1.1                          A bill for an act 
  1.2             relating to state government; abolishing department of 
  1.3             public service and transferring responsibilities; 
  1.4             amending Minnesota Statutes 1998, sections 169.073; 
  1.5             181.30; 216A.01; 216A.02, by adding a subdivision; 
  1.6             216A.07; 216A.085; 216B.241, subdivisions 1, 1a, 1b, 
  1.7             1c, 2, 2a, and 2b; 216C.01, subdivision 2; 237.082; 
  1.8             and 237.70, subdivision 7; repealing Minnesota 
  1.9             Statutes 1998, sections 216A.06; 216B.02, subdivision 
  1.10            8; 237.30; and 237.69, subdivision 3. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12                             ARTICLE 1
  1.13                      PUBLIC SERVICE ABOLISHED
  1.14     Section 1.  [DEPARTMENT OF PUBLIC SERVICE ABOLISHED; 
  1.15  RESPONSIBILITIES TRANSFERRED.] 
  1.16     Subdivision 1.  [DEPARTMENT ABOLISHED; RESPONSIBILITIES 
  1.17  TRANSFERRED.] The department of public service is abolished.  
  1.18  The responsibilities held by the department are transferred to a 
  1.19  receiving agency as designated in this article.  Except as 
  1.20  otherwise provided by this article, the responsibilities of the 
  1.21  department must be transferred under Minnesota Statutes, section 
  1.22  15.039.  For the purposes of this article, "responsibilities" 
  1.23  means the powers, duties, rights, obligations, rules, court 
  1.24  actions, contracts, records, property of every description, 
  1.25  unexpended funds, personnel, and authority imposed by law on the 
  1.26  department of public service.  For the purposes of this article, 
  1.27  "receiving agency" has the meaning given "new agency" in 
  1.28  Minnesota Statutes, section 15.039, subdivision 1. 
  2.1      Subd. 2.  [SPECIFIC POSITIONS ABOLISHED.] The following 
  2.2   positions in the department of public service are not 
  2.3   transferred to a receiving agency and are specifically abolished:
  2.4      (1) commissioner; 
  2.5      (2) deputy commissioner; 
  2.6      (3) assistant commissioner; and 
  2.7      (4) executive assistant. 
  2.8      Subd. 3.  [ATTORNEY GENERAL.] The responsibility for 
  2.9   intervention as a party in all public utility and 
  2.10  telecommunications matters before the public utilities 
  2.11  commission is transferred to the residential utilities division 
  2.12  of the attorney general's office. 
  2.13     Subd. 4.  [PUBLIC UTILITIES COMMISSION.] (a) The following 
  2.14  responsibilities are transferred to the public utilities 
  2.15  commission: 
  2.16     (1) the intervention office that represents the interests 
  2.17  of Minnesota residents, businesses, and governments before 
  2.18  bodies and agencies outside the state that make, interpret, or 
  2.19  implement national and international energy policy; 
  2.20     (2) enforcement of Minnesota Statutes, chapters 216A, 216B, 
  2.21  216C, and 237 and orders of the public utilities commission 
  2.22  under those chapters; 
  2.23     (3) conservation improvement; and 
  2.24     (4) all other responsibilities related to energy 
  2.25  production, transportation, transmission, consumption, 
  2.26  conservation, and efficiency. 
  2.27     (b) The positions and personnel of the department of public 
  2.28  service related to the responsibilities listed in paragraph (a) 
  2.29  are transferred to the public utilities commission. 
  2.30     Subd. 5.  [DEPARTMENT OF AGRICULTURE.] The division of 
  2.31  weights and measures is transferred to the department of 
  2.32  agriculture. 
  2.33     Subd. 6.  [RULES.] Rules adopted by or transferred to the 
  2.34  department of public service before the effective date of this 
  2.35  article become rules of the receiving agency to which the 
  2.36  appropriate rulemaking authority is transferred by this article. 
  3.1                              ARTICLE 2
  3.2                        CONFORMING AMENDMENTS
  3.3      Section 1.  Minnesota Statutes 1998, section 169.073, is 
  3.4   amended to read: 
  3.5      169.073 [PROHIBITED LIGHT OR SIGNAL.] 
  3.6      No person or corporation shall place, maintain or display 
  3.7   any red light or red sign, signal, or lighting device or 
  3.8   maintain it in view of any highway or any line of railroad on or 
  3.9   over which trains are operated in such a way as to interfere 
  3.10  with the effectiveness or efficiency of any highway 
  3.11  traffic-control device or signals or devices used in the 
  3.12  operation of a railroad.  Upon written notice from the 
  3.13  commissioner of transportation, a person or corporation 
  3.14  maintaining or owning or displaying a prohibited light shall 
  3.15  promptly remove it, or change the color of it to some other 
  3.16  color than red.  Where a prohibited light or sign interferes 
  3.17  with the effectiveness or efficiency of the signals or devices 
  3.18  used in the operation of a railroad, the department of public 
  3.19  service transportation may cause the removal of it and the 
  3.20  department may issue notices and orders for its removal.  The 
  3.21  department shall proceed as provided in sections 216.13, 216.14, 
  3.22  216.15, 216.16, and 216.17, with a right of appeal to the 
  3.23  aggrieved party in accordance with chapter 14. 
  3.24     No person or corporation shall maintain or display any 
  3.25  light after written notice from the commissioner of 
  3.26  transportation or the department of public service that the 
  3.27  light constitutes a traffic hazard and that it has ordered the 
  3.28  removal thereof. 
  3.29     Sec. 2.  Minnesota Statutes 1998, section 181.30, is 
  3.30  amended to read: 
  3.31     181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE LABOR AND 
  3.32  INDUSTRY.] 
  3.33     Any officer of any railroad company in the state violating 
  3.34  any of the provisions of section 181.29 shall be guilty of a 
  3.35  misdemeanor; and, upon conviction, punished by a fine of not 
  3.36  less than $100, and not more than $700, for each offense, or by 
  4.1   imprisonment in the county jail not more than 60 days, or both 
  4.2   fine and imprisonment, at the discretion of the court.  It shall 
  4.3   be the duty of the state department of public service labor and 
  4.4   industry, upon complaint properly filed with it alleging a 
  4.5   violation of section 181.29, to make a full investigation in 
  4.6   relation thereto, and for such purpose it shall have the power 
  4.7   to administer oaths, interrogate witnesses, take testimony and 
  4.8   require the production of books and papers, and if such report 
  4.9   shall show a violation of the provisions of section 181.29, the 
  4.10  department of public service labor and industry shall, through 
  4.11  the attorney general, begin the prosecution of all parties 
  4.12  against whom evidence of such violation is found; but section 
  4.13  181.29 shall not be construed to prevent any other person from 
  4.14  beginning prosecution for the violation of the provisions 
  4.15  thereof.  
  4.16     Sec. 3.  Minnesota Statutes 1998, section 216A.01, is 
  4.17  amended to read: 
  4.18     216A.01 [ESTABLISHMENT OF DEPARTMENT AND PUBLIC UTILITIES 
  4.19  COMMISSION.] 
  4.20     There are is hereby created and established the department 
  4.21  of public service, and the public utilities commission.  The 
  4.22  department of public service shall have and possess all of the 
  4.23  rights and powers and perform all of the duties vested in it by 
  4.24  this chapter.  The public utilities commission shall have and 
  4.25  possess all of the rights and powers and perform all of the 
  4.26  duties vested in it by this chapter, and those formerly vested 
  4.27  by law in the railroad and warehouse commission. 
  4.28     Sec. 4.  Minnesota Statutes 1998, section 216A.02, is 
  4.29  amended by adding a subdivision to read: 
  4.30     Subd. 5.  [CHAIR.] "Chair" means the administrative and 
  4.31  executive head of the public utilities commission. 
  4.32     Sec. 5.  Minnesota Statutes 1998, section 216A.07, is 
  4.33  amended to read: 
  4.34     216A.07 [COMMISSIONER CHAIR POWERS AND DUTIES.] 
  4.35     Subdivision 1.  [ADMINISTRATIVE DUTIES.] The commissioner 
  4.36  chair of the public utilities commission shall be the executive 
  5.1   and administrative head of the public service department 
  5.2   utilities commission and shall have and possess all the rights 
  5.3   and powers and perform all the duties relating to the 
  5.4   administrative function of the department commission as set 
  5.5   forth in this chapter.  The commissioner chair may: 
  5.6      (1) prepare all forms or blanks for the purpose of 
  5.7   obtaining information which the commissioner chair may deem 
  5.8   necessary or useful in the proper exercise of the authority and 
  5.9   duties of the commissioner in connection with regulated 
  5.10  businesses; 
  5.11     (2) prescribe the time and manner within which forms or 
  5.12  blanks shall be filed with the department; 
  5.13     (3) inspect at all reasonable times, and copy the books, 
  5.14  records, memoranda and correspondence or other documents and 
  5.15  records of any person relating to any regulated business; and 
  5.16     (4) cause the deposition to be taken of any person 
  5.17  concerning the business and affairs of any business regulated by 
  5.18  the department commission.  Information sought through said 
  5.19  deposition shall be for a lawfully authorized purpose and shall 
  5.20  be relevant and material to the investigation or hearing before 
  5.21  the commission.  Information obtained from said deposition shall 
  5.22  be used by the department commission only for a lawfully 
  5.23  authorized purpose and pursuant to powers and responsibilities 
  5.24  conferred upon the department commission.  Said deposition is to 
  5.25  be taken in the manner prescribed by law for taking depositions 
  5.26  in civil actions in the district court. 
  5.27     Subd. 2.  [ENFORCEMENT.] The commissioner chair is 
  5.28  responsible for the enforcement of chapters 216A, 216B and 237 
  5.29  and the orders of the commission issued pursuant to those 
  5.30  chapters. 
  5.31     Subd. 3.  [INTERVENTION IN COMMISSION PROCEEDING.] The 
  5.32  commissioner chair may intervene as a party in all proceedings 
  5.33  before the commission.  When intervening in gas or electric 
  5.34  hearings, the commissioner chair shall prepare and defend 
  5.35  testimony designed to encourage energy conservation improvements 
  5.36  as defined in section 216B.241.  The attorney general shall act 
  6.1   as counsel in the proceedings.  
  6.2      Subd. 4.  [INVESTIGATION.] The commissioner chair may, on 
  6.3   the commissioner's chair's own initiative, investigate any 
  6.4   matter subject to the jurisdiction of the department or 
  6.5   commission.  
  6.6      Subd. 5.  [RULEMAKING.] The commissioner chair shall make 
  6.7   substantive and procedural rules to implement the provisions of 
  6.8   this chapter and chapters 216B and 237.  Rules adopted under 
  6.9   this authority shall be promulgated pursuant to the 
  6.10  Administrative Procedure Act and shall have the force and effect 
  6.11  of law.  
  6.12     Subd. 6.  [MISSION; EFFICIENCY; LEGISLATIVE REPORT, 
  6.13  RECOMMENDATIONS.] It is part of the department's commission's 
  6.14  mission that within the department's commission's resources the 
  6.15  commissioner chair shall endeavor to: 
  6.16     (1) prevent the waste or unnecessary spending of public 
  6.17  money; 
  6.18     (2) use innovative fiscal and human resource practices to 
  6.19  manage the state's resources and operate the department 
  6.20  commission as efficiently as possible; 
  6.21     (3) coordinate the department's commission's activities 
  6.22  wherever appropriate with the activities of other governmental 
  6.23  agencies; 
  6.24     (4) use technology where appropriate to increase agency 
  6.25  productivity, improve customer service, increase public access 
  6.26  to information about government, and increase public 
  6.27  participation in the business of government; 
  6.28     (5) utilize constructive and cooperative labor-management 
  6.29  practices to the extent otherwise required by chapters 43A and 
  6.30  179A; 
  6.31     (6) report to the legislature on the performance of agency 
  6.32  operations and the accomplishment of agency goals in the 
  6.33  agency's biennial budget according to section 16A.10, 
  6.34  subdivision 1; and 
  6.35     (7) recommend to the legislature appropriate changes in law 
  6.36  necessary to carry out the mission and improve the performance 
  7.1   of the department commission. 
  7.2      Sec. 6.  Minnesota Statutes 1998, section 216A.085, is 
  7.3   amended to read: 
  7.4      216A.085 [ENERGY ISSUES INTERVENTION OFFICE.] 
  7.5      Subdivision 1.  [CREATION.] There is created within the 
  7.6   department of public service public utilities commission an 
  7.7   intervention office to represent the interests of Minnesota 
  7.8   residents, businesses, and governments before bodies and 
  7.9   agencies outside the state that make, interpret, or implement 
  7.10  national and international energy policy.  
  7.11     Subd. 2.  [DUTIES.] The intervention office shall determine 
  7.12  those areas in which state intervention is most needed, most 
  7.13  likely to have a positive impact, and most effective for the 
  7.14  broad public interest of the state.  The office shall seek 
  7.15  recommendations from appropriate public and private sources 
  7.16  before deciding which cases merit intervention.  
  7.17     Subd. 3.  [STAFFING.] The intervention office shall be 
  7.18  under the control and supervision of the commissioner chair of 
  7.19  the department of public service public utilities commission.  
  7.20  The commissioner chair may hire staff or contract for outside 
  7.21  services as needed to carry out the purposes of this section.  
  7.22  The attorney general shall act as counsel in all intervention 
  7.23  proceedings.  
  7.24     Sec. 7.  Minnesota Statutes 1998, section 216B.241, 
  7.25  subdivision 1, is amended to read: 
  7.26     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  7.27  section, the terms defined in this subdivision have the meanings 
  7.28  given them.  
  7.29     (a) "Commission" means the public utilities commission. 
  7.30     (b) "Commissioner" means the commissioner of public service.
  7.31     (c) "Department" means the department of public service. 
  7.32     (d) "Energy conservation improvement" means the purchase or 
  7.33  installation of a device, method, or material that reduces 
  7.34  consumption of or increases efficiency in the use of electricity 
  7.35  or natural gas, including, but not limited to: 
  7.36     (1) insulation and ventilation; 
  8.1      (2) storm or thermal doors or windows; 
  8.2      (3) caulking and weatherstripping; 
  8.3      (4) furnace efficiency modifications; 
  8.4      (5) thermostat or lighting controls; 
  8.5      (6) awnings; or 
  8.6      (7) systems to turn off or vary the delivery of energy.  
  8.7   The term "energy conservation improvement" includes a device or 
  8.8   method that creates, converts, or actively uses energy from 
  8.9   renewable sources such as solar, wind, and biomass, provided 
  8.10  that the device or method conforms with national or state 
  8.11  performance and quality standards whenever applicable.  
  8.12     (e) (c) "Investments and expenses of a public utility" 
  8.13  includes the investments and expenses incurred by a public 
  8.14  utility in connection with an energy conservation improvement 
  8.15  including, but not limited to:  
  8.16     (1) the differential in interest cost between the market 
  8.17  rate and the rate charged on a no interest or below market 
  8.18  interest loan made by a public utility to a customer for the 
  8.19  purchase or installation of an energy conservation improvement; 
  8.20     (2) the difference between the utility's cost of purchase 
  8.21  or installation of energy conservation improvements and any 
  8.22  price charged by a public utility to a customer for such 
  8.23  improvements.  
  8.24     Sec. 8.  Minnesota Statutes 1998, section 216B.241, 
  8.25  subdivision 1a, is amended to read: 
  8.26     Subd. 1a.  [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 
  8.27  REGULATED UTILITIES.] (a) For purposes of this subdivision and 
  8.28  subdivision 2, "public utility" has the meaning given it in 
  8.29  section 216B.02, subdivision 4.  Each public utility shall spend 
  8.30  and invest for energy conservation improvements under this 
  8.31  subdivision and subdivision 2 the following amounts: 
  8.32     (1) for a utility that furnishes gas service, .5 percent of 
  8.33  its gross operating revenues from service provided in the state; 
  8.34     (2) for a utility that furnishes electric service, 1.5 
  8.35  percent of its gross operating revenues from service provided in 
  8.36  the state; and 
  9.1      (3) for a utility that furnishes electric service and that 
  9.2   operates a nuclear-powered electric generating plant within the 
  9.3   state, two percent of its gross operating revenues from service 
  9.4   provided in the state. 
  9.5      (b) The commissioner commission may require investments or 
  9.6   spending greater than the amounts required under this 
  9.7   subdivision for a public utility whose most recent advance 
  9.8   forecast required under section 216B.2422 or 216C.17 projects a 
  9.9   peak demand deficit of 100 megawatts or greater within five 
  9.10  years under mid-range forecast assumptions.  A public utility 
  9.11  may appeal a decision of the commissioner commission under this 
  9.12  paragraph to the commission under subdivision 2.  In reviewing a 
  9.13  decision of the commissioner under this paragraph, the 
  9.14  commission shall rescind the decision if it finds that the 
  9.15  required investments or spending will: 
  9.16     (1) not result in cost-effective programs; or 
  9.17     (2) otherwise not be in the public interest pursuant to 
  9.18  section 216B.52. 
  9.19     (c) Each utility shall determine what portion of the amount 
  9.20  it sets aside for conservation improvement will be used for 
  9.21  conservation improvements under subdivision 2 and what portion 
  9.22  it will contribute to the energy and conservation account 
  9.23  established in subdivision 2a.  Contributions must be remitted 
  9.24  to the commissioner of public service the public utilities 
  9.25  commission by February 1 of each year.  Nothing in this 
  9.26  subdivision prohibits a public utility from spending or 
  9.27  investing for energy conservation improvement more than required 
  9.28  in this subdivision. 
  9.29     Sec. 9.  Minnesota Statutes 1998, section 216B.241, 
  9.30  subdivision 1b, is amended to read: 
  9.31     Subd. 1b.  [CONSERVATION IMPROVEMENTS; COOPERATIVES; 
  9.32  MUNICIPALITIES.] (a) This subdivision applies to: 
  9.33     (1) a cooperative electric association that generates and 
  9.34  transmits electricity to associations that provide electricity 
  9.35  at retail including a cooperative electric association not 
  9.36  located in this state that serves associations or others in the 
 10.1   state; 
 10.2      (2) a municipality that provides electric service to retail 
 10.3   customers; and 
 10.4      (3) a municipality with gross operating revenues in excess 
 10.5   of $5,000,000 from sales of natural gas to retail customers.  
 10.6      (b) Each cooperative electric association and municipality 
 10.7   subject to this subdivision shall spend and invest for energy 
 10.8   conservation improvements under this subdivision the following 
 10.9   amounts: 
 10.10     (1) for a municipality, .5 percent of its gross operating 
 10.11  revenues from the sale of gas and one percent of its gross 
 10.12  operating revenues from the sale of electricity not purchased 
 10.13  from a public utility governed by subdivision 1a or a 
 10.14  cooperative electric association governed by this subdivision; 
 10.15  and 
 10.16     (2) for a cooperative electric association, 1.5 percent of 
 10.17  its gross operating revenues from service provided in the state. 
 10.18     (c) Each municipality and cooperative association subject 
 10.19  to this subdivision shall identify and implement energy 
 10.20  conservation improvement spending and investments that are 
 10.21  appropriate for the municipality or association.  Load 
 10.22  management may be used to meet the requirements of this 
 10.23  subdivision if it reduces the demand for or increases the 
 10.24  efficiency of electric services.  A generation and transmission 
 10.25  cooperative electric association may include as spending and 
 10.26  investment required under this subdivision conservation 
 10.27  improvement spending and investment by cooperative electric 
 10.28  associations that provide electric service at retail to 
 10.29  consumers and that are served by the generation and transmission 
 10.30  association.  By February 1 of each year, each municipality or 
 10.31  cooperative shall report to the commissioner commission its 
 10.32  energy conservation improvement spending and investments with a 
 10.33  brief analysis of effectiveness in reducing consumption of 
 10.34  electricity or gas.  The commissioner commission shall review 
 10.35  each report and make recommendations, where appropriate, to the 
 10.36  municipality or association to increase the effectiveness of 
 11.1   conservation improvement activities.  The commissioner 
 11.2   commission shall also review each report for whether a portion 
 11.3   of the money spent on residential conservation improvement 
 11.4   programs is devoted to programs that directly address the needs 
 11.5   of renters and low-income persons unless an insufficient number 
 11.6   of appropriate programs are available.  For the purposes of this 
 11.7   subdivision and subdivision 2, "low-income" means an income of 
 11.8   less than 185 percent of the federal poverty level. 
 11.9      (d) As part of its spending for conservation improvement, a 
 11.10  municipality or association may contribute to the energy and 
 11.11  conservation account.  Any amount contributed must be remitted 
 11.12  to the commissioner of public service public utilities 
 11.13  commission by February 1 of each year. 
 11.14     Sec. 10.  Minnesota Statutes 1998, section 216B.241, 
 11.15  subdivision 1c, is amended to read: 
 11.16     Subd. 1c.  [ENERGY-SAVING GOALS.] The commissioner 
 11.17  commission shall establish energy-saving goals for energy 
 11.18  conservation improvement expenditures and shall evaluate an 
 11.19  energy conservation improvement program on how well it meets the 
 11.20  goals set. 
 11.21     Sec. 11.  Minnesota Statutes 1998, section 216B.241, 
 11.22  subdivision 2, is amended to read: 
 11.23     Subd. 2.  [PROGRAMS.] The commissioner commission may by 
 11.24  rule require public utilities to make investments and 
 11.25  expenditures in energy conservation improvements, explicitly 
 11.26  setting forth the interest rates, prices, and terms under which 
 11.27  the improvements must be offered to the customers.  The required 
 11.28  programs must cover a two-year period.  The commissioner 
 11.29  commission shall require at least one public utility to 
 11.30  establish a pilot program to make investments in and 
 11.31  expenditures for energy from renewable resources such as solar, 
 11.32  wind, or biomass and shall give special consideration and 
 11.33  encouragement to programs that bring about significant net 
 11.34  savings through the use of energy-efficient lighting.  
 11.35  The commissioner commission shall evaluate the program on the 
 11.36  basis of cost-effectiveness and the reliability of technologies 
 12.1   employed.  The rules of the department must provide to the 
 12.2   extent practicable for a free choice, by consumers participating 
 12.3   in the program, of the device, method, or material constituting 
 12.4   the energy conservation improvement and for a free choice of the 
 12.5   seller, installer, or contractor of the energy conservation 
 12.6   improvement, provided that the device, method, material, seller, 
 12.7   installer, or contractor is duly licensed, certified, approved, 
 12.8   or qualified, including under the residential conservation 
 12.9   services program, where applicable.  The commissioner commission 
 12.10  may require a utility to make an energy conservation improvement 
 12.11  investment or expenditure whenever the commissioner commission 
 12.12  finds that the improvement will result in energy savings at a 
 12.13  total cost to the utility less than the cost to the utility to 
 12.14  produce or purchase an equivalent amount of new supply of 
 12.15  energy.  The commissioner commission shall nevertheless ensure 
 12.16  that every public utility operate one or more programs under its 
 12.17  periodic review by the department.  Load management may be used 
 12.18  to meet the requirements for energy conservation improvements 
 12.19  under this section if it results in a demonstrable reduction in 
 12.20  consumption of energy.  The commissioner commission shall 
 12.21  consider and may require a utility to undertake a program 
 12.22  suggested by an outside source, including a political 
 12.23  subdivision or a nonprofit or community organization.  No 
 12.24  utility may make an energy conservation improvement under this 
 12.25  section to a building envelope unless: 
 12.26     (1) it is the primary supplier of energy used for either 
 12.27  space heating or cooling in the building; 
 12.28     (2) the commissioner commission determines that special 
 12.29  circumstances, which would unduly restrict the availability of 
 12.30  conservation programs, warrant otherwise; or 
 12.31     (3) the utility has been awarded a contract under 
 12.32  subdivision 2a. 
 12.33     The commissioner commission shall ensure that a portion of 
 12.34  the money spent on residential conservation improvement programs 
 12.35  is devoted to programs that directly address the needs of 
 12.36  renters and low-income persons unless an insufficient number of 
 13.1   appropriate programs are available. 
 13.2      A utility, a political subdivision, or a nonprofit or 
 13.3   community organization that has suggested a program, the 
 13.4   attorney general acting on behalf of consumers and small 
 13.5   business interests, or a utility customer that has suggested a 
 13.6   program and is not represented by the attorney general under 
 13.7   section 8.33 may petition the commission to modify reconsider or 
 13.8   revoke a department decision under this section, and the 
 13.9   commission may do so if it determines that the program is not 
 13.10  cost-effective, does not adequately address the residential 
 13.11  conservation improvement needs of low-income persons, has a 
 13.12  long-range negative effect on one or more classes of customers, 
 13.13  or is otherwise not in the public interest.  The person 
 13.14  petitioning for commission review has the burden of proof.  The 
 13.15  commission shall reject a petition that, on its face, fails to 
 13.16  make a reasonable argument that a program is not in the public 
 13.17  interest. 
 13.18     Sec. 12.  Minnesota Statutes 1998, section 216B.241, 
 13.19  subdivision 2a, is amended to read: 
 13.20     Subd. 2a.  [ENERGY AND CONSERVATION ACCOUNT.] The 
 13.21  commissioner commission must deposit money contributed under 
 13.22  subdivisions 1a and 1b in the energy and conservation account in 
 13.23  the general fund.  Money in the account is appropriated to the 
 13.24  department for programs designed to meet the energy conservation 
 13.25  needs of low-income persons and to make energy conservation 
 13.26  improvements in areas not adequately served under subdivision 
 13.27  2.  Interest on money in the account accrues to the account.  
 13.28  Using information collected under section 216C.02, subdivision 
 13.29  1, paragraph (b), the commissioner commission must, to the 
 13.30  extent possible, allocate enough money to programs for 
 13.31  low-income persons to assure that their needs are being 
 13.32  adequately addressed.  The commissioner commission must request 
 13.33  the commissioner of finance to transfer money from the account 
 13.34  to the commissioner of children, families, and learning for an 
 13.35  energy conservation program for low-income persons.  In 
 13.36  establishing programs, the commissioner commission must consult 
 14.1   political subdivisions and nonprofit and community 
 14.2   organizations, especially organizations engaged in providing 
 14.3   energy and weatherization assistance to low-income persons.  At 
 14.4   least one program must address the need for energy conservation 
 14.5   improvements in areas in which a high percentage of residents 
 14.6   use fuel oil or propane to fuel their source of home heating.  
 14.7   The commissioner commission may contract with a political 
 14.8   subdivision, a nonprofit or community organization, a public 
 14.9   utility, a municipality, or a cooperative electric association 
 14.10  to implement its programs.  
 14.11     Sec. 13.  Minnesota Statutes 1998, section 216B.241, 
 14.12  subdivision 2b, is amended to read: 
 14.13     Subd. 2b.  [RECOVERY OF EXPENSES FOR FEES, TAXES, PERMITS.] 
 14.14  The commission shall allow a utility to recover expenses 
 14.15  resulting from a conservation improvement program required by 
 14.16  the department and contributions to the energy and conservation 
 14.17  account, unless the recovery would be inconsistent with a 
 14.18  financial incentive proposal approved by the commission.  In 
 14.19  addition, a utility may file annually, or the public utilities 
 14.20  commission may require the utility to file, and the commission 
 14.21  may approve, rate schedules containing provisions for the 
 14.22  automatic adjustment of charges for utility service in direct 
 14.23  relation to changes in the expenses of the utility for real and 
 14.24  personal property taxes, fees, and permits, the amounts of which 
 14.25  the utility cannot control.  A public utility is eligible to 
 14.26  file for adjustment for real and personal property taxes, fees, 
 14.27  and permits under this subdivision only if, in the year previous 
 14.28  to the year in which it files for adjustment, it has spent or 
 14.29  invested at least 1.75 percent of its gross revenues from 
 14.30  provision of electric service and .6 percent of its gross 
 14.31  revenues from provision of gas service for that year for energy 
 14.32  conservation improvements under this section.  
 14.33     Sec. 14.  Minnesota Statutes 1998, section 216C.01, 
 14.34  subdivision 2, is amended to read: 
 14.35     Subd. 2.  [COMMISSIONER 
 14.36  COMMISSION.] "Commissioner" "Commission" means the commissioner 
 15.1   of the department of public service public utilities commission. 
 15.2      Sec. 15.  Minnesota Statutes 1998, section 237.082, is 
 15.3   amended to read: 
 15.4      237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 
 15.5   SPEED AND SERVICE.] 
 15.6      When setting rates, adopting rules, or issuing orders 
 15.7   related to telecommunication matters that affect deployment of 
 15.8   the infrastructure, the commission may shall apply the goals of: 
 15.9      (1) achieving economically efficient investment in: 
 15.10     (i) higher speed telecommunication services; and 
 15.11     (ii) greater capacity for voice, video, and data 
 15.12  transmission; and 
 15.13     (2) just and reasonable rates. 
 15.14     The department of public service may apply the same goals 
 15.15  in its regulation of and recommendations regarding 
 15.16  telecommunication services. 
 15.17     Sec. 16.  Minnesota Statutes 1998, section 237.70, 
 15.18  subdivision 7, is amended to read: 
 15.19     Subd. 7.  [ADMINISTRATION.] The telephone assistance plan 
 15.20  must be administered jointly by the commission, the department 
 15.21  of human services, and the telephone companies in accordance 
 15.22  with the following guidelines: 
 15.23     (a) The commission and the department of human services 
 15.24  shall develop an application form that must be completed by the 
 15.25  subscriber for the purpose of certifying eligibility for 
 15.26  telephone assistance plan credits to the department of human 
 15.27  services.  The application must contain the applicant's social 
 15.28  security number.  Applicants who refuse to provide a social 
 15.29  security number will be denied telephone assistance plan 
 15.30  credits.  The application form must include provisions for the 
 15.31  applicant to show the name of the applicant's telephone 
 15.32  company.  The application must also advise the applicant to 
 15.33  submit the required proof of age or disability, and income and 
 15.34  must provide examples of acceptable proof.  The application must 
 15.35  state that failure to submit proof with the application will 
 15.36  result in the applicant being found ineligible.  Each telephone 
 16.1   company shall annually mail a notice of the availability of the 
 16.2   telephone assistance plan to each residential subscriber in a 
 16.3   regular billing and shall mail the application form to customers 
 16.4   when requested.  
 16.5      The notice must state the following: 
 16.6      YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR TELEPHONE 
 16.7   BILL IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND IF 
 16.8   YOU MEET CERTAIN HOUSEHOLD INCOME LIMITS.  FOR MORE INFORMATION 
 16.9   OR AN APPLICATION FORM PLEASE CONTACT ......... 
 16.10     (b) The department of human services shall determine the 
 16.11  eligibility for telephone assistance plan credits at least 
 16.12  annually according to the criteria contained in subdivision 4a.  
 16.13     (c) An application may be made by the subscriber, the 
 16.14  subscriber's spouse, or a person authorized by the subscriber to 
 16.15  act on the subscriber's behalf.  On completing the application 
 16.16  certifying that the statutory criteria for eligibility are 
 16.17  satisfied, the applicant must return the application to an 
 16.18  office of the department of human services specially designated 
 16.19  to process telephone assistance plan applications.  On receiving 
 16.20  a completed application from an applicant, the department of 
 16.21  human services shall determine the applicant's eligibility or 
 16.22  ineligibility within 120 days.  If the department fails to do 
 16.23  so, it shall within three working days provide written notice to 
 16.24  the applicant's telephone company that the company shall provide 
 16.25  telephone assistance plan credits against monthly charges in the 
 16.26  earliest possible month following receipt of the written 
 16.27  notice.  The applicant must receive telephone assistance plan 
 16.28  credits until the earliest possible month following the 
 16.29  company's receipt of notice from the department that the 
 16.30  applicant is ineligible. 
 16.31     If the department of human services determines that an 
 16.32  applicant is not eligible to receive telephone assistance plan 
 16.33  credits, it shall notify the applicant within ten working days 
 16.34  of that determination. 
 16.35     Within ten working days of determining that an applicant is 
 16.36  eligible to receive telephone assistance plan credits, the 
 17.1   department of human services shall provide written notification 
 17.2   to the telephone company that serves the applicant.  The notice 
 17.3   must include the applicant's name, address, and telephone number.
 17.4      Each telephone company shall provide telephone assistance 
 17.5   plan credits against monthly charges in the earliest possible 
 17.6   month following receipt of notice from the department of human 
 17.7   services. 
 17.8      By December 31 of each year, the department of human 
 17.9   services shall redetermine eligibility of each person receiving 
 17.10  telephone assistance plan credits, as required in paragraph (b). 
 17.11  The department of human services shall submit an annual report 
 17.12  to the commission by January 15 of each year showing that the 
 17.13  department has determined the eligibility for telephone 
 17.14  assistance plan credits of each person receiving the credits or 
 17.15  explaining why the determination has not been made and showing 
 17.16  how and when the determination will be completed.  
 17.17     If the department of human services determines that a 
 17.18  current recipient of telephone assistance plan credits is not 
 17.19  eligible to receive the credits, it shall notify, in writing, 
 17.20  the recipient within ten working days and the telephone company 
 17.21  serving the recipient within 20 working days of the 
 17.22  determination.  The notice must include the recipient's name, 
 17.23  address, and telephone number. 
 17.24     Each telephone company shall remove telephone assistance 
 17.25  plan credits against monthly charges in the earliest possible 
 17.26  month following receipt of notice from the department of human 
 17.27  services. 
 17.28     Each telephone company that disconnects a subscriber 
 17.29  receiving the telephone assistance plan credit shall report the 
 17.30  disconnection to the department of human services.  The reports 
 17.31  must be submitted monthly, identifying the subscribers 
 17.32  disconnected.  Telephone companies that do not disconnect a 
 17.33  subscriber receiving the telephone assistance plan credit are 
 17.34  not required to report.  
 17.35     If the telephone assistance plan credit is not itemized on 
 17.36  the subscriber's monthly charges bill for local telephone 
 18.1   service, the telephone company must notify the subscriber of the 
 18.2   approval for the telephone assistance plan credit. 
 18.3      (d) The commission shall serve as the coordinator of the 
 18.4   telephone assistance plan and be reimbursed for its 
 18.5   administrative expenses from the surcharge revenue pool.  As the 
 18.6   coordinator, the commission shall: 
 18.7      (1) establish a uniform statewide surcharge in accordance 
 18.8   with subdivision 6; 
 18.9      (2) establish a uniform statewide level of telephone 
 18.10  assistance plan credit that each telephone company shall extend 
 18.11  to each eligible household in its service area; 
 18.12     (3) require each telephone company to account to the 
 18.13  commission on a periodic basis for surcharge revenues collected 
 18.14  by the company, expenses incurred by the company, not to include 
 18.15  expenses of collecting surcharges, and credits extended by the 
 18.16  company under the telephone assistance plan; 
 18.17     (4) require each telephone company to remit surcharge 
 18.18  revenues to the department of administration for deposit in the 
 18.19  fund; and 
 18.20     (5) remit to each telephone company from the surcharge 
 18.21  revenue pool the amount necessary to compensate the company for 
 18.22  expenses, not including expenses of collecting the surcharges, 
 18.23  and telephone assistance plan credits.  When it appears that the 
 18.24  revenue generated by the maximum surcharge permitted under 
 18.25  subdivision 6 will be inadequate to fund any particular 
 18.26  established level of telephone assistance plan credits, the 
 18.27  commission shall reduce the credits to a level that can be 
 18.28  adequately funded by the maximum surcharge.  Similarly, the 
 18.29  commission may increase the level of the telephone assistance 
 18.30  plan credit that is available or reduce the surcharge to a level 
 18.31  and for a period of time that will prevent an unreasonable 
 18.32  overcollection of surcharge revenues. 
 18.33     (e) Each telephone company shall maintain adequate records 
 18.34  of surcharge revenues, expenses, and credits related to the 
 18.35  telephone assistance plan and shall, as part of its annual 
 18.36  report or separately, provide the commission and the department 
 19.1   of public service with a financial report of its experience 
 19.2   under the telephone assistance plan for the previous year.  That 
 19.3   report must also be adequate to satisfy the reporting 
 19.4   requirements of the federal matching plan.  
 19.5      (f) The department of public service attorney general shall 
 19.6   investigate complaints against telephone companies with regard 
 19.7   to the telephone assistance plan and shall report the results of 
 19.8   its investigation to the commission.  
 19.9      Sec. 17.  [INSTRUCTION TO REVISOR.] 
 19.10     The revisor of statutes, in the next and subsequent 
 19.11  editions of Minnesota Statutes and Minnesota Rules, shall make 
 19.12  the changes in paragraphs (a) to (e), and shall also make any 
 19.13  stylistic and conforming changes necessary to incorporate the 
 19.14  following changes: 
 19.15     (a) Change the term "commissioner of public service" and 
 19.16  all related terms that refer to the commissioner of public 
 19.17  service to "public utilities commission" wherever it appears in 
 19.18  Minnesota Statutes, sections 13.68; 13.99; 16B.76; 103F.325, 
 19.19  subdivision 2; 116C.03; 123B.65; 174.03; 272.0211; and 446A.21. 
 19.20     (b) Change the term "department of public service" and all 
 19.21  related terms that refer to the department of public service to 
 19.22  "public utilities commission" wherever it appears in Minnesota 
 19.23  Statutes, sections 13.692; 16B.32; 16B.335, subdivision 4; 
 19.24  116O.06; 123B.65; 161.45; 216A.035; 216B.62; 216B.65; 216C.01, 
 19.25  subdivision 3; 237.05, subdivision 2; 237.075; 237.295; 237.51; 
 19.26  237.52; 237.54; 237.55; 237.768; 308A.210; and 469.164. 
 19.27     (c) Change the term "department of public service" to 
 19.28  "department of agriculture" wherever it appears in Minnesota 
 19.29  Statutes, sections 17A.04; 17A.10; 93.38; 239.01; 239.05, 
 19.30  subdivisions 6c, 7a, and 8; 325E.11; 325E.115; and 325F.733. 
 19.31     (d) Strike the term "department of public service" and all 
 19.32  related terms that refer to the department of public service 
 19.33  wherever it appears in Minnesota Statutes, sections 15.01; 
 19.34  17.86, subdivision 3; 216B.02; 216B.16, subdivision 2; 216B.162, 
 19.35  subdivision 7; 216B.1675, subdivision 9; 216B.64; 237.02; 
 19.36  237.59, subdivision 2; 237.662, subdivision 3; and 326.243. 
 20.1      (e) Strike the term "commissioner of public service" and 
 20.2   all related terms that refer to the commissioner of public 
 20.3   service wherever it appears in Minnesota Statutes, sections 
 20.4   15A.0815; 16B.56; 17.86, subdivision 3; 18.024; 115A.15; 
 20.5   216A.036; and 216C.37. 
 20.6      Sec. 18.  [REPEALER.] 
 20.7      Minnesota Statutes 1998, sections 216A.06; 216B.02, 
 20.8   subdivision 8; 237.30; and 237.69, subdivision 3, are repealed. 
 20.9      Sec. 19.  [EFFECTIVE DATE.] 
 20.10     This article is effective June 30, 1999.