1.1 	A bill for an act
1.2 	relating to energy; requiring the Public Utilities Commission to limit generation 
1.3 	of electricity from additional net metering facilities interconnected with 
1.4 	municipal utilities and cooperative electric associations under certain conditions;
1.5 	amending Minnesota Statutes 2014, section 216B.164, subdivision 4b.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2014, section 216B.164, subdivision 4b, is amended to 
1.8 	read:
1.9 		Subd. 4b.Limiting cumulative generation. (a) The commission may limit the 
1.10 	cumulative generation of net metered facilities under subdivisions 3 and 3a. 
1.11 	(b) A public utility may request the commission to limit the cumulative generation of 
1.12 	net metered facilities under subdivisions 3 and 3a upon a showing that such generation has 
1.13 	reached four percent of the public utility's annual retail electricity sales. The commission 
1.14 	may limit additional net metering obligations for a public utility under this subdivision only 
1.15 	after providing notice and opportunity for public comment. In determining whether to limit 
1.16 	additional net metering obligations under this subdivision, the commission shall consider:
1.17 	(1) the environmental and other public policy benefits of net metered facilities;
1.18 	(2) the impact of net metered facilities on electricity rates for customers without 
1.19 	net metered systems;
1.20 	(3) the effects of net metering on the reliability of the electric system;
1.21 	(4) technical advances or technical concerns; and
1.22 	(5) other statutory obligations imposed on the commission or on a utility.
2.1 	The commission may limit additional net metering obligations under clauses (2) to (4) only 
2.2 	if it determines that additional net metering obligations would cause significant rate impact, 
2.3 	require significant measures to address reliability, or raise significant technical issues.
2.4 	(c) The commission must approve a request by a municipal utility or cooperative 
2.5 	electric association to limit further cumulative generation of net metered facilities under 
2.6 	subdivisions 3 and 3a, provided the utility or association demonstrates that cumulative 
2.7 	generation by net metered facilities has reached two percent or more of the municipal 
2.8 	utility's or cooperative electric association's annual retail electricity sales.

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