 
12.16 	program is $10,352,000 in fiscal year 2026 
12.17 	and $10,352,000 in fiscal year 2027.
12.18 	(c) ~~$27,107,000~~ $23,332,000 the first year ~~and~~ 
12.19 	~~$23,107,000 the second year are~~ is for the 
12.20 	agricultural growth, research, and innovation 
12.21 	program under Minnesota Statutes, section 
12.22 	41A.12. Except as provided below, the 
12.23 	commissioner may allocate this appropriation 
12.24 	~~each year~~ among the following areas: 
12.25 	facilitating the start-up, modernization, 
12.26 	improvement, or expansion of livestock 
12.27 	operations, including beginning and 
12.28 	transitioning livestock operations with 
12.29 	preference given to robotic dairy-milking 
12.30 	equipment; assisting value-added agricultural 
12.31 	businesses to begin or expand, to access new 
12.32 	markets, or to diversify, including aquaponics 
12.33 	systems, with preference given to hemp fiber 
12.34 	processing equipment; facilitating the start-up, 
12.35 	modernization, or expansion of other 
13.1 	beginning and transitioning farms, including 
13.2 	by providing loans under Minnesota Statutes, 
13.3 	section 41B.056; sustainable agriculture 
13.4 	on-farm research and demonstration; the 
13.5 	development or expansion of food hubs and 
13.6 	other alternative community-based food 
13.7 	distribution systems; enhancing renewable 
13.8 	energy infrastructure and use; crop research, 
13.9 	including basic and applied turf seed research; 
13.10 	Farm Business Management tuition assistance; 
13.11 	and good agricultural practices and good 
13.12 	handling practices certification assistance. The 
13.13 	commissioner may use up to 6.5 percent of 
13.14 	this appropriation for costs incurred to 
13.15 	administer the program.
13.16 	Of the amount appropriated for the agricultural 
13.17 	growth, research, and innovation program 
13.18 	under Minnesota Statutes, section 41A.12:
13.19 	(1) $1,000,000 the first year ~~and $1,000,000~~ 
13.20 	~~the second year are~~ is for distribution in equal 
13.21 	amounts to each of the state's county fairs to 
13.22 	preserve and promote Minnesota agriculture;
13.23 	(2) $5,750,000 the first year ~~and $5,750,000~~ 
13.24 	~~the second year are~~ is for incentive payments 
13.25 	under Minnesota Statutes, sections 41A.16, 
13.26 	41A.17, 41A.18, and 41A.20. Notwithstanding 
13.27 	Minnesota Statutes, section 16A.28, the first 
13.28 	year appropriation is available until June 30, 
13.29 	2025~~, and the second year appropriation is~~ 
13.30 	~~available until June 30, 2026~~. If this 
13.31 	appropriation exceeds the total amount for 
13.32 	which all producers are eligible in a fiscal 
13.33 	year, the balance of the appropriation is 
13.34 	available for other purposes under this 
13.35 	paragraph~~. The base under this clause is~~ 
14.1 	~~$3,000,000 in fiscal year 2026 and each year~~ 
14.2 	~~thereafter~~;
14.3 	(3) $3,375,000 the first year ~~and $3,375,000~~ 
14.4 	~~the second year are~~ is for grants that enable 
14.5 	retail petroleum dispensers, fuel storage tanks, 
14.6 	and other equipment to dispense biofuels to 
14.7 	the public in accordance with the biofuel 
14.8 	replacement goals established under 
14.9 	Minnesota Statutes, section 239.7911. A retail 
14.10 	petroleum dispenser selling petroleum for use 
14.11 	in spark ignition engines for vehicle model 
14.12 	years after 2000 is eligible for grant money 
14.13 	under this clause if the retail petroleum 
14.14 	dispenser has no more than 10 retail petroleum 
14.15 	dispensing sites and each site is located in 
14.16 	Minnesota. The grant money must be used to 
14.17 	replace or upgrade equipment that does not 
14.18 	have the ability to be certified for E25. A grant 
14.19 	award must not exceed 65 percent of the cost 
14.20 	of the appropriate technology. A grant award 
14.21 	must not exceed $200,000 per station. The 
14.22 	commissioner must cooperate with biofuel 
14.23 	stakeholders in the implementation of the grant 
14.24 	program. The commissioner, in cooperation 
14.25 	with any economic or community development 
14.26 	financial institution and any other entity with 
14.27 	which the commissioner contracts, must 
14.28 	submit a report on the biofuels infrastructure 
14.29 	financial assistance program by January 15 of 
14.30 	each year to the chairs and ranking minority 
14.31 	members of the legislative committees and 
14.32 	divisions with jurisdiction over agriculture 
14.33 	policy and finance. The annual report must 
14.34 	include but not be limited to a summary of the 
14.35 	following metrics: (i) the number and types 
14.36 	of projects financed; (ii) the amount of dollars 
15.1 	leveraged or matched per project; (iii) the 
15.2 	geographic distribution of financed projects; 
15.3 	(iv) any market expansion associated with 
15.4 	upgraded infrastructure; (v) the demographics 
15.5 	of the areas served; (vi) the costs of the 
15.6 	program; and (vii) the number of grants to 
15.7 	minority-owned or female-owned businesses~~.~~ 
15.8 	~~The base under this clause is $3,000,000 for~~ 
15.9 	~~fiscal year 2026 and each year thereafter~~;
15.10 	(4) $1,250,000 the first year ~~and $1,250,000~~ 
15.11 	~~the second year are~~ is for grants to facilitate 
15.12 	the start-up, modernization, or expansion of 
15.13 	meat, poultry, egg, and milk processing 
15.14 	facilities. A grant award under this clause must 
15.15 	not exceed $200,000. Any unencumbered 
15.16 	balance at the end of the second year does not 
15.17 	cancel until June 30, 2026, and may be used 
15.18 	for other purposes under this paragraph~~. The~~ 
15.19 	~~base under this clause is $250,000 in fiscal~~ 
15.20 	~~year 2026 and each year thereafter~~;
15.21 	(5) $1,150,000 the first year ~~and $1,150,000~~ 
15.22 	~~the second year are~~ is for providing more 
15.23 	fruits, vegetables, meat, poultry, grain, and 
15.24 	dairy for children in school and early 
15.25 	childhood education ~~centers~~ settings, 
15.26 	including, at the commissioner's discretion, 
15.27 	providing grants to reimburse schools and 
15.28 	early childhood education ~~centers~~ and child 
15.29 	care providers for purchasing equipment and 
15.30 	agricultural products. Organizations must 
15.31 	participate in the National School Lunch 
15.32 	Program or the Child and Adult Care Food 
15.33 	Program to be eligible. Of the amount 
15.34 	appropriated, $150,000 ~~each year~~ is for a 
15.35 	statewide coordinator of farm-to-institution 
16.1 	strategy and programming. The coordinator 
16.2 	must consult with relevant stakeholders and 
16.3 	provide technical assistance and training for 
16.4 	participating farmers and eligible grant 
16.5 	recipients~~. The base under this clause is~~ 
16.6 	~~$1,294,000 in fiscal year 2026 and each year~~ 
16.7 	~~thereafter~~;
16.8 	~~(6) $4,000,000 the first year is for Dairy~~ 
16.9 	~~Assistance, Investment, Relief Initiative~~ 
16.10 	~~(DAIRI) grants and other forms of financial~~ 
16.11 	~~assistance to Minnesota dairy farms that enroll~~ 
16.12 	~~in coverage under a federal dairy risk~~ 
16.13 	~~protection program and produced no more~~ 
16.14 	~~than 16,000,000 pounds of milk in 2022. The~~ 
16.15 	~~commissioner must make DAIRI payments~~ 
16.16 	~~based on the amount of milk produced in~~ 
16.17 	~~2022, up to 5,000,000 pounds per participating~~ 
16.18 	~~farm, at a rate determined by the commissioner~~ 
16.19 	~~within the limits of available funding. Any~~ 
16.20 	~~unencumbered balance does not cancel at the~~ 
16.21 	~~end of the first year and is available in the~~ 
16.22 	~~second year. Any unencumbered balance at~~ 
16.23 	~~the end of the second year does not cancel~~ 
16.24 	~~until June 30, 2026, and may be used for other~~ 
16.25 	~~purposes under this paragraph. The allocation~~ 
16.26 	~~in this clause is onetime;~~
16.27 	~~(7)~~ (6) $2,000,000 the first year ~~and~~ 
16.28 	~~$2,000,000 the second year are~~ is for urban 
16.29 	youth agricultural education or urban 
16.30 	agriculture community development; ~~and~~
16.31 	~~(8)~~ (7) $1,000,000 the first year ~~and~~ 
16.32 	~~$1,000,000 the second year are~~ is for the good 
16.33 	food access program under Minnesota 
16.34 	Statutes, section 17.1017~~.~~; and
17.1 	(8) $225,000 the first year is to provide grants 
17.2 	to secondary career and technical education 
17.3 	programs for the purpose of offering 
17.4 	instruction in meat cutting and butchery. 
17.5 	Notwithstanding Minnesota Statutes, section 
17.6 	16B.98, subdivision 14, the commissioner may 
17.7 	use up to 6.5 percent of this appropriation for 
17.8 	administrative costs. This is a onetime 
17.9 	appropriation. Grants may be used for costs, 
17.10 	including but not limited to:
17.11 	(i) equipment required for a meat cutting 
17.12 	program;
17.13 	(ii) facility renovation to accommodate meat 
17.14 	cutting; and
17.15 	(iii) training faculty to teach the fundamentals 
17.16 	of meat processing.
17.17 	A grant recipient may be awarded a grant of 
17.18 	up to $75,000 and may use up to ten percent 
17.19 	of the grant for faculty training. Priority may 
17.20 	be given to applicants who are coordinating 
17.21 	with meat cutting and butchery programs at 
17.22 	Minnesota State Colleges and Universities 
17.23 	institutions or with local industry partners.
17.24 	By January 15, 2025, the commissioner must 
17.25 	report to the chairs and ranking minority 
17.26 	members of the legislative committees with 
17.27 	jurisdiction over agriculture finance and 
17.28 	education finance by listing the grants made 
17.29 	under this paragraph by county and noting the 
17.30 	number and amount of grant requests not 
17.31 	fulfilled. The report may include additional 
17.32 	information as determined by the 
17.33 	commissioner, including but not limited to 
17.34 	information regarding the outcomes produced 
18.1 	by these grants. If additional grants are 
18.2 	awarded under this paragraph that were not 
18.3 	covered in the report due by January 15, 2025, 
18.4 	the commissioner must submit an additional 
18.5 	report to the chairs and ranking minority 
18.6 	members of the legislative committees with 
18.7 	jurisdiction over agriculture finance and 
18.8 	education finance regarding all grants issued 
18.9 	under this paragraph by November 1, 2025.
18.10 	Notwithstanding Minnesota Statutes, section 
18.11 	16A.28, any unencumbered balance does not 
18.12 	cancel at the end of the first year and is 
18.13 	available for the second year, and 
18.14 	appropriations encumbered under contract on 
18.15 	or before June 30, 2025, for agricultural 
18.16 	growth, research, and innovation grants are 
18.17 	available until June 30, 2028.
18.18 	(d) $27,457,000 the second year is for the 
18.19 	agricultural growth, research, and innovation 
18.20 	program under Minnesota Statutes, section 
18.21 	41A.12. Except as provided below, the 
18.22 	commissioner may allocate this appropriation 
18.23 	among the following areas: facilitating the 
18.24 	start-up, modernization, improvement, or 
18.25 	expansion of livestock operations, including 
18.26 	beginning and transitioning livestock 
18.27 	operations with preference given to robotic 
18.28 	dairy-milking equipment; assisting 
18.29 	value-added agricultural businesses to begin 
18.30 	or expand, to access new markets, or to 
18.31 	diversify, including aquaponics systems, with 
18.32 	preference given to hemp fiber processing 
18.33 	equipment; facilitating the start-up, 
18.34 	modernization, or expansion of other 
18.35 	beginning and transitioning farms, including 
19.1 	by providing loans under Minnesota Statutes, 
19.2 	section 41B.056; sustainable agriculture 
19.3 	on-farm research and demonstration; the 
19.4 	development or expansion of food hubs and 
19.5 	other alternative community-based food 
19.6 	distribution systems; enhancing renewable 
19.7 	energy infrastructure and use; crop research, 
19.8 	including basic and applied turf seed research; 
19.9 	Farm Business Management tuition assistance; 
19.10 	and good agricultural practices and good 
19.11 	handling practices certification assistance. The 
19.12 	commissioner may use up to 6.5 percent of 
19.13 	this appropriation for costs incurred to 
19.14 	administer the program.
19.15 	Of the amount appropriated for the agricultural 
19.16 	growth, research, and innovation program 
19.17 	under Minnesota Statutes, section 41A.12:
19.18 	(1) $1,000,000 the second year is for 
19.19 	distribution in equal amounts to each of the 
19.20 	state's county fairs to preserve and promote 
19.21 	Minnesota agriculture;
19.22 	(2) $5,750,000 the second year is for incentive 
19.23 	payments under Minnesota Statutes, sections 
19.24 	41A.16, 41A.17, 41A.18, and 41A.20. 
19.25 	Notwithstanding Minnesota Statutes, section 
19.26 	16A.28, this appropriation is available until 
19.27 	June 30, 2027. If this appropriation exceeds 
19.28 	the total amount for which all producers are 
19.29 	eligible in a fiscal year, the balance of the 
19.30 	appropriation is available for other purposes 
19.31 	under this paragraph. The base under this 
19.32 	clause is $3,000,000 in fiscal year 2026 and 
19.33 	each year thereafter;
19.34 	(3) $3,375,000 the second year is for grants 
19.35 	that enable retail petroleum dispensers, fuel 
20.1 	storage tanks, and other equipment to dispense 
20.2 	biofuels to the public in accordance with the 
20.3 	biofuel replacement goals established under 
20.4 	Minnesota Statutes, section 239.7911. A retail 
20.5 	petroleum dispenser selling petroleum for use 
20.6 	in spark ignition engines for vehicle model 
20.7 	years after 2000 is eligible for grant money 
20.8 	under this clause if the retail petroleum 
20.9 	dispenser has no more than ten retail 
20.10 	petroleum dispensing sites and each site is 
20.11 	located in Minnesota. The grant money must 
20.12 	be used to replace or upgrade equipment that 
20.13 	does not have the ability to be certified for 
20.14 	E25. A grant award must not exceed 65 
20.15 	percent of the cost of the appropriate 
20.16 	technology. A grant award must not exceed 
20.17 	$200,000 per station. The commissioner must 
20.18 	cooperate with biofuel stakeholders in the 
20.19 	implementation of the grant program. The 
20.20 	commissioner, in cooperation with any 
20.21 	economic or community development 
20.22 	financial institution and any other entity with 
20.23 	which the commissioner contracts, must 
20.24 	submit a report on the biofuels infrastructure 
20.25 	financial assistance program by January 15 of 
20.26 	each year to the chairs and ranking minority 
20.27 	members of the legislative committees and 
20.28 	divisions with jurisdiction over agriculture 
20.29 	policy and finance. The annual report must 
20.30 	include but not be limited to a summary of the 
20.31 	following metrics: (i) the number and types 
20.32 	of projects financed; (ii) the amount of money 
20.33 	leveraged or matched per project; (iii) the 
20.34 	geographic distribution of financed projects; 
20.35 	(iv) any market expansion associated with 
20.36 	upgraded infrastructure; (v) the demographics 
21.1 	of the areas served; (vi) the costs of the 
21.2 	program; and (vii) the number of grants to 
21.3 	minority-owned or female-owned businesses. 
21.4 	The base under this clause is $3,000,000 for 
21.5 	fiscal year 2026 and each year thereafter;
21.6 	(4) $1,250,000 the second year is for grants 
21.7 	to facilitate the start-up, modernization, or 
21.8 	expansion of meat, poultry, egg, and milk 
21.9 	processing facilities. A grant award under this 
21.10 	clause must not exceed $200,000. Any 
21.11 	unencumbered balance at the end of the second 
21.12 	year does not cancel until June 30, 2027, and 
21.13 	may be used for other purposes under this 
21.14 	paragraph. The base under this clause is 
21.15 	$250,000 in fiscal year 2026 and each year 
21.16 	thereafter;
21.17 	(5) $1,275,000 the second year is for providing 
21.18 	more fruits, vegetables, meat, poultry, grain, 
21.19 	and dairy for children in school and early 
21.20 	childhood education settings, including, at the 
21.21 	commissioner's discretion, providing grants 
21.22 	to reimburse schools and early childhood 
21.23 	education and child care providers for 
21.24 	purchasing equipment and agricultural 
21.25 	products. Organizations must participate in 
21.26 	the National School Lunch Program or the 
21.27 	Child and Adult Care Food Program to be 
21.28 	eligible. Of the amount appropriated, $150,000 
21.29 	is for a statewide coordinator of 
21.30 	farm-to-institution strategy and programming. 
21.31 	The coordinator must consult with relevant 
21.32 	stakeholders and provide technical assistance 
21.33 	and training for participating farmers and 
21.34 	eligible grant recipients. The base under this 
22.1 	clause is $1,294,000 in fiscal year 2026 and 
22.2 	each year thereafter;
22.3 	(6) $4,000,000 the second year is for Dairy 
22.4 	Assistance, Investment, Relief Initiative 
22.5 	(DAIRI) grants and other forms of financial 
22.6 	assistance to Minnesota dairy farms that enroll 
22.7 	in coverage under a federal dairy risk 
22.8 	protection program and produced no more 
22.9 	than 16,000,000 pounds of milk in 2022. The 
22.10 	commissioner must make DAIRI payments 
22.11 	based on the amount of milk produced in 
22.12 	2022, up to 5,000,000 pounds per participating 
22.13 	farm, at a rate determined by the commissioner 
22.14 	within the limits of available funding. Any 
22.15 	unencumbered balance on June 30, 2026, may 
22.16 	be used for other purposes under this 
22.17 	paragraph. The allocation in this clause is 
22.18 	onetime;
22.19 	(7) $2,000,000 the second year is for urban 
22.20 	youth agricultural education or urban 
22.21 	agriculture community development;
22.22 	(8) $1,000,000 the second year is for the good 
22.23 	food access program under Minnesota 
22.24 	Statutes, section 17.1017; and
22.25 	(9) $225,000 the second year is for the 
22.26 	protecting livestock grant program for 
22.27 	producers to support the installation of 
22.28 	measures to prevent the transmission of avian 
22.29 	influenza. For the appropriation in this 
22.30 	paragraph, a grant applicant must document 
22.31 	a cost-share of 20 percent. An applicant's 
22.32 	cost-share amount may be reduced up to 
22.33 	$2,000 to cover time and labor costs. 
22.34 	Notwithstanding Minnesota Statutes, section 
22.35 	16B.98, subdivision 14, the commissioner may 
23.1 	use up to 6.5 percent of this appropriation for 
23.2 	administrative costs. This appropriation is 
23.3 	available until June 30, 2027. This is a onetime 
23.4 	appropriation. Notwithstanding Minnesota 
23.5 	Statutes, section 16A.28, this appropriation 
23.6 	does not cancel at the end of the second year 
23.7 	and is available until June 30, 2027. 
23.8 	Appropriations encumbered under contract on 
23.9 	or before June 30, 2027, for agricultural 
23.10 	growth, research, and innovation grants are 
23.11 	available until June 30, 2030.
23.12 	~~(d)~~ (e) The base for the agricultural growth, 
23.13 	research, and innovation program is 
23.14 	~~$16,294,000~~ $17,582,000 in fiscal year 2026 
23.15 	and each year thereafter and includes $200,000 
23.16 	each year for cooperative development grants.

23.17

23.18

Subd. 5.Administration and Financial 
Assistance

~~16,618,000~~
16,643,000

~~14,287,000~~
14,587,000

23.19 	(a) $474,000 the first year and $474,000 the 
23.20 	second year are for payments to county and 
23.21 	district agricultural societies and associations 
23.22 	under Minnesota Statutes, section 38.02, 
23.23 	subdivision 1. Aid payments to county and 
23.24 	district agricultural societies and associations 
23.25 	must be disbursed no later than July 15 of each 
23.26 	year. These payments are the amount of aid 
23.27 	from the state for an annual fair held in the 
23.28 	previous calendar year.
23.29 	(b) $350,000 the first year and $350,000 the 
23.30 	second year are for grants to the Minnesota 
23.31 	Agricultural Education and Leadership 
23.32 	Council for programs of the council under 
23.33 	Minnesota Statutes, chapter 41D. The base for 
23.34 	this appropriation is $250,000 in fiscal year 
23.35 	2026 and each year thereafter.
24.1 	(c) $2,000 the first year is for a grant to the 
24.2 	Minnesota State Poultry Association. This is 
24.3 	a onetime appropriation. Notwithstanding 
24.4 	Minnesota Statutes, section 16A.28, any 
24.5 	unencumbered balance does not cancel at the 
24.6 	end of the first year and is available for the 
24.7 	second year.
24.8 	(d) $18,000 the first year and $18,000 the 
24.9 	second year are for grants to the Minnesota 
24.10 	Livestock Breeders Association. This is a 
24.11 	onetime appropriation.
24.12 	(e) $60,000 the first year and $60,000 the 
24.13 	second year are for grants to the Northern 
24.14 	Crops Institute that may be used to purchase 
24.15 	equipment. This is a onetime appropriation.
24.16 	(f) $34,000 the first year and $34,000 the 
24.17 	second year are for grants to the Minnesota 
24.18 	State Horticultural Society. This is a onetime 
24.19 	appropriation.
24.20 	(g) $25,000 the first year and $25,000 the 
24.21 	second year are for grants to the Center for 
24.22 	Rural Policy and Development. This is a 
24.23 	onetime appropriation.
24.24 	(h) $75,000 the first year and $75,000 the 
24.25 	second year are appropriated from the general 
24.26 	fund to the commissioner of agriculture for 
24.27 	grants to the Minnesota Turf Seed Council for 
24.28 	basic and applied research on: (1) the 
24.29 	improved production of forage and turf seed 
24.30 	related to new and improved varieties; and (2) 
24.31 	native plants, including plant breeding, 
24.32 	nutrient management, pest management, 
24.33 	disease management, yield, and viability. The 
24.34 	Minnesota Turf Seed Council may subcontract 
25.1 	with a qualified third party for some or all of 
25.2 	the basic or applied research. Any 
25.3 	unencumbered balance does not cancel at the 
25.4 	end of the first year and is available in the 
25.5 	second year. The Minnesota Turf Seed Council 
25.6 	must prepare a report outlining the use of the 
25.7 	grant money and related accomplishments. No 
25.8 	later than January 15, 2025, the council must 
25.9 	submit the report to the chairs and ranking 
25.10 	minority members of the legislative 
25.11 	committees and divisions with jurisdiction 
25.12 	over agriculture finance and policy. This is a 
25.13 	onetime appropriation.
25.14 	(i) $100,000 the first year and $100,000 the 
25.15 	second year are for grants to GreenSeam for 
25.16 	assistance to agriculture-related businesses to 
25.17 	support business retention and development, 
25.18 	business attraction and creation, talent 
25.19 	development and attraction, and regional 
25.20 	branding and promotion. These are onetime 
25.21 	appropriations. No later than December 1, 
25.22 	2024, and December 1, 2025, GreenSeam 
25.23 	must report to the chairs and ranking minority 
25.24 	members of the legislative committees with 
25.25 	jurisdiction over agriculture and rural 
25.26 	development with information on new and 
25.27 	existing businesses supported, number of new 
25.28 	jobs created in the region, new educational 
25.29 	partnerships and programs supported, and 
25.30 	regional branding and promotional efforts.
25.31 	(j) $1,950,000 the first year and $1,950,000 
25.32 	the second year are for grants to Second 
25.33 	Harvest Heartland on behalf of Minnesota's 
25.34 	six Feeding America food banks for the 
25.35 	following purposes:
26.1 	(1) at least $850,000 each year must be 
26.2 	allocated to purchase milk for distribution to 
26.3 	Minnesota's food shelves and other charitable 
26.4 	organizations that are eligible to receive food 
26.5 	from the food banks. Milk purchased under 
26.6 	the grants must be acquired from Minnesota 
26.7 	milk processors and based on low-cost bids. 
26.8 	The milk must be allocated to each Feeding 
26.9 	America food bank serving Minnesota 
26.10 	according to the formula used in the 
26.11 	distribution of United States Department of 
26.12 	Agriculture commodities under The 
26.13 	Emergency Food Assistance Program. Second 
26.14 	Harvest Heartland may enter into contracts or 
26.15 	agreements with food banks for shared funding 
26.16 	or reimbursement of the direct purchase of 
26.17 	milk. Each food bank that receives funding 
26.18 	under this clause may use up to two percent 
26.19 	for administrative expenses. Notwithstanding 
26.20 	Minnesota Statutes, section 16A.28, any 
26.21 	unencumbered balance the first year does not 
26.22 	cancel and is available the second year;
26.23 	(2) to compensate agricultural producers and 
26.24 	processors for costs incurred to harvest and 
26.25 	package for transfer surplus fruits, vegetables, 
26.26 	and other agricultural commodities that would 
26.27 	otherwise go unharvested, be discarded, or be 
26.28 	sold in a secondary market. Surplus 
26.29 	commodities must be distributed statewide to 
26.30 	food shelves and other charitable organizations 
26.31 	that are eligible to receive food from the food 
26.32 	banks. Surplus food acquired under this clause 
26.33 	must be from Minnesota producers and 
26.34 	processors. Second Harvest Heartland may 
26.35 	use up to 15 percent of each grant awarded 
27.1 	under this clause for administrative and 
27.2 	transportation expenses; and
27.3 	(3) to purchase and distribute protein products, 
27.4 	including but not limited to pork, poultry, beef, 
27.5 	dry legumes, cheese, and eggs to Minnesota's 
27.6 	food shelves and other charitable organizations 
27.7 	that are eligible to receive food from the food 
27.8 	banks. Second Harvest Heartland may use up 
27.9 	to two percent of each grant awarded under 
27.10 	this clause for administrative expenses. Protein 
27.11 	products purchased under the grants must be 
27.12 	acquired from Minnesota processors and 
27.13 	producers.
27.14 	Second Harvest Heartland must submit 
27.15 	quarterly reports to the commissioner and the 
27.16 	chairs and ranking minority members of the 
27.17 	legislative committees with jurisdiction over 
27.18 	agriculture finance in the form prescribed by 
27.19 	the commissioner. The reports must include 
27.20 	but are not limited to information on the 
27.21 	expenditure of funds, the amount of milk or 
27.22 	other commodities purchased, and the 
27.23 	organizations to which this food was 
27.24 	distributed. The base for this appropriation is 
27.25 	$1,700,000 for fiscal year 2026 and each year 
27.26 	thereafter.
27.27 	(k) $25,000 the first year and $25,000 the 
27.28 	second year are for grants to the Southern 
27.29 	Minnesota Initiative Foundation to promote 
27.30 	local foods through an annual event that raises 
27.31 	public awareness of local foods and connects 
27.32 	local food producers and processors with 
27.33 	potential buyers.
27.34 	(l) $300,000 the first year and $300,000 the 
27.35 	second year are for grants to The Good Acre 
28.1 	for the Local Emergency Assistance Farmer 
28.2 	Fund (LEAFF) program to compensate 
28.3 	emerging farmers for crops donated to hunger 
28.4 	relief organizations in Minnesota. This is a 
28.5 	onetime appropriation.
28.6 	(m) $750,000 the first year and $750,000 the 
28.7 	second year are to expand the Emerging 
28.8 	Farmers Office and provide services to 
28.9 	beginning and emerging farmers to increase 
28.10 	connections between farmers and market 
28.11 	opportunities throughout the state. This 
28.12 	appropriation may be used for grants, 
28.13 	translation services, training programs, or 
28.14 	other purposes in line with the 
28.15 	recommendations of the Emerging Farmer 
28.16 	Working Group established under Minnesota 
28.17 	Statutes, section 17.055, subdivision 1. The 
28.18 	base for this appropriation is $1,000,000 in 
28.19 	fiscal year 2026 and each year thereafter.
28.20 	(n) $50,000 the first year is to provide 
28.21 	technical assistance and leadership in the 
28.22 	development of a comprehensive and 
28.23 	well-documented state aquaculture plan. The 
28.24 	commissioner must provide the state 
28.25 	aquaculture plan to the legislative committees 
28.26 	with jurisdiction over agriculture finance and 
28.27 	policy by February 15, 2025.
28.28 	(o) $337,000 the first year and $337,000 the 
28.29 	second year are for farm advocate services. 
28.30 	Of these amounts, $50,000 the first year and 
28.31 	$50,000 the second year are for the 
28.32 	continuation of the farmland transition 
28.33 	programs and may be used for grants to 
28.34 	farmland access teams to provide technical 
28.35 	assistance to potential beginning farmers. 
29.1 	Farmland access teams must assist existing 
29.2 	farmers and beginning farmers with 
29.3 	transitioning farm ownership and farm 
29.4 	operation. Services provided by teams may 
29.5 	include but are not limited to mediation 
29.6 	assistance, designing contracts, financial 
29.7 	planning, tax preparation, estate planning, and 
29.8 	housing assistance.
29.9 	(p) $260,000 the first year and $260,000 the 
29.10 	second year are for a pass-through grant to 
29.11 	Region Five Development Commission to 
29.12 	provide, in collaboration with Farm Business 
29.13 	Management, statewide mental health 
29.14 	counseling support to Minnesota farm 
29.15 	operators, families, and employees, and 
29.16 	individuals who work with Minnesota farmers 
29.17 	in a professional capacity. Region Five 
29.18 	Development Commission may use up to 6.5 
29.19 	percent of the grant awarded under this 
29.20 	paragraph for administration.
29.21 	(q) $1,000,000 the first year is for transfer to 
29.22 	the agricultural emergency account established 
29.23 	under Minnesota Statutes, section 17.041.
29.24 	(r) $1,084,000 the first year and $500,000 the 
29.25 	second year are to support IT modernization 
29.26 	efforts, including laying the technology 
29.27 	foundations needed for improving customer 
29.28 	interactions with the department for licensing 
29.29 	and payments. This is a onetime appropriation.
29.30 	(s) $275,000 the first year is for technical 
29.31 	assistance grants to certified community 
29.32 	development financial institutions that 
29.33 	participate in United States Department of 
29.34 	Agriculture loan or grant programs for small 
29.35 	or emerging farmers, including but not limited 
30.1 	to the Increasing Land, Capital, and Market 
30.2 	Access Program. For purposes of this 
30.3 	paragraph, "emerging farmer" has the meaning 
30.4 	given in Minnesota Statutes, section 17.055, 
30.5 	subdivision 1. The commissioner may use up 
30.6 	to 6.5 percent of this appropriation for costs 
30.7 	incurred to administer the program. 
30.8 	Notwithstanding Minnesota Statutes, section 
30.9 	16A.28, any unencumbered balance does not 
30.10 	cancel at the end of the first year and is 
30.11 	available in the second year. This is a onetime 
30.12 	appropriation.
30.13 	(t) $1,425,000 the first year and $1,425,000 
30.14 	the second year are for transfer to the 
30.15 	agricultural and environmental revolving loan 
30.16 	account established under Minnesota Statutes, 
30.17 	section 17.117, subdivision 5a, for low-interest 
30.18 	loans under Minnesota Statutes, section 
30.19 	17.117.
30.20 	(u) $150,000 the first year and $150,000 the 
30.21 	second year are for administrative support for 
30.22 	the Rural Finance Authority.
30.23 	(v) The base in fiscal years 2026 and 2027 is 
30.24 	$150,000 each year to coordinate 
30.25 	climate-related activities and services within 
30.26 	the Department of Agriculture and 
30.27 	counterparts in local, state, and federal 
30.28 	agencies and to hire a full-time climate 
30.29 	implementation coordinator. The climate 
30.30 	implementation coordinator must coordinate 
30.31 	efforts seeking federal funding for Minnesota's 
30.32 	agricultural climate adaptation and mitigation 
30.33 	efforts and develop strategic partnerships with 
30.34 	the private sector and nongovernment 
30.35 	organizations.
31.1 	(w) $1,200,000 the first year and $930,000 the 
31.2 	second year are to maintain the current level 
31.3 	of service delivery. The base for this 
31.4 	appropriation is ~~$1,085,000~~ $1,065,000 in 
31.5 	fiscal year 2026 and ~~$1,085,000~~ $1,065,000
31.6 	in fiscal year 2027 and each year thereafter.
31.7 	(x) $250,000 the first year is for a grant to the 
31.8 	Board of Regents of the University of 
31.9 	Minnesota to purchase equipment for the 
31.10 	Veterinary Diagnostic Laboratory to test for 
31.11 	chronic wasting disease, African swine fever, 
31.12 	avian influenza, and other animal diseases. 
31.13 	The Veterinary Diagnostic Laboratory must 
31.14 	report expenditures under this paragraph to 
31.15 	the legislative committees with jurisdiction 
31.16 	over agriculture finance and higher education 
31.17 	with a report submitted by January 3, 2024, 
31.18 	and a final report submitted by December 31, 
31.19 	2024. The reports must include a list of 
31.20 	equipment purchased, including the cost of 
31.21 	each item.
31.22 	(y) $1,000,000 the first year and $1,000,000 
31.23 	the second year are to award and administer 
31.24 	down payment assistance grants under 
31.25 	Minnesota Statutes, section 17.133, with 
31.26 	priority given to ~~emerging farmers as defined~~ 
31.27 	~~in Minnesota Statutes, section 17.055,~~ 
31.28 	~~subdivision 1~~ eligible applicants with no more 
31.29 	than $100,000 in annual gross farm product 
31.30 	sales and eligible applicants who are producers 
31.31 	of industrial hemp, cannabis, or one or more 
31.32 	of the following specialty crops as defined by 
31.33 	the United States Department of Agriculture 
31.34 	for purposes of the specialty crop block grant 
31.35 	program: fruits and vegetables, tree nuts, dried 
32.1 	fruits, medicinal plants, culinary herbs and 
32.2 	spices, horticulture crops, floriculture crops, 
32.3 	and nursery crops. Notwithstanding Minnesota 
32.4 	Statutes, section 16A.28, any unencumbered 
32.5 	balance at the end of the first year does not 
32.6 	cancel and is available in the second year and 
32.7 	appropriations encumbered under contract by 
32.8 	June 30, 2025, are available until June 30, 
32.9 	2027.
32.10 	(z) $222,000 the first year and $322,000 the 
32.11 	second year are for meat processing training 
32.12 	and retention incentive grants under section 
32.13 	5. The commissioner may use up to 6.5 
32.14 	percent of this appropriation for costs incurred 
32.15 	to administer the program. Notwithstanding 
32.16 	Minnesota Statutes, section 16A.28, any 
32.17 	unencumbered balance does not cancel at the 
32.18 	end of the first year and is available in the 
32.19 	second year. This is a onetime appropriation.
32.20 	(aa) $300,000 the first year and $300,000 the 
32.21 	second year are for transfer to the Board of 
32.22 	Regents of the University of Minnesota to 
32.23 	evaluate, propagate, and maintain the genetic 
32.24 	diversity of oilseeds, grains, grasses, legumes, 
32.25 	and other plants including flax, timothy, 
32.26 	barley, rye, triticale, alfalfa, orchard grass, 
32.27 	clover, and other species and varieties that 
32.28 	were in commercial distribution and use in 
32.29 	Minnesota before 1970, excluding wild rice. 
32.30 	This effort must also protect traditional seeds 
32.31 	brought to Minnesota by immigrant 
32.32 	communities. This appropriation includes 
32.33 	funding for associated extension and outreach 
32.34 	to small and Black, Indigenous, and People of 
33.1 	Color (BIPOC) farmers. This is a onetime 
33.2 	appropriation.
33.3 	(bb) $300,000 the second year is to award and 
33.4 	administer beginning farmer equipment and 
33.5 	infrastructure grants under Minnesota Statutes, 
33.6 	section 17.055. This is a onetime 
33.7 	appropriation.
33.8 	(cc) $25,000 the first year is for the credit 
33.9 	market report. Notwithstanding Minnesota 
33.10 	Statutes, section 16A.28, any unencumbered 
33.11 	balance does not cancel at the end of the first 
33.12 	year and is available in the second year. This 
33.13 	is a onetime appropriation.
33.14 	~~(bb)~~ (dd) The commissioner shall continue to 
33.15 	increase connections with ethnic minority and 
33.16 	immigrant farmers to farming opportunities 
33.17 	and farming programs throughout the state.

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

33.19 	Sec. 2. Laws 2023, chapter 43, article 1, section 4, is amended to read:

33.20

33.21

Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE

$

~~6,143,000~~
6,368,000

$

4,343,000

33.22 	(a) $300,000 the first year is for equipment 
33.23 	upgrades, equipment replacement, installation 
33.24 	expenses, and laboratory infrastructure at the 
33.25 	Agricultural Utilization Research Institute's 
33.26 	laboratories in the cities of Crookston, 
33.27 	Marshall, and Waseca.
33.28 	(b) $1,500,000 the first year is to replace 
33.29 	analytical and processing equipment and make 
33.30 	corresponding facility upgrades at Agricultural 
33.31 	Utilization Research Institute facilities in the 
33.32 	cities of Marshall, Crookston, and Waseca. Of 
33.33 	this amount, up to $500,000 may be used for 
34.1 	renewable natural gas and anaerobic digestion 
34.2 	projects. This is a onetime appropriation and 
34.3 	is available until June 30, 2026.
34.4 	(c) $300,000 the first year and $300,000 the 
34.5 	second year are to maintain the current level 
34.6 	of service delivery.
34.7 	(d) $225,000 the first year is to support food 
34.8 	businesses. This is a onetime appropriation 
34.9 	and is available until June 30, 2026.

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

34.11 	ARTICLE 2
34.12 	AGRICULTURE POLICY

34.13 	Section 1. Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision 
34.14 	to read:
34.15 		Subd. 1a.Definitions. (a) For purposes of this section, the following terms have the 
34.16 	meanings given.
34.17 	(b) "Approved agent" means a person authorized by the Department of Agriculture to 
34.18 	determine if crop or fence damage was caused by elk and to assign a monetary value to the 
34.19 	crop or fence damage.
34.20 	(c) "Commissioner" means the commissioner of agriculture or the commissioner's 
34.21 	authorized representative.
34.22 	(d) "Estimated value" means the current value of crops or fencing as determined by an 
34.23 	approved agent.
34.24 	(e) "Owner" means an individual, firm, corporation, copartnership, or association with 
34.25 	an interest in crops or fencing damaged by elk.

34.26 	Sec. 2. Minnesota Statutes 2022, section 3.7371, subdivision 2, is amended to read:
34.27 		Subd. 2.Claim form and reporting. (a) The owner must prepare a claim on forms 
34.28 	provided by the commissioner and available on the Department of ~~Agriculture's~~ Agriculture
34.29 	website or by request from the commissioner. ~~The claim form must be filed with the~~ 
34.30 	~~commissioner.~~
35.1 	(b) After discovering crop or fence damage suspected to be caused by elk, an owner 
35.2 	must promptly notify an approved agent of the damage. To submit a claim for crop or fence 
35.3 	damage caused by elk, an owner must complete the required portions of the claim form 
35.4 	provided by the commissioner. An owner who has submitted a claim must provide an 
35.5 	approved agent with all information required to investigate the crop or fence damage.

35.6 	Sec. 3. Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision to 
35.7 	read:
35.8 		Subd. 2a.Investigation and crop valuation. (a) Upon receiving notification of crop or 
35.9 	fence damage suspected to be caused by elk, an approved agent must promptly investigate 
35.10 	the damage in a timely manner. An approved agent must make written findings on the claim 
35.11 	form regarding whether the crop or fence was destroyed or damaged by elk. The approved 
35.12 	agent's findings must be based on physical and circumstantial evidence, including:
35.13 	(1) the condition of the crop or fence;
35.14 	(2) the presence of elk tracks;
35.15 	(3) the geographic area of the state where the crop or fence damage occurred;
35.16 	(4) any sightings of elk in the area; and
35.17 	(5) any other circumstances that the approved agent considers to be relevant.
35.18 	(b) The absence of affirmative evidence may be grounds for denial of a claim.
35.19 	(c) On a claim form, an approved agent must make written findings of the extent of crop 
35.20 	or fence damage and, if applicable, the amount of crop destroyed.
35.21 	(d) For damage to standing crops, an owner may choose to have the approved agent use 
35.22 	the method in clause (1) or (2) to complete the claim form and determine the amount of 
35.23 	crop loss:
35.24 	(1) to submit a claim form to the commissioner at the time that the suspected elk damage 
35.25 	is discovered, the approved agent must record on the claim form: (i) the field's potential 
35.26 	yield per acre; (ii) the field's average yield per acre that is expected on the damaged acres; 
35.27 	(iii) the estimated value of the crop; and (iv) the total amount of loss. Upon completing the 
35.28 	claim form, the approved agent must submit the form to the commissioner; or
35.29 	(2) to submit a claim form to the commissioner at the time that the crop is harvested, 
35.30 	the approved agent must record on the claim form at the time of the investigation: (i) the 
35.31 	percent of crop loss from damage; (ii) the actual yield of the damaged field when the crop 
36.1 	is harvested; (iii) the estimated value of the crop; and (iv) the total amount of loss. Upon 
36.2 	completing the claim form, the approved agent must submit the form to the commissioner.
36.3 	(e) For damage to stored crops, an approved agent must record on the claim form: (1) 
36.4 	the type and volume of destroyed stored crops; (2) the estimated value of the crop; and (3) 
36.5 	the total amount of loss.
36.6 	(f) For damage to fencing, an approved agent must record on the claim form: (1) the 
36.7 	type of materials damaged; (2) the linear feet of the damage; (3) the value of the materials 
36.8 	per unit according to National Resource Conservation Service specifications; and (4) the 
36.9 	calculated total damage to the fence.

36.10 	Sec. 4. Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision to 
36.11 	read:
36.12 		Subd. 2b.Claim form. A completed claim form must be signed by the owner and an 
36.13 	approved agent. An approved agent must submit the claim form to the commissioner for 
36.14 	the commissioner's review and payment. The commissioner must return an incomplete claim 
36.15 	form to the approved agent. When returning an incomplete claim form to an approved agent, 
36.16 	the commissioner must indicate which information is missing from the claim form.

36.17 	Sec. 5. Minnesota Statutes 2022, section 3.7371, subdivision 3, is amended to read:
36.18 		Subd. 3.Compensation. (a) ~~The crop~~ An owner is entitled to the ~~target price or the~~ 
36.19 	~~market price, whichever is greater,~~ estimated value of the damaged or destroyed crop ~~plus~~ 
36.20 	~~adjustments for yield loss determined according to agricultural stabilization and conservation~~ 
36.21 	~~service programs for individual farms, adjusted annually, as determined by the commissioner,~~ 
36.22 	~~upon recommendation of the commissioner's approved agent for the owner's county~~ or 
36.23 	fence. Verification of crop or fence damage ~~or destruction~~ by elk may be provided by 
36.24 	submitting photographs or other evidence and documentation ~~together with a statement~~ 
36.25 	~~from an independent witness~~ using forms prescribed by the commissioner. The commissioner, 
36.26 	upon recommendation of the commissioner's approved agent, shall determine whether the 
36.27 	crop damage or destruction or damage to or destruction of a fence surrounding a crop or 
36.28 	pasture is caused by elk and, if so, the amount of the crop or fence that is damaged or 
36.29 	destroyed. In any fiscal year, an owner may not be compensated for a damaged or destroyed 
36.30 	crop or fence surrounding a crop or pasture that is less than $100 in value and may be 
36.31 	compensated up to $20,000, as determined under this section~~, if normal harvest procedures~~ 
36.32 	~~for the area are followed~~. An owner may not be compensated more than $1,800 per fiscal 
36.33 	year for damage to fencing surrounding a crop or pasture.
37.1 	(b) In any fiscal year, the commissioner may provide compensation for claims filed 
37.2 	under this section up to the amount expressly appropriated for this purpose.

37.3 	Sec. 6. Minnesota Statutes 2023 Supplement, section 17.055, subdivision 3, is amended 
37.4 	to read:
37.5 		Subd. 3.Beginning farmer equipment and infrastructure grants. (a) The commissioner 
37.6 	may award and administer equipment and infrastructure grants to beginning farmers. The 
37.7 	commissioner shall give preference to applicants who are ~~emerging farmers~~ experiencing 
37.8 	limited land access or limited market access as those terms are defined in section 17.133, 
37.9 	subdivision 1. Grant money may be used for equipment and infrastructure development.
37.10 	(b) The commissioner shall develop competitive eligibility criteria and may allocate 
37.11 	grants on a needs basis.
37.12 	(c) Grant projects may continue for up to two years.

37.13 	Sec. 7. Minnesota Statutes 2022, section 17.116, subdivision 2, is amended to read:
37.14 		Subd. 2.Eligibility. (a) Grants may ~~only~~ be made to farmers~~,~~and organizations such as 
37.15 	farms, agricultural cooperatives, educational institutions, individuals at educational 
37.16 	institutions, ~~or~~ nonprofit organizations, Tribal governments, or local units of government
37.17 	residing or located in the state for research or demonstrations on farms in the state.
37.18 	(b) Grants may only be made for projects that show:
37.19 	(1) the ability to maximize direct or indirect energy savings or production;
37.20 	(2) a positive effect or reduced adverse effect on the environment; or
37.21 	(3) increased profitability for the individual farm by reducing costs or improving 
37.22 	marketing opportunities.

37.23 	Sec. 8. Minnesota Statutes 2022, section 17.133, subdivision 1, is amended to read:
37.24 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
37.25 	the meanings given.
37.26 	(b) "Eligible farmer" means an individual who at the time that the grant is awarded:
37.27 	(1) is a resident of Minnesota who intends to acquire farmland located within the state 
37.28 	and provide the majority of the day-to-day physical labor and management of the farm;
37.29 	(2) grosses no more than $250,000 per year from the sale of farm products; ~~and~~
38.1 	(3) has not, and whose spouse has not, at any time had a direct or indirect ownership 
38.2 	interest in farmland; and
38.3 	(4) is not, and whose spouse is not, related by blood or marriage to an owner of the 
38.4 	farmland that the individual intends to acquire.
38.5 	(c) "Farm down payment" means an initial, partial payment required by a lender or seller 
38.6 	to purchase farmland.
38.7 	(d) "Incubator farm" means a farm where:
38.8 	(1) individuals are given temporary, exclusive, and affordable access to small parcels 
38.9 	of land, infrastructure, and often training, for the purpose of honing skills and launching a 
38.10 	farm business; and
38.11 	(2) a majority of the individuals farming the small parcels of land grow industrial hemp, 
38.12 	cannabis, or one or more of the following specialty crops as defined by the United States 
38.13 	Department of Agriculture for purposes of the specialty crop block grant program: fruits 
38.14 	and vegetables, tree nuts, dried fruits, medicinal plants, culinary herbs and spices, horticulture 
38.15 	crops, floriculture crops, and nursery crops.
38.16 	(e) "Limited land access" means farming without ownership of land and:
38.17 	(1) the individual or the individual's child rents or leases the land, with the term of each 
38.18 	rental or lease agreement not exceeding three years in duration, from a person who is not 
38.19 	related to the individual or the individual's spouse by blood or marriage; or
38.20 	(2) the individual rents the land from an incubator farm.
38.21 	(f) "Limited market access" means the individual has gross sales of no more than 
38.22 	$100,000 per year from the sale of farm products.

38.23 	Sec. 9. Minnesota Statutes 2023 Supplement, section 17.133, subdivision 3, is amended 
38.24 	to read:
38.25 		Subd. 3.Report to legislature. No later than December 1, 2023, and annually thereafter, 
38.26 	the commissioner must provide a report to the chairs and ranking minority members of the 
38.27 	legislative committees having jurisdiction over agriculture and rural development, in 
38.28 	compliance with sections 3.195 and 3.197, on the farm down payment assistance grants 
38.29 	under this section. The report must include:
38.30 	(1) background information on beginning farmers in Minnesota and any other information 
38.31 	that the commissioner and authority find relevant to evaluating the effect of the grants on 
38.32 	increasing opportunities for and the number of beginning farmers;
39.1 	(2) the number and amount of grants;
39.2 	(3) the geographic distribution of grants by county;
39.3 	(4) the number of grant recipients who are emerging farmers;
39.4 	(5) the number of grant recipients who were experiencing limited land access or limited 
39.5 	market access when the grant was awarded;
39.6 	~~(5)~~ (6) disaggregated data regarding the gender, race, and ethnicity of grant recipients;
39.7 	~~(6)~~ (7) the number of farmers who cease to own land and are subject to payment of a 
39.8 	penalty, along with the reasons for the land ownership cessation; and
39.9 	~~(7)~~ (8) the number and amount of grant applications that exceeded the allocation available 
39.10 	in each year.

39.11 	Sec. 10. Minnesota Statutes 2023 Supplement, section 17.134, subdivision 3, is amended 
39.12 	to read:
39.13 		Subd. 3.Grant eligibility. Any owner or lessee of farmland may apply for a grant under 
39.14 	this section. The commissioner must give preference to owners and lessees that have not 
39.15 	previously implemented an eligible project and owners and lessees that are certified or 
39.16 	assessed and pursuing certification under sections 17.9891 to 17.993. Local government 
39.17 	units, including cities; towns; counties; soil and water conservation districts; Minnesota 
39.18 	Tribal governments as defined in section 10.65; and joint powers boards, are also eligible 
39.19 	for a grant. A local government unit that receives a grant for equipment or technology must 
39.20 	make those purchases available for use by the public.

39.21 	Sec. 11. Minnesota Statutes 2023 Supplement, section 17.134, is amended by adding a 
39.22 	subdivision to read:
39.23 		Subd. 3a.Equipment sales limitation. In addition to the applicable grants management 
39.24 	requirements imposed under sections 16B.97 to 16B.991, an owner or lessee that receives 
39.25 	a grant under this section to purchase equipment must certify to the commissioner that the 
39.26 	owner or lessee will not sell the equipment for at least ten years.

39.27 	Sec. 12. Minnesota Statutes 2023 Supplement, section 17.710, is amended to read:
39.28 	17.710 AGRICULTURAL CONTRACTS.
39.29 	(a) A production or marketing contract entered into, renewed, or amended on or after 
39.30 	July 1, ~~1999~~ 2024, between an agricultural producer and a processor, marketer, or other 
40.1 	purchaser of agricultural products, including a cooperative organized under chapter 308A 
40.2 	or 308B must not contain provisions that prohibit the producer from disclosing terms, 
40.3 	conditions, and prices contained in the contract. Any provision prohibiting disclosure by 
40.4 	the producer is void.
40.5 	(b) A contract entered into, renewed, or amended on or after July 1, 2023, between an 
40.6 	agricultural producer and an entity buying, selling, certifying, or otherwise participating in 
40.7 	a market for stored carbon must not contain provisions that prohibit the producer from 
40.8 	disclosing terms, conditions, and prices contained in the contract. Any provision prohibiting 
40.9 	disclosure by the producer is void.

40.10 	EFFECTIVE DATE. This section is effective July 1, 2024.

40.11 	Sec. 13. Minnesota Statutes 2022, section 18B.01, is amended by adding a subdivision to 
40.12 	read:
40.13 		Subd. 1d.Application or use of a pesticide. "Application or use of a pesticide" includes:
40.14 	(1) the dispersal of a pesticide on, in, at, or directed toward a target site;
40.15 	(2) preapplication activities that involve the mixing and loading of a restricted use 
40.16 	pesticide; and
40.17 	(3) other restricted use pesticide-related activities, including but not limited to transporting 
40.18 	or storing pesticide containers that have been opened; cleaning equipment; and disposing 
40.19 	of excess pesticides, spray mix, equipment wash waters, pesticide containers, and other 
40.20 	materials that contain pesticide.

40.21 	Sec. 14. Minnesota Statutes 2022, section 18B.26, subdivision 6, is amended to read:
40.22 		Subd. 6.Discontinuance or cancellation of registration. (a) To ensure the complete 
40.23 	withdrawal from distribution or further use of a pesticide, a person who intends to discontinue 
40.24 	a pesticide registration must:
40.25 	(1) terminate a further distribution within the state and continue to register the pesticide 
40.26 	annually for two successive years; and
40.27 	(2) initiate and complete a total recall of the pesticide from all distribution in the state 
40.28 	within 60 days from the date of notification to the commissioner of intent to discontinue 
40.29 	registration~~; or~~.
40.30 	~~(3) submit to the commissioner evidence adequate to document that no distribution of~~ 
40.31 	~~the registered pesticide has occurred in the state.~~
41.1 	(b) Upon the request of a registrant, the commissioner may immediately cancel 
41.2 	registration of a pesticide product. The commissioner may immediately cancel registration 
41.3 	of a pesticide product at the commissioner's discretion. When requesting that the 
41.4 	commissioner immediately cancel registration of a pesticide product, a registrant must 
41.5 	provide the commissioner with:
41.6 	(1) a statement that the pesticide product is no longer in distribution; and
41.7 	(2) documentation of pesticide gross sales from the previous year supporting the statement 
41.8 	under clause (1).

41.9 	Sec. 15. Minnesota Statutes 2022, section 18B.28, is amended by adding a subdivision to 
41.10 	read:
41.11 		Subd. 5.Advisory panel. Before approving the issuance of an experimental use pesticide 
41.12 	product registration under this section, the commissioner must convene and consider the 
41.13 	advice of a panel of outside scientific and health experts. The panel must include but is not 
41.14 	limited to representatives of the Department of Health, the Department of Natural Resources, 
41.15 	the Pollution Control Agency, and the University of Minnesota.

41.16 	Sec. 16. Minnesota Statutes 2022, section 18B.305, subdivision 2, is amended to read:
41.17 		Subd. 2.Training manual and examination development. The commissioner, in 
41.18 	consultation with University of Minnesota Extension and other higher education institutions, 
41.19 	shall continually revise and update pesticide applicator training manuals and examinations. 
41.20 	The manuals and examinations must be written to meet or exceed the minimum competency 
41.21 	standards required by the United States Environmental Protection Agency and pertinent 
41.22 	state specific information. Pesticide applicator training manuals and examinations must 
41.23 	meet or exceed the competency standards in Code of Federal Regulations, title 40, part 171. 
41.24 	Competency standards for training manuals and examinations must be published on the 
41.25 	Department of Agriculture website. Questions in the examinations must be determined by 
41.26 	the commissioner in consultation with other responsible agencies. Manuals and examinations 
41.27 	must include pesticide management practices that discuss prevention of pesticide occurrence 
41.28 	in groundwater and surface water of the state, and economic thresholds and guidance for 
41.29 	insecticide use.

41.30 	Sec. 17. Minnesota Statutes 2022, section 18B.32, subdivision 1, is amended to read:
41.31 		Subdivision 1.Requirement. (a) A person may not engage in structural pest control 
41.32 	applications:
42.1 	(1) for hire without a structural pest control license; ~~and~~
42.2 	(2) as a sole proprietorship, company, partnership, or corporation unless the person is 
42.3 	or employs a licensed master in structural pest control operations~~.~~; and
42.4 	(3) unless the person is 18 years of age or older.
42.5 	(b) A structural pest control licensee must have a valid license identification card to 
42.6 	purchase a restricted use pesticide or apply pesticides for hire and must display it upon 
42.7 	demand by an authorized representative of the commissioner or a law enforcement officer. 
42.8 	The license identification card must contain information required by the commissioner.

42.9 	Sec. 18. Minnesota Statutes 2022, section 18B.32, subdivision 3, is amended to read:
42.10 		Subd. 3.Application. (a) A person must apply to the commissioner for a structural pest 
42.11 	control license on forms and in the manner required by the commissioner. The commissioner 
42.12 	shall require the applicant to pass a written, closed-book, monitored examination or oral 
42.13 	examination, or both~~, and may also require a practical demonstration regarding structural~~ 
42.14 	~~pest control~~. The commissioner shall establish the examination procedure, including the 
42.15 	phases and contents of the examination.
42.16 	(b) The commissioner may license a person as a master under a structural pest control 
42.17 	license if the person has the necessary qualifications through knowledge and experience to 
42.18 	properly plan, determine, and supervise the selection and application of pesticides in structural 
42.19 	pest control. To demonstrate the qualifications and become licensed as a master under a 
42.20 	structural pest control license, a person must:
42.21 	(1) pass a closed-book test administered by the commissioner;
42.22 	(2) have direct experience as a licensed journeyman under a structural pest control license 
42.23 	for at least two years by this state or a state with equivalent certification requirements or as 
42.24 	a full-time licensed master in another state with equivalent certification requirements; and
42.25 	(3) show practical knowledge and field experience under clause (2) in the actual selection 
42.26 	and application of pesticides under varying conditions.
42.27 	(c) The commissioner may license a person as a journeyman under a structural pest 
42.28 	control license if the person:
42.29 	(1) has the necessary qualifications in the practical selection and application of pesticides;
42.30 	(2) has passed a closed-book examination given by the commissioner; and
43.1 	(3) is engaged as an employee of or is working under the direction of a person licensed 
43.2 	as a master under a structural pest control license.
43.3 	(d) The commissioner may license a person as a fumigator under a structural pest control 
43.4 	license if the person:
43.5 	(1) has knowledge of the practical selection and application of fumigants;
43.6 	(2) has passed a closed-book examination given by the commissioner; and
43.7 	(3) is licensed by the commissioner as a master or journeyman under a structural pest 
43.8 	control license.

43.9 	Sec. 19. Minnesota Statutes 2022, section 18B.32, subdivision 4, is amended to read:
43.10 		Subd. 4.Renewal. (a) An applicator may apply to renew a structural pest control 
43.11 	applicator license ~~may be renewed~~ on or before the expiration of an existing license subject 
43.12 	to reexamination, attendance at ~~workshops~~ a recertification workshop approved by the 
43.13 	commissioner, or other requirements imposed by the commissioner to provide the applicator 
43.14 	with information regarding changing technology and to help assure a continuing level of 
43.15 	competency and ability to use pesticides safely and properly. A recertification workshop 
43.16 	must meet or exceed the competency standards in Code of Federal Regulations, title 40, 
43.17 	part 171. Competency standards for a recertification workshop must be published on the 
43.18 	Department of Agriculture website. If the commissioner requires an applicator to attend a 
43.19 	recertification workshop and the applicator fails to attend the workshop, the commissioner 
43.20 	may require the applicator to pass a reexamination. The commissioner may require an 
43.21 	additional demonstration of applicator qualification if the applicator has had a license 
43.22 	suspended or revoked or has otherwise had a history of violations of this chapter.
43.23 	(b) If ~~a person~~ an applicator fails to renew a structural pest control license within three 
43.24 	months of its expiration, the ~~person~~ applicator must obtain a structural pest control license 
43.25 	subject to the requirements, procedures, and fees required for an initial license.

43.26 	Sec. 20. Minnesota Statutes 2022, section 18B.32, subdivision 5, is amended to read:
43.27 		Subd. 5.Financial responsibility. (a) ~~A structural pest control license may not be issued~~ 
43.28 	~~unless the applicant furnishes proof of financial responsibility.~~ The commissioner may 
43.29 	suspend or revoke a structural pest control license if an applicator fails to provide proof of 
43.30 	financial responsibility upon the commissioner's request. Financial responsibility may be 
43.31 	demonstrated by:
43.32 	(1) proof of net assets equal to or greater than $50,000; or
44.1 	(2) a performance bond or insurance of a kind and in an amount determined by the 
44.2 	commissioner.
44.3 	(b) The bond or insurance must cover a period of time at least equal to the term of the 
44.4 	~~applicant's~~ applicator's license. The commissioner must immediately suspend the license 
44.5 	of ~~a person~~ an applicator who fails to maintain the required bond or insurance. The 
44.6 	performance bond or insurance policy must contain a provision requiring the insurance or 
44.7 	bonding company to notify the commissioner by ten days before the effective date of 
44.8 	cancellation, termination, or any other change of the bond or insurance. If there is recovery 
44.9 	against the bond or insurance, additional coverage must be secured by the applicator to 
44.10 	maintain financial responsibility equal to the original amount required.
44.11 	(c) An employee of a licensed person is not required to maintain an insurance policy or 
44.12 	bond during the time the employer is maintaining the required insurance or bond.
44.13 	(d) Applications for reinstatement of a license suspended under the provisions of this 
44.14 	section must be accompanied by proof of satisfaction of judgments previously rendered.

44.15 	Sec. 21. Minnesota Statutes 2022, section 18B.33, subdivision 1, is amended to read:
44.16 		Subdivision 1.Requirement. (a) A person may not apply a pesticide for hire without a 
44.17 	commercial applicator license for the appropriate use categories or a structural pest control 
44.18 	license.
44.19 	(b) A commercial applicator licensee must have a valid license identification card to 
44.20 	purchase a restricted use pesticide or apply pesticides for hire and must display it upon 
44.21 	demand by an authorized representative of the commissioner or a law enforcement officer. 
44.22 	The commissioner shall prescribe the information required on the license identification 
44.23 	card.
44.24 	(c) A person licensed under this section is considered qualified and is not required to 
44.25 	verify, document, or otherwise prove a particular need prior to use, except as required by 
44.26 	the federal label.
44.27 	(d) A person who uses a general-use sanitizer or disinfectant for hire in response to 
44.28 	COVID-19 is exempt from the commercial applicator license requirements under this section.
44.29 	(e) A person licensed under this section must be 18 years of age or older.

45.1 	Sec. 22. Minnesota Statutes 2022, section 18B.33, subdivision 5, is amended to read:
45.2 		Subd. 5.Renewal application. (a) ~~A person~~ An applicator must apply to the 
45.3 	commissioner to renew a commercial applicator license. The commissioner may renew a 
45.4 	commercial applicator license accompanied by the application fee, subject to reexamination, 
45.5 	attendance at ~~workshops~~ a recertification workshop approved by the commissioner, or other 
45.6 	requirements imposed by the commissioner to provide the applicator with information 
45.7 	regarding changing technology and to help assure a continuing level of competence and 
45.8 	ability to use pesticides safely and properly. ~~The applicant~~ A recertification workshop must 
45.9 	meet or exceed the competency standards in Code of Federal Regulations, title 40, part 171. 
45.10 	Competency standards for a recertification workshop must be published on the Department 
45.11 	of Agriculture website. Upon the receipt of an applicator's renewal application, the 
45.12 	commissioner may require the applicator to attend a recertification workshop. Depending 
45.13 	on the application category, the commissioner may require an applicator to complete a 
45.14 	recertification workshop once per year, once every two years, or once every three years. If 
45.15 	the commissioner requires an applicator to attend a recertification workshop and the 
45.16 	applicator fails to attend the workshop, the commissioner may require the applicator to pass 
45.17 	a reexamination. An applicator may renew a commercial applicator license within 12 months 
45.18 	after expiration of the license without having to meet initial testing requirements. The 
45.19 	commissioner may require an additional demonstration of applicator qualification if ~~a person~~
45.20 	the applicator has had a license suspended or revoked or has had a history of violations of 
45.21 	this chapter.
45.22 	(b) An ~~applicant~~applicator that meets renewal requirements by reexamination instead 
45.23 	of attending ~~workshops~~ a recertification workshop must pay the equivalent workshop fee 
45.24 	for the reexamination as determined by the commissioner.

45.25 	Sec. 23. Minnesota Statutes 2022, section 18B.33, subdivision 6, is amended to read:
45.26 		Subd. 6.Financial responsibility. (a) ~~A commercial applicator license may not be issued~~ 
45.27 	~~unless the applicant furnishes proof of financial responsibility.~~ The commissioner may 
45.28 	suspend or revoke an applicator's commercial applicator license if the applicator fails to 
45.29 	provide proof of financial responsibility upon the commissioner's request. Financial 
45.30 	responsibility may be demonstrated by: (1) proof of net assets equal to or greater than 
45.31 	$50,000; or (2) by a performance bond or insurance of the kind and in an amount determined 
45.32 	by the commissioner.
45.33 	(b) The bond or insurance must cover a period of time at least equal to the term of the 
45.34 	~~applicant's~~ applicator's license. The commissioner must immediately suspend the license 
46.1 	of ~~a person~~ an applicator who fails to maintain the required bond or insurance. The 
46.2 	performance bond or insurance policy must contain a provision requiring the insurance or 
46.3 	bonding company to notify the commissioner by ten days before the effective date of 
46.4 	cancellation, termination, or any other change of the bond or insurance. If there is recovery 
46.5 	against the bond or insurance, additional coverage must be secured by the applicator to 
46.6 	maintain financial responsibility equal to the original amount required.
46.7 	(c) An employee of a licensed ~~person~~ applicator is not required to maintain an insurance 
46.8 	policy or bond during the time the employer is maintaining the required insurance or bond.
46.9 	(d) Applications for reinstatement of a license suspended under the provisions of this 
46.10 	section must be accompanied by proof of satisfaction of judgments previously rendered.

46.11 	Sec. 24. Minnesota Statutes 2022, section 18B.34, subdivision 1, is amended to read:
46.12 		Subdivision 1.Requirement. (a) Except for a licensed commercial applicator, certified 
46.13 	private applicator, or licensed structural pest control applicator, a person, including a 
46.14 	government employee, may not purchase or use a restricted use pesticide in performance 
46.15 	of official duties without having a noncommercial applicator license for an appropriate use 
46.16 	category.
46.17 	(b) A licensee must have a valid license identification card when applying pesticides 
46.18 	and must display it upon demand by an authorized representative of the commissioner or a 
46.19 	law enforcement officer. The license identification card must contain information required 
46.20 	by the commissioner.
46.21 	(c) A person licensed under this section is considered qualified and is not required to 
46.22 	verify, document, or otherwise prove a particular need prior to use, except as required by 
46.23 	the federal label.
46.24 	(d) A person licensed under this section must be 18 years of age or older.

46.25 	Sec. 25. Minnesota Statutes 2022, section 18B.34, subdivision 4, is amended to read:
46.26 		Subd. 4.Renewal. (a) ~~A person~~ An applicator must apply to the commissioner to renew 
46.27 	a noncommercial applicator license. The commissioner may renew a license subject to 
46.28 	reexamination, attendance at ~~workshops~~ a recertification workshop approved by the 
46.29 	commissioner, or other requirements imposed by the commissioner to provide the applicator 
46.30 	with information regarding changing technology and to help assure a continuing level of 
46.31 	competence and ability to use pesticides safely and properly. A recertification workshop 
46.32 	must meet or exceed the competency standards in Code of Federal Regulations, title 40, 
47.1 	part 171. Competency standards for a recertification website must be published on the 
47.2 	Department of Agriculture website. Upon the receipt of an applicator's renewal application, 
47.3 	the commissioner may require the applicator to attend a recertification workshop. Depending 
47.4 	on the application category, the commissioner may require an applicator to complete a 
47.5 	recertification workshop once per year, once every two years, or once every three years. If 
47.6 	the commissioner requires an applicator to attend a recertification workshop and the 
47.7 	applicator fails to attend the workshop, the commissioner may require the applicator to pass 
47.8 	a reexamination. The commissioner may require an additional demonstration of applicator 
47.9 	qualification if the applicator has had a license suspended or revoked or has otherwise had 
47.10 	a history of violations of this chapter.
47.11 	(b) An ~~applicant~~ applicator that meets renewal requirements by reexamination instead 
47.12 	of attending ~~workshops~~ a recertification workshop must pay the equivalent workshop fee 
47.13 	for the reexamination as determined by the commissioner.
47.14 	(c) An ~~applicant~~ applicator has 12 months to renew the license after expiration without 
47.15 	having to meet initial testing requirements.

47.16 	Sec. 26. Minnesota Statutes 2022, section 18B.35, subdivision 1, is amended to read:
47.17 		Subdivision 1.Establishment. (a) The commissioner may establish categories of 
47.18 	structural pest control, commercial applicator, ~~and~~ noncommercial applicator licenses ~~for~~ 
47.19 	~~administering and enforcing this chapter.~~, and private applicator certification consistent 
47.20 	with federal requirements in Code of Federal Regulations, title 40, sections 171.101 and 
47.21 	171.105, including but not limited to the federal categories that are applicable to the state. 
47.22 	Application categories must meet or exceed the competency standards in Code of Federal 
47.23 	Regulations, title 40, part 171. Competency standards for application categories must be 
47.24 	published on the Department of Agriculture website. The categories may include pest control 
47.25 	operators and ornamental, agricultural, aquatic, forest, and right-of-way pesticide applicators. 
47.26 	Separate subclassifications of categories may be specified as to ground, aerial, or manual 
47.27 	methods to apply pesticides or to the use of pesticides to control insects, plant diseases, 
47.28 	rodents, or weeds.
47.29 	(b) Each category is subject to separate testing procedures and requirements.

47.30 	Sec. 27. Minnesota Statutes 2022, section 18B.36, subdivision 1, is amended to read:
47.31 		Subdivision 1.Requirement. (a) Except for a licensed commercial or noncommercial 
47.32 	applicator, only a certified private applicator may use a restricted use pesticide to produce 
47.33 	an agricultural commodity:
48.1 	(1) as a traditional exchange of services without financial compensation;
48.2 	(2) on a site owned, rented, or managed by the person or the person's employees; or
48.3 	(3) when the private applicator is one of two or fewer employees and the owner or 
48.4 	operator is a certified private applicator or is licensed as a noncommercial applicator.
48.5 	(b) A person may not purchase a restricted use pesticide without presenting a license 
48.6 	card, certified private applicator card, or the card number.
48.7 	(c) A person certified under this section is considered qualified and is not required to 
48.8 	verify, document, or otherwise prove a particular need prior to use, except as required by 
48.9 	the federal label.
48.10 	(d) A person certified under this section must be 18 years of age or older.

48.11 	Sec. 28. Minnesota Statutes 2022, section 18B.36, subdivision 2, is amended to read:
48.12 		Subd. 2.Certification. (a) The commissioner shall prescribe certification requirements 
48.13 	and provide training that meets or exceeds United States Environmental Protection Agency 
48.14 	standards to certify private applicators and provide information relating to changing 
48.15 	technology to help ensure a continuing level of competency and ability to use pesticides 
48.16 	properly and safely. Private applicator certification requirements and training must meet or 
48.17 	exceed the competency standards in Code of Federal Regulations, title 40, part 171. 
48.18 	Competency standards for private applicator certification and training must be published 
48.19 	on the Department of Agriculture website. The training may be done through cooperation 
48.20 	with other government agencies and must be a minimum of three hours in duration.
48.21 	(b) A person must apply to the commissioner for certification as a private applicator. 
48.22 	After completing the certification requirements, which must include ~~an~~ a proctored
48.23 	examination as determined by the commissioner, an applicant must be certified as a private 
48.24 	applicator to use restricted use pesticides. The certification shall expire March 1 of the third 
48.25 	calendar year after the initial year of certification.
48.26 	(c) The commissioner shall issue a private applicator card to a private applicator.

48.27 	Sec. 29. Minnesota Statutes 2022, section 18B.37, subdivision 2, is amended to read:
48.28 		Subd. 2.Commercial and noncommercial applicators. (a) A commercial or 
48.29 	noncommercial applicator~~,~~ or the applicator's authorized agent~~,~~ must maintain a record of 
48.30 	pesticides used on each site. Noncommercial applicators must keep records of restricted 
48.31 	use pesticides. The record must include the:
49.1 	(1) date of the pesticide use;
49.2 	(2) time the pesticide application was completed;
49.3 	(3) brand name of the pesticide, the United States Environmental Protection Agency 
49.4 	registration number, and rate used;
49.5 	(4) number of units treated;
49.6 	(5) temperature, wind speed, and wind direction;
49.7 	(6) location of the site where the pesticide was applied;
49.8 	(7) name and address of the customer;
49.9 	(8) name of applicator, name of company, license number of applicator, and address of 
49.10 	applicator company; and
49.11 	(9) any other information required by the commissioner.
49.12 	(b) Portions of records not relevant to a specific type of application may be omitted upon 
49.13 	approval from the commissioner.
49.14 	(c) All information for this record requirement must be contained in a document for each 
49.15 	pesticide application, except a map may be attached to identify treated areas. An invoice 
49.16 	containing the required information may constitute the required record. The commissioner 
49.17 	shall make sample forms available to meet the requirements of this paragraph.
49.18 	(d) The record must be completed no later than five days after the application of the 
49.19 	pesticide.
49.20 	(e) A commercial applicator must give a copy of the record to the customer.
49.21 	(f) Records must be retained by the applicator, company, or authorized agent for five 
49.22 	years after the date of treatment.
49.23 	(g) A record of a commercial or noncommercial applicator must meet or exceed the 
49.24 	requirements in Code of Federal Regulations, title 40, part 171.

49.25 	Sec. 30. Minnesota Statutes 2022, section 18B.37, subdivision 3, is amended to read:
49.26 		Subd. 3.Structural pest control applicators. (a) A structural pest control applicator 
49.27 	must maintain a record of each structural pest control application conducted by that person 
49.28 	or by the person's employees. The record must include the:
49.29 	(1) date of structural pest control application;
49.30 	(2) target pest;
50.1 	(3) brand name of the pesticide, United States Environmental Protection Agency 
50.2 	registration number, and amount used;
50.3 	(4) for fumigation, the temperature and exposure time;
50.4 	(5) time the pesticide application was completed;
50.5 	(6) name and address of the customer;
50.6 	(7) name of structural pest control applicator, name of company and address of applicator 
50.7 	or company, and license number of applicator; and
50.8 	(8) any other information required by the commissioner.
50.9 	(b) All information for this record requirement must be contained in a document for 
50.10 	each pesticide application. An invoice containing the required information may constitute 
50.11 	the record.
50.12 	(c) The record must be completed no later than five days after the application of the 
50.13 	pesticide.
50.14 	(d) Records must be retained for five years after the date of treatment.
50.15 	(e) A copy of the record must be given to a person who ordered the application that is 
50.16 	present at the site where the structural pest control application is conducted, placed in a 
50.17 	conspicuous location at the site where the structural pest control application is conducted 
50.18 	immediately after the application of the pesticides, or delivered to the person who ordered 
50.19 	an application or the owner of the site. The commissioner must make sample forms available 
50.20 	that meet the requirements of this subdivision.
50.21 	(f) A structural applicator must post in a conspicuous place inside a renter's apartment 
50.22 	where a pesticide application has occurred a list of postapplication precautions contained 
50.23 	on the label of the pesticide that was applied in the apartment and any other information 
50.24 	required by the commissioner.
50.25 	(g) A record of a structural applicator must meet or exceed the requirements in Code of 
50.26 	Federal Regulations, title 40, part 171.

50.27 	Sec. 31. Minnesota Statutes 2022, section 18C.005, is amended by adding a subdivision 
50.28 	to read:
50.29 		Subd. 1c.Beneficial substance. "Beneficial substance" means any substance or 
50.30 	compound other than a primary, secondary, and micro plant nutrient, and excluding 
51.1 	pesticides, that can be demonstrated by scientific research to be beneficial to one or more 
51.2 	species of plants, soil, or media.

51.3 	Sec. 32. Minnesota Statutes 2022, section 18C.005, subdivision 33, is amended to read:
51.4 		Subd. 33.Soil amendment. "Soil amendment" means a substance intended to improve 
51.5 	the structural, physical, chemical, biochemical, or biological characteristics of the soil or 
51.6 	modify organic matter at or near the soil surface, except fertilizers, agricultural liming 
51.7 	materials, pesticides, and other materials exempted by the commissioner's rules.

51.8 	Sec. 33. Minnesota Statutes 2022, section 18C.115, subdivision 2, is amended to read:
51.9 		Subd. 2.Adoption of national standards. Applicable national standards contained in 
51.10 	the ~~1996 official publication, number 49,~~ most recently published version of the official 
51.11 	publication of the Association of American Plant Food Control Officials including the rules 
51.12 	and regulations, statements of uniform interpretation and policy, and the official fertilizer 
51.13 	terms and definitions, and not otherwise adopted by the commissioner, may be adopted as 
51.14 	fertilizer rules of this state.

51.15 	Sec. 34. Minnesota Statutes 2022, section 18C.215, subdivision 1, is amended to read:
51.16 		Subdivision 1.Packaged fertilizers. (a) A person may not sell or distribute specialty 
51.17 	fertilizer in bags or other containers in this state unless a label is placed on or affixed to the 
51.18 	bag or container stating in a clear, legible, and conspicuous form the following information:
51.19 	(1) the net weight and volume, if applicable;
51.20 	(2) the brand and grade, except the grade is not required if primary nutrients are not 
51.21 	claimed;
51.22 	(3) the guaranteed analysis;
51.23 	(4) the name and address of the guarantor;
51.24 	(5) directions for use, except directions for use are not required for custom blend specialty 
51.25 	fertilizers; and
51.26 	(6) a derivatives statement.
51.27 	(b) A person may not sell or distribute fertilizer for agricultural purposes in bags or other 
51.28 	containers in this state unless a label is placed on or affixed to the bag or container stating 
51.29 	in a clear, legible, and conspicuous form the information listed in paragraph (a), clauses (1) 
51.30 	to (4), except:
52.1 	(1) the grade is not required if primary nutrients are not claimed; and
52.2 	(2) the grade on the label is optional if the fertilizer is used only for agricultural purposes 
52.3 	and the guaranteed analysis statement is shown in the complete form as in section 18C.211.
52.4 	(c) The labeled information must appear:
52.5 	(1) on the front or back side of the container;
52.6 	(2) on the upper one-third of the side of the container;
52.7 	(3) on the upper end of the container; or
52.8 	(4) printed on a tag affixed to the upper end of the container.
52.9 	(d) If a person sells a custom blend specialty fertilizer in bags or other containers, the 
52.10 	information required in paragraph (a) must either be affixed to the bag or container as 
52.11 	required in paragraph (c) or be furnished to the customer on an invoice or delivery ticket 
52.12 	in written or printed form.

52.13 	Sec. 35. Minnesota Statutes 2022, section 18C.221, is amended to read:
52.14 	18C.221 FERTILIZER PLANT FOOD CONTENT.
52.15 	(a) Products that are deficient in plant food content are subject to this subdivision.
52.16 	(b) An analysis must show that a fertilizer is deficient:
52.17 	(1) in one or more of its guaranteed primary plant nutrients beyond the investigational 
52.18 	allowances and compensations as established by regulation; or
52.19 	(2) if the overall index value of the fertilizer is shown below the level established by 
52.20 	rule.
52.21 	(c) A deficiency in an official sample of mixed fertilizer resulting from nonuniformity 
52.22 	is not distinguishable from a deficiency due to actual plant nutrient shortage and is properly 
52.23 	subject to official action.
52.24 	(d) For the purpose of determining the commercial index value to be applied, the 
52.25 	commissioner shall determine at least annually the values per unit of nitrogen, available 
52.26 	~~phosphoric acid~~ phosphate, and soluble potash in fertilizers in this state.
52.27 	(e) If a fertilizer in the possession of the consumer is found by the commissioner to be 
52.28 	short in weight, the registrant or licensee of the fertilizer must submit a penalty payment of 
52.29 	two times the value of the actual shortage to the consumer within 30 days after official 
52.30 	notice from the commissioner.

53.1 	Sec. 36. Minnesota Statutes 2023 Supplement, section 18C.425, subdivision 6, is amended 
53.2 	to read:
53.3 		Subd. 6.Payment of inspection fee. (a) The person who registers and distributes in the 
53.4 	state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall 
53.5 	pay the inspection fee to the commissioner.
53.6 	(b) The person licensed under section 18C.415 who distributes a fertilizer to a person 
53.7 	not required to be so licensed shall pay the inspection fee to the commissioner, except as 
53.8 	exempted under section 18C.421, subdivision 1, paragraph (b).
53.9 	(c) The person responsible for payment of the inspection fees for fertilizers, soil 
53.10 	amendments, or plant amendments sold and used in this state must pay the inspection fee 
53.11 	set under paragraph (e), and until June 30, ~~2024~~ 2029, an additional 40 cents per ton, of 
53.12 	fertilizer, soil amendment, and plant amendment sold or distributed in this state, with a 
53.13 	minimum of $10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner 
53.14 	must deposit all revenue from the additional 40 cents per ton fee in the agricultural fertilizer 
53.15 	research and education account in section 18C.80. Products sold or distributed to 
53.16 	manufacturers or exchanged between them are exempt from the inspection fee imposed by 
53.17 	this subdivision if the products are used exclusively for manufacturing purposes.
53.18 	(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant 
53.19 	amendment, or soil amendment distribution amounts and inspection fees paid for a period 
53.20 	of three years.
53.21 	(e) By commissioner's order, the commissioner must set the inspection fee at no less 
53.22 	than 39 cents per ton and no more than 70 cents per ton. The commissioner must hold a 
53.23 	public meeting before increasing the fee by more than five cents per ton.

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

53.25 	Sec. 37. Minnesota Statutes 2022, section 18C.70, subdivision 1, is amended to read:
53.26 		Subdivision 1.Establishment; membership. (a) The Minnesota Agricultural Fertilizer 
53.27 	Research and Education Council is established. The council is composed of ~~12~~ 15 voting 
53.28 	members as follows:
53.29 	(1) ~~two members~~ one member of the Minnesota Crop Production Retailers;
53.30 	(2) one member of the Minnesota Corn Growers Association;
53.31 	(3) one member of the Minnesota Soybean Growers Association;
53.32 	(4) one member of the sugar beet growers industry;
54.1 	(5) one member of the Minnesota Association of Wheat Growers;
54.2 	(6) one member of the potato growers industry;
54.3 	(7) one member of the Minnesota Farm Bureau;
54.4 	(8) one member of the Minnesota Farmers Union;
54.5 	(9) one member from the Minnesota Irrigators Association;
54.6 	(10) one member of the Minnesota Grain and Feed Association; ~~and~~
54.7 	(11) one member of the Minnesota Independent Crop Consultant Association or the 
54.8 	Minnesota certified crop advisor program;
54.9 	(12) one member representing the Minnesota Institute for Sustainable Agriculture;
54.10 	(13) one member of the Minnesota Soil Health Coalition;
54.11 	(14) one member who is an expert in public health; and
54.12 	(15) one member who is an expert in water quality and has performed scientific research 
54.13 	on water issues.
54.14 	(b) Council members shall serve three-year terms. After the initial council is appointed, 
54.15 	subsequent appointments must be staggered so that one-third of council membership is 
54.16 	replaced each year. Council members must be ~~nominated by their organizations and~~ appointed 
54.17 	by the commissioner and, except for the members specified under paragraph (a), clauses 
54.18 	(14) and (15), nominated by their organizations. The council may add ex officio members 
54.19 	at its discretion. The council must meet at least once per year, with all related expenses 
54.20 	reimbursed by members' sponsoring organizations or by the members themselves.

54.21 	Sec. 38. Minnesota Statutes 2022, section 18C.70, subdivision 5, is amended to read:
54.22 		Subd. 5.Expiration. This section expires June 30, ~~2025~~ 2030.

54.23 	Sec. 39. Minnesota Statutes 2022, section 18C.71, subdivision 1, is amended to read:
54.24 		Subdivision 1.Eligible projects. Eligible project activities include research, education, 
54.25 	and technology transfer related to the production and application of fertilizer, soil 
54.26 	amendments, and other plant amendments, regenerative agriculture, and the protection of 
54.27 	clean water. Chosen projects must contain a component of outreach that achieves a timely 
54.28 	dissemination of findings and their applicability to the production agricultural community 
54.29 	or metropolitan fertilizer users.

55.1 	Sec. 40. Minnesota Statutes 2022, section 18C.71, is amended by adding a subdivision to 
55.2 	read:
55.3 		Subd. 1a.Priorities and guidance. The council must develop or update research priorities 
55.4 	and request guidance related to:
55.5 	(1) the availability of nitrogen by manure type and livestock species based on 
55.6 	management; and
55.7 	(2) manure management and fertilizer best management practices for areas where surface 
55.8 	water or groundwater are vulnerable to nitrate losses, including the adjustment of practices 
55.9 	based on vulnerability such as coarse textured soils, soils with shallow bedrock, and karst 
55.10 	geology.

55.11 	Sec. 41. Minnesota Statutes 2022, section 18C.71, subdivision 2, is amended to read:
55.12 		Subd. 2.Awarding grants. Applications for program grants must be submitted in the 
55.13 	form prescribed by the Minnesota Agricultural Fertilizer Research and Education Council. 
55.14 	Applications must be submitted on or before the deadline prescribed by the council. All 
55.15 	applications are subject to a thorough in-state review by a peer committee established and 
55.16 	approved by the council. Each project meeting the basic qualifications is subject to a yes 
55.17 	or no vote by each council member. Projects chosen to receive funding must achieve an 
55.18 	affirmative vote from at least ~~eight~~ ten of the ~~12~~ 15 council members or two-thirds of voting 
55.19 	members present. Projects awarded program funds must submit an annual progress report 
55.20 	in the form prescribed by the council.

55.21 	Sec. 42. Minnesota Statutes 2022, section 18C.71, subdivision 4, is amended to read:
55.22 		Subd. 4.Expiration. This section expires June 30, ~~2025~~ 2030.

55.23 	Sec. 43. Minnesota Statutes 2022, section 18C.80, subdivision 2, is amended to read:
55.24 		Subd. 2.Expiration. This section expires June 30, ~~2025~~ 2030.

55.25 	Sec. 44. Minnesota Statutes 2022, section 18D.301, subdivision 1, is amended to read:
55.26 		Subdivision 1.Enforcement required. (a) The commissioner shall enforce this chapter 
55.27 	and chapters 18B, 18C, and 18F.
55.28 	(b) Violations of chapter 18B, 18C, or 18F or rules adopted under chapter 18B, 18C, or 
55.29 	18F, or section 103H.275, subdivision 2, are a violation of this chapter.
56.1 	(c) Upon the request of the commissioner, county attorneys, sheriffs, and other officers 
56.2 	having authority in the enforcement of the general criminal laws shall take action to the 
56.3 	extent of their authority necessary or proper for the enforcement of this chapter or special 
56.4 	orders, standards, stipulations, and agreements of the commissioner.

56.5 	Sec. 45. Minnesota Statutes 2023 Supplement, section 18K.06, is amended to read:
56.6 	18K.06 RULEMAKING.
56.7 	(a) The commissioner ~~shall adopt rules governing the production, testing, processing,~~ 
56.8 	~~and licensing of industrial hemp. Notwithstanding the two-year limitation for exempt rules~~ 
56.9 	~~under section 14.388, subdivision 1, Minnesota Rules, chapter 1565, published in the State~~ 
56.10 	~~Register on August 16, 2021, is effective until August 16, 2025, or until permanent rules~~ 
56.11 	~~implementing chapter 18K are adopted, whichever occurs first~~ may adopt or amend rules 
56.12 	governing the production, testing, processing, and licensing of industrial hemp using the 
56.13 	procedure in section 14.386, paragraph (a). Section 14.386, paragraph (b), does not apply 
56.14 	to rules adopted or amended under this section.
56.15 	(b) Rules adopted under paragraph (a) must include but not be limited to provisions 
56.16 	governing:
56.17 	(1) the supervision and inspection of industrial hemp during its growth and harvest;
56.18 	(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;
56.19 	(3) the use of background check results required under section 18K.04 to approve or 
56.20 	deny a license application; and
56.21 	(4) any other provision or procedure necessary to carry out the purposes of this chapter.
56.22 	(c) Rules issued under this section must be consistent with federal law regarding the 
56.23 	production, distribution, and sale of industrial hemp.

56.24 	Sec. 46. Minnesota Statutes 2022, section 28A.10, is amended to read:
56.25 	28A.10 POSTING OF LICENSE; RULES.
56.26 	All such licenses shall be issued for a period of one year and shall be posted or displayed 
56.27 	in a conspicuous place at the place of business so licensed. ~~Except as provided in sections~~ 
56.28 	~~29.22, subdivision 4 and 31.39, all such license fees and penalties collected by the~~ 
56.29 	~~commissioner shall be deposited into the state treasury and credited to the general fund.~~
56.30 	The commissioner may adopt such rules in conformity with law as the commissioner deems 
56.31 	necessary to effectively and efficiently carry out the provisions of sections 28A.01 to 28A.16.

57.1 	Sec. 47. Minnesota Statutes 2022, section 28A.151, subdivision 1, is amended to read:
57.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
57.3 	the meanings given them.
57.4 	(b) "Farmers' market" means an association of three or more persons who assemble at 
57.5 	a defined location that is open to the public for the purpose of selling ~~directly to the consumer~~ 
57.6 	~~the~~ products of a farm or garden occupied and cultivated by the person selling the product.
57.7 	(c) "Food product sampling" means distributing to individuals at a farmers' market or 
57.8 	community event, for promotional or educational purposes, small portions of a food item 
57.9 	that include as a main ingredient a product sold by the vendor ~~at the farmers' market or~~ 
57.10 	~~community event~~. For purposes of this subdivision, "small portion" means a portion that is 
57.11 	no more than three ounces of food or beverage.
57.12 	(d) "Food product demonstration" means cooking or preparing food products to distribute 
57.13 	to individuals at a farmers' market or community event for promotional or educational 
57.14 	purposes.

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

57.16 	Sec. 48. Minnesota Statutes 2022, section 28A.151, subdivision 2, is amended to read:
57.17 		Subd. 2.Food sampling and demonstration. (a) Food used in sampling and 
57.18 	demonstration must be obtained from sources that comply with Minnesota Food Law.
57.19 	(b) Raw animal, raw poultry, and raw fish products must not be served as samples.
57.20 	(c) Food product sampling or food product demonstrations, including cooked animal, 
57.21 	poultry, or fish products, must be prepared on site at the event.
57.22 	(d) Animal or poultry products used for food product sampling or food product 
57.23 	demonstrations must be from animals slaughtered under continuous inspection, either by 
57.24 	the USDA or through Minnesota's "Equal-to" inspection program.
57.25 	(e) The licensing provisions of sections 28A.01 to 28A.16 shall not apply to persons 
57.26 	engaged in food product sampling or food product demonstrations.

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

58.1 	Sec. 49. Minnesota Statutes 2022, section 28A.151, subdivision 3, is amended to read:
58.2 		Subd. 3.Food required to be provided at no cost. Food provided through food product 
58.3 	sampling or food product demonstrations must be provided at no cost to the individual
58.4 	recipient of a sample.

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

58.6 	Sec. 50. Minnesota Statutes 2022, section 28A.151, subdivision 5, is amended to read:
58.7 		Subd. 5.Food safety and equipment standards. (a) Any person conducting food 
58.8 	product sampling or food product demonstrations shall meet the same food safety and 
58.9 	equipment standards that are required of a special event food stand in Minnesota Rules, 
58.10 	parts 4626.1855, items B to O, Q, and R; and 4626.0330.
58.11 	(b) Notwithstanding paragraph (a), a handwashing device is not required when only 
58.12 	prepackaged food samples are offered.

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

58.14 	Sec. 51. Minnesota Statutes 2022, section 28A.151, is amended by adding a subdivision 
58.15 	to read:
58.16 		Subd. 7.Signage. A food product provided through food product sampling or food 
58.17 	product demonstrations must be accompanied by a legible sign or placard that lists the 
58.18 	product's ingredients and major food allergens.

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

58.20 	Sec. 52. Minnesota Statutes 2022, section 28A.21, subdivision 6, is amended to read:
58.21 		Subd. 6.Expiration.  This section expires June 30, ~~2027~~ 2037.

58.22 	Sec. 53. Minnesota Statutes 2022, section 31.74, is amended to read:
58.23 	31.74 ~~SALE OF IMITATION~~ HONEY.
58.24 		Subdivision 1.Honey defined. As used in this section "honey" means the nectar and 
58.25 	saccharine exudation of plants, gathered, modified and stored in the comb by honey bees, 
58.26 	which is levorotatory, contains not more than 25 percent of water, not more than 25/100 
58.27 	percent of ash, and not more than eight percent sucrose.
58.28 		Subd. 2.Prohibited sale. Notwithstanding any law or rule to the contrary, it is unlawful 
58.29 	for any person to sell or offer for sale any product which is in semblance of honey and which 
59.1 	is labeled, advertised, or otherwise represented to be honey, if it is not honey. The word 
59.2 	"imitation" shall not be used in the name of a product which is in semblance of honey 
59.3 	whether or not it contains any honey. The label for a product which is not in semblance of 
59.4 	honey and which contains honey may include the word "honey" in the name of the product 
59.5 	and the relative position of the word "honey" in the product name, and in the list of 
59.6 	ingredients, when required, shall be determined by its prominence as an ingredient in the 
59.7 	product.
59.8 		Subd. 4.Food consisting of honey and another sweetener. Consistent with the federal 
59.9 	act, the federal regulations incorporated under section 31.101, subdivision 7, and the 
59.10 	prohibition against misbranding in sections 31.02 and 34A.03, the label for a food in 
59.11 	semblance of honey and consisting of honey and another sweetener must include but is not 
59.12 	limited to the following elements:
59.13 	(1) a statement of identity that accurately identifies or describes the nature of the food 
59.14 	or its characterizing properties or ingredients; and
59.15 	(2) the common or usual name of each ingredient in the ingredient statement, in 
59.16 	descending order of predominance by weight.

59.17 	Sec. 54. Minnesota Statutes 2022, section 31.94, is amended to read:
59.18 	31.94 ORGANIC AGRICULTURE; COMMISSIONER DUTIES.
59.19 	(a) In order to promote opportunities for organic agriculture in Minnesota, the 
59.20 	commissioner shall:
59.21 	(1) survey producers and support services and organizations to determine information 
59.22 	and research needs in the area of organic agriculture practices;
59.23 	(2) work with the University of Minnesota and other research and education institutions 
59.24 	to demonstrate the on-farm applicability of organic agriculture practices to conditions in 
59.25 	this state;
59.26 	(3) direct the programs of the department so as to work toward the promotion of organic 
59.27 	agriculture in this state;
59.28 	(4) inform agencies about state or federal programs that support organic agriculture 
59.29 	practices; and
59.30 	(5) work closely with producers, producer organizations, the University of Minnesota, 
59.31 	and other appropriate agencies and organizations to identify opportunities and needs as well 
60.1 	as ensure coordination and avoid duplication of state agency efforts regarding research, 
60.2 	teaching, marketing, and extension work relating to organic agriculture.
60.3 	(b) By November 15 of each year that ends in a zero or a five, the commissioner, in 
60.4 	conjunction with the task force created in paragraph (c), shall report on the status of organic 
60.5 	agriculture in Minnesota to the legislative policy and finance committees and divisions with 
60.6 	jurisdiction over agriculture. The report must include available data on organic acreage and 
60.7 	production, available data on the sales or market performance of organic products, and 
60.8 	recommendations regarding programs, policies, and research efforts that will benefit 
60.9 	Minnesota's organic agriculture sector.
60.10 	(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the 
60.11 	University of Minnesota on policies and programs that will improve organic agriculture in 
60.12 	Minnesota, including how available resources can most effectively be used for outreach, 
60.13 	education, research, and technical assistance that meet the needs of the organic agriculture 
60.14 	sector. The task force must consist of the following residents of the state:
60.15 	(1) three organic farmers;
60.16 	(2) one wholesaler or distributor of organic products;
60.17 	(3) one representative of organic certification agencies;
60.18 	(4) two organic processors;
60.19 	(5) one representative from University of Minnesota Extension;
60.20 	(6) one University of Minnesota faculty member;
60.21 	(7) one representative from a nonprofit organization representing producers;
60.22 	(8) two public members;
60.23 	(9) one representative from the United States Department of Agriculture;
60.24 	(10) one retailer of organic products; and
60.25 	(11) one organic consumer representative.
60.26 	The commissioner, in consultation with the director of the Minnesota Agricultural Experiment 
60.27 	Station; the dean and director of University of Minnesota Extension and the dean of the 
60.28 	College of Food, Agricultural and Natural Resource Sciences, shall appoint members to 
60.29 	serve three-year terms.
60.30 	Compensation and removal of members are governed by section 15.059, subdivision 6. 
60.31 	The task force must meet at least twice each year and expires on June 30, ~~2024~~ 2034.
61.1 	(d) For the purposes of expanding, improving, and developing production and marketing 
61.2 	of the organic products of Minnesota agriculture, the commissioner may receive funds from 
61.3 	state and federal sources and spend them, including through grants or contracts, to assist 
61.4 	producers and processors to achieve certification, to conduct education or marketing 
61.5 	activities, to enter into research and development partnerships, or to address production or 
61.6 	marketing obstacles to the growth and well-being of the industry.
61.7 	(e) The commissioner may facilitate the registration of state organic production and 
61.8 	handling operations including those exempt from organic certification according to Code 
61.9 	of Federal Regulations, title 7, section 205.101, and accredited certification agencies 
61.10 	operating within the state.

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

61.12 	Sec. 55. Minnesota Statutes 2022, section 32D.30, is amended to read:
61.13 	32D.30 DAIRY DEVELOPMENT AND PROFITABILITY ENHANCEMENT.
61.14 		Subdivision 1.Program. The commissioner must implement a dairy development and 
61.15 	profitability enhancement program consisting of a dairy profitability enhancement ~~teams~~ 
61.16 	~~and~~ program, dairy business planning grants, and other services to support the dairy industry.
61.17 		Subd. 2.Dairy profitability enhancement ~~teams~~ program. (a) The dairy profitability 
61.18 	enhancement ~~teams~~ program must provide ~~one-on-one~~ information and technical assistance 
61.19 	to dairy farms of all sizes to enhance their financial success and long-term sustainability. 
61.20 	~~Teams~~ The program must assist dairy producers in all dairy-producing regions of the state 
61.21 	~~and~~. Assistance to producers from the program may ~~consist of~~ be provided individually, as 
61.22 	a team, or through other methods by farm business management instructors, dairy extension 
61.23 	specialists, and other dairy industry partners. ~~Teams~~ The program may engage in activities 
61.24 	~~including~~ such as comprehensive financial analysis, risk management education, enhanced 
61.25 	milk marketing tools and technologies, ~~and~~ facilitating or improving production systems,
61.26 	including rotational grazing and other sustainable agriculture methods, and value-added 
61.27 	opportunities.
61.28 	(b) The commissioner must make grants to regional or statewide organizations qualified 
61.29 	to manage the various components of the ~~teams~~ program and serve as program administrators. 
61.30 	Each regional or statewide organization must designate a coordinator responsible for 
61.31 	overseeing the program and submitting periodic reports to the commissioner regarding 
61.32 	aggregate changes in producer financial stability, productivity, product quality, animal 
61.33 	health, environmental protection, and other performance measures attributable to the program. 
62.1 	The organizations must submit this information in a format that maintains the confidentiality 
62.2 	of individual dairy producers.
62.3 		Subd. 3.Dairy business planning grants. The commissioner may award dairy business 
62.4 	planning grants of up to $5,000 per producer or dairy processor to ~~develop comprehensive~~ 
62.5 	~~business plans~~ use technical assistance services for evaluating operations, transitional 
62.6 	changes, expansions, improvements, and other business modifications. Producers and 
62.7 	processors must not use dairy business planning grants for capital improvements.
62.8 		Subd. 4.Funding allocation. Except as specified in law, the commissioner may allocate 
62.9 	dairy development and profitability enhancement program dollars ~~among~~ for the permissible 
62.10 	uses specified in this section and other needs to support the dairy industry, including efforts 
62.11 	to improve the quality of milk produced in the state, in the proportions that the commissioner 
62.12 	deems most beneficial to the state's dairy farmers.
62.13 		Subd. 5.Reporting. No later than July 1 each year, the commissioner must submit a 
62.14 	detailed accomplishment report and work plan detailing future plans for, and the actual and 
62.15 	anticipated accomplishments from, expenditures under this section to the chairs and ranking 
62.16 	minority members of the legislative committees and divisions with jurisdiction over 
62.17 	agriculture policy and finance. If the commissioner significantly modifies a submitted work 
62.18 	plan during the fiscal year, the commissioner must notify the chairs and ranking minority 
62.19 	members.

62.20 	Sec. 56. Minnesota Statutes 2022, section 41B.039, subdivision 2, is amended to read:
62.21 		Subd. 2.State participation. The state may participate in a new real estate loan with 
62.22 	an eligible lender to a beginning farmer to the extent of 45 percent of the principal amount 
62.23 	of the loan or ~~$400,000~~ $500,000, whichever is less. The interest rates and repayment terms 
62.24 	of the authority's participation interest may be different than the interest rates and repayment 
62.25 	terms of the lender's retained portion of the loan.

62.26 	Sec. 57. Minnesota Statutes 2022, section 41B.04, subdivision 8, is amended to read:
62.27 		Subd. 8.State participation. With respect to loans that are eligible for restructuring 
62.28 	under sections 41B.01 to 41B.23 and upon acceptance by the authority, the authority shall 
62.29 	enter into a participation agreement or other financial arrangement whereby it shall participate 
62.30 	in a restructured loan to the extent of 45 percent of the primary principal or ~~$525,000~~
62.31 	$625,000, whichever is less. The authority's portion of the loan must be protected during 
62.32 	the authority's participation by the first mortgage held by the eligible lender to the extent 
62.33 	of its participation in the loan.

63.1 	Sec. 58. Minnesota Statutes 2022, section 41B.042, subdivision 4, is amended to read:
63.2 		Subd. 4.Participation limit; interest. The authority may participate in new 
63.3 	seller-sponsored loans to the extent of 45 percent of the principal amount of the loan or 
63.4 	~~$400,000~~ $500,000, whichever is less. The interest rates and repayment terms of the 
63.5 	authority's participation interest may be different than the interest rates and repayment terms 
63.6 	of the seller's retained portion of the loan.

63.7 	Sec. 59. Minnesota Statutes 2022, section 41B.043, subdivision 1b, is amended to read:
63.8 		Subd. 1b.Loan participation. The authority may participate in an agricultural 
63.9 	improvement loan with an eligible lender to a farmer who meets the requirements of section 
63.10 	41B.03, subdivision 1, clauses (1) and (2), and who is actively engaged in farming. 
63.11 	Participation is limited to 45 percent of the principal amount of the loan or ~~$400,000~~
63.12 	$500,000, whichever is less. The interest rates and repayment terms of the authority's 
63.13 	participation interest may be different than the interest rates and repayment terms of the 
63.14 	lender's retained portion of the loan.

63.15 	Sec. 60. Minnesota Statutes 2022, section 41B.045, subdivision 2, is amended to read:
63.16 		Subd. 2.Loan participation. The authority may participate in a livestock expansion 
63.17 	and modernization loan with an eligible lender to a livestock farmer who meets the 
63.18 	requirements of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively 
63.19 	engaged in a livestock operation. A prospective borrower must have a total net worth, 
63.20 	including assets and liabilities of the borrower's spouse and dependents, of less than 
63.21 	$1,700,000 in 2017 and an amount in subsequent years which is adjusted for inflation by 
63.22 	multiplying that amount by the cumulative inflation rate as determined by the United States 
63.23 	All-Items Consumer Price Index.
63.24 	Participation is limited to 45 percent of the principal amount of the loan or ~~$525,000~~
63.25 	$625,000, whichever is less. The interest rates and repayment terms of the authority's 
63.26 	participation interest may be different from the interest rates and repayment terms of the 
63.27 	lender's retained portion of the loan.

63.28 	Sec. 61. Minnesota Statutes 2022, section 41B.047, subdivision 1, is amended to read:
63.29 		Subdivision 1.Establishment. The authority shall establish and implement a disaster 
63.30 	recovery loan program to help farmers:
63.31 	(1) clean up, repair, or replace farm structures and septic and water systems, as well as 
63.32 	replace seed, other crop inputs, feed, and livestock;
64.1 	(2) purchase watering systems, irrigation systems, ~~and~~ other drought mitigation systems 
64.2 	and practices, and feed when drought is the cause of the purchase;
64.3 	(3) restore farmland;
64.4 	(4) replace flocks or livestock, make building improvements, or cover the loss of revenue 
64.5 	when the replacement, improvements, or loss of revenue is due to the confirmed presence 
64.6 	of a highly contagious animal disease in a commercial poultry or game flock, or a commercial 
64.7 	livestock operation, located in Minnesota; or
64.8 	(5) cover the loss of revenue when the revenue loss is due to an infectious human disease 
64.9 	for which the governor has declared a peacetime emergency under section 12.31.

64.10 	Sec. 62. Minnesota Statutes 2022, section 232.21, subdivision 3, is amended to read:
64.11 		Subd. 3.Commissioner. "Commissioner" means the commissioner of agriculture or the 
64.12 	commissioner's designee.

64.13 	Sec. 63. Minnesota Statutes 2022, section 232.21, subdivision 7, is amended to read:
64.14 		Subd. 7.Grain. "Grain" means any ~~cereal grain, coarse grain, or oilseed in unprocessed~~ 
64.15 	~~form for which a standard has been established by the United States Secretary of Agriculture,~~ 
64.16 	~~dry edible beans, or agricultural crops designated by the commissioner by rule~~ product 
64.17 	commonly referred to as grain, including wheat, corn, oats, barley, rye, rice, soybeans, 
64.18 	emmer, sorghum, triticale, millet, pulses, dry edible beans, sunflower seed, rapeseed, canola, 
64.19 	safflower, flaxseed, mustard seed, crambe, sesame seed, and other products ordinarily stored 
64.20 	in grain warehouses.

64.21 	Sec. 64. Minnesota Statutes 2022, section 232.21, subdivision 11, is amended to read:
64.22 		Subd. 11.Producer. "Producer" means a person who ~~owns or manages a grain producing~~ 
64.23 	~~or growing operation and holds or shares the responsibility for marketing that grain produced~~
64.24 	grows grain on land owned or leased by the person.

64.25 	Sec. 65. Minnesota Statutes 2022, section 232.21, subdivision 12, is amended to read:
64.26 		Subd. 12.Public grain warehouse operator. "Public grain warehouse operator" means: 
64.27 	(1) a person ~~licensed to operate~~ operating a grain warehouse in which grain belonging to 
64.28 	persons other than the grain warehouse operator is accepted for storage or purchase~~, or~~; (2) 
64.29 	a person who offers grain storage or grain warehouse facilities to the public for hire; or (3) 
64.30 	a feed-processing plant that receives and stores grain, the equivalent of which~~,~~ it processes 
65.1 	and returns to the grain's owner in amounts, at intervals, and with added ingredients that 
65.2 	are mutually agreeable to the grain's owner and the person operating the plant.

65.3 	Sec. 66. Minnesota Statutes 2022, section 232.21, subdivision 13, is amended to read:
65.4 		Subd. 13.Scale ticket. "Scale ticket" means a memorandum showing the weight~~, grade~~
65.5 	and kind of grain which is issued by a grain elevator or warehouse operator to a depositor 
65.6 	at the time the grain is delivered.

65.7 	Sec. 67. [346.021] FINDER TO GIVE NOTICE.
65.8 	A person who finds an estray and knows who owns the estray must notify the estray's 
65.9 	owner within seven days after finding the estray and request that the owner pay all reasonable 
65.10 	charges and take the estray away. A finder who does not know who owns an estray must 
65.11 	either:
65.12 	(1) within ten days, file a notice with the town or city clerk and post a physical or online 
65.13 	notice of the finding of the estray. The notice must briefly describe the estray or provide a 
65.14 	photograph of the estray, provide the residence or contact information of the finder, and 
65.15 	provide the approximate location and time when the finder found the estray; or
65.16 	(2) within seven days, surrender the estray to a local animal control agency or to a kennel 
65.17 	as defined in section 347.31, subdivision 2.

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

65.19 	Sec. 68. Laws 2023, chapter 43, article 2, section 142, subdivision 9, is amended to read:
65.20 		Subd. 9.Dairy law. Minnesota Statutes 2022, sections 17.984; 32D.03, subdivision 5; 
65.21 	32D.24; 32D.25, subdivision 1; 32D.26; 32D.27; and 32D.28, are repealed.

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

65.23 	Sec. 69. REVIVAL AND REENACTMENT.
 65.24 	Minnesota Statutes, section 32D.25, subdivision 2, is revived and reenacted effective 
65.25 	retroactively from July 1, 2023.

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

65.27 	Sec. 70. REPORT REQUIRED; COOPERATIVE FINANCIAL REPORTING.
 65.28 	The commissioner of agriculture shall convene a cooperative financial reporting 
65.29 	workgroup, which must include producers who sell to a cooperative and representatives 
66.1 	from cooperative management. The commissioner shall develop recommendations relating 
66.2 	to requirements for cooperatives to report on financial conditions and report back with 
66.3 	recommendations to the legislative committees with jurisdiction over agriculture by January 
66.4 	3, 2025. Participating stakeholders must be given an opportunity to include written testimony 
66.5 	to the legislative committees in the commissioner's report.

66.6 	Sec. 71. COMMERCIAL APPLICATOR LICENSE EXAMINATION LANGUAGE 
66.7 	REQUIREMENTS.
 66.8 	By January 1, 2025, the commissioner of agriculture must ensure that examinations for 
66.9 	a commercial applicator license under Minnesota Statutes, section 18B.33, are available in 
66.10 	Spanish and that applicants are informed that the examinations can be taken in Spanish. 
66.11 	The commissioner must use money appropriated from the pesticide regulatory account 
66.12 	under Minnesota Statutes, section 18B.05, for this purpose.

66.13 	Sec. 72. CREDIT MARKET REPORT REQUIRED.
 66.14 	The commissioner of agriculture must convene a stakeholder working group to explore 
66.15 	the state establishing a market for carbon credits, ecosystem services credits, or other credits 
66.16 	generated by farmers who implement clean water, climate-smart, and soil-healthy farming 
66.17 	practices. To the extent practicable, the stakeholder working group must include but is not 
66.18 	limited to farmers; representatives of agricultural organizations; experts in geoscience, 
66.19 	carbon storage, greenhouse gas modeling, and agricultural economics; industry 
66.20 	representatives with experience in carbon markets and supply chain sustainability; and 
66.21 	representatives of environmental organizations with expertise in carbon sequestration and 
66.22 	agriculture. No later than February 1, 2025, the commissioner must report recommendations 
66.23 	to the legislative committees with jurisdiction over agriculture. The commissioner must 
66.24 	provide participating stakeholders an opportunity to include written testimony in the 
66.25 	commissioner's report.

66.26 	Sec. 73. REPEALER.
 66.27 	(a) Minnesota Statutes 2022, sections 3.7371, subdivision 7; and 34.07, are repealed.
66.28 	(b) Minnesota Rules, parts 1506.0010; 1506.0015; 1506.0020; 1506.0025; 1506.0030; 
66.29 	1506.0035; and 1506.0040, are repealed.

67.1 	ARTICLE 3
67.2 	BROADBAND

67.3 	Section 1. Minnesota Statutes 2022, section 116J.396, is amended by adding a subdivision 
67.4 	to read:
67.5 		Subd. 4.Transfer. The commissioner may transfer up to $5,000,000 of a fiscal year 
67.6 	appropriation between the border-to-border broadband program, low density population 
67.7 	broadband program, and the broadband line extension program to meet demand. The 
67.8 	commissioner must inform the chairs and ranking minority members of the legislative 
67.9 	committees with jurisdiction over broadband finance in writing when this transfer authority 
67.10 	is used. The written notice must include how much money was transferred and why the 
67.11 	transfer was made. The written notice must also be filed with the Legislative Reference 
67.12 	Library in compliance with Minnesota Statutes, section 3.195.

67.13 	Sec. 2. BROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL 
67.14 	FUNDING; APPROPRIATION.
 67.15 	(a) The commissioner of employment and economic development must prepare and 
67.16 	submit an application to the United States Department of Commerce requesting State Digital 
67.17 	Equity Capacity Grant funding made available under Public Law 117-58, the Infrastructure 
67.18 	Investment and Jobs Act.
67.19 	(b) The amount awarded to Minnesota pursuant to the application submitted under 
67.20 	paragraph (a) is appropriated to the commissioner of employment and economic development 
67.21 	for purposes of the commissioner's Minnesota Digital Opportunity Plan.

67.22 	ARTICLE 4
67.23 	CLIMATE AND ENERGY FINANCE

67.24 | Section 1. APPROPRIATIONS.
67.25 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
67.26 	and for the purposes specified in this article. The appropriations are from the general fund, 
67.27 	or another named fund, and are available for the fiscal years indicated for each purpose. 
67.28 	The figures "2024" and "2025" used in this article mean that the appropriations listed under 
67.29 	them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. 
67.30 	"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" 
67.31 	is fiscal years 2024 and 2025.

67.32 | | | | APPROPRIATIONS
67.33 | | | | Available for the Year
68.1 | | | | Ending June 30
68.2 | | | | | 2024 | | 2025

68.3 | Sec. 2. DEPARTMENT OF COMMERCE | | | |

68.4 | Subdivision 1.Total Appropriation | $ | -0- | $ | 1,133,000
68.5 	The amounts that may be spent for each 
68.6 	purpose are specified in the following 
68.7 	subdivisions.

68.8

68.9

Subd. 2.Thermal Energy Network Site 
Suitability Study

68.10 	$500,000 the second year is for the thermal 
68.11 	energy network site suitability study under 
68.12 	article 6, section 51. This is a onetime 
68.13 	appropriation and is available until December 
68.14 	31, 2025.

68.15 | Subd. 3.SolarAPP+ Program | | | |
68.16 	$500,000 the second year is for transfer to the 
68.17 	SolarAPP+ program account established under 
68.18 	Minnesota Statutes, section 216C.48, to award 
68.19 	incentives to local units of government that 
68.20 	deploy federally developed software to 
68.21 	automate the review of applications and 
68.22 	issuance of permits for residential solar 
68.23 	projects. Incentives must be awarded only to 
68.24 	local units of government located outside the 
68.25 	electric service territory of the public utility 
68.26 	subject to Minnesota Statutes, section 
68.27 	116C.779, subdivision 1. This is a onetime 
68.28 	transfer and is available until June 30, 2028.

68.29 | Subd. 4.Grid-Enhancing Technologies | | | |
68.30 	$133,000 the second year is to (1) participate 
68.31 	in a Minnesota Public Utilities Commission 
68.32 	proceeding to review electric transmission line 
68.33 	owners' plans to deploy grid-enhancing 
68.34 	technologies, and (2) issue an order to 
69.1 	implement the plans. The base in fiscal year 
69.2 	2026 is $265,000 and the base in fiscal year 
69.3 	2027 is $265,000. The base in fiscal year 2028 
69.4 	is $0.

69.5 | Sec. 3. PUBLIC UTILITIES COMMISSION | $ | -0- | $ | 267,000
69.6 	(a) $39,000 the second year is to support the 
69.7 	Thermal Energy Network Deployment Work 
69.8 	Group and prepare a report under article 6, 
69.9 	section 49. The base in fiscal year 2026 is 
69.10 	$77,000 and the base in fiscal year 2027 is $0.
69.11 	(b) $117,000 the second year is to review 
69.12 	electric transmission line owners' plans to 
69.13 	deploy grid-enhancing technologies and 
69.14 	develop a commission order to implement 
69.15 	approved plans under article 6, section 52. The 
69.16 	base in fiscal year 2026 is $157,000 and the 
69.17 	base in fiscal year 2027 is $157,000. The base 
69.18 	in fiscal year 2028 is $0.
69.19 	(c) $111,000 the second year is to conduct a 
69.20 	proceeding to develop a cost-sharing 
69.21 	mechanism enabling developers of distributed 
69.22 	generation projects to pay utilities to expand 
69.23 	distribution line capacity in order to 
69.24 	interconnect to the grid. The base in fiscal year 
69.25 	2026 is $111,000 and the base in fiscal year 
69.26 	2027 is $77,000. The base in fiscal year 2028 
69.27 	is $0.

69.28 	Sec. 4. GRANT ADMINISTRATION REPORTING.
 69.29 	(a) By July 1, 2024, the commissioner of commerce must report to the chairs and ranking 
69.30 	minority members of the legislative committees having jurisdiction over energy finance 
69.31 	and policy regarding the anticipated costs to administer each named grant and competitive 
69.32 	grant program in Laws 2023, chapter 60, article 10, section 2, and Laws 2023, chapter 60, 
69.33 	article 11, section 2.
70.1 	(b) Within 90 days after each named grantee has fulfilled the obligations of the grantee's 
70.2 	grant agreement, the commissioner must report to the chairs and ranking minority members 
70.3 	of the legislative committees having jurisdiction over energy finance and policy on the final 
70.4 	cost to administer (1) each named grant included in paragraph (a), and (2) each named grant 
70.5 	in this article and article 5.
70.6 	(c) By January 15, 2025, and each year thereafter, the commissioner must report to the 
70.7 	chairs and ranking minority members of the legislative committees having jurisdiction over 
70.8 	energy finance and policy on the annual cost to administer (1) each competitive grant 
70.9 	program included in paragraph (a), and (2) each competitive grant program in this article 
70.10 	and article 5.

70.11 	ARTICLE 5
70.12 	RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS

70.13 | Section 1. APPROPRIATIONS.
70.14 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
70.15 	and for the purposes specified in this article. Notwithstanding Minnesota Statutes, section 
70.16 	116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable 
70.17 	development account in the special revenue fund established in Minnesota Statutes, section 
70.18 	116C.779, subdivision 1, and are available for the fiscal years indicated for each purpose. 
70.19 	The figures "2024" and "2025" used in this article mean that the appropriations listed under 
70.20 	them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. 
70.21 	"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" 
70.22 	is fiscal years 2024 and 2025.

70.23 | | | | APPROPRIATIONS
70.24 | | | | Available for the Year
70.25 | | | | Ending June 30
70.26 | | | | | 2024 | | 2025

70.27 | Sec. 2. DEPARTMENT OF COMMERCE | | | |

70.28 | Subdivision 1.Total Appropriation | $ | -0- | $ | 14,450,000
70.29 	The amounts that may be spent for each 
70.30 	purpose are specified in the following 
70.31 	subdivisions.

71.1

71.2

Subd. 2.Geothermal Energy System; Sabathani 
Community Center

71.3 	(a) $6,000,000 the second year is for a grant 
71.4 	to the Sabathani Community Center in 
71.5 	Minneapolis to construct a geothermal energy 
71.6 	system that provides space heating and cooling 
71.7 	to the center. This is a onetime appropriation 
71.8 	and is available until June 30, 2028.
71.9 	(b) For the purposes of this subdivision, 
71.10 	"geothermal energy system" means a system 
71.11 	composed of: a heat pump that moves a 
71.12 	heat-transferring fluid through piping 
71.13 	embedded in the earth and absorbs the earth's 
71.14 	constant temperature; a heat exchanger; and 
71.15 	ductwork to distribute heated and cooled air 
71.16 	to a building.

71.17 | Subd. 3.Geothermal Planning Grants | | | |
71.18 	$1,200,000 the second year is for transfer to 
71.19 	the geothermal planning grant account 
71.20 	established under Minnesota Statutes, section 
71.21 	216C.47, for planning grants to political 
71.22 	subdivisions to assess the feasibility and cost 
71.23 	of constructing geothermal energy systems. 
71.24 	This is a onetime appropriation and is 
71.25 	available until June 30, 2029.

71.26

71.27

Subd. 4.Energy Efficiency Projects; Dakota 
County

71.28 	(a) $500,000 the second year is for a grant to 
71.29 	Dakota County for energy efficiency projects 
71.30 	that are located in the service area of the public 
71.31 	utility subject to Minnesota Statutes, section 
71.32 	116C.779. This is a onetime appropriation and 
71.33 	is available until June 30, 2027.
71.34 	(b) For purposes of this subdivision, "energy 
71.35 	efficiency project" includes: (1) LED lighting, 
72.1 	as defined under Minnesota Statutes, section 
72.2 	216B.241, subdivision 5; (2) solar arrays; or 
72.3 	(3) heating, ventilating, or air conditioning 
72.4 	system improvements.

72.5 | Subd. 5.Anaerobic Digester Energy System | | | |
72.6 	(a) $5,000,000 the second year is for a grant 
72.7 	to Recycling and Energy, in partnership with 
72.8 	Dem-Con HZI Bioenergy, LLC, to construct 
72.9 	an anaerobic energy system in Louisville 
72.10 	Township. This is a onetime appropriation and 
72.11 	is available until June 30, 2028.
72.12 	(b) For the purposes of this subdivision, 
72.13 	"anaerobic energy system" means a facility 
72.14 	that uses diverted food and organic waste to 
72.15 	create renewable natural gas and biochar.

72.16 | Subd. 6.SolarAPP+ Program | | | |
72.17 	$1,500,000 the second year is for transfer to 
72.18 	the SolarAPP+ program account established 
72.19 	under Minnesota Statutes, section 216C.48, 
72.20 	to award incentives to local units of 
72.21 	government that deploy federally developed 
72.22 	software to automate the review of 
72.23 	applications and issuance of permits for 
72.24 	residential solar projects. Incentives must be 
72.25 	awarded only to political subdivisions located 
72.26 	within the electric service territory of the 
72.27 	public utility that is subject to Minnesota 
72.28 	Statutes, section 116C.779, subdivision 1. This 
72.29 	is a onetime transfer.

72.30

72.31

Subd. 7.Ultraefficient Vehicle Development 
Grants

72.32 	$250,000 the second year is transferred to the 
72.33 	ultraefficient vehicle development grant 
72.34 	account under article 6, section 48, to provide 
73.1 	grants for developers and producers of 
73.2 	ultraefficient vehicles. This is a onetime 
73.3 	transfer.

73.4 | Sec. 3. PUBLIC UTILITIES COMMISSION | $ | -0- | $ | 1,000,000
73.5 	$1,000,000 the second year is for the carbon 
73.6 	dioxide pipelines study under article 6, section 
73.7 	50. This is a onetime appropriation.

73.8 	ARTICLE 6
73.9 	ENERGY POLICY

73.10 	Section 1. Minnesota Statutes 2022, section 103I.621, subdivision 1, is amended to read:
73.11 		Subdivision 1.Permit. (a) Notwithstanding any department or agency rule to the contrary, 
73.12 	the commissioner shall issue, on request by the owner of the property and payment of the 
73.13 	permit fee, permits for the reinjection of water by a properly constructed well into the same 
73.14 	aquifer from which the water was drawn for the operation of a groundwater thermal exchange 
73.15 	device.
73.16 	(b) As a condition of the permit, an applicant must agree to allow inspection by the 
73.17 	commissioner during regular working hours for department inspectors.
73.18 	(c) Not more than 200 permits may be issued for small systems ~~having~~ that (1) have
73.19 	maximum capacities of 20 gallons per minute or less, and (2) are compliant with the natural 
73.20 	resource water-use requirements under subdivision 2. ~~The small systems are subject to~~ 
73.21 	~~inspection twice a year.~~
73.22 	(d) Not more than ~~ten~~ 100 permits may be issued for larger systems ~~having~~ that (1) have
73.23 	maximum capacities ~~from~~ over 20 ~~to 50~~ gallons per minute, and (2) are compliant with the 
73.24 	natural resource water-use requirements under subdivision 2. ~~The larger systems are subject~~ 
73.25 	~~to inspection four times a year.~~
73.26 	(e) A person issued a permit must comply with this section ~~for the permit to be valid.~~
73.27 	and permit conditions deemed necessary to protect public health and safety of groundwater. 
73.28 	Permit conditions may include but are not limited to:
73.29 	(1) notification to the commissioner at intervals specified in the permit conditions;
73.30 	(2) system operation and maintenance;
73.31 	(3) system location and construction;
74.1 	(4) well location and construction;
74.2 	(5) signage requirements;
74.3 	(6) reports of system construction, performance, operation, and maintenance;
74.4 	(7) removal of the system upon termination of use or failure;
74.5 	(8) disclosure of the system at the time of property transfer;
74.6 	(9) requirements to obtain approval from the commissioner prior to deviating from the 
74.7 	approval plan and conditions;
74.8 	(10) groundwater level monitoring; and
74.9 	(11) groundwater quality monitoring.
74.10 	(f) The property owner or the property owner's agent must submit to the commissioner 
74.11 	a permit application on a form provided by the commissioner, or in a format approved by 
74.12 	the commissioner, that provides any information necessary to protect public health and 
74.13 	safety of groundwater.
74.14 	(g) A permit granted under this section is not valid if a water-use permit is required for 
74.15 	the project and is not approved by the commissioner of natural resources.

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

74.17 	Sec. 2. Minnesota Statutes 2022, section 103I.621, subdivision 2, is amended to read:
74.18 		Subd. 2.Water-use requirements apply. Water-use permit requirements and penalties 
74.19 	under chapter ~~103F~~ 103G and related rules adopted and enforced by the commissioner of 
74.20 	natural resources apply to groundwater thermal exchange permit recipients. A person who 
74.21 	violates a provision of this section is subject to enforcement or penalties for the noncomplying 
74.22 	activity that are available to the commissioner and the Pollution Control Agency.

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

74.24 	Sec. 3. Minnesota Statutes 2023 Supplement, section 116C.779, subdivision 1, is amended 
74.25 	to read:
74.26 		Subdivision 1.Renewable development account. (a) The renewable development 
74.27 	account is established as a separate account in the special revenue fund in the state treasury. 
74.28 	Appropriations and transfers to the account shall be credited to the account. Earnings, such 
74.29 	as interest, dividends, and any other earnings arising from assets of the account, shall be 
74.30 	credited to the account. Funds remaining in the account at the end of a fiscal year are not 
75.1 	canceled to the general fund but remain in the account until expended. The account shall 
75.2 	be administered by the commissioner of management and budget as provided under this 
75.3 	section.
75.4 	(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating 
75.5 	plant must transfer all funds in the renewable development account previously established 
75.6 	under this subdivision and managed by the public utility to the renewable development 
75.7 	account established in paragraph (a). Funds awarded to grantees in previous grant cycles 
75.8 	that have not yet been expended and unencumbered funds required to be paid in calendar 
75.9 	year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject 
75.10 	to transfer under this paragraph.
75.11 	(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
75.12 	each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating 
75.13 	plant must transfer to the renewable development account $500,000 each year for each dry 
75.14 	cask containing spent fuel that is located at the Prairie Island power plant for each year the 
75.15 	plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by 
75.16 	the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste 
75.17 	is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any 
75.18 	part of a year. The total amount transferred annually under this paragraph must be reduced 
75.19 	by $3,750,000.
75.20 	(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
75.21 	each January 15 thereafter, the public utility that owns the Monticello nuclear generating 
75.22 	plant must transfer to the renewable development account $350,000 each year for each dry 
75.23 	cask containing spent fuel that is located at the Monticello nuclear power plant for each 
75.24 	year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered 
75.25 	by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear 
75.26 	waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for 
75.27 	any part of a year.
75.28 	(e) Each year, the public utility shall withhold from the funds transferred to the renewable 
75.29 	development account under paragraphs (c) and (d) the amount necessary to pay its obligations 
75.30 	under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.
75.31 	(f) If the commission approves a new or amended power purchase agreement, the 
75.32 	termination of a power purchase agreement, or the purchase and closure of a facility under 
75.33 	section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, 
75.34 	the public utility subject to this section shall enter into a contract with the city in which the 
76.1 	poultry litter plant is located to provide grants to the city for the purposes of economic 
76.2 	development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each 
76.3 	fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid 
76.4 	by the public utility from funds withheld from the transfer to the renewable development 
76.5 	account, as provided in paragraphs (b) and (e).
76.6 	(g) If the commission approves a new or amended power purchase agreement, or the 
76.7 	termination of a power purchase agreement under section 216B.2424, subdivision 9, with 
76.8 	an entity owned or controlled, directly or indirectly, by two municipal utilities located north 
76.9 	of Constitutional Route No. 8, that was previously used to meet the biomass mandate in 
76.10 	section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a 
76.11 	grant contract with such entity to provide $6,800,000 per year for five years, commencing 
76.12 	30 days after the commission approves the new or amended power purchase agreement, or 
76.13 	the termination of the power purchase agreement, and on each June 1 thereafter through 
76.14 	2021, to assist the transition required by the new, amended, or terminated power purchase 
76.15 	agreement. The grant shall be paid by the public utility from funds withheld from the transfer 
76.16 	to the renewable development account as provided in paragraphs (b) and (e).
76.17 	(h) The collective amount paid under the grant contracts awarded under paragraphs (f) 
76.18 	and (g) is limited to the amount deposited into the renewable development account, and its 
76.19 	predecessor, the renewable development account, established under this section, that was 
76.20 	not required to be deposited into the account under Laws 1994, chapter 641, article 1, section 
76.21 	10.
76.22 	(i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello 
76.23 	nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued 
76.24 	facility, the commission shall require the public utility to pay $7,500,000 for the discontinued 
76.25 	Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year 
76.26 	in which the commission finds, by the preponderance of the evidence, that the public utility 
76.27 	did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a 
76.28 	permanent or interim storage site out of the state. This determination shall be made at least 
76.29 	every two years.
76.30 	(j) Funds in the account may be expended only for any of the following purposes:
76.31 	(1) to stimulate research and development of renewable electric energy technologies;
76.32 	(2) to encourage grid modernization, including, but not limited to, projects that implement 
76.33 	electricity storage, load control, and smart meter technology; and
77.1 	(3) to stimulate other innovative energy projects that reduce demand and increase system 
77.2 	efficiency and flexibility.
77.3 	Expenditures from the fund must benefit Minnesota ratepayers receiving electric service 
77.4 	from the utility that owns a nuclear-powered electric generating plant in this state or the 
77.5 	Prairie Island Indian community or its members.
77.6 	The utility that owns a nuclear generating plant is eligible to apply for grants under this 
77.7 	subdivision.
77.8 	(k) For the purposes of paragraph (j), the following terms have the meanings given:
77.9 	(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph 
77.10 	(c), clauses (1), (2), (4), and (5); and
77.11 	(2) "grid modernization" means:
77.12 	(i) enhancing the reliability of the electrical grid;
77.13 	(ii) improving the security of the electrical grid against cyberthreats and physical threats; 
77.14 	and
77.15 	(iii) increasing energy conservation opportunities by facilitating communication between 
77.16 	the utility and its customers through the use of two-way meters, control technologies, energy 
77.17 	storage and microgrids, technologies to enable demand response, and other innovative 
77.18 	technologies.
77.19 	(l) A renewable development account advisory group that includes, among others, 
77.20 	representatives of the public utility and its ratepayers, and includes at least one representative 
77.21 	of the Prairie Island Indian community appointed by that community's tribal council, shall 
77.22 	develop recommendations on account expenditures. The advisory group must design a 
77.23 	request for proposal and evaluate projects submitted in response to a request for proposals. 
77.24 	The advisory group must utilize an independent third-party expert to evaluate proposals 
77.25 	submitted in response to a request for proposal, including all proposals made by the public 
77.26 	utility. A request for proposal for research and development under paragraph (j), clause (1), 
77.27 	may be limited to or include a request to higher education institutions located in Minnesota 
77.28 	for multiple projects authorized under paragraph (j), clause (1). The request for multiple 
77.29 	projects may include a provision that exempts the projects from the third-party expert review 
77.30 	and instead provides for project evaluation and selection by a merit peer review grant system. 
77.31 	In the process of determining request for proposal scope and subject and in evaluating 
77.32 	responses to request for proposals, the advisory group must strongly consider, where 
77.33 	reasonable:
78.1 	(1) potential benefit to Minnesota citizens and businesses and the utility's ratepayers; 
78.2 	and
78.3 	(2) the proposer's commitment to increasing the diversity of the proposer's workforce 
78.4 	and vendors.
78.5 	(m) The advisory group shall submit funding recommendations to the public utility, 
78.6 	which has full and sole authority to determine which expenditures shall be submitted by 
78.7 	the advisory group to the legislature. The commission may approve proposed expenditures, 
78.8 	may disapprove proposed expenditures that it finds not to be in compliance with this 
78.9 	subdivision or otherwise not in the public interest, and may, if agreed to by the public utility, 
78.10 	modify proposed expenditures. The commission shall, by order, submit its funding 
78.11 	recommendations to the legislature as provided under paragraph (n).
78.12 	(n) The commission shall present its recommended appropriations from the account to 
78.13 	the senate and house of representatives committees with jurisdiction over energy policy and 
78.14 	finance annually by February 15. Expenditures from the account must be appropriated by 
78.15 	law. In enacting appropriations from the account, the legislature:
78.16 	(1) may approve or disapprove, but may not modify, the amount of an appropriation for 
78.17 	a project recommended by the commission; and
78.18 	(2) may not appropriate money for a project the commission has not recommended 
78.19 	funding.
78.20 	(o) A request for proposal for renewable energy generation projects must, when feasible 
78.21 	and reasonable, give preference to projects that are most cost-effective for a particular energy 
78.22 	source.
78.23 	(p) The advisory group must annually, by February 15, report to the chairs and ranking 
78.24 	minority members of the legislative committees with jurisdiction over energy policy on 
78.25 	projects funded by the account for the prior year and all previous years. The report must, 
78.26 	to the extent possible and reasonable, itemize the actual and projected financial benefit to 
78.27 	the public utility's ratepayers of each project.
78.28 	~~(q) By February 1, 2018, and each February 1 thereafter, the commissioner of~~ 
78.29 	~~management and budget shall submit a written report regarding the availability of funds in~~ 
78.30 	~~and obligations of the account to the chairs and ranking minority members of the senate~~ 
78.31 	~~and house committees with jurisdiction over energy policy and finance, the public utility,~~ 
78.32 	~~and the advisory group.~~
79.1 	~~(r)~~ (q) A project receiving funds from the account must produce a written final report 
79.2 	that includes sufficient detail for technical readers and a clearly written summary for 
79.3 	nontechnical readers. The report must include an evaluation of the project's financial, 
79.4 	environmental, and other benefits to the state and the public utility's ratepayers. A project 
79.5 	receiving funds from the account must submit a report that meets the requirements of section 
79.6 	216C.51, subdivisions 3 and 4, each year the project funded by the account is in progress.
79.7 	~~(s)~~ (r) Final reports, any mid-project status reports, and renewable development account 
79.8 	financial reports must be posted online on a public website designated by the commissioner 
79.9 	of commerce.
79.10 	~~(t)~~ (s) All final reports must acknowledge that the project was made possible in whole 
79.11 	or part by the Minnesota renewable development account, noting that the account is financed 
79.12 	by the public utility's ratepayers.
79.13 	~~(u)~~ (t) Of the amount in the renewable development account, priority must be given to 
79.14 	making the payments required under section 216C.417.
79.15 	~~(v)~~ (u) Construction projects receiving funds from this account are subject to the 
79.16 	requirement to pay the prevailing wage rate, as defined in section 177.42 and the requirements 
79.17 	and enforcement provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 
79.18 	177.45.

79.19 	Sec. 4. Minnesota Statutes 2023 Supplement, section 116C.7792, is amended to read:
79.20 	116C.7792 SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM.
79.21 	(a) The utility subject to section 116C.779 shall operate a program to provide solar 
79.22 	energy production incentives for solar energy systems of no more than a total aggregate 
79.23 	nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar 
79.24 	energy system installed before June 1, 2018, is eligible to receive a production incentive 
79.25 	under this section for any additional solar energy systems constructed at the same customer 
79.26 	location, provided that the aggregate capacity of all systems at the customer location does 
79.27 	not exceed 40 kilowatts.
79.28 	(b) The program is funded by money withheld from transfer to the renewable development 
79.29 	account under section 116C.779, subdivision 1, paragraphs (b) and (e). Program funds must 
79.30 	be placed in a separate account for the purpose of the solar energy production incentive 
79.31 	program operated by the utility and not for any other program or purpose.
79.32 	(c) Funds allocated to the solar energy production incentive program in 2019 and 2020 
79.33 	remain available to the solar energy production incentive program.
80.1 	(d) The following amounts are allocated to the solar energy production incentive program:
80.2 	(1) $10,000,000 in 2021;
80.3 	(2) $10,000,000 in 2022;
80.4 	(3) $5,000,000 in 2023;
80.5 	(4) $11,250,000 in 2024; ~~and~~
80.6 	(5) $6,250,000 in 2025; and
80.7 	(6) $5,000,000 each year, beginning in 2026 through 2035.
80.8 	(e) Notwithstanding the Department of Commerce's November 14, 2018, decision in 
80.9 	Docket No. E002/M-13-1015 regarding operation of the utility's solar energy production 
80.10 	incentive program, half of the amounts allocated each year under paragraph (d), clauses (3), 
80.11 	(4), and (5), must be reserved for solar energy systems whose installation meets the eligibility 
80.12 	standards for the low-income program established in the November 14, 2018, decision or 
80.13 	successor decisions of the department. All other program operations of the solar energy 
80.14 	production incentive program are governed by the provisions of the November 14, 2018, 
80.15 	decision or successor decisions of the department.
80.16 	(f) Funds allocated to the solar energy production incentive program that have not been 
80.17 	committed to a specific project at the end of a program year remain available to the solar 
80.18 	energy production incentive program.
80.19 	(g) Any unspent amount remaining on January 1, 2028, must be transferred to the 
80.20 	renewable development account.
80.21 	(h) A solar energy system receiving a production incentive under this section must be 
80.22 	sized to less than 120 percent of the customer's on-site annual energy consumption when 
80.23 	combined with other distributed generation resources and subscriptions provided under 
80.24 	section 216B.1641 associated with the premise. The production incentive must be paid for 
80.25 	ten years commencing with the commissioning of the system.
80.26 	(i) The utility must file a plan to operate the program with the commissioner of commerce. 
80.27 	The utility may not operate the program until it is approved by the commissioner. A change 
80.28 	to the program to include projects up to a nameplate capacity of 40 kilowatts or less does 
80.29 	not require the utility to file a plan with the commissioner. Any plan approved by the 
80.30 	commissioner of commerce must not provide an increased incentive scale over prior years 
80.31 	unless the commissioner demonstrates that changes in the market for solar energy facilities 
80.32 	require an increase.

81.1 	Sec. 5. Minnesota Statutes 2022, section 216B.098, is amended by adding a subdivision 
81.2 	to read:
81.3 		Subd. 7.Social Security number and individual taxpayer identification number. If 
81.4 	a utility requires a new customer to provide a Social Security number on an application for 
81.5 	utility service, the utility must accept an individual taxpayer identification number in lieu 
81.6 	of a Social Security number. The utility application must indicate that the utility accepts an 
81.7 	individual taxpayer identification number.

81.8 	Sec. 6. Minnesota Statutes 2022, section 216B.16, subdivision 6c, is amended to read:
81.9 		Subd. 6c.Incentive plan for energy conservation and efficient fuel-switching 
81.10 	improvement. (a) The commission may order public utilities to develop and submit for 
81.11 	commission approval incentive plans that describe the method of recovery and accounting 
81.12 	for utility conservation and efficient fuel-switching expenditures and savings. For public 
81.13 	utilities that provide electric service, the commission must develop and implement incentive 
81.14 	plans designed to promote energy conservation separately from the plans designed to promote 
81.15 	efficient fuel-switching. In developing the incentive plans the commission shall ensure the 
81.16 	effective involvement of interested parties.
81.17 	(b) In approving incentive plans, the commission shall consider:
81.18 	(1) whether the plan is likely to increase utility investment in cost-effective energy 
81.19 	conservation or efficient fuel switching;
81.20 	(2) whether the plan is compatible with the interest of utility ratepayers and other 
81.21 	interested parties;
81.22 	(3) whether the plan links the incentive to the utility's performance in achieving 
81.23 	cost-effective conservation or efficient fuel switching; ~~and~~
81.24 	(4) whether the plan is in conflict with other provisions of this chapter~~.~~;
81.25 	(5) whether the plan conflicts with other provisions of this chapter; and
81.26 	(6) the likely financial impacts of the conservation and efficient fuel-switching programs 
81.27 	on the utility.
81.28 	(c) The commission may set rates to encourage the vigorous and effective implementation 
81.29 	of utility conservation and efficient fuel-switching programs. The commission may:
81.30 	(1) increase or decrease any otherwise allowed rate of return on net investment based 
81.31 	upon the utility's skill, efforts, and success in ~~conserving~~ improving the efficient use of
81.32 	energy through energy conservation or efficient fuel switching;
82.1 	(2) share between ratepayers and utilities the net savings resulting from energy 
82.2 	conservation and efficient fuel-switching programs to the extent justified by the utility's 
82.3 	skill, efforts, and success in ~~conserving~~ improving the efficient use of energy; and
82.4 	(3) adopt any mechanism that satisfies the criteria of this subdivision, such that 
82.5 	implementation of cost-effective conservation or efficient fuel switching is a preferred 
82.6 	resource choice for the public utility considering the impact of conservation or efficient fuel 
82.7 	switching on earnings of the public utility.
82.8 	(d) Any incentives offered to electric utilities under this subdivision for efficient-fuel 
82.9 	switching projects expire December 31, 2032.

82.10 	Sec. 7. Minnesota Statutes 2022, section 216B.16, subdivision 8, is amended to read:
82.11 		Subd. 8.Advertising expense. (a) The commission shall disapprove the portion of any 
82.12 	rate which makes an allowance directly or indirectly for expenses incurred by a public utility 
82.13 	to provide a public advertisement which:
82.14 	(1) is designed to influence or has the effect of influencing public attitudes toward 
82.15 	legislation or proposed legislation, or toward a rule, proposed rule, authorization or proposed 
82.16 	authorization of the Public Utilities Commission or other agency of government responsible 
82.17 	for regulating a public utility;
82.18 	(2) is designed to justify or otherwise support or defend a rate, proposed rate, practice 
82.19 	or proposed practice of a public utility;
82.20 	(3) is designed primarily to promote consumption of the services of the utility;
82.21 	(4) is designed primarily to promote good will for the public utility or improve the 
82.22 	utility's public image; or
82.23 	(5) is designed to promote the use of nuclear power or to promote a nuclear waste storage 
82.24 	facility.
82.25 	(b) The commission may approve a rate which makes an allowance for expenses incurred 
82.26 	by a public utility to disseminate information which:
82.27 	(1) is designed to encourage ~~conservation~~ efficient use of energy supplies;
82.28 	(2) is designed to promote safety; or
82.29 	(3) is designed to inform and educate customers as to financial services made available 
82.30 	to them by the public utility.
83.1 	(c) The commission shall not withhold approval of a rate because it makes an allowance 
83.2 	for expenses incurred by the utility to disseminate information about corporate affairs to its 
83.3 	owners.

83.4 	Sec. 8. Minnesota Statutes 2022, section 216B.2402, is amended by adding a subdivision 
83.5 	to read:
83.6 		Subd. 3a.Data mining facility. "Data mining facility" means all buildings, structures, 
83.7 	equipment, and installations at a single site where electricity is used primarily by computers 
83.8 	to process transactions involving digital currency that is not issued by a central authority.

83.9 	Sec. 9. Minnesota Statutes 2022, section 216B.2402, subdivision 4, is amended to read:
83.10 		Subd. 4.Efficient fuel-switching improvement. "Efficient fuel-switching improvement" 
83.11 	means a project that:
83.12 	(1) replaces a fuel used by a customer with electricity or natural gas delivered at retail 
83.13 	by a utility subject to section 216B.2403 or 216B.241;
83.14 	(2) results in a net increase in the use of electricity or natural gas and a net decrease in 
83.15 	source energy consumption on a fuel-neutral basis;
83.16 	(3) otherwise meets the criteria established for consumer-owned utilities in section 
83.17 	216B.2403, subdivision 8, and for public utilities under section 216B.241, subdivisions 11 
83.18 	and 12; and
83.19 	(4) requires the installation of equipment that utilizes electricity or natural gas, resulting 
83.20 	in a reduction or elimination of the previous fuel used.
83.21 	An efficient fuel-switching improvement is not an energy conservation improvement or 
83.22 	energy efficiency even if the efficient fuel-switching improvement results in a net reduction 
83.23 	in electricity or natural gas use. ~~An efficient fuel-switching improvement does not include,~~ 
83.24 	~~and must not count toward any energy savings goal from, energy conservation improvements~~ 
83.25 	~~when fuel switching would result in an increase of greenhouse gas emissions into the~~ 
83.26 	~~atmosphere on an annual basis.~~

83.27 	Sec. 10. Minnesota Statutes 2022, section 216B.2402, subdivision 10, is amended to read:
83.28 		Subd. 10.Gross annual retail energy sales. "Gross annual retail energy sales" means 
83.29 	a utility's annual electric sales to all Minnesota retail customers, or natural gas throughput 
83.30 	to all retail customers, including natural gas transportation customers, on a utility's 
83.31 	distribution system in Minnesota. Gross annual retail energy sales does not include:
84.1 	(1) gas sales to:
84.2 	(i) a large energy facility;
84.3 	(ii) a large customer facility whose natural gas utility has been exempted by the 
84.4 	commissioner under section 216B.241, subdivision 1a, paragraph (a), with respect to natural 
84.5 	gas sales made to the large customer facility; and
84.6 	(iii) a commercial gas customer facility whose natural gas utility has been exempted by 
84.7 	the commissioner under section 216B.241, subdivision 1a, paragraph (b), with respect to 
84.8 	natural gas sales made to the commercial gas customer facility;
84.9 	(2) electric sales to:
84.10 	(i) a large customer facility whose electric utility has been exempted by the commissioner 
84.11 	under section 216B.241, subdivision 1a, paragraph (a), with respect to electric sales made 
84.12 	to the large customer facility; ~~or~~ and
84.13 	(ii) a data mining facility, if the facility:
84.14 	(A) has provided a signed letter to the utility verifying the facility meets the definition 
84.15 	of a data mining facility; and
84.16 	(B) imposes a peak electrical demand on a consumer-owned utility's system equal to or 
84.17 	greater than 40 percent of the peak electrical demand of the system, measured in the same 
84.18 	manner as the utility that serves the customer facility measures electric demand for billing 
84.19 	purposes; or
84.20 	(3) the amount of electric sales prior to December 31, 2032, that are associated with a 
84.21 	utility's program, rate, or tariff for electric vehicle charging based on a methodology and 
84.22 	assumptions developed by the department in consultation with interested stakeholders no 
84.23 	later than December 31, 2021. After December 31, 2032, incremental sales to electric 
84.24 	vehicles must be included in calculating a public utility's gross annual retail sales.

84.25 	Sec. 11. Minnesota Statutes 2022, section 216B.2403, subdivision 2, is amended to read:
84.26 		Subd. 2.Consumer-owned utility; energy-savings goal. (a) Each individual 
84.27 	consumer-owned electric utility subject to this section has an annual energy-savings goal 
84.28 	equivalent to 1.5 percent of gross annual retail energy sales and each individual 
84.29 	consumer-owned natural gas utility subject to this section has an annual energy-savings 
84.30 	goal equivalent to one percent of gross annual retail energy sales, to be met with a minimum 
84.31 	of energy savings from energy conservation improvements equivalent to at least ~~0.95~~ 0.90
84.32 	percent of the consumer-owned utility's gross annual retail energy sales. The balance of 
85.1 	energy savings toward the annual energy-savings goal may be achieved only by the following 
85.2 	consumer-owned utility activities:
85.3 	(1) energy savings from additional energy conservation improvements;
85.4 	(2) electric utility infrastructure projects, as defined in section 216B.1636, subdivision 
85.5 	1, that result in increased efficiency greater than would have occurred through normal 
85.6 	maintenance activity;
85.7 	(3) net energy savings from efficient fuel-switching improvements that meet the criteria 
85.8 	under subdivision 8, which may contribute up to ~~0.55~~ 0.60 percent of the goal; or
85.9 	(4) subject to department approval, demand-side natural gas or electric energy displaced 
85.10 	by use of waste heat recovered and used as thermal energy, including the recovered thermal 
85.11 	energy from a cogeneration or combined heat and power facility.
85.12 	(b) The energy-savings goals specified in this section must be calculated based on 
85.13 	weather-normalized sales averaged over the most recent three years. A consumer-owned 
85.14 	utility may elect to carry forward energy savings in excess of 1.5 percent for a year to the 
85.15 	next three years, except that energy savings from electric utility infrastructure projects may 
85.16 	be carried forward for five years. A particular energy savings can only be used to meet one 
85.17 	year's goal.
85.18 	(c) A consumer-owned utility subject to this section is not required to make energy 
85.19 	conservation improvements that are not cost-effective, even if the improvement is necessary 
85.20 	to attain the energy-savings goal. A consumer-owned utility subject to this section must 
85.21 	make reasonable efforts to implement energy conservation improvements that exceed the 
85.22 	minimum level established under this subdivision if cost-effective opportunities and funding 
85.23 	are available, considering other potential investments the consumer-owned utility intends 
85.24 	to make to benefit customers during the term of the plan filed under subdivision 3.
85.25 	~~(d) Notwithstanding any provision to the contrary, until July 1, 2026, spending by a~~ 
85.26 	~~consumer-owned utility subject to this section on efficient fuel-switching improvements~~ 
85.27 	~~implemented to meet the annual energy savings goal under this section must not exceed~~ 
85.28 	~~0.55 percent per year, averaged over a three-year period, of the consumer-owned utility's~~ 
85.29 	~~gross annual retail energy sales.~~

85.30 	Sec. 12. Minnesota Statutes 2022, section 216B.2403, subdivision 3, is amended to read:
85.31 		Subd. 3.Consumer-owned utility; energy conservation and optimization plans. (a) 
85.32 	By June 1, 2022, and at least every three years thereafter, each consumer-owned utility must 
85.33 	file with the commissioner an energy conservation and optimization plan that describes the 
86.1 	programs for energy conservation, efficient fuel-switching, load management, and other 
86.2 	measures the consumer-owned utility intends to offer to achieve the utility's energy savings 
86.3 	goal.
86.4 	(b) A plan's term may extend up to three years. A multiyear plan must identify the total 
86.5 	energy savings and energy savings resulting from energy conservation improvements that 
86.6 	are projected to be achieved in each year of the plan. A multiyear plan that does not, in each 
86.7 	year of the plan, meet both the minimum energy savings goal from energy conservation 
86.8 	improvements and the total energy savings goal of 1.5 percent, or lower goals adjusted by 
86.9 	the commissioner under paragraph (k), must:
86.10 	(1) state why each goal is projected to be unmet; and
86.11 	(2) demonstrate how the consumer-owned utility proposes to meet both goals on an 
86.12 	average basis over the duration of the plan.
86.13 	(c) A plan filed under this subdivision must provide:
86.14 	(1) for existing programs, an analysis of the cost-effectiveness of the consumer-owned 
86.15 	utility's programs offered under the plan, using a list of baseline energy- and capacity-savings 
86.16 	assumptions developed in consultation with the department; and
86.17 	(2) for new programs, a preliminary analysis upon which the program will proceed, in 
86.18 	parallel with further development of assumptions and standards.
86.19 	(d) The commissioner must evaluate a plan filed under this subdivision based on the 
86.20 	plan's likelihood to achieve the energy-savings goals established in subdivision 2. The 
86.21 	commissioner may make recommendations to a consumer-owned utility regarding ways to 
86.22 	increase the effectiveness of the consumer-owned utility's energy conservation activities 
86.23 	and programs under this subdivision. The commissioner may recommend that a 
86.24 	consumer-owned utility implement a cost-effective energy conservation or efficient 
86.25 	fuel-switching program~~, including an energy conservation program~~ suggested by an outside 
86.26 	source such as a political subdivision, nonprofit corporation, or community organization.
86.27 	(e) Beginning June 1, 2023, and every June 1 thereafter, each consumer-owned utility 
86.28 	must file: (1) an annual update identifying the status of the plan filed under this subdivision, 
86.29 	including: (i) total expenditures and investments made to date under the plan; and (ii) any 
86.30 	intended changes to the plan; and (2) a summary of the annual energy-savings achievements 
86.31 	under a plan. An annual filing made in the last year of a plan must contain a new plan that 
86.32 	complies with this section.
87.1 	(f) When evaluating the cost-effectiveness of a consumer-owned utility's energy 
87.2 	conservation programs, the consumer-owned utility and the commissioner must consider 
87.3 	the costs and benefits to ratepayers, the utility, participants, and society. The commissioner 
87.4 	must also consider the rate at which the consumer-owned utility is increasing energy savings 
87.5 	and expenditures on energy conservation, and lifetime energy savings and cumulative energy 
87.6 	savings.
87.7 	(g) A consumer-owned utility may annually spend and invest up to ten percent of the 
87.8 	total amount spent and invested on energy conservation, efficient fuel-switching, or load 
87.9 	management improvements on research and development projects that meet the applicable 
87.10 	definition of energy conservation, efficient fuel-switching, or load management improvement.
87.11 	(h) A generation and transmission cooperative electric association or municipal power 
87.12 	agency that provides energy services to consumer-owned utilities may file a plan under this 
87.13 	subdivision on behalf of the consumer-owned utilities to which the association or agency 
87.14 	provides energy services and may make investments, offer conservation programs, and 
87.15 	otherwise fulfill the energy-savings goals and reporting requirements of this subdivision 
87.16 	for those consumer-owned utilities on an aggregate basis.
87.17 	(i) A consumer-owned utility is prohibited from spending for or investing in energy 
87.18 	conservation improvements that directly benefit a large energy facility or a large electric 
87.19 	customer facility the commissioner has exempted under section 216B.241, subdivision 1a.
87.20 	(j) The energy conservation and optimization plan of a consumer-owned utility may 
87.21 	include activities to improve energy efficiency in the public schools served by the utility. 
87.22 	These activities may include programs to:
87.23 	(1) increase the efficiency of the school's lighting and heating and cooling systems;
87.24 	(2) recommission buildings;
87.25 	(3) train building operators; and
87.26 	(4) provide opportunities to educate students, teachers, and staff regarding energy 
87.27 	efficiency measures implemented at the school.
87.28 	(k) A consumer-owned utility may request that the commissioner adjust the 
87.29 	consumer-owned utility's minimum goal for energy savings from energy conservation 
87.30 	improvements under subdivision 2, paragraph (a), for the duration of the plan filed under 
87.31 	this subdivision. The request must be made by January 1 of the year when the 
87.32 	consumer-owned utility must file a plan under this subdivision. The request must be based 
87.33 	on:
88.1 	(1) historical energy conservation improvement program achievements;
88.2 	(2) customer class makeup;
88.3 	(3) projected load growth;
88.4 	(4) an energy conservation potential study that estimates the amount of cost-effective 
88.5 	energy conservation potential that exists in the consumer-owned utility's service territory;
88.6 	(5) the cost-effectiveness and quality of the energy conservation programs offered by 
88.7 	the consumer-owned utility; and
88.8 	(6) other factors the commissioner and consumer-owned utility determine warrant an 
88.9 	adjustment.
88.10 	The commissioner must adjust the energy savings goal to a level the commissioner determines 
88.11 	is supported by the record, but must not approve a minimum energy savings goal from 
88.12 	energy conservation improvements that is less than an average of 0.95 percent per year over 
88.13 	the consecutive years of the plan's duration, including the year the minimum energy savings 
88.14 	goal is adjusted.
88.15 	(l) A consumer-owned utility filing a conservation and optimization plan that includes 
88.16 	an efficient fuel-switching program ~~to achieve the utility's energy savings goal~~ must, as part 
88.17 	of the filing, demonstrate ~~by a comparison of greenhouse gas emissions between the fuels~~
88.18 	that the requirements of subdivision 8 are met~~, using a full fuel-cycle energy analysis~~.

88.19 	Sec. 13. Minnesota Statutes 2022, section 216B.2403, subdivision 5, is amended to read:
88.20 		Subd. 5.Energy conservation programs for low-income households. (a) A 
88.21 	consumer-owned utility subject to this section must provide energy conservation programs 
88.22 	to low-income households. The commissioner must evaluate a consumer-owned utility's 
88.23 	plans under this section by considering the consumer-owned utility's historic spending on 
88.24 	energy conservation programs directed to low-income households, the rate of customer 
88.25 	participation in and the energy savings resulting from those programs, and the number of 
88.26 	low-income persons residing in the consumer-owned utility's service territory. A municipal 
88.27 	utility that furnishes natural gas service must spend at least 0.2 percent of the municipal 
88.28 	utility's most recent three-year average gross operating revenue from residential customers 
88.29 	in Minnesota on energy conservation programs for low-income households. A 
88.30 	consumer-owned utility that furnishes electric service must spend at least 0.2 percent of the 
88.31 	consumer-owned utility's gross operating revenue from residential customers in Minnesota 
88.32 	on energy conservation programs for low-income households. The requirement under this 
88.33 	paragraph applies to each generation and transmission cooperative association's aggregate 
89.1 	gross operating revenue from the sale of electricity to residential customers in Minnesota 
89.2 	by all of the association's member distribution cooperatives.
89.3 	(b) To meet all or part of the spending requirements of paragraph (a), a consumer-owned 
89.4 	utility may contribute money to the energy and conservation account established in section 
89.5 	216B.241, subdivision 2a. An energy conservation optimization plan must state the amount 
89.6 	of contributions the consumer-owned utility plans to make to the energy and conservation 
89.7 	account. Contributions to the account must be used for energy conservation programs serving 
89.8 	low-income households, including renters, located in the service area of the consumer-owned 
89.9 	utility making the contribution. Contributions must be remitted to the commissioner by 
89.10 	February 1 each year.
89.11 	(c) The commissioner must establish energy conservation programs for low-income 
89.12 	households funded through contributions to the energy and conservation account under 
89.13 	paragraph (b). When establishing energy conservation programs for low-income households, 
89.14 	the commissioner must consult political subdivisions, utilities, and nonprofit and community 
89.15 	organizations, including organizations providing energy and weatherization assistance to 
89.16 	low-income households. The commissioner must record and report expenditures and energy 
89.17 	savings achieved as a result of energy conservation programs for low-income households 
89.18 	funded through the energy and conservation account in the report required under section 
89.19 	216B.241, subdivision 1c, paragraph (f). The commissioner may contract with a political 
89.20 	subdivision, nonprofit or community organization, public utility, municipality, or 
89.21 	consumer-owned utility to implement low-income programs funded through the energy and 
89.22 	conservation account.
89.23 	(d) A consumer-owned utility may petition the commissioner to modify the required 
89.24 	spending under this subdivision if the consumer-owned utility and the commissioner were 
89.25 	unable to expend the amount required for three consecutive years.
89.26 	(e) The commissioner must develop and establish guidelines for determining the eligibility 
89.27 	of multifamily buildings to participate in energy conservation programs provided to 
89.28 	low-income households. Notwithstanding the definition of low-income household in section 
89.29 	216B.2402, a consumer-owned utility or association may apply the most recent guidelines 
89.30 	published by the department for purposes of determining the eligibility of multifamily 
89.31 	buildings to participate in low-income programs. The commissioner must convene a 
89.32 	stakeholder group to review and update these guidelines by August 1, 2021, and at least 
89.33 	once every five years thereafter. The stakeholder group must include but is not limited to 
89.34 	representatives of public utilities; municipal electric or gas utilities; electric cooperative 
89.35 	associations; multifamily housing owners and developers; and low-income advocates.
90.1 	(f) Up to 15 percent of a consumer-owned utility's spending on low-income energy 
90.2 	conservation programs may be spent on preweatherization measures. A consumer-owned 
90.3 	utility is prohibited from claiming energy savings from preweatherization measures toward 
90.4 	the consumer-owned utility's energy savings goal.
90.5 	(g) The commissioner must, by order, establish a list of preweatherization measures 
90.6 	eligible for inclusion in low-income energy conservation programs no later than March 15, 
90.7 	2022.
90.8 	(h) A Healthy AIR (Asbestos Insulation Removal) account is established as a separate 
90.9 	account in the special revenue fund in the state treasury. A consumer-owned utility may 
90.10 	elect to contribute money to the Healthy AIR account to provide preweatherization measures 
90.11 	for households eligible for weatherization assistance from the state weatherization assistance 
90.12 	program in section 216C.264. Remediation activities must be executed in conjunction with 
90.13 	federal weatherization assistance program services. Money contributed to the account by a 
90.14 	consumer-owned utility counts toward: (1) the minimum low-income spending requirement 
90.15 	under paragraph (a); and (2) the cap on preweatherization measures under paragraph (f). 
90.16 	Money in the account is annually appropriated to the commissioner of commerce to pay for 
90.17 	Healthy AIR-related activities.
90.18 	(i) This paragraph applies to a consumer-owned utility that supplies electricity to a 
90.19 	low-income household whose primary heating fuel is supplied by an entity other than a 
90.20 	public utility. Any spending on space and water heating energy conservation improvements 
90.21 	and efficient fuel-switching by the consumer-owned utility on behalf of the low-income 
90.22 	household may be applied to the consumer owned utility's spending requirement under 
90.23 	paragraph (a). To the maximum extent possible, a consumer-owned utility providing services 
90.24 	under this paragraph must offer the services in conjunction with weatherization services 
90.25 	provided under section 216C.264.

90.26 	Sec. 14. Minnesota Statutes 2022, section 216B.2403, subdivision 8, is amended to read:
90.27 		Subd. 8.Criteria for efficient fuel-switching improvements. (a) A fuel-switching 
90.28 	improvement is deemed efficient if, applying the technical criteria established under section 
90.29 	216B.241, subdivision 1d, paragraph (e), the improvement, relative to the fuel being 
90.30 	displaced:
90.31 	(1) results in a net reduction in the amount of source energy consumed for a particular 
90.32 	use, measured on a fuel-neutral basis, using (i) the consumer-owned utility's or the utility's 
90.33 	electricity supplier's annual system average efficiency, or (ii) if the utility elects, a seasonal, 
91.1 	monthly, or more granular level of analysis for the electric utility system over the measure's 
91.2 	life;
91.3 	(2) results in a net reduction of statewide greenhouse gas emissions, as defined in section 
91.4 	216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching 
91.5 	improvement installed by an electric consumer-owned utility, the reduction in emissions 
91.6 	must be measured ~~based on the hourly emissions profile of the consumer-owned utility or~~ 
91.7 	~~the utility's electricity supplier, as reported in the most recent resource plan approved by~~ 
91.8 	~~the commission under section 216B.2422. If the hourly emissions profile is not available,~~ 
91.9 	~~the commissioner must develop a method consumer-owned utilities must use to estimate~~ 
91.10 	~~that value~~ using (i) the consumer-owned utility's or the utility's electricity supplier's annual 
91.11 	average emissions factor, or (ii) if the utility elects, a seasonal, monthly, or more granular 
91.12 	level of analysis for the electric utility system over the measure's life; and
91.13 	(3) is cost-effective, considering the costs and benefits from the perspective of the 
91.14 	consumer-owned utility, participants, and society~~; and~~.
91.15 	~~(4) is installed and operated in a manner that improves the consumer-owned utility's~~ 
91.16 	~~system load factor.~~
91.17 	(b) For purposes of this subdivision, "source energy" means the total amount of primary 
91.18 	energy required to deliver energy services, adjusted for losses in generation, transmission, 
91.19 	and distribution, and expressed on a fuel-neutral basis.

91.20 	Sec. 15. Minnesota Statutes 2022, section 216B.241, subdivision 1c, is amended to read:
91.21 		Subd. 1c.Public utility; energy-saving goals. (a) The commissioner shall establish 
91.22 	energy-saving goals for energy conservation improvements and shall evaluate an energy 
91.23 	conservation improvement program on how well it meets the goals set.
91.24 	(b) A public utility providing electric service has an annual energy-savings goal equivalent 
91.25 	to 1.75 percent of gross annual retail energy sales unless modified by the commissioner 
91.26 	under paragraph (c). A public utility providing natural gas service has an annual 
91.27 	energy-savings goal equivalent to one percent of gross annual retail energy sales, which 
91.28 	cannot be lowered by the commissioner. The savings goals must be calculated based on the 
91.29 	most recent three-year weather-normalized average. A public utility providing electric 
91.30 	service may elect to carry forward energy savings in excess of 1.75 percent for a year to 
91.31 	the succeeding three calendar years, except that savings from electric utility infrastructure 
91.32 	projects allowed under paragraph (d) may be carried forward for five years. A public utility 
91.33 	providing natural gas service may elect to carry forward energy savings in excess of one 
92.1 	percent for a year to the succeeding three calendar years. A particular energy savings can 
92.2 	only be used to meet one year's goal.
92.3 	(c) In its energy conservation and optimization plan filing, a public utility may request 
92.4 	the commissioner to adjust its annual energy-savings percentage goal based on its historical 
92.5 	conservation investment experience, customer class makeup, load growth, a conservation 
92.6 	potential study, or other factors the commissioner determines warrants an adjustment.
92.7 	(d) The commissioner may not approve a plan of a public utility that provides for an 
92.8 	annual energy-savings goal of less than one percent of gross annual retail energy sales from 
92.9 	energy conservation improvements.
92.10 	The balance of the 1.75 percent annual energy savings goal may be achieved through 
92.11 	energy savings from:
92.12 	(1) additional energy conservation improvements;
92.13 	(2) electric utility infrastructure projects approved by the commission under section 
92.14 	216B.1636 that result in increased efficiency greater than would have occurred through 
92.15 	normal maintenance activity; or
92.16 	(3) subject to department approval, demand-side natural gas or electric energy displaced 
92.17 	by use of waste heat recovered and used as thermal energy, including the recovered thermal 
92.18 	energy from a cogeneration or combined heat and power facility.
92.19 	(e) A public utility is not required to make energy conservation investments to attain 
92.20 	the energy-savings goals of this subdivision that are not cost-effective even if the investment 
92.21 	is necessary to attain the energy-savings goals. For the purpose of this paragraph, in 
92.22 	determining cost-effectiveness, the commissioner shall consider: (1) the costs and benefits 
92.23 	to ratepayers, the utility, participants, and society; (2) the rate at which a public utility is 
92.24 	increasing both its energy savings and its expenditures on energy conservation; and (3) the 
92.25 	public utility's lifetime energy savings and cumulative energy savings.
92.26 	(f) On an annual basis, the commissioner shall produce and make publicly available a 
92.27 	report on the annual energy and capacity savings and estimated carbon dioxide reductions 
92.28 	achieved by the programs under this section and section 216B.2403 for the two most recent 
92.29 	years for which data is available. The report must also include information regarding any 
92.30 	annual energy sales or generation capacity increases resulting from efficient fuel-switching 
92.31 	improvements. The commissioner shall report on program performance both in the aggregate 
92.32 	and for each entity filing an energy conservation improvement plan for approval or review 
93.1 	by the commissioner, and must estimate progress made toward the statewide energy-savings 
93.2 	goal under section 216B.2401.
93.3 	~~(g) Notwithstanding any provision to the contrary, until July 1, 2026, spending by a~~ 
93.4 	~~public utility subject to this section on efficient fuel-switching improvements to meet energy~~ 
93.5 	~~savings goals under this section must not exceed 0.35 percent per year, averaged over three~~ 
93.6 	~~years, of the public utility's gross annual retail energy sales.~~

93.7 	Sec. 16. Minnesota Statutes 2022, section 216B.241, subdivision 2, is amended to read:
93.8 		Subd. 2.Public utility; energy conservation and optimization plans. (a) The 
93.9 	commissioner may require a public utility to make investments and expenditures in energy 
93.10 	conservation improvements, explicitly setting forth the interest rates, prices, and terms under 
93.11 	which the improvements must be offered to the customers.
93.12 	(b) A public utility shall file an energy conservation and optimization plan by June 1, 
93.13 	on a schedule determined by order of the commissioner, but at least every three years. As 
93.14 	provided in subdivisions 11 to 13, plans may include programs for efficient fuel-switching 
93.15 	improvements and load management. An individual utility program may combine elements 
93.16 	of energy conservation, load management, or efficient fuel-switching. The plan must estimate 
93.17 	the lifetime energy savings and cumulative lifetime energy savings projected to be achieved 
93.18 	under the plan. A plan filed by a public utility by June 1 must be approved or approved as 
93.19 	modified by the commissioner by December 1 of that same year.
93.20 	(c) The commissioner shall evaluate the plan on the basis of cost-effectiveness and the 
93.21 	reliability of technologies employed. The commissioner's order must provide to the extent 
93.22 	practicable for a free choice, by consumers participating in an energy conservation program, 
93.23 	of the device, method, material, or project constituting the energy conservation improvement 
93.24 	and for a free choice of the seller, installer, or contractor of the energy conservation 
93.25 	improvement, provided that the device, method, material, or project seller, installer, or 
93.26 	contractor is duly licensed, certified, approved, or qualified, including under the residential 
93.27 	conservation services program, where applicable.
93.28 	(d) The commissioner may require a utility subject to subdivision 1c to make an energy 
93.29 	conservation improvement investment or expenditure whenever the commissioner finds 
93.30 	that the improvement will result in energy savings at a total cost to the utility less than the 
93.31 	cost to the utility to produce or purchase an equivalent amount of new supply of energy.
93.32 	(e) Each public utility subject to this subdivision may spend and invest annually up to 
93.33 	ten percent of the total amount ~~spent and invested~~ that the public utility spends and invests
94.1 	on energy conservation, efficient fuel-switching, or load management improvements under 
94.2 	this section ~~by the public utility~~ on research and development projects that meet the applicable 
94.3 	definition of energy conservation, efficient fuel-switching, or load management improvement.
94.4 	(f) The commissioner shall consider and may require a public utility to undertake an 
94.5 	energy conservation ~~program~~ or efficient fuel-switching program, subject to the requirements 
94.6 	of subdivisions 11 and 12, that is suggested by an outside source, including a political 
94.7 	subdivision, a nonprofit corporation, or community organization. When approving a proposal 
94.8 	under this paragraph, the commissioner must consider the qualifications and experience of 
94.9 	the entity proposing the program and any other criteria the commissioner deems relevant.
94.10 	(g) A public utility, a political subdivision, or a nonprofit or community organization 
94.11 	that has suggested an energy conservation program, the attorney general acting on behalf 
94.12 	of consumers and small business interests, or a public utility customer that has suggested 
94.13 	an energy conservation program and is not represented by the attorney general under section 
94.14 	8.33 may petition the commission to modify or revoke a department decision under this 
94.15 	section, and the commission may do so if it determines that the energy conservation program 
94.16 	is not cost-effective, does not adequately address the residential conservation improvement 
94.17 	needs of low-income persons, has a long-range negative effect on one or more classes of 
94.18 	customers, or is otherwise not in the public interest. The commission shall reject a petition 
94.19 	that, on its face, fails to make a reasonable argument that an energy conservation program 
94.20 	is not in the public interest.
94.21 	(h) The commissioner may order a public utility to include, with the filing of the public 
94.22 	utility's annual status report, the results of an independent audit of the public utility's 
94.23 	conservation improvement programs and expenditures performed by the department or an 
94.24 	auditor with experience in the provision of energy conservation and energy efficiency 
94.25 	services approved by the commissioner and chosen by the public utility. The audit must 
94.26 	specify the energy savings or increased efficiency in the use of energy within the service 
94.27 	territory of the public utility that is the result of the public utility's spending and investments. 
94.28 	The audit must evaluate the cost-effectiveness of the public utility's conservation programs.
94.29 	(i) The energy conservation and optimization plan of each public utility subject to this 
94.30 	section must include activities to improve energy efficiency in public schools served by the 
94.31 	utility. As applicable to each public utility, at a minimum the activities must include programs 
94.32 	to increase the efficiency of the school's lighting and heating and cooling systems, and to 
94.33 	provide for building recommissioning, building operator training, and opportunities to 
94.34 	educate students, teachers, and staff regarding energy efficiency measures implemented at 
94.35 	the school.
95.1 	(j) The commissioner may require investments or spending greater than the amounts 
95.2 	proposed in a plan filed under this subdivision or section 216C.17 for a public utility whose 
95.3 	most recent advanced forecast required under section 216B.2422 projects a peak demand 
95.4 	deficit of 100 megawatts or more within five years under midrange forecast assumptions.
95.5 	(k) A public utility filing a conservation and optimization plan that includes an efficient 
95.6 	fuel-switching program ~~to achieve the utility's energy savings goal~~ must, as part of the filing, 
95.7 	demonstrate ~~by a comparison of greenhouse gas emissions between the fuels~~ that the 
95.8 	requirements of subdivisions 11 or 12 are met, as applicable~~, using a full fuel-cycle energy~~ 
95.9 	~~analysis~~.

95.10 	Sec. 17. Minnesota Statutes 2022, section 216B.241, subdivision 11, is amended to read:
95.11 		Subd. 11.Programs for efficient fuel-switching improvements; electric utilities. (a) 
95.12 	A public utility providing electric service at retail may include in the plan required under 
95.13 	subdivision 2 a proposed goal for efficient fuel-switching improvements that the utility 
95.14 	expects to achieve under the plan and the programs to implement efficient fuel-switching 
95.15 	improvements or combinations of energy conservation improvements, fuel-switching 
95.16 	improvements, and load management. For each program, the public utility must provide a 
95.17 	proposed budget, an analysis of the program's cost-effectiveness, and estimated net energy 
95.18 	and demand savings.
95.19 	(b) The department may approve proposed programs for efficient fuel-switching 
95.20 	improvements if the department determines the improvements meet the requirements of 
95.21 	paragraph (d). ~~For fuel-switching improvements that require the deployment of electric~~ 
95.22 	~~technologies, the department must also consider whether the fuel-switching improvement~~ 
95.23 	~~can be operated in a manner that facilitates the integration of variable renewable energy~~ 
95.24 	~~into the electric system. The net benefits from an efficient fuel-switching improvement that~~ 
95.25 	~~is integrated with an energy efficiency program approved under this section may be counted~~ 
95.26 	~~toward the net benefits of the energy efficiency program, if the department determines the~~ 
95.27 	~~primary purpose and effect of the program is energy efficiency.~~
95.28 	(c) A public utility may file a rate schedule with the commission that provides for annual 
95.29 	cost recovery of reasonable and prudent costs to implement and promote efficient 
95.30 	fuel-switching programs. The utility, department, or other entity may propose, and the 
95.31 	commission may ~~not~~ approve, modify, or reject, a proposal for a financial incentive to 
95.32 	encourage efficient fuel-switching programs operated by a public utility providing electric 
95.33 	service approved under this subdivision. When making a decision on the financial incentive 
96.1 	proposal, the commission must apply the considerations established in section 216B.16, 
96.2 	subdivision 6c, paragraphs (b) and (c).
96.3 	(d) A fuel-switching improvement is deemed efficient if, applying the technical criteria 
96.4 	established under section 216B.241, subdivision 1d, paragraph (e), the improvement meets 
96.5 	the following criteria, relative to the fuel that is being displaced:
96.6 	(1) results in a net reduction in the amount of source energy consumed for a particular 
96.7 	use, measured on a fuel-neutral basis, using (i) the utility's annual system average efficiency, 
96.8 	or (ii) if the utility elects, a seasonal, monthly, or more granular level of analysis for the 
96.9 	electric utility system over the measure's life;
96.10 	(2) results in a net reduction of statewide greenhouse gas emissions as defined in section 
96.11 	216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching 
96.12 	improvement installed by an electric utility, the reduction in emissions must be measured 
96.13 	~~based on the hourly emission profile of the electric utility, using the hourly emissions profile~~ 
96.14 	~~in the most recent resource plan approved by the commission under section 216B.2422~~
96.15 	using (i) the utility's annual average emissions factor, or (ii) if the utility elects, a seasonal, 
96.16 	monthly or more granular level of analysis, for the electric utility system over the measure's 
96.17 	life; and
96.18 	(3) is cost-effective, considering the costs and benefits from the perspective of the utility, 
96.19 	participants, and society~~; and~~.
96.20 	~~(4) is installed and operated in a manner that improves the utility's system load factor.~~
96.21 	(e) For purposes of this subdivision, "source energy" means the total amount of primary 
96.22 	energy required to deliver energy services, adjusted for losses in generation, transmission, 
96.23 	and distribution, and expressed on a fuel-neutral basis.

96.24 	Sec. 18. Minnesota Statutes 2022, section 216B.241, subdivision 12, is amended to read:
96.25 		Subd. 12.Programs for efficient fuel-switching improvements; natural gas 
96.26 	utilities. (a) As part of a public utility's plan filed under subdivision 2, a public utility that 
96.27 	provides natural gas service to Minnesota retail customers may propose one or more programs 
96.28 	to install electric technologies that reduce the consumption of natural gas by the utility's 
96.29 	retail customers as an energy conservation improvement. The commissioner may approve 
96.30 	a proposed program if the commissioner, applying the technical criteria developed under 
96.31 	section 216B.241, subdivision 1d, paragraph (e), determines that:
96.32 	(1) the electric technology to be installed meets the criteria established under section 
96.33 	216B.241, subdivision 11, paragraph (d), clauses (1) and (2); and
97.1 	(2) the program is cost-effective, considering the costs and benefits to ratepayers, the 
97.2 	utility, participants, and society.
97.3 	(b) If a program is approved by the commission under this subdivision, the public utility 
97.4 	may count the program's energy savings toward its energy savings goal under section 
97.5 	216B.241, subdivision 1c. Notwithstanding section 216B.2402, subdivision 4, efficient 
97.6 	fuel-switching achieved through programs approved under this subdivision is energy 
97.7 	conservation.
97.8 	(c) A public utility may file rate schedules with the commission that provide annual 
97.9 	cost-recovery for programs approved by the department under this subdivision, including 
97.10 	reasonable and prudent costs to implement and promote the programs.
97.11 	(d) The commission may approve, modify, or reject a proposal made by the department 
97.12 	or a utility for an incentive plan to encourage efficient fuel-switching programs approved 
97.13 	under this subdivision, applying the considerations established under section 216B.16, 
97.14 	subdivision 6c, paragraphs (b) and (c). The commission may approve a financial incentive 
97.15 	mechanism that is calculated based on the combined energy savings and net benefits that 
97.16 	the commission has determined have been achieved by a program approved under this 
97.17 	subdivision, provided the commission determines that the financial incentive mechanism 
97.18 	is in the ratepayers' interest.
97.19 	~~(e) A public utility is not eligible for a financial incentive for an efficient fuel-switching~~ 
97.20 	~~program under this subdivision in any year in which the utility achieves energy savings~~ 
97.21 	~~below one percent of gross annual retail energy sales, excluding savings achieved through~~ 
97.22 	~~fuel-switching programs.~~

97.23 	Sec. 19. Minnesota Statutes 2022, section 216B.2425, subdivision 1, is amended to read:
97.24 		Subdivision 1.List. The commission shall maintain a list of certified high-voltage 
97.25 	transmission line and grid enhancing technology projects.

97.26 	EFFECTIVE DATE. This section is effective June 1, 2025.

97.27 	Sec. 20. Minnesota Statutes 2022, section 216B.2425, is amended by adding a subdivision 
97.28 	to read:
97.29 		Subd. 1a.Definitions. (a) For the purposes of this section, the following terms have the 
97.30 	meanings given.
97.31 	(b) "Capacity" means the maximum amount of electricity that can flow through a 
97.32 	transmission line while observing industry safety standards.
98.1 	(c) "Congestion" means a condition in which a lack of transmission line capacity prevents 
98.2 	the delivery of the lowest-cost electricity dispatched to meet load at a specific location.
98.3 	(d) "Dynamic line rating" means hardware or software used to calculate the thermal 
98.4 	limit of existing transmission lines at a specific point in time by incorporating information 
98.5 	on real-time and forecasted weather conditions.
98.6 	(e) "Grid enhancing technology" means hardware or software that reduces congestion 
98.7 	or enhances the flexibility of the transmission system by increasing the capacity of a 
98.8 	high-voltage transmission line or rerouting electricity from overloaded to uncongested lines, 
98.9 	while maintaining industry safety standards. Grid enhancing technologies include but are 
98.10 	not limited to dynamic line rating, advanced power flow controllers, and topology 
98.11 	optimization.
98.12 	(f) "Power flow controller" means hardware and software used to reroute electricity 
98.13 	from overloaded transmission lines to underutilized transmission lines.
98.14 	(g) "Thermal limit" means the temperature a transmission line reaches when heat from 
98.15 	the electric current flow within the transmission line causes excessive sagging of the 
98.16 	transmission line.
98.17 	(h) "Topology optimization" means a software technology that uses mathematical models 
98.18 	to identify reconfigurations in the transmission grid in order to reroute electricity from 
98.19 	overloaded transmission lines to underutilized transmission lines.
98.20 	(i) "Transmission line" has the meaning given to "high-voltage transmission line" in 
98.21 	section 216I.02, subdivision 8.
98.22 	(j) "Transmission system" means a network of high-voltage transmission lines owned 
98.23 	or operated by an entity subject to this section that transports electricity to Minnesota 
98.24 	customers.

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

98.26 	Sec. 21. Minnesota Statutes 2022, section 216B.2425, subdivision 2, is amended to read:
98.27 		Subd. 2.List development; transmission and grid enhancing technology projects 
98.28 	report. (a) By November 1 of each odd-numbered year, a transmission projects report must 
98.29 	be submitted to the commission by each utility, organization, or company that:
98.30 	(1) is a public utility, a municipal utility, a cooperative electric association, the generation 
98.31 	and transmission organization that serves each utility or association, or a transmission 
98.32 	company; and
99.1 	(2) owns or operates electric transmission lines in Minnesota, except a company or 
99.2 	organization that owns a transmission line that serves a single customer or interconnects a 
99.3 	single generating facility.
99.4 	(b) The report may be submitted jointly or individually to the commission.
99.5 	(c) The report must:
99.6 	(1) list specific present and reasonably foreseeable future inadequacies in the transmission 
99.7 	system in Minnesota;
99.8 	(2) identify alternative means of addressing each inadequacy listed, including grid 
99.9 	enhancing technologies such as dynamic line rating, power flow controllers, topology 
99.10 	optimization, and other hardware or software that reduce congestion or enhance the flexibility 
99.11 	of the transmission system;
99.12 	(3) identify general economic, environmental, and social issues associated with each 
99.13 	alternative; and
99.14 	(4) provide a summary of public input related to the list of inadequacies and the role of 
99.15 	local government officials and other interested persons in assisting to develop the list and 
99.16 	analyze alternatives.
99.17 	(d) To meet the requirements of this subdivision, reporting parties may rely on available 
99.18 	information and analysis developed by a regional transmission organization or any subgroup 
99.19 	of a regional transmission organization and may develop and include additional information 
99.20 	as necessary.
99.21 	(e) In addition to providing the information required under this subdivision, a utility 
99.22 	operating under a multiyear rate plan approved by the commission under section 216B.16, 
99.23 	subdivision 19, shall identify in its report investments that it considers necessary to modernize 
99.24 	the transmission and distribution system by enhancing reliability, improving security against 
99.25 	cyber and physical threats, and by increasing energy conservation opportunities by facilitating 
99.26 	communication between the utility and its customers through the use of two-way meters, 
99.27 	control technologies, energy storage and microgrids, technologies to enable demand response, 
99.28 	and other innovative technologies.

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

99.30 	Sec. 22. Minnesota Statutes 2022, section 216B.2427, subdivision 1, is amended to read:
99.31 		Subdivision 1.Definitions. (a) For the purposes of this section and section 216B.2428, 
99.32 	the following terms have the meanings given.
100.1 	(b) "Biogas" means gas produced by the anaerobic digestion of biomass, gasification of 
100.2 	biomass, or other effective conversion processes.
100.3 	(c) "Carbon capture" means the capture of greenhouse gas emissions that would otherwise 
100.4 	be released into the atmosphere.
100.5 	(d) "Carbon-free resource" means an electricity generation facility whose operation does 
100.6 	not contribute to statewide greenhouse gas emissions, as defined in section 216H.01, 
100.7 	subdivision 2.
100.8 	(e) "Disadvantaged community" means a community in Minnesota that is:
100.9 	(1) defined as disadvantaged by the federal agency disbursing federal funds, when the 
100.10 	federal agency is providing funds for an innovative resource; or
100.11 	(2) an environmental justice area, as defined under section 216B.1691, subdivision 1.
100.12 	~~(e)~~ (f) "District energy" means a heating or cooling system that is solar thermal powered 
100.13 	or that uses the constant temperature of the earth or underground aquifers as a thermal 
100.14 	exchange medium to heat or cool multiple buildings connected through a piping network.
100.15 	~~(f)~~ (g) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1, 
100.16 	paragraph (f), but does not include energy conservation investments that the commissioner 
100.17 	determines could reasonably be included in a utility's conservation improvement program.
100.18 	~~(g)~~ (h) "Greenhouse gas emissions" means emissions of carbon dioxide, methane, nitrous 
100.19 	oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride emitted by 
100.20 	anthropogenic sources within Minnesota and from the generation of electricity imported 
100.21 	from outside the state and consumed in Minnesota, excluding carbon dioxide that is injected 
100.22 	into geological formations to prevent its release to the atmosphere in compliance with 
100.23 	applicable laws.
100.24 	~~(h)~~ (i) "Innovative resource" means biogas, renewable natural gas, power-to-hydrogen, 
100.25 	power-to-ammonia, carbon capture, strategic electrification, district energy, and energy 
100.26 	efficiency.
100.27 	~~(i)~~ (j) "Lifecycle greenhouse gas emissions" means the aggregate greenhouse gas 
100.28 	emissions resulting from the production, processing, transmission, and consumption of an 
100.29 	energy resource.
100.30 	~~(j)~~ (k) "Lifecycle greenhouse gas emissions intensity" means lifecycle greenhouse gas 
100.31 	emissions per unit of energy delivered to an end user.
101.1 	~~(k)~~ (l) "Nonexempt customer" means a utility customer that has not been included in a 
101.2 	utility's innovation plan under subdivision 3, paragraph (f).
101.3 	~~(l)~~ (m) "Power-to-ammonia" means the production of ammonia from hydrogen produced 
101.4 	via power-to-hydrogen using a process that has a lower lifecycle greenhouse gas intensity 
101.5 	than does natural gas produced from conventional geologic sources.
101.6 	~~(m)~~ (n) "Power-to-hydrogen" means the use of electricity generated by a carbon-free 
101.7 	resource to produce hydrogen.
101.8 	~~(n)~~ (o) "Renewable energy" has the meaning given in section 216B.2422, subdivision 
101.9 	1.
101.10 	~~(o)~~ (p) "Renewable natural gas" means biogas that has been processed to be 
101.11 	interchangeable with, and that has a lower lifecycle greenhouse gas intensity than, natural 
101.12 	gas produced from conventional geologic sources.
101.13 	~~(p)~~ (q) "Solar thermal" has the meaning given to qualifying solar thermal project in 
101.14 	section 216B.2411, subdivision 2, paragraph (d).
101.15 	~~(q)~~ (r) "Strategic electrification" means the installation of electric end-use equipment in 
101.16 	an existing building in which natural gas is a primary or back-up fuel source, or in a newly 
101.17 	constructed building in which a customer receives natural gas service for one or more 
101.18 	end-uses, provided that the electric end-use equipment:
101.19 	(1) results in a net reduction in statewide greenhouse gas emissions, as defined in section 
101.20 	216H.01, subdivision 2, over the life of the equipment when compared to the most efficient 
101.21 	commercially available natural gas alternative; and
101.22 	(2) is installed and operated in a manner that improves the load factor of the customer's 
101.23 	electric utility.
101.24 	Strategic electrification does not include investments that the commissioner determines 
101.25 	could reasonably be included in the natural gas utility's conservation improvement program 
101.26 	under section 216B.241.
101.27 	(s) "Thermal energy network" means a project that provides heating and cooling to 
101.28 	multiple buildings connected via underground piping containing fluids that, in concert with 
101.29 	heat pumps, exchange thermal energy from the earth, underground or surface waters, 
101.30 	wastewater, or other heat sources.
101.31 	~~(r)~~ (t) "Total incremental cost" means the calculation of the following components of a 
101.32 	utility's innovation plan approved by the commission under subdivision 2:
102.1 	(1) the sum of:
102.2 	(i) return of and on capital investments for the production, processing, pipeline 
102.3 	interconnection, storage, and distribution of innovative resources;
102.4 	(ii) incremental operating costs associated with capital investments in infrastructure for 
102.5 	the production, processing, pipeline interconnection, storage, and distribution of innovative 
102.6 	resources;
102.7 	(iii) incremental costs to procure innovative resources from third parties;
102.8 	(iv) incremental costs to develop and administer programs; and
102.9 	(v) incremental costs for research and development related to innovative resources;
102.10 	(2) less the sum of:
102.11 	(i) value received by the utility upon the resale of innovative resources or innovative 
102.12 	resource by-products, including any environmental credits included with the resale of 
102.13 	renewable gaseous fuels or value received by the utility when innovative resources are used 
102.14 	as vehicle fuel;
102.15 	(ii) cost savings achieved through avoidance of purchases of natural gas produced from 
102.16 	conventional geologic sources, including but not limited to avoided commodity purchases 
102.17 	and avoided pipeline costs; and
102.18 	(iii) other revenues received by the utility that are directly attributable to the utility's 
102.19 	implementation of an innovation plan.
102.20 	~~(s)~~ (u) "Utility" means a public utility, as defined in section 216B.02, subdivision 4, that 
102.21 	provides natural gas sales or natural gas transportation services to customers in Minnesota.

102.22 	Sec. 23. Minnesota Statutes 2022, section 216B.2427, is amended by adding a subdivision 
102.23 	to read:
102.24 		Subd. 9a.Thermal energy networks. Innovation plans filed after July 1, 2024, under 
102.25 	this section by a utility with more than 800,000 customers must include spending of at least 
102.26 	15 percent of the utility's proposed total incremental costs over the five-year term of the 
102.27 	proposed innovation plan for thermal energy networks projects. If the utility has developed 
102.28 	or is developing thermal energy network projects outside of an approved innovation plan, 
102.29 	the utility may apply the budget for the projects toward the 15 percent minimum requirement 
102.30 	without counting the costs against the limitations on utility customer costs under subdivision 
102.31 	3.

103.1 	Sec. 24. Minnesota Statutes 2023 Supplement, section 216C.08, is amended to read:
103.2 	216C.08 JURISDICTION.
103.3 	(a) The commissioner has sole authority and responsibility ~~for the administration of~~ 
103.4 	~~sections 216C.05 to 216C.30 and 216C.375~~ to administer this chapter. Other laws 
103.5 	notwithstanding, the authority granted to the commissioner ~~shall supersede~~ under this section 
103.6 	supersedes the authority given any other agency whenever overlapping, duplication, or 
103.7 	additional administrative or legal procedures might occur in ~~the administration of sections~~ 
103.8 	~~216C.05 to 216C.30 and 216C.375~~ administering this chapter. The commissioner shall 
103.9 	consult with other state departments or agencies in matters related to energy and shall 
103.10 	contract with ~~them~~ the other state departments or agencies to provide appropriate services 
103.11 	to effectuate the purposes of ~~sections 216C.05 to 216C.30 and 216C.375~~ this chapter. Any 
103.12 	other department, agency, or official of this state or political subdivision thereof which 
103.13 	would in any way affect the administration or enforcement of ~~sections 216C.05 to 216C.30~~
103.14 	~~and 216C.375~~ this chapter shall cooperate and coordinate all activities with the commissioner 
103.15 	to assure orderly and efficient administration and enforcement of ~~sections 216C.05 to~~ 
103.16 	~~216C.30 and 216C.375~~ this chapter.
103.17 	(b) The commissioner shall designate a liaison officer whose duty shall be to insure the 
103.18 	maximum possible consistency in procedures and to eliminate duplication between the 
103.19 	commissioner and the other agencies that may be involved in energy.

103.20 	Sec. 25. Minnesota Statutes 2023 Supplement, section 216C.09, is amended to read:
103.21 	216C.09 COMMISSIONER DUTIES.
103.22 	(a) The commissioner shall:
103.23 	(1) manage the department as the central repository within the state government for the 
103.24 	collection of data on energy;
103.25 	(2) prepare and adopt an emergency allocation plan specifying actions to be taken in the 
103.26 	event of an impending serious shortage of energy, or a threat to public health, safety, or 
103.27 	welfare;
103.28 	(3) undertake a continuing assessment of trends in the consumption of all forms of energy 
103.29 	and analyze the social, economic, and environmental consequences of these trends;
103.30 	(4) carry out energy ~~conservation~~ measures as specified by the legislature and recommend 
103.31 	to the governor and the legislature additional energy policies and conservation measures as 
103.32 	required to meet the objectives of ~~sections 216C.05 to 216C.30 and 216C.375~~ this chapter;
104.1 	(5) collect and analyze data relating to present and future demands and resources for all 
104.2 	sources of energy;
104.3 	(6) evaluate policies governing the establishment of rates and prices for energy as related 
104.4 	to energy conservation, and other goals and policies of ~~sections 216C.05 to 216C.30 and~~ 
104.5 	~~216C.375~~ this chapter, and make recommendations for changes in energy pricing policies 
104.6 	and rate schedules;
104.7 	(7) study the impact and relationship of the state energy policies to international, national, 
104.8 	and regional energy policies;
104.9 	(8) design and implement a state program for the conservation of energy; this program 
104.10 	shall include but not be limited to, general commercial, industrial, and residential, and 
104.11 	transportation areas; such program shall also provide for the evaluation of energy systems 
104.12 	as they relate to lighting, heating, refrigeration, air conditioning, building design and 
104.13 	operation, and appliance manufacturing and operation;
104.14 	(9) inform and educate the public about the sources and uses of energy and the ways in 
104.15 	which persons can conserve energy;
104.16 	(10) dispense funds made available for the purpose of research studies and projects of 
104.17 	professional and civic orientation, which are related to either energy conservation, resource 
104.18 	recovery, or the development of alternative energy technologies which conserve 
104.19 	nonrenewable energy resources while creating minimum environmental impact;
104.20 	(11) charge other governmental departments and agencies involved in energy-related 
104.21 	activities with specific information gathering goals and require that those goals be met;
104.22 	(12) design a comprehensive program for the development of indigenous energy 
104.23 	resources. The program shall include, but not be limited to, providing technical, 
104.24 	informational, educational, and financial services and materials to persons, businesses, 
104.25 	municipalities, and organizations involved in the development of solar, wind, hydropower, 
104.26 	peat, fiber fuels, biomass, and other alternative energy resources. The program shall be 
104.27 	evaluated by the alternative energy technical activity; and
104.28 	(13) dispense loans, grants, or other financial aid from money received from litigation 
104.29 	or settlement of alleged violations of federal petroleum-pricing regulations made available 
104.30 	to the department for that purpose.
104.31 	(b) Further, the commissioner may participate fully in hearings before the Public Utilities 
104.32 	Commission on matters pertaining to rate design, cost allocation, efficient resource utilization, 
104.33 	utility conservation investments, small power production, cogeneration, and other rate issues. 
105.1 	The commissioner shall support the policies stated in section 216C.05 and shall prepare 
105.2 	and defend testimony proposed to encourage energy conservation improvements as defined 
105.3 	in section 216B.241.

105.4 	Sec. 26. Minnesota Statutes 2022, section 216C.10, is amended to read:
105.5 	216C.10 COMMISSIONER POWERS.
105.6 	(a) The commissioner may:
105.7 	(1) adopt rules under chapter 14 as necessary to carry out the purposes of ~~sections~~ 
105.8 	~~216C.05 to 216C.30~~ this chapter;
105.9 	(2) make all contracts under ~~sections 216C.05 to 216C.30~~ this chapter and do all things 
105.10 	necessary to cooperate with the United States government, and to qualify for, accept, and 
105.11 	disburse any grant intended ~~for the administration of sections 216C.05 to 216C.30~~ to 
105.12 	administer this chapter;
105.13 	(3) provide on-site technical assistance to units of local government in order to enhance 
105.14 	local capabilities for dealing with energy problems;
105.15 	(4) administer for the state, energy programs under federal law, regulations, or guidelines, 
105.16 	and coordinate the programs and activities with other state agencies, units of local 
105.17 	government, and educational institutions;
105.18 	(5) develop a state energy investment plan with yearly energy conservation and alternative 
105.19 	energy development goals, investment targets, and marketing strategies;
105.20 	(6) perform market analysis studies relating to conservation, alternative and renewable 
105.21 	energy resources, and energy recovery;
105.22 	(7) assist with the preparation of proposals for innovative conservation, renewable, 
105.23 	alternative, or energy recovery projects;
105.24 	(8) manage and disburse funds made available for the purpose of research studies or 
105.25 	demonstration projects related to energy conservation or other activities deemed appropriate 
105.26 	by the commissioner;
105.27 	(9) intervene in certificate of need proceedings before the Public Utilities Commission;
105.28 	(10) collect fees from recipients of loans, grants, or other financial aid from money 
105.29 	received from litigation or settlement of alleged violations of federal petroleum-pricing 
105.30 	regulations, which fees must be used to pay the department's costs in administering those 
105.31 	financial aids; and
106.1 	(11) collect fees from proposers and operators of conservation and other energy-related 
106.2 	programs that are reviewed, evaluated, or approved by the department, other than proposers 
106.3 	that are political subdivisions or community or nonprofit organizations, to cover the 
106.4 	department's cost in making the reviewal, evaluation, or approval and in developing additional 
106.5 	programs for others to operate.
106.6 	(b) Notwithstanding any other law, the commissioner is designated the state agent to 
106.7 	apply for, receive, and accept federal or other funds made available to the state for the 
106.8 	purposes of ~~sections 216C.05 to 216C.30~~ this chapter.

106.9 	Sec. 27. Minnesota Statutes 2023 Supplement, section 216C.331, subdivision 1, is amended 
106.10 	to read:
106.11 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
106.12 	the meanings given.
106.13 	(b) "Aggregated customer energy use data" means customer energy use data that is 
106.14 	combined into one collective data point per time interval. Aggregated customer energy use 
106.15 	data is data with any unique identifiers or other personal information removed that a 
106.16 	qualifying utility collects and aggregates in at least monthly intervals for an entire building 
106.17 	on a covered property.
106.18 	(c) "Benchmark" means to electronically input into a benchmarking tool ~~the total~~ whole 
106.19 	building energy use data and other descriptive information about a building that is required 
106.20 	by a benchmarking tool.
106.21 	(d) "Benchmarking information" means data related to a building's energy use generated 
106.22 	by a benchmarking tool, and other information about the building's physical and operational 
106.23 	characteristics. Benchmarking information includes but is not limited to the building's:
106.24 	(1) address;
106.25 	(2) owner and, if applicable, the building manager responsible for operating the building's 
106.26 	physical systems;
106.27 	(3) total floor area, expressed in square feet;
106.28 	(4) energy use intensity;
106.29 	(5) greenhouse gas emissions; and
106.30 	(6) energy performance score comparing the building's energy use with that of similar 
106.31 	buildings.
107.1 	(e) "Benchmarking tool" means the United States Environmental Protection Agency's 
107.2 	Energy Star Portfolio Manager tool or an equivalent tool determined by the commissioner.
107.3 	(f) "Covered property" means any property that is served by an investor-owned utility 
107.4 	in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County, or in any city 
107.5 	outside the metropolitan area with a population of over 50,000 residents, as determined by 
107.6 	the Minnesota State Demographic Center, served by a municipal energy utility or 
107.7 	investor-owned utility, and that has one or more buildings containing in sum 50,000 gross 
107.8 	square feet or greater. Covered property does not include:
107.9 	(1) a residential property containing fewer than five dwelling units;
107.10 	(2) a property that is: (i) classified as manufacturing under the North American Industrial 
107.11 	Classification System; (ii) an energy-intensive trade-exposed customer, as defined in section 
107.12 	216B.1696; (iii) an electric power generation facility; (iv) a mining facility; or (v) an 
107.13 	industrial building otherwise incompatible with benchmarking in the benchmarking tool, 
107.14 	as determined by the commissioner;
107.15 	(3) an agricultural building;
107.16 	(4) a multitenant building that is served by a utility that ~~cannot supply~~ is not supplying
107.17 	aggregated customer usage data under subdivision 8 or is not using a customer usage data 
107.18 	aggregation program to supply aggregated customer usage data to the benchmarking tool; 
107.19 	or
107.20 	(5) other property types that do not meet the purposes of this section, as determined by 
107.21 	the commissioner.
107.22 	(g) "Customer energy use data" means data collected from utility customer meters that 
107.23 	reflect the quantity, quality, or timing of customers' energy use.
107.24 	(h) "Energy" means electricity, natural gas, steam, or another product used to: (1) provide 
107.25 	heating, cooling, lighting, or water heating; or (2) power other end uses in a building.
107.26 	(i) "Energy performance score" means a numerical value from one to 100 that the Energy 
107.27 	Star Portfolio Manager tool calculates to rate a building's energy efficiency against that of 
107.28 	comparable buildings nationwide.
107.29 	(j) "Energy Star Portfolio Manager" means an interactive resource management tool 
107.30 	developed by the United States Environmental Protection Agency that (1) enables the 
107.31 	periodic entry of a building's energy use data and other descriptive information about a 
107.32 	building, and (2) rates a building's energy efficiency against that of comparable buildings 
107.33 	nationwide.
108.1 	(k) "Energy use intensity" means the total annual energy consumed in a building divided 
108.2 	by the building's total floor area.
108.3 	(l) "Financial distress" means a covered property that, at the time benchmarking is 
108.4 	conducted:
108.5 	(1) is the subject of a qualified tax lien sale or public auction due to property tax 
108.6 	arrearages;
108.7 	(2) is controlled by a court-appointed receiver based on financial distress;
108.8 	(3) is owned by a financial institution through default by the borrower;
108.9 	(4) has been acquired by deed in lieu of foreclosure; or
108.10 	(5) has a senior mortgage that is subject to a notice of default.
108.11 	(m) "Local government" means a statutory or home rule municipality or county.
108.12 	(n) "Owner" means:
108.13 	(1) an individual or entity that possesses title to a covered property; or
108.14 	(2) an agent authorized to act on behalf of the covered property owner.
108.15 	(o) "Qualifying utility" means ~~a utility serving the covered property, including~~:
108.16 	(1) an electric or gas utility, including:
108.17 	(i) an investor-owned electric or gas utility serving customers in Anoka, Carver, Dakota, 
108.18 	Hennepin, Ramsey, Scott, or Washington County, or in any city outside the metropolitan 
108.19 	area with a population of over 50,000 residents, as determined by the Minnesota State 
108.20 	Demographic Center, and serving properties with one or more buildings containing in sum 
108.21 	50,000 gross square feet or greater; or
108.22 	(ii) a municipally owned electric or gas utility serving customers in any city with a 
108.23 	population of over 50,000 residents, as determined by the Minnesota State Demographic 
108.24 	Center, and serving properties with one or more buildings containing in sum 50,000 gross 
108.25 	square feet or greater;
108.26 	(2) a natural gas supplier with five or more active commercial connections, accounts, 
108.27 	or customers in the state and serving customers in Anoka, Carver, Dakota, Hennepin, 
108.28 	Ramsey, Scott, or Washington County, or in any city outside the metropolitan area with a 
108.29 	population of over 50,000 residents, as determined by the Minnesota State Demographic 
108.30 	Center, and serving properties with one or more buildings containing in sum 50,000 gross 
108.31 	square feet or greater; or
109.1 	(3) a district steam, hot water, or chilled water provider serving customers in Anoka, 
109.2 	Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County, or in any city outside 
109.3 	the metropolitan area with a population of over 50,000 residents, as determined by the 
109.4 	Minnesota State Demographic Center, and serving properties with one or more buildings 
109.5 	containing in sum 50,000 gross square feet or greater.
109.6 	(p) "Tenant" means a person that occupies or holds possession of a building or part of 
109.7 	a building or premises pursuant to a lease agreement.
109.8 	(q) "Total floor area" means the sum of gross square footage inside a building's envelope, 
109.9 	measured between the outside exterior walls of the building. Total floor area includes covered 
109.10 	parking structures.
109.11 	(r) "Utility customer" means the building owner or tenant listed on the utility's records 
109.12 	as the customer liable for payment of the utility service or additional charges assessed on 
109.13 	the utility account.
109.14 	(s) "Whole building energy use data" means all energy consumed in a building, whether 
109.15 	purchased from a third party or generated at the building site or from any other source.

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

109.17 	Sec. 28. Minnesota Statutes 2022, section 216C.435, subdivision 3a, is amended to read:
109.18 		Subd. 3a.~~Cost-effective~~ Energy improvements. "~~Cost-effective~~ Energy improvements" 
109.19 	means:
109.20 	(1) any new construction, renovation, or retrofitting of qualifying commercial real 
109.21 	property to improve energy efficiency that: (i) is permanently affixed to the property~~,~~; and 
109.22 	(ii) results in a net reduction in energy consumption ~~without altering the principal source~~ 
109.23 	~~of energy, and has been identified~~ or greenhouse gas emissions, as documented in an energy 
109.24 	audit ~~as repaying the purchase and installation costs in 20 years or less,~~ based on the amount 
109.25 	of future energy saved ~~and estimated future energy prices~~ or emissions avoided;
109.26 	(2) any renovation or retrofitting of qualifying residential real property that is permanently 
109.27 	affixed to the property and is eligible to receive an incentive through a program offered by 
109.28 	the electric or natural gas utility that provides service under section 216B.241 to the property 
109.29 	or is otherwise determined to be ~~a cost-effective~~ an eligible energy improvement by the 
109.30 	commissioner under section 216B.241, subdivision 1d, paragraph (a);
109.31 	(3) permanent installation of new or upgraded electrical circuits and related equipment 
109.32 	to enable electrical vehicle charging; or
110.1 	(4) a solar voltaic or solar thermal energy system attached to, installed within, or 
110.2 	proximate to a building that generates electrical or thermal energy from a renewable energy 
110.3 	source that has been ~~identified~~ documented in an energy audit or renewable energy system 
110.4 	feasibility study ~~as repaying their purchase and installation costs in 20 years or less, based~~ 
110.5 	~~on the amount of future energy saved and estimated future energy prices~~, along with the 
110.6 	estimated amount of related renewable energy production.

110.7 	Sec. 29. Minnesota Statutes 2022, section 216C.435, subdivision 3b, is amended to read:
110.8 		Subd. 3b.Commercial PACE loan contractor. "Commercial PACE loan contractor" 
110.9 	means a person or entity that installs ~~cost-effective energy~~ eligible improvements financed 
110.10 	under a commercial PACE loan program.

110.11 	Sec. 30. Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision 
110.12 	to read:
110.13 		Subd. 3e.Eligible improvement. "Eligible improvement" means one or more energy 
110.14 	improvements, resiliency improvements, or water improvements made to qualifying real 
110.15 	property.

110.16 	Sec. 31. Minnesota Statutes 2022, section 216C.435, subdivision 4, is amended to read:
110.17 		Subd. 4.Energy audit. "Energy audit" means a formal evaluation of the energy 
110.18 	consumption of a building by a certified energy auditor, whose certification is approved by 
110.19 	the commissioner, for the purpose of identifying appropriate energy improvements that 
110.20 	could be made to the building and including an estimate of the ~~length of time a specific~~ 
110.21 	~~energy improvement will take to repay its purchase and installation costs, based on the~~ 
110.22 	~~amount of energy saved and estimated future energy prices~~ effective useful life, the reduction 
110.23 	of energy consumption, and the related avoided greenhouse gas emissions resulting from 
110.24 	the proposed eligible improvements.

110.25 	Sec. 32. Minnesota Statutes 2023 Supplement, section 216C.435, subdivision 8, is amended 
110.26 	to read:
110.27 		Subd. 8.Qualifying commercial real property. "Qualifying commercial real property" 
110.28 	means a multifamily residential dwelling, a commercial or industrial building, or farmland, 
110.29 	as defined in section 216C.436, subdivision 1b, that the implementing entity has determined, 
110.30 	after review of an energy audit, renewable energy system feasibility study, water 
110.31 	improvement study, resiliency improvement study, or agronomic assessment, as defined in 
111.1 	section 216C.436, subdivision 1b, can benefit from ~~the installation of cost-effective energy~~
111.2 	installing eligible improvements or land and water improvements, as defined in section 
111.3 	216C.436, subdivision 1b. Qualifying commercial real property includes new construction.

111.4 	Sec. 33. Minnesota Statutes 2022, section 216C.435, subdivision 10, is amended to read:
111.5 		Subd. 10.Renewable energy system feasibility study. "Renewable energy system 
111.6 	feasibility study" means a written study, conducted by a contractor trained to perform that 
111.7 	analysis, for the purpose of determining the feasibility of installing a renewable energy 
111.8 	system in a building, including an estimate of the ~~length of time a specific~~ effective useful 
111.9 	life, the production of renewable energy, and any related avoided greenhouse gas emissions 
111.10 	of the proposed renewable energy system ~~will take to repay its purchase and installation~~ 
111.11 	~~costs, based on the amount of energy saved and estimated future energy prices. For a~~ 
111.12 	~~geothermal energy improvement, the feasibility study must calculate net savings in terms~~ 
111.13 	~~of nongeothermal energy and costs~~.

111.14 	Sec. 34. Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision 
111.15 	to read:
111.16 		Subd. 11a.Resiliency improvement. "Resiliency improvement" means one or more 
111.17 	installations or modifications to eligible commercial real property that are designed to 
111.18 	improve a property's resiliency by improving the eligible real property's:
111.19 	(1) structural integrity for seismic events;
111.20 	(2) indoor air quality;
111.21 	(3) durability to resist wind, fire, and flooding;
111.22 	(4) ability to withstand an electric power outage;
111.23 	(5) stormwater control measures, including structural and nonstructural measures to 
111.24 	mitigate stormwater runoff;
111.25 	(6) ability to mitigate the impacts of extreme temperatures; or
111.26 	(7) ability to mitigate greenhouse gas embodied emissions from the eligible real property.

112.1 	Sec. 35. Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision 
112.2 	to read:
112.3 		Subd. 11b.Resiliency improvement feasibility study. "Resiliency improvement 
112.4 	feasibility study" means a written study, conducted by a contractor trained to perform the 
112.5 	analysis, that:
112.6 	(1) determines the feasibility of installing a resiliency improvement;
112.7 	(2) documents the improved resiliency capabilities of the property; and
112.8 	(3) estimates the effective useful life of the proposed resiliency improvements.

112.9 	Sec. 36. Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision 
112.10 	to read:
112.11 		Subd. 14.Water improvement. "Water improvement" means one or more installations 
112.12 	or modifications to qualifying commercial real property that are designed to improve water 
112.13 	efficiency or water quality by:
112.14 	(1) reducing water consumption;
112.15 	(2) improving the quality, potability, or safety of water for the qualifying property; or
112.16 	(3) conserving or remediating water, in whole or in part, on qualifying real property.

112.17 	Sec. 37. Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision 
112.18 	to read:
112.19 		Subd. 15.Water improvement feasibility study. "Water improvement feasibility study" 
112.20 	means a written study, conducted by a contractor trained to perform the analysis, that:
112.21 	(1) determines the appropriate water improvements that could be made to the building; 
112.22 	and
112.23 	(2) estimates the effective useful life, the reduction of water consumption, and any 
112.24 	improvement in water quality resulting from the proposed water improvements.

112.25 	Sec. 38. Minnesota Statutes 2022, section 216C.436, subdivision 1, is amended to read:
112.26 		Subdivision 1.Program purpose and authority. An implementing entity may establish 
112.27 	a commercial PACE loan program to finance ~~cost-effective~~ energy, water, and resiliency
112.28 	improvements to enable owners of qualifying commercial real property to pay for ~~the~~ 
112.29 	~~cost-effective energy~~ eligible improvements to the qualifying real property with the net 
112.30 	proceeds and interest earnings of revenue bonds authorized in this section. An implementing 
113.1 	entity may limit the number of qualifying commercial real properties for which a property 
113.2 	owner may receive program financing.

113.3 	Sec. 39. Minnesota Statutes 2023 Supplement, section 216C.436, subdivision 1b, is 
113.4 	amended to read:
113.5 		Subd. 1b.Definitions. (a) For the purposes of this section, the following terms have the 
113.6 	meanings given.
113.7 	(b) "Agronomic assessment" means a study by an independent third party that assesses 
113.8 	the environmental impacts of proposed land and water improvements on farmland.
113.9 	(c) "Farmland" means land classified as 2a, 2b, or 2c for property tax purposes under 
113.10 	section 273.13, subdivision 23.
113.11 	(d) "Land and water improvement" means:
113.12 	(1) an improvement to farmland that:
113.13 	(i) is permanent;
113.14 	(ii) results in improved agricultural profitability or resiliency;
113.15 	(iii) reduces the environmental impact of agricultural production; and
113.16 	(iv) if the improvement affects drainage, complies with the most recent versions of the 
113.17 	applicable following conservation practice standards issued by the United States Department 
113.18 	of Agriculture's Natural Resources Conservation Service: Drainage Water Management 
113.19 	(Code 554), Saturated Buffer (Code 604), Denitrifying Bioreactor (Code 605), and 
113.20 	Constructed Wetland (Code 656); or
113.21 	(2) water conservation and quality measures, which include permanently affixed 
113.22 	equipment, appliances, or improvements that reduce a property's water consumption or that 
113.23 	enable water to be managed more efficiently.
113.24 	(e) "Resiliency" means:
113.25 	(1) the ability of farmland to maintain and enhance profitability, soil health, and water 
113.26 	quality~~.~~;
113.27 	(2) the ability to mitigate greenhouse gas embodied emissions from an eligible real 
113.28 	property; or
113.29 	(3) an increase in building resilience through flood mitigation, stormwater management, 
113.30 	wildfire and wind resistance, energy storage use, or microgrid use.

114.1 	Sec. 40. Minnesota Statutes 2023 Supplement, section 216C.436, subdivision 2, is amended 
114.2 	to read:
114.3 		Subd. 2.Program requirements. A commercial PACE loan program must:
114.4 	(1) impose requirements and conditions on financing arrangements to ensure timely 
114.5 	repayment;
114.6 	(2) require an energy audit, renewable energy system feasibility study, resiliency 
114.7 	improvement study, water improvement study, or agronomic or soil health assessment to 
114.8 	be conducted on the qualifying commercial real property and reviewed by the implementing 
114.9 	entity prior to approval of the financing;
114.10 	(3) require the inspection or verification of all ~~installations and a performance verification~~ 
114.11 	~~of at least ten percent of the cost-effective energy~~ eligible improvements or land and water 
114.12 	improvements financed by the program;
114.13 	(4) not prohibit the financing of all ~~cost-effective energy~~ eligible improvements or land 
114.14 	and water improvements not otherwise prohibited by this section;
114.15 	(5) require that all ~~cost-effective energy~~ eligible improvements or land and water 
114.16 	improvements be made to a qualifying commercial real property prior to, or in conjunction 
114.17 	with, an applicant's repayment of financing for ~~cost-effective energy~~ eligible improvements 
114.18 	or land and water improvements for ~~that~~ the qualifying commercial real property;
114.19 	(6) have ~~cost-effective energy~~ eligible improvements or land and water improvements 
114.20 	financed by the program performed by a licensed contractor as required by chapter 326B
114.21 	or other law or ordinance;
114.22 	(7) require disclosures in the loan document to borrowers by the implementing entity 
114.23 	of: (i) the risks involved in borrowing, including the risk of foreclosure if a tax delinquency 
114.24 	results from a default; and (ii) all the terms and conditions of the commercial PACE loan 
114.25 	and the installation of ~~cost-effective energy~~ eligible improvements or land and water 
114.26 	improvements, including the interest rate being charged on the loan;
114.27 	(8) provide financing only to those who demonstrate an ability to repay;
114.28 	(9) not provide financing for a qualifying commercial real property in which the owner 
114.29 	is not current on mortgage or real property tax payments;
114.30 	(10) require a petition to the implementing entity by all owners of the qualifying 
114.31 	commercial real property requesting collections of repayments as a special assessment under 
114.32 	section 429.101;
115.1 	(11) provide that payments and assessments are not accelerated due to a default and that 
115.2 	a tax delinquency exists only for assessments not paid when due;
115.3 	(12) require that liability for special assessments related to the financing runs with the 
115.4 	qualifying commercial real property; and
115.5 	(13) prior to financing any improvements to or imposing any assessment upon qualifying 
115.6 	commercial real property, require notice to and written consent from the mortgage lender 
115.7 	of any mortgage encumbering or otherwise secured by the qualifying commercial real 
115.8 	property.

115.9 	Sec. 41. Minnesota Statutes 2022, section 216C.436, subdivision 4, is amended to read:
115.10 		Subd. 4.Financing terms. Financing provided under this section must have:
115.11 	(1) a cost-weighted average maturity not exceeding the useful life of the ~~energy~~ eligible
115.12 	improvements installed, as determined by the implementing entity, but in no event may a 
115.13 	term exceed ~~20~~ 30 years;
115.14 	(2) a principal amount not to exceed the lesser of:
115.15 	(i) the greater of ~~20~~ 30 percent of the assessed value of the real property on which the 
115.16 	improvements are to be installed or ~~20~~ 30 percent of the real property's appraised value, 
115.17 	accepted or approved by the mortgage lender; or
115.18 	(ii) the actual cost of installing the ~~energy~~ eligible improvements, including the costs of 
115.19 	necessary equipment, materials, and labor~~,~~; the costs of each related energy audit ~~or~~,
115.20 	renewable energy system feasibility study, water improvement study, or resiliency 
115.21 	improvement study; and the cost of verification of installation; and
115.22 	(3) an interest rate sufficient to pay the financing costs of the program, including the 
115.23 	issuance of bonds and any financing delinquencies.

115.24 	Sec. 42. Minnesota Statutes 2022, section 216C.436, subdivision 7, is amended to read:
115.25 		Subd. 7.Repayment. An implementing entity that finances an ~~energy~~ eligible
115.26 	improvement under this section must:
115.27 	(1) secure payment with a lien against the qualifying commercial real property; and
115.28 	(2) collect repayments as a special assessment as provided for in section 429.101 or by 
115.29 	charter, provided that special assessments may be made payable in up to ~~20~~ 30 equal annual 
115.30 	installments.
116.1 	If the implementing entity is an authority, the local government that authorized the 
116.2 	authority to act as implementing entity shall impose and collect special assessments necessary 
116.3 	to pay debt service on bonds issued by the implementing entity under subdivision 8, and 
116.4 	shall transfer all collections of the assessments upon receipt to the authority.

116.5 	Sec. 43. Minnesota Statutes 2022, section 216C.436, subdivision 8, is amended to read:
116.6 		Subd. 8.Bond issuance; repayment. (a) An implementing entity may issue revenue 
116.7 	bonds as provided in chapter 475 for the purposes of this section and section 216C.437, 
116.8 	provided the revenue bond must not be payable more than ~~20~~ 30 years from the date of 
116.9 	issuance.
116.10 	(b) The bonds must be payable as to both principal and interest solely from the revenues 
116.11 	from the assessments established in subdivision 7 and section 216C.437, subdivision 28.
116.12 	(c) No holder of bonds issued under this subdivision may compel any exercise of the 
116.13 	taxing power of the implementing entity that issued the bonds to pay principal or interest 
116.14 	on the bonds, and if the implementing entity is an authority, no holder of the bonds may 
116.15 	compel any exercise of the taxing power of the local government. Bonds issued under this 
116.16 	subdivision are not a debt or obligation of the issuer or any local government that issued 
116.17 	them, nor is the payment of the bonds enforceable out of any money other than the revenue 
116.18 	pledged to the payment of the bonds.

116.19 	Sec. 44. Minnesota Statutes 2022, section 216C.436, subdivision 10, is amended to read:
116.20 		Subd. 10.Improvements; real property or fixture. ~~A cost-effective energy~~ An eligible
116.21 	improvement financed under a PACE loan program, including all equipment purchased in 
116.22 	whole or in part with loan proceeds under a loan program, is deemed real property or a 
116.23 	fixture attached to the real property.

116.24 	Sec. 45. [216C.47] GEOTHERMAL PLANNING GRANTS.
116.25 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
116.26 	the meanings given.
116.27 	(b) "Eligible applicant" means a county, city, town, or the Metropolitan Council.
116.28 	(c) "Geothermal energy system" means a system that heats and cools one or more 
116.29 	buildings by using the constant temperature of the earth as both a heat source and heat sink, 
116.30 	and a heat exchanger consisting of an underground closed loop system of piping containing 
116.31 	a liquid to absorb and relinquish heat within the earth. Geothermal energy system includes:
117.1 	(1) a bored geothermal heat exchanger, as defined in section 103I.005;
117.2 	(2) a groundwater thermal exchange device, as defined in section 103I.005; and
117.3 	(3) a submerged closed loop heat exchanger, as defined in section 103I.005.
117.4 		Subd. 2.Establishment. A geothermal planning grant program is established in the 
117.5 	department to provide financial assistance to eligible applicants to examine the technical 
117.6 	and economic feasibility of installing geothermal energy systems.
117.7 		Subd. 3.Account established. (a) The geothermal planning grant account is established 
117.8 	as a separate account in the special revenue fund in the state treasury. The commissioner 
117.9 	must credit to the account appropriations and transfers to the account. Earnings, including 
117.10 	interest, dividends, and any other earnings arising from assets of the account, must be 
117.11 	credited to the account. Money remaining in the account at the end of a fiscal year does not 
117.12 	cancel to the general fund, but remains in the account until June 30, 2029. The commissioner 
117.13 	must manage the account.
117.14 	(b) Money in the account is appropriated to the commissioner to (1) award geothermal 
117.15 	planning grants to eligible applicants, and (2) reimburse the reasonable costs incurred by 
117.16 	the department to administer this section.
117.17 		Subd. 4.Application process. An applicant seeking a grant under this section must 
117.18 	submit an application to the commissioner on a form developed by the commissioner. The 
117.19 	commissioner must develop administrative procedures to govern the application and grant 
117.20 	award process. The commissioner may contract with a third party to conduct some or all of 
117.21 	the program's operations.
117.22 		Subd. 5.Grant awards. (a) A grant awarded under this process may be used to pay the 
117.23 	total cost of the activities eligible for funding under subdivision 6, up to a limit of $150,000.
117.24 	(b) The commissioner must endeavor to award grants to eligible applicants in all regions 
117.25 	of Minnesota.
117.26 	(c) Grants may be awarded under this section only to projects whose work is completed 
117.27 	after July 1, 2024.
117.28 		Subd. 6.Eligible grant expenditures. Activities that may be funded with a grant awarded 
117.29 	under this section include:
117.30 	(1) analysis of the heating and cooling demand of the building or buildings that consume 
117.31 	energy from the geothermal energy system;
118.1 	(2) evaluation of equipment that could be combined with a geothermal energy system 
118.2 	to meet the building's heating and cooling requirements;
118.3 	(3) analysis of the geologic conditions of the earth in which a geothermal energy system 
118.4 	operates, including the drilling of one or more test wells to characterize geologic materials 
118.5 	and to measure properties of the earth and aquifers that impact the feasibility of installing 
118.6 	and operating a geothermal energy system; and
118.7 	(4) preparation of a financial analysis of the project.
118.8 		Subd. 7.Contractor and subcontractor requirements. Contractors and subcontractors 
118.9 	that perform work funded with a grant awarded under this section must have experience 
118.10 	installing geothermal energy systems.

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

118.12 	Sec. 46. [216C.48] STANDARDIZED SOLAR PLAN REVIEW SOFTWARE; 
118.13 	TECHNICAL ASSISTANCE; FINANCIAL INCENTIVE.
118.14 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
118.15 	the meanings given.
118.16 	(b) "Energy storage system" has the meaning given in section 216B.2422, subdivision 
118.17 	1.
118.18 	(c) "Permitting authority" means a unit of local government in Minnesota that has 
118.19 	authority to review and issue permits to install residential solar projects and solar plus energy 
118.20 	storage system projects within the unit of local government's jurisdiction.
118.21 	(d) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
118.22 	(e) "Residential solar project" means the installation of a photovoltaic device at a 
118.23 	residence located in Minnesota.
118.24 	(f) "SolarAPP+" means the most recent version of the Solar Automated Permit Processing 
118.25 	Plus software, developed by the National Renewable Energy Laboratory and available free 
118.26 	to permitting authorities from the United States Department of Energy, that uses a web-based 
118.27 	portal to automate the solar project plan review and permit issuance processes for residential 
118.28 	solar projects that are compliant with applicable building and electrical codes.
118.29 	(g) "Solar plus energy storage system project" means a residential solar project installed 
118.30 	in conjunction with an energy storage system at the same residence.
119.1 		Subd. 2.Program establishment. A program is established in the department to provide 
119.2 	technical assistance and financial incentives to local units of government that issue permits 
119.3 	for residential solar projects and solar plus energy storage system projects in order to 
119.4 	incentivize a permitting authority to adopt the SolarAPP+ software to standardize, automate, 
119.5 	and streamline the review and permitting process.
119.6 		Subd. 3.Eligibility. An incentive may be awarded under this section to a permitting 
119.7 	authority that has deployed SolarAPP+ and made SolarAPP+ available on the permitting 
119.8 	authority's website.
119.9 		Subd. 4.Application. (a) A permitting authority must submit an application for a financial 
119.10 	incentive under this section to the commissioner on a form developed by the commissioner.
119.11 	(b) An application may be submitted for a financial incentive under this section after 
119.12 	SolarAPP+ has become operational in the permitting authority's jurisdiction.
119.13 		Subd. 5.Review and grant award process. The commissioner must develop 
119.14 	administrative procedures to govern the application review and incentive award process 
119.15 	under this section.
119.16 		Subd. 6.Incentive awards. Beginning no later than March 1, 2025, the commissioner 
119.17 	may award a financial incentive to a permitting authority under this section only if the 
119.18 	commissioner has determined that the permitting authority meets verification requirements 
119.19 	established by the commissioner that ensure a permitting authority has made SolarAPP+ 
119.20 	operational within the permitting authority's jurisdiction and that SolarAPP+ is available 
119.21 	on the permitting authority's website.
119.22 		Subd. 7.Incentive amount. (a) An incentive awarded under this section must be no less 
119.23 	than $5,000 and no greater than $20,000.
119.24 	(b) The commissioner may vary the amount of an incentive awarded under this section 
119.25 	by considering the following factors:
119.26 	(1) the population of the permitting authority;
119.27 	(2) the number of permits for solar projects issued by the permitting authority using 
119.28 	conventional review processes;
119.29 	(3) whether the SolarAPP+ software has been adopted on a stand-alone basis or has been 
119.30 	integrated with other permit management software utilized by the permitting authority; and
120.1 	(4) whether the permitting jurisdiction has participated in other sustainability programs, 
120.2 	including but not limited to GreenStep Cities and the United States Department of Energy's 
120.3 	SolSmart and Charging Smart programs.
120.4 		Subd. 8.Technical assistance. The department must provide technical assistance to 
120.5 	eligible permitting authorities seeking to apply for an incentive under this section.
120.6 		Subd. 9.Program promotion. The department must develop an education and outreach 
120.7 	program to make permitting authorities aware of the incentive offered under this section, 
120.8 	including by convening workshops, producing educational materials, and using other 
120.9 	mechanisms to promote the program, including but not limited to utilizing the efforts of the 
120.10 	League of Minnesota Cities, the Association of Minnesota Counties, the Community Energy 
120.11 	Resource Teams established under section 216C.385, and similar organizations to reach 
120.12 	permitting authorities.
120.13 		Subd. 10.Account established. (a) The SolarAPP+ program account is established in 
120.14 	the special revenue account in the state treasury. The commissioner must credit to the account 
120.15 	appropriations and transfers to the account. Earnings, including interest, dividends, and any 
120.16 	other earnings arising from assets of the account, must be credited to the account. Money 
120.17 	remaining in the account at the end of a fiscal year does not cancel to the general fund but 
120.18 	remains in the account until June 30, 2028. The commissioner must manage the account.
120.19 	(b) Money in the account is appropriated to the commissioner for the purposes of this 
120.20 	section and to reimburse the reasonable costs incurred by the department to administer this 
120.21 	section.

120.22 	Sec. 47. Laws 2023, chapter 60, article 10, section 2, subdivision 2, is amended to read:

120.23 | Subd. 2.Energy Resources | | 96,083,000 | | 27,617,000
120.24 	(a) $5,861,000 the first year and $6,038,000 
120.25 	the second year are to the division of energy 
120.26 	resources for operating expenses.
120.27 	(b) $150,000 the first year and $150,000 the 
120.28 	second year are to remediate vermiculite 
120.29 	insulation from households that are eligible 
120.30 	for weatherization assistance under 
120.31 	Minnesota's weatherization assistance program 
120.32 	state plan under Minnesota Statutes, section 
120.33 	216C.264. Remediation must be done in 
121.1 	conjunction with federal weatherization 
121.2 	assistance program services.
121.3 	(c) $1,138,000 in the first year is transferred 
121.4 	from the general fund to the solar for schools 
121.5 	program account under Minnesota Statutes, 
121.6 	section 216C.375, to provide financial 
121.7 	assistance to schools that are state colleges 
121.8 	and universities to purchase and install solar 
121.9 	energy generating systems. This appropriation 
121.10 	must be expended on schools located outside 
121.11 	the electric service territory of the public 
121.12 	utility that is subject to Minnesota Statutes, 
121.13 	section 116C.779. Money under this paragraph 
121.14 	is available until June 30, 2034. Any money 
121.15 	remaining on June 30, 2034, cancels to the 
121.16 	general fund.
121.17 	(d) $189,000 each year is for activities 
121.18 	associated with a utility's implementation of 
121.19 	a natural gas innovation plan under Minnesota 
121.20 	Statutes, section 216B.2427.
121.21 	(e) $15,000,000 in the first year is transferred 
121.22 	from the general fund to the solar for schools 
121.23 	program account in the special revenue fund 
121.24 	for grants under the solar for schools program 
121.25 	established under Minnesota Statutes, section 
121.26 	216C.375. The money under this paragraph 
121.27 	must be expended on schools located outside 
121.28 	the electric service territory of the public 
121.29 	utility that is subject to Minnesota Statutes, 
121.30 	section 116C.779.
121.31 	(f) $500,000 each year is for the strengthen 
121.32 	Minnesota homes program under Minnesota 
121.33 	Statutes, section 65A.299, subdivision 4. 
121.34 	Money under this paragraph is transferred 
121.35 	from the general fund to strengthen Minnesota 
122.1 	homes account in the special revenue fund. 
122.2 	This is a onetime appropriation.
122.3 	(g) $20,000,000 the first year and $18,737,000 
122.4 	the second year are for weatherization and 
122.5 	preweatherization work to serve additional 
122.6 	households and allow for services that would 
122.7 	otherwise be denied due to current federal 
122.8 	limitations related to the federal weatherization 
122.9 	assistance program. Money under this 
122.10 	paragraph is transferred from the general fund 
122.11 	to the preweatherization account in the special 
122.12 	revenue fund under Minnesota Statutes, 
122.13 	section 216C.264, subdivision 1c. The base 
122.14 	in fiscal years 2026 and later is $3,199,000.
122.15 	(h) $15,000,000 the first year is for a grant to 
122.16 	an investor-owned electric utility that has at 
122.17 	least 50,000 retail electric customers, but no 
122.18 	more than 200,000 retail electric customers, 
122.19 	to increase the capacity and improve the 
122.20 	reliability of an existing high-voltage direct 
122.21 	current transmission line that runs between 
122.22 	North Dakota and Minnesota. This is a 
122.23 	onetime appropriation and must be used to 
122.24 	support the cost-share component of a federal 
122.25 	grant application to a program enacted in the 
122.26 	federal Infrastructure Investment and Jobs Act, 
122.27 	Public Law 117-58, and may otherwise be 
122.28 	used to reduce the cost of the high-voltage 
122.29 	direct current transmission project upgrade 
122.30 	and to reimburse the reasonable costs incurred 
122.31 	by the department to administer the grant. This 
122.32 	appropriation is available until June 30, 2034.
122.33 	(i) $300,000 the first year is for technical 
122.34 	assistance and administrative support for the 
122.35 	Tribal Advocacy Council on Energy under 
123.1 	article 12, section 71. As part of the technical 
123.2 	assistance and administrative support for the 
123.3 	program, the commissioner must hire a Tribal 
123.4 	liaison to support the Tribal Advocacy Council 
123.5 	on Energy and advise the department on the 
123.6 	development of a culturally responsive clean 
123.7 	energy grants program based on the priorities 
123.8 	identified by the Tribal Advocacy Council on 
123.9 	Energy.
123.10 	(j) $3,000,000 the first year is for a grant to 
123.11 	Clean Energy Economy Minnesota for the 
123.12 	Minnesota Energy Alley initiative to secure 
123.13 	the state's energy and economic development 
123.14 	future. The appropriation may be used to 
123.15 	establish and support the initiative, provide 
123.16 	seed funding for businesses, develop a training 
123.17 	and development program, support recruitment 
123.18 	of entrepreneurs to Minnesota, and secure 
123.19 	funding from federal programs and corporate 
123.20 	partners to establish a self-sustaining, 
123.21 	long-term revenue model. This appropriation 
123.22 	may be used to reimburse the reasonable costs 
123.23 	incurred by the department to administer the 
123.24 	grant. This is a onetime appropriation and is 
123.25 	available until June 30, 2027.
123.26 	(k) $5,000,000 the first year is transferred to 
123.27 	the electric vehicle rebate program account to 
123.28 	award rebates to purchase or lease eligible 
123.29 	electric vehicles under Minnesota Statutes, 
123.30 	section 216C.401. Rebates must be awarded 
123.31 	under this paragraph only to eligible recipients 
123.32 	located outside the retail electric service area 
123.33 	of the public utility that is subject to 
123.34 	Minnesota Statutes, section 116C.779. This is 
124.1 	a onetime appropriation and is available until 
124.2 	June 30, 2027.
124.3 	(l) $1,000,000 the first year is to award grants 
124.4 	under Minnesota Statutes, section 216C.402, 
124.5 	to automobile dealers seeking certification to 
124.6 	sell electric vehicles and to reimburse the 
124.7 	reasonable costs incurred by the department 
124.8 	to administer the grants. Grants must only be 
124.9 	awarded under this paragraph to eligible 
124.10 	dealers located outside the retail electric 
124.11 	service area of the public utility that is subject 
124.12 	to Minnesota Statutes, section 116C.779. This 
124.13 	is a onetime appropriation and is available 
124.14 	until June 30, 2027.
124.15 	(m) $3,000,000 the first year is transferred to 
124.16 	the residential electric panel upgrade grant 
124.17 	program account established under Minnesota 
124.18 	Statutes, section 216C.45, to award electric 
124.19 	panel upgrade grants and to reimburse the 
124.20 	reasonable costs incurred by the department 
124.21 	to administer the program. Grants must be 
124.22 	awarded under this paragraph only to owners 
124.23 	of single-family homes or multifamily 
124.24 	buildings located outside the electric service 
124.25 	area of the public utility subject to Minnesota 
124.26 	Statutes, section 116C.779. This is a onetime 
124.27 	appropriation and is available until June 30, 
124.28 	2027.
124.29 	(n) $500,000 the first year and $500,000 the 
124.30 	second year are for a grant to the clean energy 
124.31 	resource teams partnerships under Minnesota 
124.32 	Statutes, section 216C.385, subdivision 2, to 
124.33 	provide additional capacity to perform the 
124.34 	duties specified under Minnesota Statutes, 
124.35 	section 216C.385, subdivision 3. This 
125.1 	appropriation may be used to reimburse the 
125.2 	reasonable costs incurred by the department 
125.3 	to administer the grant.
125.4 	(o) $1,807,000 the first year and $301,000 the 
125.5 	second year are to implement energy 
125.6 	benchmarking under Minnesota Statutes, 
125.7 	section 216C.331.
125.8 	Of the amount appropriated under this 
125.9 	paragraph, $750,000 the first year is to award 
125.10 	grants to qualifying utilities that are not 
125.11 	investor-owned utilities to support the 
125.12 	development of technology for implementing 
125.13 	energy benchmarking under Minnesota 
125.14 	Statutes, section 216C.331. This is a onetime 
125.15 	appropriation.
125.16 	Of the amount appropriated in the first year 
125.17 	under this paragraph, $756,000 the first year 
125.18 	is for a grant to Building Owners and 
125.19 	Managers Association Greater Minneapolis 
125.20 	to establish partnerships with three technical 
125.21 	colleges and high school career counselors 
125.22 	with a goal of increasing the number of 
125.23 	building engineers across Minnesota. This is 
125.24 	a onetime appropriation and is available until 
125.25 	June 30, 2028. The grant recipient must 
125.26 	provide a detailed report describing how the 
125.27 	grant funds were used to the chairs and 
125.28 	ranking minority members of the legislative 
125.29 	committees having jurisdiction over higher 
125.30 	education by January 15 of each year until 
125.31 	2028. The report must describe the progress 
125.32 	made toward the goal of increasing the number 
125.33 	of building engineers and strategies used.
125.34 	(p) $500,000 the first year is for a feasibility 
125.35 	study to identify and process Minnesota iron 
126.1 	resources that could be suitable for upgrading 
126.2 	to long-term battery storage specifications. 
126.3 	The results of the feasibility study must be 
126.4 	submitted to the commissioner of commerce 
126.5 	and to the chairs and ranking minority 
126.6 	members of the house of representatives and 
126.7 	senate committees with jurisdiction over 
126.8 	energy policy no later than ~~February~~
126.9 	November 1, 2025. This appropriation may 
126.10 	be used to reimburse the reasonable costs 
126.11 	incurred to administer the study. This is a 
126.12 	onetime appropriation.
126.13 	(q) $6,000,000 the first year is for electric 
126.14 	school bus grants under Minnesota Statutes, 
126.15 	section 216C.374. Money under this paragraph 
126.16 	is transferred from the general fund to the 
126.17 	electric school bus program account. This is 
126.18 	a onetime appropriation.
126.19 	(r) $5,300,000 the first year is for electric grid 
126.20 	resiliency grants under article 12, section 72. 
126.21 	This appropriation may be used to reimburse 
126.22 	the reasonable costs incurred by the 
126.23 	department to administer the grants. This is a 
126.24 	onetime appropriation and is available until 
126.25 	June 30, 2028.
126.26 	(s) $6,000,000 the first year is transferred to 
126.27 	the heat pump rebate program account 
126.28 	established under Minnesota Statutes, section 
126.29 	216C.46, to implement the heat pump rebate 
126.30 	program and to reimburse the reasonable costs 
126.31 	incurred by the department to administer the 
126.32 	program. Of this amount:
126.33 	(1) up to $1,400,000 the first year is to 
126.34 	contract with an energy coordinator under 
127.1 	Minnesota Statutes, section 216C.46, 
127.2 	subdivision 5; and
127.3 	(2) up to $1,400,000 the first year is to conduct 
127.4 	contractor training and support under 
127.5 	Minnesota Statutes, section 216C.46, 
127.6 	subdivision 6.
127.7 	(t) $1,000,000 the first year is to award air 
127.8 	ventilation pilot program grants under 
127.9 	Minnesota Statutes, section 123B.663, for 
127.10 	assessments, testing, and equipment upgrades 
127.11 	in schools, and for the department's costs to 
127.12 	administer the program. This is a onetime 
127.13 	appropriation.
127.14 	(u) $500,000 the first year is for a grant to the 
127.15 	city of Anoka for feasibility studies as 
127.16 	described in this paragraph and design, 
127.17 	engineering, and environmental analysis 
127.18 	related to the repair and reconstruction of the 
127.19 	Rum River Dam. Findings from the feasibility 
127.20 	studies must be incorporated into the design 
127.21 	and engineering funded by this appropriation. 
127.22 	This appropriation is onetime and is available 
127.23 	until June 30, 2027. This appropriation 
127.24 	includes money for the following studies: (1) 
127.25 	a study to assess the feasibility of adding a 
127.26 	lock or other means for boats to traverse the 
127.27 	dam to navigate between the lower Rum River 
127.28 	and upper Rum River; (2) a study to assess 
127.29 	the feasibility of constructing the dam in a 
127.30 	manner that would facilitate recreational river 
127.31 	surfing at the dam site; and (3) a study to 
127.32 	assess the feasibility of constructing the dam 
127.33 	in a manner to generate hydroelectric power.
127.34 	(v) $3,000,000 the first year is for grants to 
127.35 	install on-site energy storage systems, as 
128.1 	defined in Minnesota Statutes, section 
128.2 	216B.2422, subdivision 1, paragraph (f), with 
128.3 	a capacity of 50 kilowatt hours or less and that 
128.4 	are located outside the electric service area of 
128.5 	the electric utility subject to Minnesota 
128.6 	Statutes, section 116C.779. To receive a grant 
128.7 	under this paragraph, an owner of the energy 
128.8 	storage system must be operating a solar 
128.9 	energy generating system at the same site as 
128.10 	the energy storage system or have filed an 
128.11 	application with a utility to interconnect a solar 
128.12 	energy generating system at the same site as 
128.13 	the energy storage system. This appropriation 
128.14 	may be used to reimburse the reasonable costs 
128.15 	incurred by the department to administer the 
128.16 	grants. This is a onetime appropriation and is 
128.17 	available until June 30, 2027.
128.18 	(w) $164,000 the second year is for activities 
128.19 	associated with a public utility's filing a 
128.20 	transportation electrification plan under 
128.21 	Minnesota Statutes, section 216B.1615. The 
128.22 	base in fiscal year 2026 and later is $164,000.
128.23 	(x) $77,000 each year is for activities 
128.24 	associated with appeals of consumer 
128.25 	complaints to the commission under 
128.26 	Minnesota Statutes, section 216B.172.
128.27 	(y) $961,000 each year is for activities 
128.28 	required under Minnesota Statutes, section 
128.29 	216B.1641 for community solar gardens. This 
128.30 	appropriation must be assessed directly to the 
128.31 	public utility subject to Minnesota Statutes, 
128.32 	section 116C.779.
128.33 	(z) $300,000 the first year is for the 
128.34 	community solar garden program study 
128.35 	required under article 12, section 73.

129.1 	Sec. 48. ULTRAEFFICIENT VEHICLE DEVELOPMENT GRANTS.
 129.2 		Subdivision 1.Program establishment. (a) A grant program is established in the 
129.3 	Department of Commerce to provide financial assistance to developers and producers of 
129.4 	ultraefficient vehicles that use proprietary technology.
129.5 	(b) For purposes of this section, "ultraefficient vehicle" means a fully closed compartment 
129.6 	vehicle that is designed to carry at least one adult passenger and that achieves:
129.7 	(1) at least 75 miles per gallon while operating on gasoline;
129.8 	(2) at least 75 miles per gallon equivalent while operating as a hybrid electric-gasoline; 
129.9 	or
129.10 	(3) at least 75 miles per gallon equivalent while operating as a fully electric vehicle.
129.11 		Subd. 2.Application process. Applicants seeking a grant under this section must submit 
129.12 	an application to the commissioner of commerce on a form developed by the commissioner. 
129.13 	The commissioner is responsible for receiving and reviewing grant applications and awarding 
129.14 	grants under this subdivision. The commissioner must develop administrative procedures 
129.15 	to govern the application, evaluation, and grant-award process.
129.16 		Subd. 3.Grant awards.  The maximum grant award for each eligible applicant awarded 
129.17 	a grant under this section is $250,000. When awarding grants under this section, the 
129.18 	department must:
129.19 	(1) give priority to ultraefficient vehicle projects that are deemed to be near production 
129.20 	ready; and
129.21 	(2) give priority to ultraefficient vehicle projects that maximize the use of electricity to 
129.22 	charge and run the vehicle.
129.23 		Subd. 4.Account established. An ultraefficient vehicle development grant account is 
129.24 	established in the special revenue fund in the state treasury. The commissioner of commerce 
129.25 	must credit to the account appropriations made for ultraefficient vehicle development grants. 
129.26 	Earnings, including interest, arising from assets in the account, must be credited to the 
129.27 	account. Money in the account is available until June 30, 2028. Any amount remaining in 
129.28 	the account after June 30, 2028, cancels to the renewable development account. The 
129.29 	commissioner of commerce must manage the account.
129.30 		Subd. 5.Appropriation; expenditures. Money in the account established in subdivision 
129.31 	4 is appropriated to the commissioner of commerce and must be used only to:
129.32 	(1) make grant awards under this section; and
130.1 	(2) pay the reasonable costs incurred by the department to administer this section.
130.2 		Subd. 6.Report. On January 15, 2026, and on January 15, 2029, the commissioner of 
130.3 	commerce must submit a report to the chairs and ranking minority members of the legislative 
130.4 	committees with jurisdiction over energy policy and finance on the grant awards under this 
130.5 	section.

130.6 	Sec. 49. THERMAL ENERGY NETWORK DEPLOYMENT WORK GROUP.
 130.7 		Subdivision 1.Direction. The Public Utilities Commission must establish and appoint 
130.8 	a thermal energy network deployment work group to examine (1) the potential regulatory 
130.9 	opportunities for regulated natural gas utilities to deploy thermal energy networks, and (2) 
130.10 	potential barriers to development. The work group must examine the public benefits, costs, 
130.11 	and impacts of deployment of thermal energy networks, as well as examine rate design 
130.12 	options.
130.13 		Subd. 2.Membership. (a) The work group consists of at least the following:
130.14 	(1) representatives of the Department of Commerce;
130.15 	(2) representatives of the Department of Health;
130.16 	(3) representatives of the Pollution Control Agency;
130.17 	(4) representatives of the Department of Natural Resources;
130.18 	(5) representatives of the Office of the Attorney General;
130.19 	(6) representatives from utilities;
130.20 	(7) representatives from clean energy advocacy organizations;
130.21 	(8) representatives from labor organizations;
130.22 	(9) geothermal technology providers;
130.23 	(10) representatives from consumer protection organizations;
130.24 	(11) representatives from cities; and
130.25 	(12) representatives from low-income communities.
130.26 	(b) The executive secretary of the Public Utilities Commission may invite others to 
130.27 	participate in one or more meetings of the work group.
130.28 	(c) When appointing members to the work group, the Public Utilities Commission must 
130.29 	endeavor to ensure that all geographic regions of Minnesota are represented.
131.1 		Subd. 3.Duties. The work group must prepare a report containing findings and 
131.2 	recommendations regarding how to deploy thermal energy networks within a regulated 
131.3 	context and in a manner that protects the public interest and considers reliability, affordability, 
131.4 	environmental impacts, and socioeconomic impacts.
131.5 		Subd. 4.Report to legislature. The work group must submit a report detailing the work 
131.6 	group's findings and recommendations to the chairs and ranking minority members of the 
131.7 	legislative committees and divisions with jurisdiction over energy policy and finance by 
131.8 	December 31, 2025. The work group terminates the day after the report under this subdivision 
131.9 	is submitted.
131.10 		Subd. 5.Notice and comment period. The executive secretary of the Public Utilities 
131.11 	Commission must file the completed report in Public Utilities Commission Docket No. 
131.12 	G-999/CI-21-565 and provide notice to all docket participants and other interested persons 
131.13 	that comments on the findings and recommendations may be filed in the docket.
131.14 		Subd. 6.Definition. For the purposes of this section, "thermal energy network" means 
131.15 	a project that provides heating and cooling to multiple buildings connected via underground 
131.16 	piping containing fluids that, in concert with heat pumps, exchange thermal energy from 
131.17 	the earth, underground or surface waters, wastewater, or other heat sources.

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

131.19 	Sec. 50. STUDY; CARBON DIOXIDE PIPELINES.
 131.20 	(a) The commission must contract with an independent third party to conduct a study 
131.21 	that: (1) assesses the human health and environmental impacts that result from constructing, 
131.22 	operating, and maintaining carbon dioxide pipelines; and (2) makes recommendations 
131.23 	regarding regulation of the activities listed in clause (1). The executive secretary of the 
131.24 	commission may consult with the executive director of the environmental quality board 
131.25 	when selecting the contractor to conduct the study.
131.26 	(b) The study must include, at a minimum, the following elements:
131.27 	(1) identification of geographic areas in Minnesota that, due to the geographic area's 
131.28 	geology or the presence of environmentally sensitive resources, are unsuitable sites to 
131.29 	construct and operate carbon dioxide pipelines;
131.30 	(2) the amount of energy and water required to operate the equipment used to capture 
131.31 	the carbon dioxide that is transported in a carbon dioxide pipeline;
132.1 	(3) the potential human and environmental impacts of a carbon dioxide pipeline leak or 
132.2 	rupture, especially to long-term human health, surface water bodies and wetlands, animals 
132.3 	and animal habitat, croplands, and other sensitive resources;
132.4 	(4) measures that can be taken to mitigate the impact of a carbon dioxide pipeline leak 
132.5 	or rupture, including setbacks, protection for wildlife and wildlife habitat, and enhanced 
132.6 	local emergency response strategies and resources;
132.7 	(5) the long-term impacts of pipeline construction on wetlands, soils, crops, and other 
132.8 	vegetation;
132.9 	(6) the lifecycle greenhouse gas emissions resulting from carbon dioxide pipelines, 
132.10 	including the ultimate disposition of the carbon dioxide, whether the carbon dioxide is 
132.11 	sequestered, used to manufacture other products, or used to extract incremental oil or gas 
132.12 	supplies from underground reservoirs. The greenhouse gas emissions resulting from the 
132.13 	process to extract incremental oil or gas supplies from underground reservoirs and the 
132.14 	subsequent combustion of the incremental energy sources must also be estimated. The 
132.15 	analysis should also indicate the degree to which any emission reductions are verifiable; 
132.16 	and
132.17 	(7) recommended provisions for a state regulatory process to site, operate, maintain, and 
132.18 	abandon carbon dioxide pipelines that are transparent, provide opportunity for public 
132.19 	engagement, and provide pipeline operators with clear signals and efficient procedures 
132.20 	regarding permitting issues.
132.21 	(c) No later than November 1, 2026, a written copy of the report must be submitted to 
132.22 	the chairs and ranking minority members of the legislative committees with primary 
132.23 	jurisdiction over energy policy and environmental policy and to the Public Utilities 
132.24 	Commission. The commission must consider the report's findings and recommendations 
132.25 	when issuing siting permits for carbon dioxide pipelines.

132.26 	Sec. 51. THERMAL ENERGY NETWORK SITE SUITABILITY STUDY.
 132.27 	(a) The Department of Commerce must conduct or contract for a study to determine the 
132.28 	suitability of sites to deploy thermal energy networks statewide.
132.29 	(b) The study must:
132.30 	(1) identify areas more and less suitable for deployment of thermal energy networks 
132.31 	statewide; and
133.1 	(2) identify potential barriers to the deployment of thermal energy networks and potential 
133.2 	ways to address the barriers.
133.3 	(c) In determining site suitability, the study must consider:
133.4 	(1) geologic or hydrologic access to thermal storage;
133.5 	(2) the existing built environment, including but not limited to age, density, building 
133.6 	uses, existing heating and cooling systems, and existing electrical services;
133.7 	(3) the condition of existing natural gas infrastructure;
133.8 	(4) road and street conditions, including planned replacement or maintenance;
133.9 	(5) local land use regulations;
133.10 	(6) area permitting requirements; and
133.11 	(7) whether the area is an environmental justice area, as defined in section 116.065, 
133.12 	subdivision 1, paragraph (e).
133.13 	(d) No later than January 15, 2026, the Department of Commerce must submit a written 
133.14 	report documenting the study's findings to the chairs and ranking minority members of the 
133.15 	senate and house of representatives committees with jurisdiction over energy policy and 
133.16 	finance.
133.17 	(e) For the purposes of this section, "thermal energy network" means a project that 
133.18 	provides heating and cooling to multiple buildings connected via underground piping 
133.19 	containing fluids that, in concert with heat pumps, exchange thermal energy from the earth, 
133.20 	underground or surface waters, wastewater, or other heat sources.

133.21 	Sec. 52. GRID ENHANCING TECHNOLOGIES REPORT; PUBLIC UTILITIES 
133.22 	COMMISSION ORDER.
 133.23 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
133.24 	the meanings given.
133.25 	(b) "Capacity" means the maximum amount of electricity that can flow through a 
133.26 	transmission line while observing industry safety standards.
133.27 	(c) "Congestion" means a condition in which a lack of transmission line capacity prevents 
133.28 	the delivery of the lowest-cost electricity dispatched to meet load at a specific location.
133.29 	(d) "Dynamic line rating" means hardware or software used to calculate the thermal 
133.30 	limit of existing transmission lines at a specific point in time by incorporating information 
133.31 	on real-time and forecasted weather conditions.
134.1 	(e) "Grid enhancing technology" means hardware or software that reduces congestion 
134.2 	or enhances the flexibility of the transmission system by increasing the capacity of a 
134.3 	high-voltage transmission line or rerouting electricity from overloaded to uncongested lines, 
134.4 	while maintaining industry safety standards. Grid enhancing technologies include but are 
134.5 	not limited to dynamic line rating, advanced power flow controllers, and topology 
134.6 	optimization.
134.7 	(f) "Line rating methodology" means a methodology used to calculate the maximum 
134.8 	amount of electricity that can be carried by a transmission line without exceeding thermal 
134.9 	limits designed to ensure safety.
134.10 	(g) "Power flow controller" means hardware and software used to reroute electricity 
134.11 	from overloaded transmission lines to underutilized transmission lines.
134.12 	(h) "Thermal limit" means the temperature a transmission line reaches when heat from 
134.13 	the electric current flow within the transmission line causes excessive sagging of the 
134.14 	transmission line.
134.15 	(i) "Topology optimization" means a software technology that uses mathematical models 
134.16 	to identify reconfigurations in the transmission grid in order to reroute electricity from 
134.17 	overloaded transmission lines to underutilized transmission lines.
134.18 	(j) "Transmission line" has the meaning given to "high-voltage transmission line" in 
134.19 	section 216E.01. subdivision 4.
134.20 	(k) "Transmission system" means a network of high-voltage transmission lines owned 
134.21 	or operated by an entity subject to this section that transports electricity to Minnesota 
134.22 	customers.
134.23 		Subd. 2.Report; content. An entity that owns more than 750 miles of transmission 
134.24 	lines in Minnesota, as reported in the state transmission report submitted to the Public 
134.25 	Utilities Commission under Minnesota Statutes, section 216B.2425, by November 1, 2025, 
134.26 	must include in that report information that:
134.27 	(1) identifies, during each of the last three years, locations that experienced 168 hours 
134.28 	or more of congestion, or the ten locations at which the most costly congestion occurred, 
134.29 	whichever measure produces the greater number of locations;
134.30 	(2) estimates the frequency of congestion at each location and the increased cost to 
134.31 	ratepayers resulting from the substitution of higher-priced electricity;
134.32 	(3) identifies locations on each transmission system that are likely to experience high 
134.33 	levels of congestion during the next five years;
135.1 	(4) evaluates the technical feasibility and estimates the cost of installing one or more 
135.2 	grid enhancing technologies to address each instance of grid congestion identified in clause 
135.3 	(1), and projects the grid enhancing technology's efficacy in reducing congestion;
135.4 	(5) analyzes the cost-effectiveness of installing grid enhancing technologies to address 
135.5 	each instance of congestion identified in clause (1) by using the information developed in 
135.6 	clause (2) to calculate the payback period of each installation, using a methodology developed 
135.7 	by the commission;
135.8 	(6) proposes an implementation plan, including a schedule and cost estimate, to install 
135.9 	grid enhancing technologies at each congestion point identified in clause (1) at which the 
135.10 	payback period is less than or equal to a value determined by the commission, in order to 
135.11 	maximize transmission system capacity; and
135.12 	(7) explains the transmission owner's current line rating methodology.
135.13 		Subd. 3.Commission review; order. (a) The commission must review the 
135.14 	implementation plans proposed by each reporting entity as required in subdivision 2, clause 
135.15 	(6), and must:
135.16 	(1) review, and may approve, reject, or modify, the plan; and
135.17 	(2) issue an order requiring implementation of an approved plan.
135.18 	(b) Within 90 days of the date the commission issues an order under this subdivision 
135.19 	each public utility must file with the commission a plan containing a workplan, cost estimate, 
135.20 	and schedule to implement the elements of the plan approved by the commission that are 
135.21 	located within the public utility's electric service area. For each entity required to report 
135.22 	under this section that is not a public utility, the commission's order is advisory.
135.23 		Subd. 4.Cost recovery. Notwithstanding any other provision of this chapter, the 
135.24 	commission may approve cost recovery under Minnesota Statutes, section 216B.16, including 
135.25 	an appropriate rate of return, of any prudent and reasonable investments made or expenses 
135.26 	incurred by a public utility to administer and implement a grid enhancing technologies plan 
135.27 	approved by the commission under this section.

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

135.29 	Sec. 53. INTERCONNECTION DOCKET; PUBLIC UTILITIES COMMISSION.
 135.30 	(a) No later than September 1, 2024, the commission must initiate a proceeding to 
135.31 	establish by order generic standards for the sharing of utility costs necessary to upgrade a 
135.32 	utility's distribution system by increasing hosting capacity or applying other necessary 
136.1 	distribution system upgrades at a congested or constrained location in order to allow for the 
136.2 	interconnection of distributed generation facilities at the congested or constrained location 
136.3 	and to advance the achievement of the state's renewable and carbon-free energy goals in 
136.4 	Minnesota Statutes, section 216B.1691 and greenhouse gas emissions reduction goals in 
136.5 	Minnesota Statutes, section 216H.02. The tariff standards must reflect an interconnection 
136.6 	process designed to, at a minimum:
136.7 	(1) accelerate the expansion of hosting capacity at multiple points on a utility's distribution 
136.8 	system by ensuring that the cost of upgrades is shared fairly among owners of distributed 
136.9 	generation projects seeking interconnection on a pro rata basis according to the amount of 
136.10 	the expanded capacity utilized by each interconnected distributed generation facility;
136.11 	(2) reduce the capital burden on owners of trigger projects seeking interconnection;
136.12 	(3) establish a minimum level of upgrade costs an expansion of hosting capacity must 
136.13 	reach in order to be eligible to participate in the cost-share process and below which a trigger 
136.14 	project must bear the full cost of the upgrade;
136.15 	(4) establish a distributed generation facility's pro rata cost-share amount as the utility's 
136.16 	total cost of the upgrade divided by the incremental capacity resulting from the upgrade, 
136.17 	and multiplying the result by the capacity of the distributed generation facility seeking 
136.18 	interconnection;
136.19 	(5) establish a minimum proportion of the total upgrade cost that a utility must receive 
136.20 	from one or more distributed generation facilities before initiating constructing an upgrade;
136.21 	(6) allow trigger projects and any other distributed generation facilities to pay a utility 
136.22 	more than the trigger project's or distributed generation facility's pro rata cost-share amount 
136.23 	only if needed to meet the minimum threshold established in clause (5) and to receive refunds 
136.24 	for amounts paid beyond the trigger project's or distributed generation facility's pro rata 
136.25 	share of expansion costs from distributed generation projects that subsequently interconnect 
136.26 	at the applicable location, after which pro rata payments are paid to the utility for distribution 
136.27 	to ratepayers;
136.28 	(7) prohibit owners of distributed generation facilities from using any unsubscribed 
136.29 	capacity at an interconnection that has undergone an upgrade without the distributed 
136.30 	generation owners paying the distributed generation owner's pro rata cost of the upgrade; 
136.31 	and
137.1 	(8) establish an annual limit or a formula for determining an annual limit for the total 
137.2 	cost of upgrades that are not allocated to owners of participating generation facilities and 
137.3 	may be recovered from ratepayers under section 216B.16, subdivision 7b, clause (6).
137.4 	(b) For the purposes of this section, the following terms have the meanings given:
137.5 	(1) "distributed generation project" means an energy generating system with a capacity 
137.6 	no greater than ten megawatts;
137.7 	(2) "hosting capacity" means the maximum capacity of a utility distribution system to 
137.8 	transport electricity at a specific location without compromising the safety or reliability of 
137.9 	the distribution system;
137.10 	(3) "trigger project" means the initial distributed generation project whose application 
137.11 	for interconnection of a distributed generation project alerts a utility that an upgrade is 
137.12 	needed in order to accommodate the trigger project and any future interconnections at the 
137.13 	applicable location;
137.14 	(4) "upgrade" means a modification of a utility's distribution system at a specific location 
137.15 	that is necessary to allow the interconnection of distributed generation projects by increasing 
137.16 	hosting capacity at the applicable location, including but not limited to installing or modifying 
137.17 	equipment at a substation or along a distribution line. Upgrade does not mean an expansion 
137.18 	of hosting capacity dedicated solely to the interconnection of a single distributed generation 
137.19 	project; and
137.20 	(5) "utility" means a public utility, as defined in Minnesota Statutes, section 216B.02, 
137.21 	subdivision 4, that provides electric service.

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

137.23 	Sec. 54. POSITION ESTABLISHED; PUBLIC UTILITIES COMMISSION.
 137.24 		Subdivision 1.Position; duties. (a) The Public Utilities Commission's Consumer Affairs 
137.25 	Office must establish a new full-time equivalent interconnection ombudsperson position to 
137.26 	assist applicants seeking to interconnect distributed generation projects to utility distribution 
137.27 	systems under the generic statewide standards developed by the commission under section 
137.28 	53. The Public Utilities Commission must (1) appoint a person to the position who possesses 
137.29 	mediation skills and technical expertise related to interconnection and interconnection 
137.30 	procedures, and (2) authorize the person to request and review all interconnection data from 
137.31 	utilities and applicants that are necessary to fulfill the duties of the position described in 
137.32 	this subdivision.
138.1 	(b) The duties of the interconnection ombudsperson include but are not limited to:
138.2 	(1) tracking interconnection disputes between applicants and utilities;
138.3 	(2) facilitating the efficient and fair resolution of disputes between customers seeking 
138.4 	to interconnect and utilities;
138.5 	(3) reviewing utility interconnection policies to assess opportunities to reduce 
138.6 	interconnection disputes, while considering the equitable distribution of distributed generation 
138.7 	facilities;
138.8 	(4) convening stakeholder groups as necessary to facilitate effective communication 
138.9 	among interconnection stakeholders; and
138.10 	(5) preparing reports that detail the number, type, resolution timelines, and outcome of 
138.11 	interconnection disputes.
138.12 	(c) A utility must provide information requested under this section that the interconnection 
138.13 	ombudsperson determines is necessary to effectively carry out the duties of the position.
138.14 		Subd. 2.Definition. For the purposes of this section, "utility" means a public utility, as 
138.15 	defined in Minnesota Statutes, section 216B.02, subdivision 4, that provides electric service.
138.16 		Subd. 3.Position; funding. (a) A utility must assess and collect a surcharge of $50 on 
138.17 	each application interconnection filed by an owner of a distributed generation facility located 
138.18 	in Minnesota. A utility must remit the full surcharge to the Public Utilities Commission 
138.19 	monthly, in a manner determined by the Public Utilities Commission, for each interconnection 
138.20 	application filed with the utility during the previous month.
138.21 	(b) The interconnection ombudsperson account is established in the special revenue 
138.22 	account in the state treasury. The Public Utilities Commission must manage the account. 
138.23 	The Public Utilities Commission must deposit in the account all revenues received from 
138.24 	utilities from the surcharge on interconnection applications established under this section. 
138.25 	Money is appropriated from the account to the Public Utilities Commission for the sole 
138.26 	purpose of funding the ombudsperson position established in subdivision 1.
138.27 	(c) The Public Utilities Commission must review the amount of revenues collected from 
138.28 	the surcharge each year and may adjust the level of the surcharge as necessary to ensure (1) 
138.29 	sufficient money is available to support the position, and (2) the reserve in the account does 
138.30 	not reach more than ten percent of the amount necessary to fully fund the position.

138.31 	EFFECTIVE DATE. This section is effective the day following final enactment and 
138.32 	applies to applications for interconnections filed with a utility on or after that date.

139.1 	ARTICLE 7
139.2 	MINNESOTA ENERGY INFRASTRUCTURE PERMITTING ACT

139.3 	Section 1. [216I.01] CITATION.
139.4 	This chapter may be cited as the "Minnesota Energy Infrastructure Permitting Act."

139.5 	Sec. 2. [216I.02] DEFINITIONS.
139.6 		Subdivision 1.Applicability. For purposes of this chapter, the terms defined in this 
139.7 	section have the meanings given, unless context clearly indicates or provides otherwise.
139.8 		Subd. 2.Associated facility. "Associated facility" means a building, equipment, 
139.9 	communication instrumentation, or other physical structure that is necessary to operate a 
139.10 	large energy infrastructure facility. Associated facility includes transmission lines designed 
139.11 	for and capable of operating at 100 kilovolts or less that interconnect the large energy 
139.12 	infrastructure facility with the existing high-voltage transmission system.
139.13 		Subd. 3.Commission. "Commission" means the Public Utilities Commission. 
139.14 	Commission also means the executive secretary of the Public Utilities Commission for 
139.15 	purposes of the following:
139.16 	(1) applicability determinations under section 216I.04;
139.17 	(2) completeness determinations under section 216I.05;
139.18 	(3) public meetings under section 216I.05, subdivision 9;
139.19 	(4) draft environmental impact statements under section 216I.06, subdivision 1, paragraph 
139.20 	(c); and
139.21 	(5) public hearings under section 216I.06, subdivision 2, or 216I.07, subdivision 4.
139.22 		Subd. 4.Construction. "Construction" means any clearing of land, excavation, or other 
139.23 	action that adversely affects the site's or route's natural environment. Construction does not 
139.24 	include changes needed to temporarily use sites or routes for nonutility purposes, or uses 
139.25 	in securing survey or geological data, including necessary borings to ascertain foundation 
139.26 	conditions.
139.27 		Subd. 5.Cultivated agricultural land. "Cultivated agricultural land" has the meaning 
139.28 	given in section 216G.01, subdivision 4.
139.29 		Subd. 6.Energy storage system. "Energy storage system" means equipment and 
139.30 	associated facilities designed with a nameplate capacity of 10,000 kilowatts or more that is 
140.1 	capable of storing generated electricity for a period of time and delivering the electricity 
140.2 	for use after storage.
140.3 		Subd. 7.Executive secretary. "Executive secretary" means the executive secretary of 
140.4 	the Public Utilities Commission under section 216A.04 or Public Utilities Commission staff 
140.5 	designated by the executive secretary.
140.6 		Subd. 8.High-voltage transmission line. "High-voltage transmission line" means a 
140.7 	conductor of electric energy and associated facilities that is (1) designed for and capable of 
140.8 	operation at a nominal voltage of 100 kilovolts or more, and (2) is greater than 1,500 feet 
140.9 	in length.
140.10 		Subd. 9.Large electric power generating plant. "Large electric power generating 
140.11 	plant" means electric power generating equipment and associated facilities designed for or 
140.12 	capable of operation at a capacity of 50,000 kilowatts or more.
140.13 		Subd. 10.Large energy infrastructure facility. "Large energy infrastructure facility" 
140.14 	means a high-voltage transmission line, a large electric power generating plant, an energy 
140.15 	storage system, a large wind energy conversion system, and any associated facility.
140.16 		Subd. 11.Large wind energy conversion system. "Large wind energy conversion 
140.17 	system" means any combination of wind energy conversion systems with a combined 
140.18 	nameplate capacity of 5,000 kilowatts or more, and may include transmission lines designed 
140.19 	for and capable of operating at 100 kilovolts or less that interconnect a large wind energy 
140.20 	conversion system with a high-voltage transmission line.
140.21 		Subd. 12.Permittee. "Permittee" means a person to whom a site or route permit is 
140.22 	issued.
140.23 		Subd. 13.Person. "Person" means an individual, partnership, joint venture, private or 
140.24 	public corporation, association, firm, public service company, cooperative, political 
140.25 	subdivision, municipal corporation, government agency, public utility district, or any other 
140.26 	entity, public or private, however organized.
140.27 		Subd. 14.Power purchase agreement. "Power purchase agreement" means a legally 
140.28 	enforceable agreement between two or more persons where one or more of the signatories 
140.29 	agrees to provide electrical power and one or more of the signatories agrees to purchase the 
140.30 	power.
140.31 		Subd. 15.Route. "Route" means the location of a high-voltage transmission line between 
140.32 	two end points. The route may have a variable width of up to 1.25 miles.
141.1 		Subd. 16.Site. "Site" means the location of a large electric power generating plant, solar 
141.2 	energy generating system, energy storage system, or large wind energy conversion system.
141.3 		Subd. 17.Small wind energy conversion system. "Small wind energy conversion 
141.4 	system" means any combination of wind energy conversion systems with a combined 
141.5 	nameplate capacity of less than 5,000 kilowatts.
141.6 		Subd. 18.Solar energy generating system. "Solar energy generating system" means a 
141.7 	set of devices whose primary purpose is to produce electricity by means of any combination 
141.8 	of collecting, transferring, or converting solar-generated energy with a combined nameplate 
141.9 	capacity of 50,000 kilowatts alternating current or more.
141.10 		Subd. 19.Utility. "Utility" means any entity engaged or intending to engage in generating, 
141.11 	transmitting, or distributing electric energy in Minnesota. Utility includes but is not limited 
141.12 	to a private investor-owned utility, cooperatively owned utility, and public or municipally 
141.13 	owned utility.
141.14 		Subd. 20.Wind energy conversion system. "Wind energy conversion system" means 
141.15 	a device, including but not limited to a wind charger, windmill, or wind turbine and associated 
141.16 	facilities, that converts wind energy to electrical energy.

141.17 	Sec. 3. [216I.03] SITING AUTHORITY.
141.18 		Subdivision 1.Policy. The legislature hereby declares it is the policy of the state to 
141.19 	locate large electric power facilities in an orderly manner that is compatible with 
141.20 	environmental preservation and the efficient use of resources. In accordance with the policy, 
141.21 	the commission must choose locations that minimize adverse human and environmental 
141.22 	impact while ensuring (1) continuing electric power system reliability and integrity, and 
141.23 	(2) that electric energy needs are met and fulfilled in an orderly and timely fashion.
141.24 		Subd. 2.Jurisdiction. (a) The commission has the authority to provide for site and route 
141.25 	selection for large energy infrastructure facilities. The commission must issue permits for 
141.26 	large energy infrastructure facilities in a timely fashion and in a manner consistent with the 
141.27 	overall determination of need for the project under section 216B.2425 or 216B.243, if 
141.28 	applicable.
141.29 	(b) The scope of an environmental review conducted under this chapter must not include: 
141.30 	(1) questions of need, including size, type, and timing; (2) alternative system configurations; 
141.31 	or (3) voltage.
141.32 		Subd. 3.Interstate routes. If a route is proposed in two or more states, the commission 
141.33 	must attempt to reach an agreement with affected states on the entry and exit points before 
142.1 	designating a route. The commission, in discharge of the commission's duties under this 
142.2 	chapter, may make joint investigations, hold joint hearings within or outside of the state, 
142.3 	and issue joint or concurrent orders in conjunction or concurrence with any official or agency 
142.4 	of any state or of the United States. The commission may, pursuant to any consent of 
142.5 	Congress, negotiate and enter into any agreements or compacts with agencies of other states 
142.6 	for cooperative efforts to certify the construction, operation, and maintenance of large 
142.7 	electric power facilities in a manner consistent with this chapter's requirements and to enforce 
142.8 	the respective state laws regarding large electric power facilities.
142.9 		Subd. 4.Biennial report. By December 15, 2025, and every odd-numbered year 
142.10 	thereafter, the commission must submit a written report to the chairs and ranking minority 
142.11 	members of the senate and house of representatives committees with jurisdiction over energy 
142.12 	and utilities. The report must:
142.13 	(1) provide an update on the progress made to permit, approve, and construct the electric 
142.14 	utility infrastructure necessary to meet the requirements of section 216B.1691 within the 
142.15 	milestones provided under section 216B.1691;
142.16 	(2) describe efforts made by the commission to engage stakeholders in environmental 
142.17 	justice areas, as defined in section 216B.1691, subdivision 1, paragraph (c), in permitting, 
142.18 	approving, and constructing electric utility infrastructure under this section, section 
142.19 	216B.1691, or section 216B.243; and
142.20 	(3) provide information regarding any cumulative impact analysis ordered by the 
142.21 	commissioner of the Pollution Control Agency under section 116.065 pertaining to any 
142.22 	electric utility infrastructure permitted, approved, or constructed under this section, section 
142.23 	216B.1691, or section 216B.243.

142.24 	Sec. 4. [216I.04] APPLICABILITY DETERMINATION.
142.25 		Subdivision 1.Generally. This section may be used to determine: (1) whether a proposal 
142.26 	meets the definition of large energy infrastructure facility and is subject to the commission's 
142.27 	siting or routing jurisdiction under this chapter; or (2) which review process is applicable 
142.28 	at the time of the initial application.
142.29 		Subd. 2.Solar, wind, or energy storage facilities. For solar energy generating systems, 
142.30 	large wind energy conversion systems, or energy storage systems, the alternating current 
142.31 	nameplate capacity of one solar energy generating system, wind energy conversion system, 
142.32 	or energy storage system must be combined with the alternating current nameplate capacity 
143.1 	of any other solar energy generating system, wind energy conversion system, or energy 
143.2 	storage system that:
143.3 	(1) is constructed within the same 12-month period; and
143.4 	(2) exhibits characteristics of being a single development, including but not limited to 
143.5 	ownership structure, an umbrella sales arrangement, shared interconnection, revenue-sharing 
143.6 	arrangements, and common debt or equity financing.
143.7 		Subd. 3.Transmission lines. For transmission lines, the petitioner must describe the 
143.8 	applicability question and provide sufficient facts to support the determination.
143.9 		Subd. 4.Forms; assistance; written determination. (a) The commission must provide 
143.10 	forms and assistance to help applicants make a request for an applicability determination.
143.11 	(b) Upon written request from an applicant, the commission or the commission's designee 
143.12 	must provide a written determination regarding applicability under this section. The 
143.13 	commission or the commission's designee must provide the written determination within 
143.14 	30 days of the date the request was received or 30 days of the date information that the 
143.15 	commission requested from the applicant is received, whichever is later. This written 
143.16 	determination constitutes a final decision of the commission.

143.17 	Sec. 5. [216I.05] DESIGNATING SITES AND ROUTES.
143.18 		Subdivision 1.Site permit. (a) A person is prohibited from constructing a large electric 
143.19 	generating plant, a solar energy generating system, an energy storage system, or a large 
143.20 	wind energy conversion system without a site permit issued by the commission. A person 
143.21 	may construct a large electric generating plant, an energy storage system, a solar energy 
143.22 	generating system, or a large wind energy conversion system only on a site approved by 
143.23 	the commission. A person is prohibited from increasing the generating capacity or output 
143.24 	of an electric power plant from under 50 megawatts to more than 50 megawatts without a 
143.25 	site permit issued by the commission.
143.26 	(b) The commission must incorporate into one proceeding the route selection for a 
143.27 	high-voltage transmission line that is directly associated with and necessary to interconnect 
143.28 	the large electric generating plant, energy storage system, solar energy generating system, 
143.29 	or large wind energy conversion system to the transmission system if the applications are 
143.30 	submitted jointly under this chapter.
143.31 	(c) A site permit does not authorize construction of a large electric power generating 
143.32 	plant until the permittee has obtained a power purchase agreement or some other enforceable 
143.33 	mechanism to sell the power generated by the project. If the permittee does not have a power 
144.1 	purchase agreement or other enforceable mechanism at the time the permit is issued, the 
144.2 	commission must provide in the permit that the permittee must advise the commission when 
144.3 	the permittee obtains a commitment to purchase the power. The commission may establish 
144.4 	as a condition in the permit a date by which the permittee must obtain a power purchase 
144.5 	agreement or other enforceable mechanism. If the permittee does not obtain a power purchase 
144.6 	agreement or other enforceable mechanism by the date required by the permit condition, 
144.7 	the site permit is null and void.
144.8 		Subd. 2.Route permit. A person is prohibited from constructing a high-voltage 
144.9 	transmission line without a route permit issued by the commission. A person may construct 
144.10 	a high-voltage transmission line only along a route approved by the commission.
144.11 		Subd. 3.Application. (a) A person that seeks to construct a large energy infrastructure 
144.12 	facility must apply to the commission for a site or route permit, as applicable. The applicant 
144.13 	must propose a single route for a high-voltage transmission line.
144.14 	(b) The application must contain:
144.15 	(1) a statement of proposed ownership of the facility at the time of filing the application 
144.16 	and after commercial operation;
144.17 	(2) the name of any person or organization initially named as permittee or permittees 
144.18 	and the name of any other person to whom the permit may be transferred if transfer of the 
144.19 	permit is contemplated;
144.20 	(3) a description of the proposed large energy infrastructure facility and all associated 
144.21 	facilities, including size, type, and timing of the facility;
144.22 	(4) the environmental information required under subdivision 4;
144.23 	(5) the names of each owner described under subdivision 8;
144.24 	(6) United States Geological Survey topographical maps, or other maps acceptable to 
144.25 	the commission, that show the entire proposed large energy infrastructure facility;
144.26 	(7) a document that identifies existing utility and public rights-of-way along or near the 
144.27 	large energy infrastructure facility;
144.28 	(8) the engineering and operational design at each of the proposed sites for the proposed 
144.29 	large energy infrastructure facility, and identify transportation, pipeline, and electrical 
144.30 	transmission systems that are required to construct, maintain, and operate the facility;
144.31 	(9) a cost analysis of the proposed large energy infrastructure facility, including the costs 
144.32 	to construct, operate, and maintain the facility;
145.1 	(10) a description of possible design options to accommodate the large energy 
145.2 	infrastructure facility's future expansion;
145.3 	(11) the procedures and practices proposed to acquire, construct, maintain, and restore 
145.4 	the large energy infrastructure facility's right-of-way or site;
145.5 	(12) a list and brief description of federal, state, and local permits that may be required 
145.6 	for the proposed large energy infrastructure facility;
145.7 	(13) a discussion regarding whether a certificate of need application is required and, if 
145.8 	a certificate of need application is required, whether the certificate of need application has 
145.9 	been submitted;
145.10 	(14) a discussion regarding any other sites or routes that were considered and rejected 
145.11 	by the applicant;
145.12 	(15) any information the commission requires pursuant to an administrative rule; and
145.13 	(16) a discussion regarding coordination with Minnesota Tribal governments, as defined 
145.14 	under section 10.65, subdivision 2, by the applicant, including but not limited to the notice 
145.15 	required under subdivision 5 of this section.
145.16 		Subd. 4.Environmental information. (a) An applicant for a site or route permit must 
145.17 	include in the application environmental information for each proposed site or route. The 
145.18 	environmental information submitted must include:
145.19 	(1) a description of each site or route's environmental setting;
145.20 	(2) a description of the effects the facility's construction and operation has on human 
145.21 	settlement, including but not limited to public health and safety, displacement, noise, 
145.22 	aesthetics, socioeconomic impacts, environmental justice impacts, cultural values, recreation, 
145.23 	and public services;
145.24 	(3) a description of the facility's effects on land-based economies, including but not 
145.25 	limited to agriculture, forestry, tourism, and mining;
145.26 	(4) a description of the facility's effects on archaeological and historic resources;
145.27 	(5) a description of the facility's effects on the natural environment, including effects 
145.28 	on air and water quality resources, flora, and fauna;
145.29 	(6) a description of the greenhouse gas emissions associated with constructing and 
145.30 	operating the facility;
145.31 	(7) a description of the facility's climate change resilience;
146.1 	(8) a description of the facility's effects on rare and unique natural resources;
146.2 	(9) a list that identifies human and natural environmental effects that are unavoidable if 
146.3 	the facility is approved at a specific site or route; and
146.4 	(10) a description of (i) measures that might be implemented to mitigate the potential 
146.5 	human and environmental impacts identified in clauses (1) to (7), and (ii) the estimated 
146.6 	costs of the potential mitigative measures.
146.7 	(b) An applicant that applies using the standard process under section 216I.06 may 
146.8 	include the environmental information required under paragraph (a) in the applicant's 
146.9 	environmental assessment.
146.10 		Subd. 5.Preapplication coordination. At least 30 days before filing an application 
146.11 	with the commission, an applicant must provide notice to: (1) each local unit of government 
146.12 	within which a site or route may be proposed; (2) Minnesota Tribal governments, as defined 
146.13 	under section 10.65, subdivision 2; and (3) the state technical resource agencies. The notice 
146.14 	must describe the proposed project and provide the entities receiving the notice an opportunity 
146.15 	for preapplication coordination or feedback.
146.16 		Subd. 6.Preapplication review. (a) Before submitting an application under this chapter, 
146.17 	an applicant must provide a draft application to commission staff for review. A draft 
146.18 	application must not be filed electronically.
146.19 	(b) Commission staff's draft application review must focus on the application's 
146.20 	completeness and clarifications that may assist the commission's review of the application. 
146.21 	Upon completion of the preapplication review under this subdivision, commission staff 
146.22 	must provide the applicant a summary of the completeness review. The applicant may 
146.23 	include the completeness review summary with the applicant's application under subdivision 
146.24 	3.
146.25 		Subd. 7.Complete applications. (a) The commission or the commission's designee 
146.26 	must determine whether an application is complete and advise the applicant of any 
146.27 	deficiencies within ten working days of the date an application is received.
146.28 	(b) An application is not incomplete if: (1) information that is not included in the 
146.29 	application may be obtained from the applicant prior to the initial public meeting; and (2) 
146.30 	the information that is not included in the application is not essential to provide adequate 
146.31 	notice.
146.32 		Subd. 8.Application notice. (a) Upon finding an application is complete, the commission 
146.33 	must:
147.1 	(1) publish notice of the application in a legal newspaper of general circulation in each 
147.2 	county in which the site or route is proposed;
147.3 	(2) provide notice of the application to any regional development commission, Minnesota 
147.4 	Tribal government as defined under section 10.65, subdivision 2, county, incorporated 
147.5 	municipality, and town in which any part of the site or route is proposed;
147.6 	(3) provide notice of the application and description of the proposed project to each 
147.7 	owner whose property is within or adjacent to the proposed site or route for the large energy 
147.8 	infrastructure facility; and
147.9 	(4) provide notice to persons who have requested to be placed on a list maintained by 
147.10 	the commission to receive notice of proposed large energy infrastructure facilities.
147.11 	(b) The commission must identify a standard format and content for application notice. 
147.12 	At a minimum, the notice must include: (1) a description of the proposed project, including 
147.13 	a map displaying the general area of the proposed site or route; (2) a description detailing 
147.14 	how a person may receive more information and future notices regarding the application; 
147.15 	and (3) a location where a copy of the application may be reviewed.
147.16 	(c) The notice must also provide information regarding the date and location of the public 
147.17 	meeting where the public may learn more about the proposed project and the commission's 
147.18 	review process.
147.19 	(d) For the purposes of providing mailed notice under this subdivision, an owner is the 
147.20 	person indicated in the records of the county auditor or, in a county where tax statements 
147.21 	are mailed by the county treasurer, in the records of the county treasurer. If necessary, other 
147.22 	appropriate records may be used for purposes of providing mailed notice. The failure to 
147.23 	provide mailed notice to a property owner or defects in the notice do not invalidate the 
147.24 	proceedings, provided a bona fide attempt to comply with this subdivision has been made.
147.25 		Subd. 9.Public meeting. (a) The commission must hold at least one public meeting in 
147.26 	a location near the proposed large energy infrastructure facility project's location to explain 
147.27 	the permitting process, present major issues, accept public comments on the scope of the 
147.28 	environmental impact statement prepared under section 216I.06 or the addendum prepared 
147.29 	under section 216I.07, and respond to questions raised by the public.
147.30 	(b) At the public meeting and in written comments accepted for at least ten days following 
147.31 	the date of the public meeting, the commission must accept comments on (1) potential 
147.32 	impacts and alternative sites or routes to be considered in the environmental impact statement 
148.1 	prepared under section 216I.06 or the addendum prepared under section 216I.07, and (2) 
148.2 	permit conditions.
148.3 		Subd. 10.Draft permit; additional considerations. Upon close of the public comment 
148.4 	period following the public meeting in subdivision 9, the commission must:
148.5 	(1) prepare a draft site or route permit for the large energy infrastructure facility. The 
148.6 	draft permit must identify the person or persons who are the permittee, describe the proposed 
148.7 	project, and include proposed permit conditions. A draft site permit does not authorize a 
148.8 	person to construct a large energy infrastructure facility. The commission may change the 
148.9 	draft site permit in any respect before final issuance or may deny the permit; and
148.10 	(2) identify the scope of the environmental impact statement prepared under section 
148.11 	216I.06 or the addendum prepared under section 216I.07. A member of the commission is 
148.12 	prohibited from giving direction to commission environmental review staff on the scope of 
148.13 	an environmental assessment, environmental addendum, or environmental impact statement, 
148.14 	except in a publicly noticed meeting or through a publicly available commission notice or 
148.15 	order.
148.16 		Subd. 11.Designating sites and routes; considerations. (a) The commission's site and 
148.17 	route permit determinations must (1) be guided by the state's goals to conserve resources; 
148.18 	(2) minimize environmental impacts, and minimize human settlement and other land use 
148.19 	conflicts; (3) consider impacts to environmental justice areas, as defined in section 
148.20 	216B.1691, subdivision 1, paragraph (e), including cumulative impacts, as defined in section 
148.21 	116.065, to environmental justice areas; and (4) ensure the state's energy security through 
148.22 	efficient, cost-effective energy supply and infrastructure.
148.23 	(b) When determining whether to issue a site permit for a large energy infrastructure 
148.24 	facility, the commission must include but is not limited to:
148.25 	(1) evaluating research and investigations relating to: (i) large energy infrastructure 
148.26 	facilities' effects on land, water, and air resources; and (ii) the effects water and air discharges 
148.27 	and electric and magnetic fields resulting from large energy infrastructure facilities have 
148.28 	on public health and welfare, vegetation, animals, materials, and aesthetic values, including 
148.29 	baseline studies, predictive modeling, and evaluating new or improved methods to minimize 
148.30 	adverse impacts of water and air discharges and other matters pertaining to large energy 
148.31 	infrastructure facilities' effects on the water and air environment;
148.32 	(2) conducting environmental evaluation of sites and routes that are proposed for future 
148.33 	development and expansion, and the relationship of proposed sites and routes for future 
148.34 	development and expansion to Minnesota's land, water, air, and human resources;
149.1 	(3) evaluating the effects of measures designed to minimize adverse environmental 
149.2 	effects;
149.3 	(4) evaluating the potential for beneficial uses of waste energy from proposed large 
149.4 	electric power generating plants;
149.5 	(5) analyzing the direct and indirect economic impact of proposed sites and routes, 
149.6 	including but not limited to productive agricultural land lost or impaired;
149.7 	(6) evaluating adverse direct and indirect environmental effects that are unavoidable 
149.8 	should the proposed site and route be accepted;
149.9 	(7) evaluating alternatives to the applicant's proposed site or route, if applicable;
149.10 	(8) when appropriate, evaluating potential routes that would use or parallel existing 
149.11 	railroad and highway rights-of-way;
149.12 	(9) evaluating governmental survey lines and other natural division lines of agricultural 
149.13 	land to minimize interference with agricultural operations;
149.14 	(10) evaluating the future needs for large energy infrastructure facilities in the same 
149.15 	general area as any proposed site or route;
149.16 	(11) evaluating irreversible and irretrievable commitments of resources if the proposed 
149.17 	site or route is approved;
149.18 	(12) when appropriate, considering the potential impacts raised by other state and federal 
149.19 	agencies and local entities;
149.20 	(13) evaluating the benefits of the proposed facility with respect to (i) the protection and 
149.21 	enhancement of environmental quality, and (ii) the reliability of state and regional energy 
149.22 	supplies;
149.23 	(14) evaluating the proposed facility's impact on socioeconomic factors; and
149.24 	(15) evaluating the proposed facility's employment and economic impacts in the facility 
149.25 	site's vicinity and throughout Minnesota, including the quantity, quality, and compensation 
149.26 	level of construction and permanent jobs. The commission must consider a facility's local 
149.27 	employment and economic impacts, and may reject or place conditions on a site or route 
149.28 	permit based on the local employment and economic impacts.
149.29 	(c) If the commission's rules are substantially similar to existing federal agency 
149.30 	regulations the utility is subject to, the commission must apply the federal regulations.
150.1 	(d) The commission is prohibited from designating a site or route that violates state 
150.2 	agency rules.
150.3 	(e) When applicable, the commission must make a specific finding that the commission 
150.4 	considered locating a route for a high-voltage transmission line on an existing high-voltage 
150.5 	transmission route and using parallel existing highway right-of-way. To the extent an existing 
150.6 	high-voltage transmission route or parallel existing right-of-way is not used for the route, 
150.7 	the commission must state the reasons.
150.8 		Subd. 12.Final decision. (a) The commission must issue a site or route permit that is 
150.9 	demonstrated to be in the public interest pursuant to this chapter. The commission may 
150.10 	require any reasonable conditions in the site or route permit that are necessary to protect 
150.11 	the public interest. The commission maintains continuing jurisdiction over the route and 
150.12 	site permits and any conditions contained in the route and site permits.
150.13 	(b) The commission is prohibited from issuing a site permit in violation of the site 
150.14 	selection standards and criteria established under this section and in rules the commission 
150.15 	adopts. When the commission designates a site, the commission must issue a site permit to 
150.16 	the applicant with any appropriate conditions. The commission must publish a notice of the 
150.17 	commission's decision in the Environmental Quality Board Monitor within 30 days of the 
150.18 	date the commission issues the site permit.
150.19 	(c) The commission is prohibited from issuing a route permit in violation of the route 
150.20 	selection standards and criteria established under this section and in rules the commission 
150.21 	adopts. When the commission designates a route, the commission must issue a permit for 
150.22 	the construction of a high-voltage transmission line that specifies the design, routing, 
150.23 	right-of-way preparation, and facility construction the commission deems necessary, 
150.24 	including any other appropriate conditions. The commission may order the construction of 
150.25 	high-voltage transmission line facilities that are capable of expanding transmission capacity 
150.26 	through multiple circuiting or design modifications. The commission must publish a notice 
150.27 	of the commission's decision in the Environmental Quality Board Monitor within 30 days 
150.28 	of the date the commission issues the route permit.
150.29 	(d) The commission must require as a condition of permit issuance, including the issuance 
150.30 	of a modified permit for a repowering project, as defined in section 216B.243, subdivision 
150.31 	8, paragraph (b), that the recipient of a site or route permit to construct an energy 
150.32 	infrastructure facility, including all of the permit recipient's construction contractors and 
150.33 	subcontractors on the project: (1) must pay no less than the prevailing wage rate, as defined 
151.1 	in section 177.42; and (2) is subject to the requirements and enforcement provisions under 
151.2 	sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.
151.3 	(e) Immediately following the commission's vote granting an applicant a site or route 
151.4 	permit, and prior to issuance of a written commission order embodying the decision, the 
151.5 	applicant may submit to commission staff for review preconstruction compliance filings 
151.6 	specifying details of the applicant's proposed site or route operations.
151.7 		Subd. 13.Commission; technical expertise and other assistance. (a) The commission 
151.8 	must consult with other state agencies and obtain technical expertise and other assistance 
151.9 	for activities and proceedings under this chapter.
151.10 	(b) Notwithstanding the requirements of section 216B.33, employees of the commission 
151.11 	may take any action related to the requirements of this chapter immediately following a 
151.12 	hearing and vote by the commission, prior to issuing a written order, finding, authorization, 
151.13 	or certification.

151.14 	Sec. 6. [216I.06] APPLICATIONS; MAJOR REVIEW.
151.15 		Subdivision 1.Environmental review. (a) The commission must prepare an 
151.16 	environmental impact statement on each proposed large energy infrastructure facility for 
151.17 	which a complete application has been submitted. An environmental impact statement means 
151.18 	a detailed written statement that describes a large energy infrastructure facility and satisfies 
151.19 	the requirements of section 116D.04. For the purposes of environmental review, the 
151.20 	commission is prohibited from considering whether or not the project is needed. No other 
151.21 	state environmental review documents are required. The commission must study and evaluate 
151.22 	any site or route identified by the commission under section 216I.05, subdivision 10, clause 
151.23 	(2).
151.24 	(b) For a cogeneration facility, as defined in section 216H.01, subdivision 1a, that is a 
151.25 	large electric power generating plant and is not proposed by a utility, the commission must 
151.26 	make a finding in the environmental impact statement whether the project is likely to result 
151.27 	in a net reduction of carbon dioxide emissions, considering both the utility providing electric 
151.28 	service to the proposed cogeneration facility and any reduction in carbon dioxide emissions 
151.29 	resulting from increased efficiency from thermal energy production on the part of the 
151.30 	customer that operates or owns the proposed cogeneration facility.
151.31 	(c) The commission must publish a draft environmental impact statement and a scoping 
151.32 	document for the environmental impact statement under section 216I.05, subdivision 10. 
152.1 	The public may provide comments on the draft environmental impact statement at the public 
152.2 	hearing and comment period under subdivision 2.
152.3 	(d) The commission must publish a final environmental impact statement responding to 
152.4 	the timely substantive comments on the draft environmental impact statement consistent 
152.5 	with the scope approved by the commission under section 216I.05, subdivision 10, clause 
152.6 	(2). The final environmental impact statement must discuss at appropriate points in the final 
152.7 	environmental impact statement any reasonable opposing views relating to scoping issues 
152.8 	that were not adequately discussed in the draft environmental impact statement and must 
152.9 	indicate a response to the reasonable opposing views. When making the commission's final 
152.10 	decision, the commission must consider the final environmental impact statement and the 
152.11 	entirety of the record related to human and environmental impacts.
152.12 	(e) The commission must determine the adequacy of the final environmental impact 
152.13 	statement. The commission must not decide the adequacy for at least ten days after the 
152.14 	availability of the final environmental impact statement is announced in the EQB Monitor. 
152.15 	The final environmental impact statement is adequate if the final environmental impact 
152.16 	statement:
152.17 	(1) addresses the issues and alternatives raised in scoping;
152.18 	(2) provides responses to the timely substantive comments received during the draft 
152.19 	environmental impact statement review process; and
152.20 	(3) was prepared in compliance with the procedures in sections 216I.05 and 216I.06.
152.21 	If the commission finds that the environmental impact statement is not adequate, the 
152.22 	commission must direct staff to respond to the deficiencies and resubmit the revised 
152.23 	environmental impact statement to the commission as soon as possible.
152.24 		Subd. 2.Public hearing. (a) No sooner than 15 days after the date the draft environmental 
152.25 	impact statement is published, the commission must hold a public hearing on an application 
152.26 	for a large energy infrastructure facility site or route permit. A hearing held to designate a 
152.27 	site or route must be conducted by an administrative law judge from the Office of 
152.28 	Administrative Hearings.
152.29 	(b) The commission may designate a portion of the hearing to be conducted as a contested 
152.30 	case proceeding under chapter 14.
152.31 	(c) The commission must provide notice of the hearing at least ten days before but no 
152.32 	earlier than 45 days before the date the hearing commences. The commission must provide 
152.33 	notice by (1) publishing in a legal newspaper of general circulation in the county in which 
153.1 	the public hearing is to be held, (2) mailing to chief executives of the regional development 
153.2 	commissions, counties, organized towns, townships, and incorporated municipalities in 
153.3 	which a site or route is proposed, and (3) Tribal governments as defined by section 10.65, 
153.4 	subdivision 2.
153.5 	(d) Any person may appear at the hearings and offer testimony and exhibits without the 
153.6 	necessity of intervening as a formal party to the proceedings. The administrative law judge 
153.7 	may allow any person to ask questions of other witnesses.
153.8 	(e) The administrative law judge must hold a portion of the hearing in the area where 
153.9 	the large energy infrastructure facility's location is proposed.
153.10 	(f) The commission and administrative law judge must accept written comments for at 
153.11 	least 20 days after the public hearing's date.
153.12 		Subd. 3.Administrative law judge report. The administrative law judge must issue a 
153.13 	report and recommendations after completion of post-hearing briefing or the date the public 
153.14 	comment period under subdivision 2 closes, whichever is later.
153.15 		Subd. 4.Timing. The commission must make a final decision on an application within 
153.16 	60 days of the date the administrative law judge's report is received. A final decision on the 
153.17 	site or route permit request must be made within one year of the date the commission 
153.18 	determines an application is complete. The commission may extend the time limit under 
153.19 	this subdivision for up to three months for just cause or upon agreement with the applicant.

153.20 	Sec. 7. [216I.07] APPLICATIONS; STANDARD REVIEW.
153.21 		Subdivision 1.Standard review. An applicant who seeks a site or route permit for which 
153.22 	the applicant's proposal is one of the projects identified in this section may follow the 
153.23 	procedures under this section in lieu of the procedures under section 216I.06. The applicant 
153.24 	must notify the commission at the time the application is submitted which procedure the 
153.25 	applicant has elected to follow.
153.26 		Subd. 2.Applicable projects. The requirements and procedures under this section apply 
153.27 	to projects for which the applicant's proposal is:
153.28 	(1) large electric power generating plants with a capacity of less than 80 megawatts;
153.29 	(2) large electric power generating plants that are fueled by natural gas;
153.30 	(3) high-voltage transmission lines with a capacity between 100 and 300 kilovolts;
153.31 	(4) high-voltage transmission lines with a capacity in excess of 300 kilovolts and less 
153.32 	than 30 miles in length in Minnesota;
154.1 	(5) high-voltage transmission lines with a capacity in excess of 300 kilovolts, if at least 
154.2 	80 percent of the distance of the line in Minnesota, as proposed by the applicant, is located 
154.3 	along existing high-voltage transmission line right-of-way;
154.4 	(6) solar energy systems;
154.5 	(7) energy storage systems; and
154.6 	(8) large wind energy conversion systems.
154.7 		Subd. 3.Environmental review. (a) For the projects identified in subdivision 2 and 
154.8 	following the procedures under this section, the applicant must prepare and submit an 
154.9 	environmental assessment with the application. A draft of the environmental assessment 
154.10 	must also be provided to commission staff as part of the preapplication review under section 
154.11 	216I.05, subdivision 6. The environmental assessment must (1) contain information regarding 
154.12 	the proposed project's human and environmental impacts, and (2) address mitigating measures 
154.13 	for identified impacts. The environmental assessment is the only state environmental review 
154.14 	document that must be prepared for the proposed project.
154.15 	(b) If after the public meeting the commission identifies other sites or routes or potential 
154.16 	impacts for review, the commission must prepare an addendum to the environmental 
154.17 	assessment that evaluates (1) the human and environmental impacts of the alternative site 
154.18 	or route, and (2) any additional mitigating measures related to the identified impacts 
154.19 	consistent with the scoping decision made pursuant to section 216I.06, subdivision 10, 
154.20 	clause (2). The public may provide comments on the environmental assessment and any 
154.21 	addendum to the environmental assessment at the public hearing and comment period under 
154.22 	subdivision 4. When making the commission's final decision, the commission must consider 
154.23 	the environmental assessment, the environmental assessment addendum, if any, and the 
154.24 	entirety of the record related to human and environmental impacts.
154.25 		Subd. 4.Public hearing. (a) After the commission issues any environmental assessment 
154.26 	addendum and a draft permit under section 216I.05, subdivision 10, the commission must 
154.27 	hold a public hearing in the area where the facility's location is proposed.
154.28 	(b) The commission must provide notice of the public hearing in the same manner as 
154.29 	required under section 216I.06, subdivision 2.
154.30 	(c) The commission must conduct the public hearing under procedures established by 
154.31 	the commission and may request that an administrative law judge from the Office of 
154.32 	Administrative Hearings conduct the hearing and prepare a report.
155.1 	(d) The applicant must be present at the hearing to present evidence and to answer 
155.2 	questions. The commission must provide opportunity at the public hearing for any person 
155.3 	to present comments and to ask questions of the applicant and commission staff. The 
155.4 	commission must also provide interested persons an opportunity to submit written comments 
155.5 	into the record after the public hearing.
155.6 		Subd. 5.Timing. (a) The commission must make a final decision on an application 
155.7 	within 60 days of the date the public comment period following completion of the public 
155.8 	hearing closes, or the date the report is filed, whichever is later. A final decision on the 
155.9 	request for a site or route permit under this section must be made within six months of the 
155.10 	date the commission determines the application is complete. The commission may extend 
155.11 	the time limit under this subdivision for up to three months for just cause or upon agreement 
155.12 	with the applicant.
155.13 	(b) Immediately following the commission's vote granting an applicant a site or route 
155.14 	permit, and prior to issuance of a written commission order embodying the decision, the 
155.15 	applicant may submit to commission staff for review preconstruction compliance filings 
155.16 	specifying details of the applicant's proposed site or route operations.

155.17 	Sec. 8. [216I.08] APPLICATIONS; LOCAL REVIEW.
155.18 		Subdivision 1.Local review authorized. (a) Notwithstanding sections 216I.06 and 
155.19 	216I.07, an applicant who seeks a site or route permit for one of the projects identified in 
155.20 	subdivision 2 may apply to the local units of government that have jurisdiction over the site 
155.21 	or route for approval to build the project. If local approval is granted, a site or route permit 
155.22 	is not required from the commission. If the applicant files an application with the commission, 
155.23 	the applicant waives the applicant's right to seek local approval for the project.
155.24 	(b) A local unit of government with jurisdiction over a project identified in this section 
155.25 	to whom an applicant has applied for approval to build the project may request that the 
155.26 	commission assume jurisdiction and make a decision on a site or route permit pursuant to 
155.27 	the applicable provisions under this chapter. A local unit of government must file the request 
155.28 	with the commission within 60 days of the date an applicant files an application for the 
155.29 	project with any one local unit of government. If one of the local units of government with 
155.30 	jurisdiction over the project requests that the commission assume jurisdiction, jurisdiction 
155.31 	over the project transfers to the commission. If the local units of government maintain 
155.32 	jurisdiction over the project, the commission must select the appropriate local unit of 
155.33 	government to be the responsible governmental unit to conduct the project's environmental 
155.34 	review.
156.1 		Subd. 2.Applicable projects. An applicant may seek approval under this section from 
156.2 	a local unit of government to construct:
156.3 	(1) large electric power generating plants and solar energy generating systems with a 
156.4 	capacity of less than 80 megawatts;
156.5 	(2) large electric power generating plants of any size that burn natural gas and are intended 
156.6 	to be a peaking plant;
156.7 	(3) high-voltage transmission lines with a capacity between 100 and 200 kilovolts;
156.8 	(4) substations with a voltage designed for and capable of operation at a nominal voltage 
156.9 	of 100 kilovolts or more;
156.10 	(5) a high-voltage transmission line service extension to a single customer between 200 
156.11 	and 300 kilovolts and less than ten miles in length;
156.12 	(6) a high-voltage transmission line rerouting to serve the demand of a single customer, 
156.13 	if at least 80 percent of the rerouted line is located on property owned or controlled by the 
156.14 	customer or the owner of the transmission line;
156.15 	(7) energy storage systems; and
156.16 	(8) large wind energy conversion systems with a capacity less than 25 megawatts.
156.17 		Subd. 3.Notice of application. An applicant must notify the commission that the 
156.18 	applicant has elected to seek local approval of the proposed project within ten days of the 
156.19 	date the applicant submits an application to a local unit of government to approve an eligible 
156.20 	project.
156.21 		Subd. 4.Environmental review. (a) A local unit of government that maintains 
156.22 	jurisdiction over a qualifying project must prepare or request that the applicant prepare an 
156.23 	environmental assessment on the project. The local unit of government must afford the 
156.24 	public an opportunity to participate in developing the scope of the environmental assessment 
156.25 	before the environmental assessment is prepared.
156.26 	(b) Upon completing the environmental assessment, the local unit of government must 
156.27 	publish notice in the EQB Monitor that indicates (1) the environmental assessment is 
156.28 	available for review, (2) how a copy of the document may be reviewed, (3) that the public 
156.29 	may comment on the document, and (4) the procedure for submitting comments to the local 
156.30 	unit of government. Upon completion of the environmental assessment, the local unit of 
156.31 	government must provide a copy of the environmental assessment to the commission.
157.1 	(c) The local unit of government is prohibited from making a final decision on the permit 
157.2 	until at least ten days after the date the notice appears in the EQB Monitor. If more than 
157.3 	one local unit of government has jurisdiction over a project and the local units of government 
157.4 	cannot agree which local unit of government prepares the environmental assessment, any 
157.5 	local unit of government or the applicant may request that the commission select the 
157.6 	appropriate local unit of government to be the responsible governmental unit to conduct an 
157.7 	environmental review of the project.

157.8 	Sec. 9. [216I.09] PERMIT AMENDMENTS.
157.9 		Subdivision 1.Applicability. This section applies to a request by the owner of the large 
157.10 	energy infrastructure facility to modify any provision or condition of a site or route permit 
157.11 	issued by the commission, including the following:
157.12 	(1) upgrades or rebuilds an existing electric line and associated facilities to a voltage 
157.13 	capable of operating between 100 kilovolts and 300 kilovolts that does not result in significant 
157.14 	changes in the human and environmental impact of the facility; or
157.15 	(2) repowers or refurbishes a large electric power generating plant, a large wind energy 
157.16 	conversion system, a solar energy generating system, or an energy storage system that 
157.17 	increases the efficiency of the system, provided the project does not increase the developed 
157.18 	area within the permitted site or increase the nameplate capacity of the facility's most recent 
157.19 	interconnection agreement. For a large electric power generating plant, an increase in 
157.20 	efficiency is a reduction in the amount of British thermal units required to produce a kilowatt 
157.21 	hour of electricity at the facility.
157.22 		Subd. 2.Application. A person that seeks authorization to amend a large energy 
157.23 	infrastructure facility must apply to the commission. The application must be in writing and 
157.24 	must (1) describe the alteration to be made or the amendment sought, and (2) explain why 
157.25 	the request meets the eligibility criteria under subdivision 1. The application must describe 
157.26 	any changes to the environmental impacts evaluated by the commission as part of the initial 
157.27 	permit approval. If there are significant changes to the environmental impacts evaluated by 
157.28 	the commission as part of the initial permit approval, environmental review must be 
157.29 	conducted pursuant to the applicable requirements of Minnesota Rules, chapter 4410 and 
157.30 	parts 7849.1000 to 7849.2100.
157.31 		Subd. 3.Notice. The commission must mail notice that the application was received to 
157.32 	the persons on the general list and to the persons on the project contact list, if a project list 
157.33 	exists.
158.1 		Subd. 4.Public comment. The commission must provide at least a ten-day period for 
158.2 	interested persons to submit comments on the application or to request that the matter be 
158.3 	brought to the commission for consideration. The applicant may respond to submitted 
158.4 	comments within seven days of the date the comment period closes.
158.5 		Subd. 5.Timing. Within 30 days of the date the applicant responds to submitted 
158.6 	comments under subdivision 4, the commission must decide whether to authorize the permit 
158.7 	amendment, bring the matter to the commission for consideration, or determine that the 
158.8 	application requires a permitting decision under another section in this chapter.
158.9 		Subd. 6.Decision. The commission may authorize an amendment but impose reasonable 
158.10 	conditions on the approval. The commission must notify the applicant in writing of the 
158.11 	commission's decision and send a copy of the decision to any person who requested 
158.12 	notification or filed comments on the application.
158.13 		Subd. 7.Local review. For a large electric power generating plant or high-voltage 
158.14 	transmission line that was not issued a permit by the commission, the owner or operator of 
158.15 	the nonpermitted facility may seek approval of a project listed under subdivision 1 from 
158.16 	the local unit of government if the facility qualifies for standard review under section 216I.07 
158.17 	or local review under section 216I.08.

158.18 	Sec. 10. [216I.10] EXEMPT PROJECTS.
158.19 		Subdivision 1.Permit not required. A permit issued by the commission is not required 
158.20 	to construct:
158.21 	(1) a small wind energy conversion system;
158.22 	(2) a power plant or solar energy generating system with a capacity of less than 50 
158.23 	megawatts;
158.24 	(3) an energy storage system with a capacity of less than ten megawatts;
158.25 	(4) a transmission line that (i) has a capacity of 100 kilovolts or more, and (ii) is less 
158.26 	than 1,500 feet in length; and
158.27 	(5) a transmission line that has a capacity of less than 100 kilovolts.
158.28 		Subd. 2.Other approval. A person that proposes a facility listed in subdivision 1 must 
158.29 	(1) obtain any approval required by local, state, or federal units of government with 
158.30 	jurisdiction over the project, and (2) comply with the environmental review requirements 
158.31 	under chapter 116D and Minnesota Rules, chapter 4410.

159.1 	Sec. 11. [216I.11] PERMITTING REQUIREMENTS; EXCEPTIONS FOR CERTAIN 
159.2 	FACILITIES.
159.3 		Subdivision 1.Permit not required. The following projects do not constitute the 
159.4 	construction of a large energy infrastructure facility and may be constructed without a permit 
159.5 	issued by the commission:
159.6 	(1) maintaining or repairing an existing large energy infrastructure facility within an 
159.7 	existing site or right-of-way;
159.8 	(2) adding equipment at an existing substation that does not (i) require more than a 
159.9 	one-acre expansion of the land needed for the substation, and (ii) involve an increase in the 
159.10 	voltage or changes in the location of existing transmission lines, except that up to the first 
159.11 	five transmission line structures outside the substation may be moved to accommodate the 
159.12 	equipment additions, provided the structures are not moved more than 500 feet from the 
159.13 	existing right-of-way;
159.14 	(3) reconductoring or reconstructing a high-voltage transmission line that does not result 
159.15 	in a change to voltage or a change in right-of-way;
159.16 	(4) relocating a high-voltage transmission line that is required by a local or state agency 
159.17 	as part of road, street, or highway construction;
159.18 	(5) converting the fuel source of a large electric power generating plant to natural gas, 
159.19 	provided the plant is not expanded beyond the developed portion of the plant site; and
159.20 	(6) starting up an existing large electric power generating plant that has been closed for 
159.21 	any period of time at no more than the large electric power generating plant's previous 
159.22 	capacity rating and in a manner that does not involve changing the fuel or expanding the 
159.23 	developed portion of the plant site.
159.24 		Subd. 2.Amendment. If a modification or other change to an existing large energy 
159.25 	infrastructure facility does not qualify for an exception under subdivision 1, the modification 
159.26 	or change may qualify as an amendment under section 216I.09.
159.27 		Subd. 3.Notice. A person that proposes to implement changes to a large energy 
159.28 	infrastructure facility under subdivision 1, clauses (2) to (5), must notify the commission 
159.29 	in writing at least 30 days before commencing construction of the modification or change.

159.30 	Sec. 12. [216I.13] PERMIT TRANSFER.
159.31 		Subdivision 1.Application. A permittee holding a large energy infrastructure facility 
159.32 	site or route permit may request that the commission transfer the permittee's permit. The 
160.1 	permittee must provide the name of the existing permittee, the name and description of the 
160.2 	entity to which the permit is to be transferred, the reasons for the transfer, a description of 
160.3 	the facilities affected, and the proposed effective date of the transfer. The person to whom 
160.4 	the permit is to be transferred must provide the commission with information the commission 
160.5 	requires to determine whether the new permittee is able to comply with the permit's 
160.6 	conditions. The commission must mail notice of receipt of the application to the persons 
160.7 	on the general list at least seven days in advance of the date the commission considers the 
160.8 	matter. The commission must provide the same notice to persons on the project contact list 
160.9 	if a project contact list exists.
160.10 		Subd. 2.Approval of transfer. The commission must approve the transfer if the 
160.11 	commission determines that the new permittee complies with the conditions of the permit. 
160.12 	The commission, in approving the transfer of a permit, may impose reasonable additional 
160.13 	conditions in the permit as part of the approval. The commission may decide to hold a public 
160.14 	meeting to provide the public with an opportunity to comment on the request for the transfer 
160.15 	prior to making a decision.

160.16 	Sec. 13. [216I.14] PERMIT REVOCATION OR SUSPENSION.
160.17 		Subdivision 1.Initiation of action to revoke or suspend. The commission may initiate 
160.18 	action to consider revoking or suspending a permit on the commission's own motion or 
160.19 	upon the request of any person who has made a prima facie showing by affidavit and 
160.20 	documentation that a violation of this act or the permit has occurred.
160.21 		Subd. 2.Hearing. If the commission initiates action to consider revoking or suspending 
160.22 	a permit, the commission must provide the permittee with an opportunity for a contested 
160.23 	case hearing conducted by an administrative law judge from the Office of Administrative 
160.24 	Hearings.
160.25 		Subd. 3.Finding of violation. If the commission finds that a violation of this act or the 
160.26 	permit has occurred, the commission may revoke or suspend the permit, require the permittee 
160.27 	to undertake corrective or ameliorative measures as a condition to avoid revocation or 
160.28 	suspension, or require corrective measures and suspend the permit. When determining the 
160.29 	appropriate sanction, the commission must consider whether:
160.30 	(1) the violation results in any significant additional adverse environmental effects;
160.31 	(2) the results of the violation can be corrected or ameliorated; and
160.32 	(3) suspending or revoking a permit impairs the permittee's electrical power system 
160.33 	reliability.

161.1 	Sec. 14. REVISOR INSTRUCTION.
 161.2 	The revisor shall renumber each section of Minnesota Statutes in Column A with the 
161.3 	number in Column B.

161.4 | | Column A | Column B
161.5 | | 216E.06 | 216I.12
161.6 | | 216E.07 | 216I.15
161.7 | | 216E.08, subdivision 2 | 216I.16, subdivision 1
161.8 | | 216E.08, subdivision 3 | 216I.16, subdivision 2
161.9 | | 216E.09 | 216I.17
161.10 | | 216E.10 | 216I.18
161.11 | | 216F.084 | 216I.19
161.12 | | 216E.11 | 216I.20
161.13 | | 216E.12 | 216I.21
161.14 | | 216E.03, subdivision 8 | 216I.22
161.15 | | 216E.13 | 216I.23
161.16 | | 216E.14 | 216I.24
161.17 | | 216E.15 | 216I.25
161.18 | | 216E.16 | 216I.26
161.19 | | 216E.17 | 216I.27
161.20 | | 216E.18, subdivision 2a | 216I.28, subdivision 1
161.21 | | 216E.18, subdivision 3 | 216I.28, subdivision 2

161.22 	Sec. 15. REPEALER.
 161.23 		Subdivision 1.Minnesota Statutes, chapter 216E, repeals. (a) Minnesota Statutes 
161.24 	2022, sections 216E.001; 216E.01, subdivisions 1, 2, 3, 4, 5, 7, 8, 9, and 10; 216E.02; 
161.25 	216E.021; 216E.03, subdivisions 2, 3a, 3b, 4, and 9; 216E.04, subdivisions 1, 3, 4, 5, 6, 7, 
161.26 	8, and 9; 216E.05, subdivisions 1 and 3; 216E.08, subdivisions 1 and 4; and 216E.18, 
161.27 	subdivisions 1 and 2, are repealed.
161.28 	(b) Minnesota Statutes 2023 Supplement, sections 216E.01, subdivisions 3a, 6, and 9a; 
161.29 	216E.03, subdivisions 1, 3, 5, 6, 7, 10, and 11; 216E.04, subdivision 2; and 216E.05, 
161.30 	subdivision 2, are repealed.
161.31 		Subd. 2.Minnesota Statutes, chapter 216F, repeals. (a) Minnesota Statutes 2022, 
161.32 	sections 216F.01; 216F.011; 216F.012; 216F.015; 216F.02; 216F.03; 216F.05; 216F.06; 
161.33 	216F.07; 216F.08; and 216F.081, are repealed.
161.34 	(b) Minnesota Statutes 2023 Supplement, section 216F.04, is repealed.
162.1 		Subd. 3.Minnesota Rules, chapter 7854, repeals. Minnesota Rules, parts 7854.0100; 
162.2 	7854.0200; 7854.0300; 7854.0400; 7854.0500; 7854.0600; 7854.0700; 7854.0800; 
162.3 	7854.0900; 7854.1000; 7854.1100; 7854.1200; 7854.1300; 7854.1400; and 7854.1500, are 
162.4 	repealed.
162.5 		Subd. 4.Minnesota Rules, chapter 7850, repeals. Minnesota Rules, parts 7850.1000; 
162.6 	7850.1100; 7850.1200; 7850.1300; 7850.1400; 7850.1500; 7850.1600; 7850.1700; 
162.7 	7850.1800; 7850.1900; 7850.2000; 7850.2100; 7850.2200; 7850.2300; 7850.2400; 
162.8 	7850.2500; 7850.2600; 7850.2700; 7850.2800; 7850.2900; 7850.3000; 7850.3100; 
162.9 	7850.3200; 7850.3300; 7850.3400; 7850.3500; 7850.3600; 7850.3700; 7850.3800; 
162.10 	7850.3900; 7850.4100; 7850.4200; 7850.4500; 7850.4600; 7850.4700; 7850.4800; 
162.11 	7850.4900; 7850.5000; 7850.5100; 7850.5200; 7850.5300; 7850.5400; 7850.5500; and 
162.12 	7850.5600, are repealed.

162.13 	Sec. 16. EFFECTIVE DATE.
 162.14 	This article is effective July 1, 2025.

162.15 	ARTICLE 8
162.16 	CERTIFICATES OF NEED

162.17 	Section 1. Minnesota Statutes 2022, section 216B.2421, subdivision 2, is amended to read:
162.18 		Subd. 2.Large energy facility. "Large energy facility" means:
162.19 	(1) any electric power generating plant or combination of plants at a single site with a 
162.20 	combined capacity of 50,000 kilowatts or more and transmission lines directly associated 
162.21 	with the plant that are necessary to interconnect the plant to the transmission system;
162.22 	(2) any high-voltage transmission line with a capacity of ~~200~~ 300 kilovolts or more and 
162.23 	greater than ~~1,500 feet~~ one mile in length in Minnesota;
162.24 	(3) any high-voltage transmission line with a capacity of 100 kilovolts or more with 
162.25 	more than ten miles of its length in Minnesota ~~or that crosses a state line~~;
162.26 	(4) any pipeline greater than six inches in diameter and having more than 50 miles of 
162.27 	its length in Minnesota used for the transportation of coal, crude petroleum or petroleum 
162.28 	fuels or oil, or their derivatives;
162.29 	(5) any pipeline for transporting natural or synthetic gas at pressures in excess of 200 
162.30 	pounds per square inch with more than 50 miles of its length in Minnesota;
163.1 	(6) any facility designed for or capable of storing on a single site more than 100,000 
163.2 	gallons of liquefied natural gas or synthetic gas;
163.3 	(7) any underground gas storage facility requiring a permit pursuant to section 103I.681;
163.4 	(8) any nuclear fuel processing or nuclear waste storage or disposal facility; and
163.5 	(9) any facility intended to convert any material into any other combustible fuel and 
163.6 	having the capacity to process in excess of 75 tons of the material per hour.

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

163.8 	Sec. 2. Minnesota Statutes 2022, section 216B.243, subdivision 3, is amended to read:
163.9 		Subd. 3.Showing required for construction. No proposed large energy facility shall 
163.10 	be certified for construction unless the applicant can show that demand for electricity cannot 
163.11 	be met more cost effectively through energy conservation and load-management measures 
163.12 	and unless the applicant has otherwise justified its need. In assessing need, the commission 
163.13 	shall evaluate:
163.14 	(1) the accuracy of the long-range energy demand forecasts on which the necessity for 
163.15 	the facility is based;
163.16 	(2) the effect of existing or possible energy conservation programs under sections 216C.05
163.17 	to 216C.30 and this section or other federal or state legislation on long-term energy demand;
163.18 	(3) the relationship of the proposed facility to overall state energy needs, as described 
163.19 	in the most recent state energy policy and conservation report prepared under section 
163.20 	216C.18, or, in the case of a high-voltage transmission line, the relationship of the proposed 
163.21 	line to regional energy needs, as presented in the transmission plan submitted under section 
163.22 	216B.2425;
163.23 	(4) promotional activities that may have given rise to the demand for this facility;
163.24 	(5) benefits of this facility, including its uses to protect or enhance environmental quality, 
163.25 	and to increase reliability of energy supply in Minnesota and the region;
163.26 	(6) possible alternatives for satisfying the energy demand or transmission needs including 
163.27 	but not limited to potential for increased efficiency and upgrading of existing energy 
163.28 	generation and transmission facilities, load-management programs, and distributed generation, 
163.29 	except that the commission must not require evaluation of alternative end points for a 
163.30 	high-voltage transmission line qualifying as a large energy facility unless the alternative 
163.31 	end points are (i) consistent with end points identified in a federally registered planning 
163.32 	authority transmission plan, or (ii) otherwise agreed to for further evaluation by the applicant;
164.1 	(7) the policies, rules, and regulations of other state and federal agencies and local 
164.2 	governments;
164.3 	(8) any feasible combination of energy conservation improvements, required under 
164.4 	section 216B.241, that can (i) replace part or all of the energy to be provided by the proposed 
164.5 	facility, and (ii) compete with it economically;
164.6 	(9) with respect to a high-voltage transmission line, the benefits of enhanced regional 
164.7 	reliability, access, or deliverability to the extent these factors improve the robustness of the 
164.8 	transmission system or lower costs for electric consumers in Minnesota;
164.9 	(10) whether the applicant or applicants are in compliance with applicable provisions 
164.10 	of sections 216B.1691 and 216B.2425, subdivision 7, and have filed or will file by a date 
164.11 	certain an application for certificate of need under this section or for certification as a priority 
164.12 	electric transmission project under section 216B.2425 for any transmission facilities or 
164.13 	upgrades identified under section 216B.2425, subdivision 7;
164.14 	(11) whether the applicant has made the demonstrations required under subdivision 3a; 
164.15 	and
164.16 	(12) if the applicant is proposing a nonrenewable generating plant, the applicant's 
164.17 	assessment of the risk of environmental costs and regulation on that proposed facility over 
164.18 	the expected useful life of the plant, including a proposed means of allocating costs associated 
164.19 	with that risk.

164.20 	EFFECTIVE DATE. This section is effective the day following final enactment and 
164.21 	applies to all pending applications.

164.22 	Sec. 3. Minnesota Statutes 2022, section 216B.243, subdivision 3a, is amended to read:
164.23 		Subd. 3a.Use of renewable resource. The commission may not issue a certificate of 
164.24 	need under this section for a large energy facility that generates electric power ~~by means~~ 
164.25 	~~of a nonrenewable energy source, or that transmits electric power generated~~ by means of a 
164.26 	nonrenewable energy source, unless the applicant for the certificate has demonstrated to 
164.27 	the commission's satisfaction that it has explored the possibility of generating power by 
164.28 	means of renewable energy sources and has demonstrated that the alternative selected is 
164.29 	less expensive ~~(~~, including environmental costs~~)~~, than power generated by a renewable 
164.30 	energy source. For purposes of this subdivision, "renewable energy source" includes hydro, 
164.31 	wind, solar, and geothermal energy and the use of trees or other vegetation as fuel.

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

165.1 	Sec. 4. Minnesota Statutes 2022, section 216B.243, subdivision 4, is amended to read:
165.2 		Subd. 4.Application for certificate; hearing. Any person proposing to construct a 
165.3 	large energy facility shall apply for a certificate of need and for a site or route permit under 
165.4 	chapter ~~216E~~ 216I prior to construction of the facility. The application shall be on forms 
165.5 	and in a manner established by the commission. In reviewing each application the commission 
165.6 	shall hold at least one public hearing pursuant to chapter 14. The public hearing shall be 
165.7 	held at a location and hour reasonably calculated to be convenient for the public. An objective 
165.8 	of the public hearing shall be to obtain public opinion on the necessity of granting a certificate 
165.9 	of need and, if a joint hearing is held, a site or route permit. The commission shall designate 
165.10 	a commission employee whose duty shall be to facilitate citizen participation in the hearing 
165.11 	process. Unless the commission determines that a joint hearing on siting and need under 
165.12 	this subdivision and ~~section 216E.03, subdivision 6~~ chapter 216I~~,~~ is not feasible or more 
165.13 	efficient, or otherwise not in the public interest, a joint hearing under ~~those subdivisions~~ 
165.14 	~~shall~~ this subdivision and chapter 216I must be held.

165.15 	EFFECTIVE DATE. This section is effective July 1, 2025.

165.16 	Sec. 5. Minnesota Statutes 2023 Supplement, section 216B.243, subdivision 8, is amended 
165.17 	to read:
165.18 		Subd. 8.Exemptions. (a) This section does not apply to:
165.19 	(1) cogeneration or small power production facilities as defined in the Federal Power 
165.20 	Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and 
165.21 	paragraph (18), subparagraph (A), and having a combined capacity at a single site of less 
165.22 	than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or 
165.23 	any case where the commission has determined after being advised by the attorney general 
165.24 	that its application has been preempted by federal law;
165.25 	(2) a high-voltage transmission line proposed primarily to distribute electricity to serve 
165.26 	the demand of a single customer at a single location, unless the applicant opts to request 
165.27 	that the commission determine need under this section or section 216B.2425;
165.28 	(3) the upgrade to a higher voltage of an existing transmission line that serves the demand 
165.29 	of a single customer that primarily uses existing rights-of-way, unless the applicant opts to 
165.30 	request that the commission determine need under this section or section 216B.2425;
165.31 	(4) a high-voltage transmission line of one mile or less required to connect a new or 
165.32 	upgraded substation to an existing, new, or upgraded high-voltage transmission line;
166.1 	(5) conversion of the fuel source of an existing electric generating plant to using natural 
166.2 	gas;
166.3 	(6) the modification of an existing electric generating plant to increase efficiency, as 
166.4 	long as the capacity of the plant is not increased more than ten percent or more than 100 
166.5 	megawatts, whichever is greater;
166.6 	(7) a large wind energy conversion system, as defined in section ~~216F.01, subdivision~~ 
166.7 	~~2~~ 216I.02, subdivision 12, or a solar energy generating system, as defined in section ~~216E.01,~~ 
166.8 	~~subdivision 9a~~ 216I.02, subdivision 18, for which a site permit application is submitted by 
166.9 	an independent power producer under chapter ~~216E or 216F~~ 216I; ~~or~~
166.10 	(8) a large wind energy conversion system, as defined in section ~~216F.01, subdivision~~ 
166.11 	~~2~~ 216I.02, subdivision 12, or a solar energy generating system ~~that is a large energy facility~~, 
166.12 	as defined in section ~~216B.2421, subdivision 2~~ 216I.02, subdivision 18, engaging in a 
166.13 	repowering project that:
166.14 	(i) will not result in the system exceeding the nameplate capacity under its most recent 
166.15 	interconnection agreement; or
166.16 	(ii) will result in the system exceeding the nameplate capacity under its most recent 
166.17 	interconnection agreement, provided that the Midcontinent Independent System Operator 
166.18 	has provided a signed generator interconnection agreement that reflects the expected net 
166.19 	power increase~~.~~;
166.20 	(9) energy storage systems, as defined in section 216I.02, subdivision 7;
166.21 	(10) transmission lines that directly interconnect large wind energy conversion systems, 
166.22 	solar energy generating systems, or energy storage systems to the transmission system; or
166.23 	(11) relocation of an existing high voltage transmission line to new right-of-way, provided 
166.24 	that any new structures that are installed are not designed for and capable of operation at 
166.25 	higher voltage.
166.26 	(b) For the purpose of this subdivision, "repowering project" means:
166.27 	(1) modifying a large wind energy conversion system or a solar energy generating system 
166.28 	that is a large energy facility to increase its efficiency without increasing its nameplate 
166.29 	capacity;
166.30 	(2) replacing turbines in a large wind energy conversion system without increasing the 
166.31 	nameplate capacity of the system; or
166.32 	(3) increasing the nameplate capacity of a large wind energy conversion system.

167.1 	EFFECTIVE DATE. (a) The amendment to paragraph (a), clause (7), is effective July 
167.2 	1, 2025.
167.3 	(b) The amendments to paragraph (a), clauses (9), (10), and (11), are effective the day 
167.4 	following final enactment, except that the reference to Minnesota Statutes, section 216I.02, 
167.5 	subdivision 7, in paragraph (a), clause (9), is effective July 1, 2025. Prior to July 1, 2025, 
167.6 	the definition of "energy storage system" in Minnesota Statutes, section 216E.01, subdivision 
167.7 	3a, applies.

167.8 	Sec. 6. Minnesota Statutes 2022, section 216B.243, subdivision 9, is amended to read:
167.9 		Subd. 9.Renewable energy standard and carbon-free energy standard facilities.  This 
167.10 	section does not apply to a wind energy conversion system or a solar electric generation 
167.11 	facility that is intended to be used to meet the obligations of section 216B.1691, subdivision 
167.12 	2a or 2g; provided that, after notice and comment, the commission determines that the 
167.13 	facility is a reasonable and prudent approach to meeting a utility's obligations under that 
167.14 	section. When making this determination, the commission must consider:
167.15 	(1) the size of the facility relative to a utility's total need for renewable resources;
167.16 	(2) alternative approaches for supplying the renewable energy to be supplied by the 
167.17 	proposed facility;
167.18 	(3) the facility's ability to promote economic development, as required under section 
167.19 	216B.1691, subdivision 9;
167.20 	(4) the facility's ability to maintain electric system reliability;
167.21 	(5) impacts on ratepayers; and
167.22 	(6) other criteria as the commission may determine are relevant.

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

167.24 	Sec. 7. Minnesota Statutes 2022, section 216B.246, subdivision 3, is amended to read:
167.25 		Subd. 3.Commission procedure. (a) If an electric transmission line has been approved 
167.26 	for construction in a federally registered planning authority transmission plan, the incumbent 
167.27 	electric transmission owner, or owners if there is more than one owner, shall give notice to 
167.28 	the commission, in writing, within ~~90~~ 60 days of approval, regarding its intent to construct, 
167.29 	own, and maintain the electric transmission line. If an incumbent electric transmission owner 
167.30 	gives notice of intent to build the electric transmission line then, unless exempt from the 
167.31 	requirements of section 216B.243, within ~~18~~ 12 months from the date of the notice described 
168.1 	in this paragraph ~~or such longer time approved by the commission~~, the incumbent electric 
168.2 	transmission owner shall file an application for a certificate of need under section 216B.243
168.3 	or certification under section 216B.2425.
168.4 	(b) If the incumbent electric transmission owner indicates that it does not intend to build 
168.5 	the transmission line, such notice shall fully explain the basis for that decision. If the 
168.6 	incumbent electric transmission owner, or owners, gives notice of intent not to build the 
168.7 	electric transmission line, then the commission may determine whether the incumbent 
168.8 	electric transmission owner or other entity will build the electric transmission line, taking 
168.9 	into consideration issues such as cost, efficiency, reliability, and other factors identified in 
168.10 	this chapter.

168.11 	EFFECTIVE DATE. This section is effective the day following final enactment and 
168.12 	applies to any electric transmission line that has been approved for construction in a federally 
168.13 	registered planning authority transmission plan on or after that date.

168.14 	ARTICLE 9
168.15 	CONFORMING CHANGES

168.16 	Section 1. Minnesota Statutes 2023 Supplement, section 10.65, subdivision 2, is amended 
168.17 	to read:
168.18 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
168.19 	given:
168.20 	(1) "agency" means the Department of Administration; Department of Agriculture; 
168.21 	Department of Children, Youth, and Families; Department of Commerce; Department of 
168.22 	Corrections; Department of Education; Department of Employment and Economic 
168.23 	Development; Department of Health; Office of Higher Education; Housing Finance Agency; 
168.24 	Department of Human Rights; Department of Human Services; Department of Information 
168.25 	Technology Services; Department of Iron Range Resources and Rehabilitation; Department 
168.26 	of Labor and Industry; Minnesota Management and Budget; Bureau of Mediation Services; 
168.27 	Department of Military Affairs; Metropolitan Council; Department of Natural Resources; 
168.28 	Pollution Control Agency; Department of Public Safety; Department of Revenue; Department 
168.29 	of Transportation; Department of Veterans Affairs; Gambling Control Board; Racing 
168.30 	Commission; the Minnesota Lottery; the Animal Health Board; the Public Utilities 
168.31 	Commission; and the Board of Water and Soil Resources;
168.32 	(2) "consultation" means the direct and interactive involvement of the Minnesota Tribal 
168.33 	governments in the development of policy on matters that have Tribal implications. 
169.1 	Consultation is the proactive, affirmative process of identifying and seeking input from 
169.2 	appropriate Tribal governments and considering their interest as a necessary and integral 
169.3 	part of the decision-making process. This definition adds to statutorily mandated notification 
169.4 	procedures. During a consultation, the burden is on the agency to show that it has made a 
169.5 	good faith effort to elicit feedback. Consultation is a formal engagement between agency 
169.6 	officials and the governing body or bodies of an individual Minnesota Tribal government 
169.7 	that the agency or an individual Tribal government may initiate. Formal meetings or 
169.8 	communication between top agency officials and the governing body of a Minnesota Tribal 
169.9 	government is a necessary element of consultation;
169.10 	(3) "matters that have Tribal implications" means rules, legislative proposals, policy 
169.11 	statements, or other actions that have substantial direct effects on one or more Minnesota 
169.12 	Tribal governments, or on the distribution of power and responsibilities between the state 
169.13 	and Minnesota Tribal governments;
169.14 	(4) "Minnesota Tribal governments" means the federally recognized Indian Tribes located 
169.15 	in Minnesota including: Bois Forte Band; Fond Du Lac Band; Grand Portage Band; Leech 
169.16 	Lake Band; Mille Lacs Band; White Earth Band; Red Lake Nation; Lower Sioux Indian 
169.17 	Community; Prairie Island Indian Community; Shakopee Mdewakanton Sioux Community; 
169.18 	and Upper Sioux Community; and
169.19 	(5) "timely and meaningful" means done or occurring at a favorable or useful time that 
169.20 	allows the result of consultation to be included in the agency's decision-making process for 
169.21 	a matter that has Tribal implications.

169.22 	EFFECTIVE DATE. This section is effective August 1, 2024.

169.23 	Sec. 2. Minnesota Statutes 2022, section 116C.83, subdivision 6, is amended to read:
169.24 		Subd. 6.Environmental review and protection. (a) The siting, construction, and 
169.25 	operation of an independent spent-fuel storage installation located on the site of a Minnesota 
169.26 	generation facility for dry cask storage of spent nuclear fuel generated solely by that facility 
169.27 	is subject to all environmental review and protection provisions of this chapter and chapters 
169.28 	115, 115B, 116, 116B, 116D, and 216B, and rules associated with those chapters, except 
169.29 	those statutes and rules that apply specifically to a radioactive waste management facility 
169.30 	as defined in section 116C.71, subdivision 7.
169.31 	(b) An environmental impact statement is required under chapter 116D for a proposal 
169.32 	to construct and operate a new or expanded independent spent-fuel storage installation. The 
169.33 	~~commissioner of the Department of Commerce shall be~~ Public Utilities Commission is the 
170.1 	responsible governmental unit for the environmental impact statement. Prior to finding the 
170.2 	statement adequate, the ~~commissioner~~ commission must find that the applicant has 
170.3 	demonstrated that the facility is designed to provide a reasonable expectation that the 
170.4 	operation of the facility will not result in groundwater contamination in excess of the 
170.5 	standards established in section 116C.76, subdivision 1, clauses (1) to (3).

170.6 	Sec. 3. Minnesota Statutes 2022, section 216A.037, subdivision 1, is amended to read:
170.7 		Subdivision 1.Ex parte communications prohibitions; rules. (a) The commission 
170.8 	shall adopt rules under chapter 14 prescribing permissible and impermissible ex parte 
170.9 	communications. The ex parte rules may prohibit only ex parte communications, directly 
170.10 	or indirectly, between a commissioner and a participant or party under the commission's 
170.11 	rules of practice and procedure relating to:
170.12 	(1) a material issue during a pending contested case proceeding;
170.13 	(2) a material issue in a rulemaking proceeding after the beginning of commission 
170.14 	deliberations;
170.15 	(3) a material issue in a disputed formal petition; and
170.16 	(4) any other communication impermissible by law.
170.17 	(b) The commission may apply ex parte prohibitions, prospectively and after notice to 
170.18 	affected parties, to other commission proceedings as the commission deems necessary.
170.19 	(c) A contested case is pending from the time the commission refers the matter to the 
170.20 	Office of Administrative Hearings until the commission has issued its final order, and the 
170.21 	time to petition for reconsideration has expired or the commission has issued an order finally 
170.22 	disposing an application for reconsideration, whichever is later.
170.23 	(d) Commission staff and consultants that perform environmental review and other 
170.24 	activities identified in chapters 216G and 216I are not parties, participants, or decision 
170.25 	making personnel, as defined under Minnesota Rules, part 7845.7000.

170.26 	Sec. 4. Minnesota Statutes 2022, section 216A.07, subdivision 3, is amended to read:
170.27 		Subd. 3.Intervention in commission proceeding. (a) The commissioner may intervene 
170.28 	as a party in all proceedings before the commission. When intervening in gas or electric 
170.29 	hearings, the commissioner shall prepare and defend testimony designed to:
170.30 	(1) encourage energy conservation improvements as defined in section 216B.241~~.~~;
171.1 	(2) ensure that the greenhouse gas reduction goals are attained on a schedule that keeps 
171.2 	pace with the reduction timetable in section 216H.02, subdivision 1;
171.3 	(3) ensure that the renewable energy standards, solar energy goal, and carbon-free 
171.4 	standards are achieved according to the schedules under section 216B.1691, subdivisions 
171.5 	2a, 2f, and 2g, respectively; and
171.6 	(4) ensure compliance with state environmental policy, as stated in section 116D.02.
171.7 	(b) The attorney general shall act as counsel in the proceedings.

171.8 	Sec. 5. Minnesota Statutes 2023 Supplement, section 216E.06, is amended to read:
171.9 	216E.06 EMERGENCY ~~PERMIT~~ PERMITS.
171.10 		Subdivision 1.Utility emergency action. ~~(a)~~ Any utility whose ~~electric power~~ system 
171.11 	requires the immediate construction of a large ~~electric power~~ energy infrastructure facility 
171.12 	due to a major unforeseen event may apply to the commission for an emergency permit. 
171.13 	The application ~~shall~~ must provide notice in writing of the major unforeseen event and the 
171.14 	need for immediate construction. The permit must be issued in a timely manner, no later 
171.15 	than 195 days after the commission's acceptance of the application and upon a finding by 
171.16 	the commission that (1) a demonstrable emergency exists, (2) the emergency requires 
171.17 	immediate construction, and (3) adherence to the procedures and time schedules specified 
171.18 	~~in section 216E.03 would jeopardize~~ under this chapter jeopardizes the utility's electric 
171.19 	power system or ~~would jeopardize~~ jeopardizes the utility's ability to meet the electric needs 
171.20 	of ~~its~~ the utility's customers in an orderly and timely manner.
171.21 		Subd. 2.Utility emergency procedures. ~~(b)~~ A public hearing to determine if an 
171.22 	emergency exists must be held within 90 days of the application. The commission, after 
171.23 	notice and hearing, ~~shall~~ must adopt rules specifying the criteria for emergency certification.

171.24 	Sec. 6. Minnesota Statutes 2023 Supplement, section 216E.07, is amended to read:
171.25 	216E.07 ANNUAL HEARING.
171.26 	The commission ~~shall~~ must hold an annual public hearing at a time and place prescribed 
171.27 	by rule in order to afford interested persons an opportunity to be heard regarding any matters 
171.28 	relating to the siting and routing of large ~~electric power~~ energy infrastructure facilities. At 
171.29 	the meeting, the commission ~~shall~~ must advise the public of the permits issued by the 
171.30 	commission in the past year. The commission ~~shall~~ must provide at least ten days but no 
171.31 	more than 45 days' notice of the annual meeting by mailing or serving electronically, as 
172.1 	provided in section 216.17, a notice to those persons who have requested notice and by 
172.2 	publication in the EQB Monitor and the commission's weekly calendar.

172.3 	Sec. 7. Minnesota Statutes 2022, section 216E.08, subdivision 2, is amended to read:
172.4 		Subd. 2.~~Other~~ Public participation. The commission ~~shall~~ must adopt broad spectrum 
172.5 	citizen participation as a principal of operation. The form of public participation ~~shall~~ must
172.6 	not be limited to public meetings and hearings ~~and advisory task forces~~ and ~~shall~~ must be 
172.7 	consistent with the commission's rules and guidelines ~~as provided for in~~ under section 
172.8 	~~216E.16~~ 216I.24.

172.9 	Sec. 8. Minnesota Statutes 2023 Supplement, section 216E.10, subdivision 1, is amended 
172.10 	to read:
172.11 		Subdivision 1.Site or route permit prevails over local provisions. To assure the 
172.12 	paramount and controlling effect of the provisions herein over other state agencies, regional, 
172.13 	county, and local governments, and special purpose government districts, the issuance of a 
172.14 	site permit or route permit and subsequent purchase and use of ~~such~~ the site or route locations 
172.15 	for large ~~electric power~~ energy infrastructure facility purposes ~~shall be~~ is the sole site or 
172.16 	route approval required to be obtained by the ~~utility~~ permittee. ~~Such~~ The permit ~~shall~~ 
172.17 	~~supersede~~ supersedes and ~~preempt~~ preempts all zoning, building, or land use rules, 
172.18 	regulations, or ordinances promulgated by regional, county, local and special purpose 
172.19 	government.

172.20 	Sec. 9. Minnesota Statutes 2023 Supplement, section 216E.10, subdivision 2, is amended 
172.21 	to read:
172.22 		Subd. 2.Other state permits. Notwithstanding anything herein to the contrary, ~~utilities~~ 
172.23 	~~shall~~ a permittee must obtain state permits that may be required to construct and operate 
172.24 	large ~~electric power~~ energy infrastructure facilities. A state agency in processing a ~~utility's~~
172.25 	permittee's facility permit application ~~shall be~~ is bound to the decisions of the commission~~,~~
172.26 	with respect to (1) the site or route designation, and ~~with respect to~~ (2) other matters for 
172.27 	which authority has been granted to the commission by this chapter.

172.28 	Sec. 10. Minnesota Statutes 2023 Supplement, section 216E.10, subdivision 3, is amended 
172.29 	to read:
172.30 		Subd. 3.State agency participation. (a) A state ~~agencies~~ agency authorized to issue 
172.31 	permits required ~~for construction or operation of~~ to construct or operate a large ~~electric~~ 
173.1 	~~power facilities shall~~ energy infrastructure facility must participate during routing and siting 
173.2 	at public hearings and all other activities of the commission on specific site or route 
173.3 	designations and design considerations of the commission, and ~~shall~~ must clearly state 
173.4 	whether the site or route being considered for designation or permit and other design matters 
173.5 	under consideration for approval ~~will be in compliance~~ complies with state agency standards, 
173.6 	rules, or policies.
173.7 	(b) An applicant for a permit under this section or under chapter 216G ~~shall~~ must notify 
173.8 	the commissioner of agriculture if the proposed project ~~will impact~~ impacts cultivated 
173.9 	agricultural land~~, as that term is defined in section 216G.01, subdivision 4~~. The commissioner 
173.10 	may participate and advise the commission as to whether to grant a permit for the project 
173.11 	and the best options for mitigating adverse impacts to agricultural lands if the permit is 
173.12 	granted. The Department of Agriculture ~~shall be~~ is the lead agency on the development of 
173.13 	any agricultural mitigation plan required for the project.
173.14 	(c) The Minnesota State Historic Preservation Office must participate in the commission's 
173.15 	siting and routing activities described in this section. The commission's consideration and 
173.16 	resolution of Minnesota State Historic Preservation Office's comments satisfies the 
173.17 	requirements of section 138.665, when applicable.

173.18 	Sec. 11. Minnesota Statutes 2022, section 216E.11, is amended to read:
173.19 	216E.11 IMPROVEMENT OF SITES AND ROUTES.
173.20 	~~Utilities that have acquired~~ A permittee that acquires a site or route in accordance with 
173.21 	this chapter may proceed to construct or improve the site or route for the intended purposes 
173.22 	at any time, subject to section ~~216E.10, subdivision 2~~ 216I.16, subdivision 2, provided that 
173.23 	if the construction and improvement has not commenced within four years after a permit 
173.24 	for the site or route has been issued, ~~then~~ the ~~utility~~ permittee must certify to the commission 
173.25 	that the site or route continues to meet the conditions upon which the site or route permit 
173.26 	was issued.

173.27 	Sec. 12. Minnesota Statutes 2022, section 216E.13, is amended to read:
173.28 	216E.13 FAILURE TO ACT.
173.29 	If the commission fails to act within the times specified ~~in section 216E.03~~ under this 
173.30 	chapter, the applicant or any affected person may seek an order of the district court requiring 
173.31 	the commission to designate or refuse to designate a site or route.

174.1 	Sec. 13. Minnesota Statutes 2022, section 216E.14, is amended to read:
174.2 	216E.14 REVOCATION OR SUSPENSION.
174.3 	A site or route permit may be revoked or suspended by the commission after adequate 
174.4 	notice of the alleged grounds for revocation or suspension and a full and fair hearing in 
174.5 	which the affected ~~utility~~ permittee has an opportunity to confront any witness and respond 
174.6 	to any evidence against ~~it~~ the permittee and to present rebuttal or mitigating evidence upon 
174.7 	a finding by the commission of:
174.8 	(1) any false statement knowingly made in the application or in accompanying statements 
174.9 	or studies required of the applicant, if a true statement would have warranted a change in 
174.10 	the commission's findings;
174.11 	(2) failure to comply with material conditions of the site certificate or construction 
174.12 	permit, or failure to maintain health and safety standards; or
174.13 	(3) any material violation of the provisions of this chapter, any rule promulgated pursuant 
174.14 	thereto, or any order of the commission.

174.15 	Sec. 14. Minnesota Statutes 2022, section 216E.15, is amended to read:
174.16 	216E.15 JUDICIAL REVIEW.
174.17 	Any applicant, party or person aggrieved by the issuance of a site or route permit, minor 
174.18 	alteration, amendment, or emergency permit from the commission or a certification of 
174.19 	continuing suitability filed by a ~~utility~~ permittee with the commission or by a final order in 
174.20 	accordance with any rules promulgated by the commission, may appeal to the court of 
174.21 	appeals in accordance with chapter 14. The appeal ~~shall~~ must be filed within 30 days after 
174.22 	the ~~publication in the State Register of~~ date the notice of the ~~issuance of the permit by the~~ 
174.23 	~~commission or~~ commission's permit issuance is published in the EQB Monitor, certification
174.24 	is filed with the commission, or the ~~filing of~~ any final order is filed by the commission.

174.25 	Sec. 15. Minnesota Statutes 2022, section 216E.16, is amended to read:
174.26 	216E.16 RULES.
174.27 		Subdivision 1.Commission rules. The commission, in order to give effect to the purposes 
174.28 	of this chapter, may adopt rules consistent with this chapter, including promulgation of site 
174.29 	and route designation criteria, the description of the information to be furnished by the 
174.30 	utilities, establishment of minimum guidelines for public participation in the development, 
174.31 	revision, and enforcement of any rule, plan, or program established by the commission, 
174.32 	procedures for the revocation or suspension of a site or route permit, and the procedure and 
175.1 	timeliness for proposing alternative routes and sites. ~~No~~ A rule adopted by the commission 
175.2 	~~shall~~ must not grant priority to state-owned wildlife management areas over agricultural 
175.3 	lands in the designation of route avoidance areas. ~~The provisions of~~ Chapter 14 ~~shall apply~~
175.4 	applies to the appeal of rules adopted by the commission to the same extent as it applies to 
175.5 	review of rules adopted by any other agency of state government.
175.6 		Subd. 2.Office of Administrative Hearings rules. The chief administrative law judge 
175.7 	~~shall~~ must adopt procedural rules for public hearings relating to the site and route permit 
175.8 	process. The rules ~~shall~~ must attempt to maximize citizen participation in these processes 
175.9 	consistent with the time limits for commission decision established ~~in sections 216E.03,~~ 
175.10 	~~subdivision 10, and 216E.04, subdivision 7~~ under this chapter.

175.11 	Sec. 16. Minnesota Statutes 2022, section 216E.18, subdivision 2a, is amended to read:
175.12 		Subd. 2a.~~Route~~ Application fee; appropriation. ~~Every~~ An applicant for a ~~transmission~~ 
175.13 	~~line~~ site or route permit ~~shall~~ must pay to the ~~commissioner of commerce~~ commission a fee 
175.14 	to cover the necessary and reasonable costs incurred by the commission ~~in acting~~ to act on 
175.15 	the permit application and ~~carrying~~ carry out the requirements of this chapter. The 
175.16 	commission may adopt rules providing for ~~the~~ fee payment ~~of the fee~~. Section 16A.1283
175.17 	does not apply to ~~the~~ establishment of ~~this~~ the fee under this subdivision. All money received 
175.18 	~~pursuant to~~ under this subdivision ~~shall~~ must be deposited in a special account. Money in 
175.19 	the account is appropriated to the ~~commissioner of commerce~~ commission to pay expenses 
175.20 	incurred ~~in processing~~ to process applications for site and route permits in accordance with 
175.21 	this chapter and, in the event ~~the~~ expenses are less than the fee paid, to refund the excess
175.22 	fee paid to the applicant.

175.23 	Sec. 17. [216G.025] ROUTING PERMIT; ENVIRONMENTAL REVIEW; CARBON 
175.24 	DIOXIDE PIPELINES.
175.25 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
175.26 	the meanings given.
175.27 	(b) "Carbon dioxide pipeline" means a pipeline located in Minnesota that transports 
175.28 	carbon dioxide in a liquid, gaseous, or supercritical state.
175.29 	(c) "Commission" means the Public Utilities Commission.
175.30 	(d) "Supercritical" means a physical state in which a substance is more dense than a gas 
175.31 	but less dense than a liquid.
176.1 		Subd. 2.Routing permit required. (a) A person is prohibited from constructing or 
176.2 	operating a carbon dioxide pipeline without a route permit issued by the commission under 
176.3 	this chapter.
176.4 	(b) A person seeking to construct or operate a carbon dioxide pipeline is prohibited from 
176.5 	applying to the commission for a conditional exclusion or partial exemption from pipeline 
176.6 	route selection procedures under Minnesota Rules, chapter 7852.
176.7 		Subd. 3.Carbon dioxide pipeline; environmental review. Notwithstanding any other 
176.8 	law or rule, an environmental impact statement must be prepared under Minnesota Rules, 
176.9 	chapter 4410, prior to issuing a route permit under this section for a carbon dioxide pipeline. 
176.10 	The commission is the governmental unit responsible for preparing an environmental impact 
176.11 	statement under this subdivision.

176.12 	Sec. 18. TRANSFER OF DUTIES; ENVIRONMENTAL ANALYSIS OF LARGE 
176.13 	ENERGY INFRASTRUCTURE FACILITIES.
 176.14 	(a) The responsibility for administering the environmental analysis of large energy 
176.15 	infrastructure facilities, as described in this act, is transferred from the Department of 
176.16 	Commerce to the Public Utilities Commission on July 1, 2025.
176.17 	(b) Minnesota Statutes, section 15.039, applies to the transfer of duties required under 
176.18 	this section. Assessments are considered appropriations under Minnesota Statutes, section 
176.19 	15.039, subdivision 6, for the purposes of the transfer under this section.

176.20 	Sec. 19. ADMINISTRATIVE RULEMAKING.
 176.21 	(a) The Public Utilities Commission must adopt rules, using the expedited process under 
176.22 	Minnesota Statutes, section 14.389, that amend Minnesota Rules, chapters 7849 and 7850, 
176.23 	to conform with the changes made in this act.
176.24 	(b) The Environmental Quality Board must adopt rules, using the expedited process 
176.25 	under Minnesota Statutes, section 14.389, that amend Minnesota Rules, chapter 4410, to 
176.26 	conform with the changes made in this act.
176.27 	(c) The Public Utilities Commission must amend Minnesota Rules, chapter 7850, to 
176.28 	authorize applicants for site and route permits to begin submitting preconstruction compliance 
176.29 	filings to commission staff for review immediately following the commission's vote to grant 
176.30 	the applicant a site or route permit, but prior to issuing a written commission order.

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

177.1 	Sec. 20. APPROPRIATION; PUBLIC UTILITIES COMMISSION.
 177.2 	$5,000 in fiscal year 2025 is appropriated from the general fund to the Public Utilities 
177.3 	Commission for the administrative costs of rulemaking in this article. This is a onetime 
177.4 	appropriation and is available until June 30, 2026.

177.5 	Sec. 21. APPROPRIATION; DEPARTMENT OF COMMERCE.
 177.6 	$1,200,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
177.7 	of commerce to facilitate timely actions in nonenvironmental review, routing and siting 
177.8 	proceedings, and to intervene as a party in Public Utilities Commission permitting 
177.9 	proceedings. The base in fiscal year 2026 and later is $2,400,000.

177.10 	Sec. 22. EFFECTIVE DATE.
 177.11 	Sections 3 and 5 to 16 are effective July 1, 2025.
177.12 	Delete the title and insert:
177.13 	A bill for an act
177.14 	relating to state government; amending agriculture policy provisions; establishing 
177.15 	and modifying agriculture programs; providing broadband appropriation transfer 
177.16 	authority; requiring an application for federal broadband aid; establishing a 
177.17 	supplemental budget for energy, transmission, and renewable energy purposes; 
177.18 	adding and modifying provisions governing geothermal energy, solar energy, and 
177.19 	other energy policy; establishing the Minnesota Energy Infrastructure Permitting 
177.20 	Act; authorizing administrative rulemaking; making technical changes; requiring 
177.21 	reports; appropriating money;amending Minnesota Statutes 2022, sections 3.7371, 
177.22 	subdivisions 2, 3, by adding subdivisions; 17.116, subdivision 2; 17.133, 
177.23 	subdivision 1; 18B.01, by adding a subdivision; 18B.26, subdivision 6; 18B.28, 
177.24 	by adding a subdivision; 18B.305, subdivision 2; 18B.32, subdivisions 1, 3, 4, 5; 
177.25 	18B.33, subdivisions 1, 5, 6; 18B.34, subdivisions 1, 4; 18B.35, subdivision 1; 
177.26 	18B.36, subdivisions 1, 2; 18B.37, subdivisions 2, 3; 18C.005, subdivision 33, by 
177.27 	adding a subdivision; 18C.115, subdivision 2; 18C.215, subdivision 1; 18C.221; 
177.28 	18C.70, subdivisions 1, 5; 18C.71, subdivisions 1, 2, 4, by adding a subdivision; 
177.29 	18C.80, subdivision 2; 18D.301, subdivision 1; 28A.10; 28A.151, subdivisions 1, 
177.30 	2, 3, 5, by adding a subdivision; 28A.21, subdivision 6; 31.74; 31.94; 32D.30; 
177.31 	41B.039, subdivision 2; 41B.04, subdivision 8; 41B.042, subdivision 4; 41B.043, 
177.32 	subdivision 1b; 41B.045, subdivision 2; 41B.047, subdivision 1; 103I.621, 
177.33 	subdivisions 1, 2; 116C.83, subdivision 6; 116J.396, by adding a subdivision; 
177.34 	216A.037, subdivision 1; 216A.07, subdivision 3; 216B.098, by adding a 
177.35 	subdivision; 216B.16, subdivisions 6c, 8; 216B.2402, subdivisions 4, 10, by adding 
177.36 	a subdivision; 216B.2403, subdivisions 2, 3, 5, 8; 216B.241, subdivisions 1c, 2, 
177.37 	11, 12; 216B.2421, subdivision 2; 216B.2425, subdivisions 1, 2, by adding a 
177.38 	subdivision; 216B.2427, subdivision 1, by adding a subdivision; 216B.243, 
177.39 	subdivisions 3, 3a, 4, 9; 216B.246, subdivision 3; 216C.10; 216C.435, subdivisions 
177.40 	3a, 3b, 4, 10, by adding subdivisions; 216C.436, subdivisions 1, 4, 7, 8, 10; 
177.41 	216E.08, subdivision 2; 216E.11; 216E.13; 216E.14; 216E.15; 216E.16; 216E.18, 
177.42 	subdivision 2a; 232.21, subdivisions 3, 7, 11, 12, 13; Minnesota Statutes 2023 
177.43 	Supplement, sections 10.65, subdivision 2; 17.055, subdivision 3; 17.133, 
177.44 	subdivision 3; 17.134, subdivision 3, by adding a subdivision; 17.710; 18C.425, 
177.45 	subdivision 6; 18K.06; 116C.779, subdivision 1; 116C.7792; 216B.243, subdivision 
178.1 	8; 216C.08; 216C.09; 216C.331, subdivision 1; 216C.435, subdivision 8; 216C.436, 
178.2 	subdivisions 1b, 2; 216E.06; 216E.07; 216E.10, subdivisions 1, 2, 3; Laws 2023, 
178.3 	chapter 43, article 1, sections 2; 4; article 2, section 142, subdivision 9; Laws 2023, 
178.4 	chapter 60, article 10, section 2, subdivision 2; proposing coding for new law in 
178.5 	Minnesota Statutes, chapters 216C; 216G; 346; proposing coding for new law as 
178.6 	Minnesota Statutes, chapter 216I; repealing Minnesota Statutes 2022, sections 
178.7 	3.7371, subdivision 7; 34.07; 216E.001; 216E.01, subdivisions 1, 2, 3, 4, 5, 7, 8, 
178.8 	9, 10; 216E.02; 216E.021; 216E.03, subdivisions 2, 3a, 3b, 4, 9; 216E.04, 
178.9 	subdivisions 1, 3, 4, 5, 6, 7, 8, 9; 216E.05, subdivisions 1, 3; 216E.08, subdivisions 
178.10 	1, 4; 216E.18, subdivisions 1, 2; 216F.01; 216F.011; 216F.012; 216F.015; 216F.02; 
178.11 	216F.03; 216F.05; 216F.06; 216F.07; 216F.08; 216F.081; Minnesota Statutes 
178.12 	2023 Supplement, sections 216E.01, subdivisions 3a, 6, 9a; 216E.03, subdivisions 
178.13 	1, 3, 5, 6, 7, 10, 11; 216E.04, subdivision 2; 216E.05, subdivision 2; 216F.04; 
178.14 	Minnesota Rules, parts 1506.0010; 1506.0015; 1506.0020; 1506.0025; 1506.0030; 
178.15 	1506.0035; 1506.0040; 7850.1000; 7850.1100; 7850.1200; 7850.1300; 7850.1400; 
178.16 	7850.1500; 7850.1600; 7850.1700; 7850.1800; 7850.1900; 7850.2000; 7850.2100; 
178.17 	7850.2200; 7850.2300; 7850.2400; 7850.2500; 7850.2600; 7850.2700; 7850.2800; 
178.18 	7850.2900; 7850.3000; 7850.3100; 7850.3200; 7850.3300; 7850.3400; 7850.3500; 
178.19 	7850.3600; 7850.3700; 7850.3800; 7850.3900; 7850.4100; 7850.4200; 7850.4500; 
178.20 	7850.4600; 7850.4700; 7850.4800; 7850.4900; 7850.5000; 7850.5100; 7850.5200; 
178.21 	7850.5300; 7850.5400; 7850.5500; 7850.5600; 7854.0100; 7854.0200; 7854.0300; 
178.22 	7854.0400; 7854.0500; 7854.0600; 7854.0700; 7854.0800; 7854.0900; 7854.1000; 
178.23 	7854.1100; 7854.1200; 7854.1300; 7854.1400; 7854.1500.

179.1 | We request the adoption of this report and repassage of the bill.

179.2

Senate Conferees:
........

179.3 | ........ | | ........
179.4 | Nick Frentz | | Matt Klein
179.5 | ........ | | ........
179.6 | Aric Putnam | | Tou Xiong
179.7 | ........ | |
179.8 | Gary Dahms | |

179.9

House Conferees:
........

179.10 | ........ | | ........
179.11 | Patty Acomb | | Zack Stephenson
179.12 | ........ | | ........
179.13 | Samantha Vang | | Kristi Pursell
179.14 | ........ | |
179.15 | Larry Kraft | |