STATE OF
MINNESOTA
NINETY-SECOND
SESSION - 2022
_____________________
NINETY-THIRD
DAY
Saint Paul, Minnesota, Thursday, April 21, 2022
The House of Representatives convened at
11:00 a.m. and was called to order by Liz Olson, Speaker pro tempore.
Prayer was offered by Imam Asad Zaman,
Muslim American Society of Minnesota, St. Paul, Minnesota.
The members of the House gave the pledge
of allegiance to the flag of the United States of America.
The roll was called and the following
members were present:
Acomb
Agbaje
Akland
Albright
Anderson
Backer
Bahner
Bahr
Baker
Becker-Finn
Bennett
Berg
Bernardy
Bierman
Bliss
Boe
Boldon
Burkel
Carlson
Christensen
Daniels
Daudt
Davids
Davnie
Demuth
Dettmer
Drazkowski
Ecklund
Edelson
Elkins
Erickson
Feist
Fischer
Franke
Franson
Frazier
Frederick
Freiberg
Garofalo
Gomez
Green
Greenman
Grossell
Gruenhagen
Haley
Hamilton
Hansen, R.
Hanson, J.
Hassan
Hausman
Heinrich
Heintzeman
Her
Hertaus
Hollins
Hornstein
Howard
Huot
Igo
Johnson
Jordan
Jurgens
Keeler
Kiel
Klevorn
Koegel
Kotyza-Witthuhn
Koznick
Kresha
Lee
Liebling
Lillie
Lippert
Lislegard
Long
Lucero
Lueck
Mariani
Marquart
Masin
McDonald
Mekeland
Miller
Moller
Moran
Morrison
Mortensen
Mueller
Munson
Murphy
Nash
Nelson, M.
Nelson, N.
Neu Brindley
Noor
Novotny
O'Driscoll
Olson, B.
Olson, L.
O'Neill
Pelowski
Petersburg
Pierson
Pinto
Poston
Pryor
Quam
Raleigh
Rasmusson
Reyer
Richardson
Robbins
Sandell
Sandstede
Schomacker
Schultz
Scott
Stephenson
Sundin
Swedzinski
Theis
Thompson
Torkelson
Urdahl
Vang
Wazlawik
West
Winkler
Wolgamott
Xiong, J.
Xiong, T.
Youakim
Spk. Hortman
A quorum was present.
Pfarr was excused.
The Chief Clerk proceeded to read the
Journal of the preceding day. There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.
REPORTS OF STANDING COMMITTEES
AND DIVISIONS
Long from the Committee on Climate and Energy Finance and Policy to which was referred:
H. F. No. 3337, A bill for an act relating to utilities; modifying submission dates for certain reports; amending Minnesota Statutes 2020, sections 216B.096, subdivision 11; 237.55.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
APPROPRIATIONS
Section
1. APPROPRIATIONS. |
The sums shown in the columns marked
"Appropriations" are appropriated to the agencies and for the
purposes specified in this article. The
appropriations are from the general fund, or another named fund, and are
available for the fiscal years indicated for each purpose. The figures "2022" and
"2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, or June 30, 2023,
respectively.
|
|
|
APPROPRIATIONS |
|
|
|
|
Available for the Year |
|
|
|
|
Ending June 30 |
|
|
|
|
2022 |
2023 |
Sec. 2. DEPARTMENT
OF COMMERCE |
|
|
|
|
Subdivision
1. Total Appropriation |
|
$-0- |
|
$80,686,000 |
Subd. 2. Energy
Resources |
|
-0-
|
|
80,285,000 |
(a) $4,000,000 in fiscal year 2023 is for
deposit in the solar on public buildings grant program account for the grant
program under Minnesota Statutes, section 216C.377. The appropriation must not be used to provide
grants to public buildings located within the electric service area of the
electric utility subject to Minnesota Statutes, section 116C.779. This is a onetime appropriation and remains
available until December 31, 2025.
(b) $500,000 in fiscal year 2023 is for
transfer to the commissioner of employment and economic development for a grant
to Unidos MN Education Fund and the New Justice Project MN to address
employment and economic disparities for people of color, immigrant communities,
and low-income unemployed or underemployed individuals. The money must be used to support
preapprenticeship and workforce training, career development, worker rights
training, employment placement and entrepreneurship support, related support
services, and the
development
of transferable skills in high-demand fields related to construction, clean
energy, and energy efficiency. Of this
amount, 50 percent is for a grant to Unidos MN Education Fund and 50 percent is
for a grant to the New Justice Project MN.
This is a onetime appropriation and is available until June 30, 2027.
(c) $30,000,000 in fiscal year 2023 is to
provide grants to community action agencies and other agencies to weatherize
residences and to install preweatherization measures in residential buildings
occupied by eligible low-income households, as provided under Minnesota
Statutes, sections 216B.2403, subdivision 5; 216B.241, subdivision 7; and
216C.264. Of this amount:
(1) up to ten percent may be used to
supplement utility spending on preweatherization measures as part of a
low-income conservation program; and
(2) up to ten percent may be used to:
(i) recruit and train energy auditors and
installers of weatherization assistance services; and
(ii) provide financial incentives to
contractors and workers who install weatherization assistance services.
The base in fiscal year 2024 is $15,000,000
and the base in fiscal year 2025 is $15,000,000.
For the purposes of this paragraph:
(A) "low-income conservation
program" means a utility program that offers energy conservation services
to low-income households as part of the utility's energy conservation and
optimization plan under Minnesota Statutes, sections 216B.2403, subdivision 5,
and 216B.241, subdivision 7;
(B) "preweatherization measure"
has the meaning given in Minnesota Statutes, section 216B.2402, subdivision 20;
(C) "weatherization assistance
program" means the federal program described in Code of Federal
Regulations, title 10, part 440 et seq., designed to assist low-income
households to cost‑effectively reduce energy use; and
(D) "weatherization assistance
services" means the energy conservation measures installed in households
under the weatherization assistance program and under low-income conservation
programs.
(d) $2,276,000 in fiscal year 2023 is for
residential electric panel upgrade grants under Minnesota Statutes, section
216C.45, and to pay the reasonable costs incurred by the department to
administer Minnesota Statutes, section 216C.45.
This is a onetime appropriation and is available until June 30, 2025.
(e) $1,000,000 the first year
is for transfer to the Board of Regents of the University of Minnesota for a
program in the University of Minnesota Extension Service that enhances the
capacity of the state's agricultural sector, land and resource managers, and
communities to plan for and adapt to weather extremes like droughts and floods. This appropriation must be used to support
existing extension service staff members and to hire additional staff members
for a program with broad geographic reach throughout the state. The program must:
(1) identify, develop, implement, and
evaluate educational programs that increase the capacity of Minnesota's
agricultural sector, land and resource managers, and communities to adapt and
be prepared for projected physical changes in temperature, precipitation, and
other weather parameters that affect crops, lands, horticulture, pests, and
wildlife in ways that present challenges to Minnesota's agricultural sector and
the communities that depend on Minnesota's agricultural sector; and
(2) communicate and interpret the latest
research on critical weather trends and the science behind critical weather
trends to further prepare extension service staff throughout Minnesota to
educate the agricultural sector, land and resource managers, and community
members at the local level regarding technical information on water resource
management, agriculture and forestry, engineering and infrastructure design,
and emergency management that is necessary to develop strategies to mitigate
the effects of extreme weather change.
(f) $300,000 in fiscal year 2023 is for
transfer to the commissioner of the Pollution Control Agency for a report
describing potential strategies to reduce statewide greenhouse gas emissions in
order to comply with the state's greenhouse gas emissions reductions goals
established in Minnesota Statutes, section 216H.02, subdivision 1, and the 2030
emissions reduction goal established by the United States under the United
Nations Framework Convention on Climate Change, also known as the Paris
Agreement. This is a onetime
appropriation.
(g) $600,000 in fiscal year 2023 is for
transfer to the commissioner of administration to contract with the Board of
Regents of the University of Minnesota for a grant to the Institute on the
Environment to conduct research examining how projections of future weather
trends may exacerbate conditions, including drought, elevated temperatures, and
flooding, that:
(1) can be integrated into the design and
evaluation of buildings constructed by the state of Minnesota and local units
of government to:
(i) reduce energy costs by deploying cost-effective
energy efficiency measures, innovative construction materials and techniques,
and renewable energy sources; and
(ii) prevent and minimize
damage to buildings caused by extreme weather conditions, including but not
limited to increased frequency of intense precipitation events, tornadoes,
flooding, and elevated temperatures; and
(2) may weaken the ability of natural
systems to mitigate conditions to the point where human intervention in the
form of building or redesigning the scale and operation of infrastructure is
required to address the conditions in order to:
(i) maintain and increase the amount and
quality of food and wood production;
(ii) reduce fire risk on forested land;
(iii) maintain and enhance water quality;
and
(iv) maintain and enhance natural
habitats.
The contract must provide that, no later
than February 1, 2025, the director of the Institute on the Environment or the
director's designee submit a written report to the chairs and ranking minority
members of the legislative committees with primary jurisdiction over
environment policy and capital investment that summarizes the findings and
recommendations of the research, including any recommendations for policy
changes or other legislation. This is a
onetime appropriation and is available until December 31, 2024.
(h) $146,000 in fiscal year 2023 is for
transfer to the commissioner of labor and industry to implement new commercial
energy codes under Minnesota Statutes, section 326B.106, subdivision 1. This is a onetime appropriation.
(i) $2,000,000 in fiscal year 2023 is for
transfer to the commissioner of employment and economic development for the
community energy transition grant program under Minnesota Statutes, section
116J.55. This is a onetime appropriation
and is available until expended.
(j) $3,000,000 in fiscal year 2023 is for
transfer to the commissioner of the Pollution Control Agency to award grants to
political subdivisions to encourage the formation of organizations and plans to
reduce contributions to and mitigate the impacts of climate change. This is a onetime appropriation and is
available until December 31, 2023.
(k) $500,000 in fiscal year 2023 is to
award grants to auto dealers to seek certification from electric vehicle
manufacturers to sell electric vehicles.
This is a onetime appropriation and is available until December 31,
2024.
(l) $3,000,000 in fiscal year
2023 is for grants under the solar for schools program established in Minnesota
Statutes, section 216C.375. This is a
onetime appropriation and is available until June 30, 2028.
(m) $10,000,000 in fiscal year 2023 is for
transfer to the state competitiveness account established in Minnesota
Statutes, section 216C.391, to leverage federal formula and competitive funds
for energy-related infrastructure and clean energy investments in Minnesota. This is a onetime appropriation and is
available until June 30, 2034.
(n) $5,000,000 in fiscal year 2023 is for
grants from the energy alley start-up fund established in Minnesota Statutes,
section 216C.46, to businesses developing decarbonization technologies. This is a onetime appropriation and is
available until December 31, 2024.
(o) $500,000 in fiscal year 2023 is to
install a network of electric vehicle charging stations in public parking
facilities in county government centers.
This is a onetime appropriation and is available until December 31,
2024.
(p) $4,100,000 in fiscal year 2023 is to
the commissioner of natural resources to install electric vehicle charging
stations in public parking facilities located in state and regional parks. This is a onetime appropriation and is
available until December 31, 2024.
(q) Notwithstanding any other law to the
contrary, including any law prohibiting the servicing of vehicles or the
conduct of private business on the right-of-way of a trunk highway, $2,100,000
in fiscal year 2023 is to the commissioner of transportation to install
electric vehicle charging stations at highway safety rest areas. The charging stations may be free or fee-based. This is a onetime appropriation and is
available until December 31, 2024.
(r) $133,000 in fiscal year 2023 is to the
commissioner of labor and industry to modify the State Building Code to address
needs for electric vehicle charging in parking facilities in new commercial and
multifamily buildings that provide on-site parking. This is a onetime appropriation and is
available until December 31, 2023.
(s) $531,000 in fiscal year 2023 is to
develop an energy benchmarking program under which building owners report
certain types of buildings' annual energy use under Minnesota Statutes, section
216C.331. This is a onetime
appropriation and is available until December 31, 2023.
(t) $314,000 in fiscal year
2023 is to the commissioner of administration to staff a Buy Clean Task Force
to advise the commissioner on developing environmental standards for the
state's procurement of certain building materials. This is a onetime appropriation and is
available until June 30, 2024.
(u) $109,000 in fiscal year 2023 is for
participation in customer disputes before the Public Utilities Commission under
the consumer dispute process established under Minnesota Statutes, section
216B.172.
(v) $35,000 in fiscal year 2023 is to
participate in the intervenor compensation process under Minnesota Statutes,
section 216B.631.
(w) $10,000,000 the first year is for a
grant to the Minnesota Innovation Finance Authority for organizational start-up
costs and for the purposes of Minnesota Statutes, section 216C.441. The commissioner of commerce is the fiscal
agent for the grant and must establish reporting requirements with respect to
the authority's activities and expenditures.
This is a onetime appropriation and is available until December 31,
2024.
(x) $141,000 in fiscal year 2023 is for
participation in proceedings of the Minnesota Public Utilities Commission
regarding energy storage systems under Minnesota Statutes, sections 216B.1616
and 216C.378.
Sec. 3. PUBLIC
UTILITIES COMMISSION |
|
$-0- |
|
$401,000 |
(a) $234,000 in fiscal year 2023 is to
administer the customer dispute process established in Minnesota Statutes,
section 216B.172. The base for this
appropriation in fiscal year 2024 and thereafter is $228,000.
(b) $32,000 in fiscal year 2023 is to
administer the intervenor compensation process under Minnesota Statutes,
section 216B.631.
(c) $135,000 in fiscal year 2023 is for
commission proceedings regarding energy storage systems under Minnesota
Statutes, sections 216B.1616 and 216C.378.
ARTICLE 2
RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS
Section
1. APPROPRIATIONS. |
(a) The sums shown in the columns marked
"Appropriations" are appropriated to the agencies and for the
purposes specified in this article. Notwithstanding
Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), the
appropriations are from the renewable development account in the special
revenue fund established in Minnesota Statutes, section 116C.779, subdivision
1, and are available for the fiscal years indicated for each purpose. The figures "2022" and
"2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, or June 30, 2023,
respectively.
(b) If an appropriation in
this article is enacted more than once in the 2022 regular or special
legislative session, the appropriation must be given effect only once.
|
|
|
APPROPRIATIONS |
|
|
|
|
Available for the Year |
|
|
|
|
Ending June 30 |
|
|
|
|
2022 |
2023 |
Sec. 2. DEPARTMENT
OF COMMERCE |
|
$-0- |
|
$40,221,000 |
(a) $5,000,000 in fiscal year 2023 is to
operate the grants for renewable integration and demonstration program under
Minnesota Statutes, section 216C.47, to award grants to businesses to develop decarbonization
technologies for commercialization.
(b) $1,000,000 in fiscal year 2023 is to
implement a program that awards grants to upgrade electrical panels in
single-family and multifamily residences under Minnesota Statutes, section
216C.45. This is a onetime appropriation
and is available until June 30, 2025.
(c) $3,000,000 in fiscal year 2023 is for
the Metropolitan Council to purchase buses that operate solely on electric
propulsion provided by electric motors and rechargeable on-board batteries. This is a onetime appropriation and is
available until June 30, 2023.
(d) $1,000,000 in fiscal year 2023 is for
deposit in a contingency fund for disbursement to the owner of a solar energy
generating system installed on land on the former Ford Motor Company in St. Paul
known as Area C. Disbursement under this
paragraph must occur only if the Pollution Control Agency requires actions to
be taken to remediate contaminated land at the site that requires the solar
energy generating system to be removed while remediation takes place, as
provided in Minnesota Statutes, section 116C.7793. The base in fiscal year 2024 is $1,000,000. The base in fiscal year 2025 is $1,000,000.
(e) $6,500,000 in fiscal year 2023 is for
a grant to the Independent School District No. 11, Anoka-Hennepin, to
construct a geothermal energy system at the Sorteberg Early Childhood Center
that uses the constant temperature of the earth, in conjunction with a heat
pump, new HVAC system, and new boilers, to provide space heating and cooling to
the building. This is a onetime
appropriation and is available until December 31, 2027.
(f) The base for fiscal year 2024 is
$531,000 to implement an energy benchmarking program under which building
owners report certain types of buildings' annual energy use under Minnesota
Statutes, section 216C.331. The base in
fiscal year 2025 and thereafter is $431,000.
(g) $500,000 in fiscal year
2023 is to install a network of electric vehicle charging stations in public
parking facilities located in county government centers. This is a onetime appropriation and is
available until June 30, 2024.
(h) $5,000,000 in fiscal year 2023 is to be
withheld by the public utility subject to Minnesota Statutes, section 116C.779,
from deposit in the renewable development account, as provided in Minnesota
Statutes, section 116C.7792, for a financial incentive to install solar energy
generating systems under Minnesota Statutes, section 116C.7792. The amount to be withheld for this purpose in
fiscal year 2024 is $5,000,000 and in fiscal year 2025 is $10,000,000.
(i) $4,000,000 in fiscal year 2023 is for a
financial incentive for the installation of energy storage systems under
Minnesota Statutes, section 116C.7792.
(j) $4,000,000 in fiscal year 2023 is for
the solar on public buildings grant program described under Minnesota Statutes,
section 216C.377. The appropriation must
be used to provide grants to public buildings located within the electric
service area of the electric utility subject to Minnesota Statutes, section
116C.779. The base in fiscal year 2024
and thereafter is $2,000,000.
(k) $10,000,000 in fiscal year 2023 is for
transfer to the state competitiveness account established in Minnesota
Statutes, section 216C.391, to leverage federal formula and competitive funds
for energy-related infrastructure and clean energy investments in Minnesota. This appropriation must be used to obtain
federal funds that benefit Minnesota ratepayers receiving electric service from
the utility that owns a nuclear-powered electric generating plant in Minnesota,
the Prairie Island Indian community, or Prairie Island Indian community members. This is a onetime appropriation and is
available until June 30, 2034.
(l) $221,000 in fiscal year 2023 is for
participation in proceedings of the Minnesota Public Utilities Commission
regarding energy storage systems under Minnesota Statutes, sections 216B.1616
and 216C.378.
ARTICLE 3
ENERGY CONSERVATION
Section 1. Minnesota Statutes 2020, section 216C.264, is amended by adding a subdivision to read:
Subd. 1a. State
supplementary weatherization grants account. (a) A state supplementary
weatherization grants account is established as a separate account in the
special revenue fund in the state treasury.
The commissioner must credit appropriations and transfers to the account. Earnings, such as interest, dividends, and
any other earnings arising from assets of the account, must be credited to the
account. Money remaining in the account
at the end of a fiscal year does not cancel to the general fund, but remains in
the account until expended. The
commissioner must manage the account.
(b) Money in the account is
appropriated to the commissioner for the purposes of subdivision 5.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2020, section 216C.264, subdivision 5, is amended to read:
Subd. 5. Grant
allocation. (a) The
commissioner must distribute supplementary state grants in a manner consistent
with the goal of producing the maximum number of weatherized units. Supplementary state grants are provided
primarily for the payment of may be used for the following purposes:
(1) to address physical deficiencies in
a residence that increase heat loss, including deficiencies that prohibit the
residence from being eligible to receive federal weatherization assistance;
(2) to install preweatherization
measures, as defined in section 216B.2402, subdivision 20, established by the
commissioner under section 216B.241, subdivision 7, paragraph (g);
(3) to increase the number of
weatherized residences;
(4) to conduct outreach activities to
make income-eligible households aware of the weatherization services available
to income-eligible households, to assist applicants to fill out applications
for weatherization assistance, and to provide translation services where
necessary;
(5) to enable projects in multifamily
buildings to proceed even if projects cannot comply with the federal
requirement that projects must be completed within the same federal fiscal year
in which the project begins;
(6) to address shortages of workers
trained to provide weatherization services, including expanding training
opportunities in existing and new training programs;
(7) to support the operation of the
weatherization training program under section 216C.2641;
(8) to pay additional labor costs
for the federal weatherization program,; and
(9) as an incentive for the increased production of weatherized units.
(b) Criteria for the allocation of state grants to local agencies include existing local agency production levels, emergency needs, and the potential for maintaining or increasing acceptable levels of production in the area.
(c) An eligible local agency may receive advance funding for 90 days' production, but thereafter must receive grants solely on the basis of program criteria.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. [216C.2641]
WEATHERIZATION TRAINING GRANT PROGRAM.
Subdivision 1. Establishment. The commissioner of commerce must
establish a weatherization training grant program to award grants to train
workers for careers in the weatherization industry.
Subd. 2. Grants. (a) The commissioner must award grants
through a competitive grant process.
(b) An eligible entity under paragraph
(c) seeking a grant under this section must submit a written application to the
commissioner, using a form developed by the commissioner.
(c) Grants may be awarded
under this section only to:
(1) a nonprofit organization exempt
from taxation under section 501(c)(3) of the United States Internal Revenue
Code;
(2) a labor organization, as defined in
section 179.01, subdivision 6; or
(3) a job training center or
educational institution that the commissioner of commerce determines has the
ability to train workers for weatherization careers.
(d) Grant funds must be used to pay
costs associated with training workers for careers in the weatherization
industry, including related supplies, materials, instruction, and
infrastructure.
(e) When awarding grants under this
section, the commissioner must give priority to applications that provide the
highest quality training to prepare trainees for weatherization employment
opportunities that meet technical standards and certifications developed by the
Building Performance Institute, Inc. or the Standard Work Specifications
developed by the United States Department of Energy for the federal Weatherization
Assistance Program.
Subd. 3. Reports. By January 15, 2024, and each January
15 thereafter, the commissioner must submit a report to the chairs and ranking
minority members of the senate and house of representatives committees with
jurisdiction over energy policy that details the use of grant funds under this
section, including data on the number of trainees trained and the career
progress of trainees supported by prior grants.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. [216C.331]
ENERGY BENCHMARKING.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Benchmark" means to
electronically input into a benchmarking tool the total energy use data and
other descriptive information about a building that is required by a
benchmarking tool.
(c) "Benchmarking
information" means data related to a building's energy use generated by a
benchmarking tool and other information about the building's physical and
operational characteristics. Benchmarking
information includes but is not limited to the building's:
(1) address;
(2) owner and, if applicable, the
building manager responsible for operating the building's physical systems;
(3) total floor area, expressed in
square feet;
(4) energy use intensity;
(5) greenhouse gas emissions; and
(6) energy performance score comparing
the building's energy use with that of similar buildings.
(d) "Benchmarking tool" means
the United States Environmental Protection Agency's Energy Star Portfolio
Manager tool or an equivalent tool determined by the commissioner.
(e) "Covered
property" means a building whose total floor area is equal to or greater
than 50,000 square feet. Covered
property does not include:
(1) a residential property containing
fewer than five dwelling units;
(2) a property classified as mining or
manufacturing under the North American Industrial Classification System
(NAICS); or
(3) other property types that do not
meet the purposes of this section, as determined by the commissioner.
(f) "Energy" means
electricity, natural gas, steam, or another product used to (1) provide
heating, cooling, lighting, or water heating, or (2) power other end uses in a
building.
(g) "Energy audit" has the
meaning given in section 216C.435, subdivision 4.
(h)
"Energy intensity" means the total annual energy consumed in a
building divided by the building's total floor area.
(i) "Energy performance
score" means a numerical value from one to 100 that the Energy Star
Portfolio Manager tool calculates to rate a building's energy efficiency
against that of comparable buildings nationwide.
(j) "Energy Star Portfolio
Manager" means an interactive resource management tool developed by the
United States Environmental Protection Agency that (1) enables the periodic
entry of a building's energy use data and other descriptive information about a
building, and (2) rates a building's energy efficiency against that of
comparable buildings nationwide.
(k) "Financial distress"
means a covered property that, at the time benchmarking is conducted:
(1) is the subject of a qualified tax
lien sale or public auction due to property tax arrearages;
(2) is controlled by a court-appointed
receiver based on financial distress;
(3) is owned by a financial institution
through default by the borrower;
(4) has been acquired by deed in lieu
of foreclosure; or
(5) has a senior mortgage that is
subject to a notice of default.
(l) "Owner" means (1) an
individual or entity that possesses title to a covered property, or (2) an
agent authorized to act on behalf of the covered property owner.
(m) "Total floor area" means
the sum of gross square footage inside a building's envelope, measured between
the outside exterior walls of the building.
Total floor area includes covered parking structures.
Subd. 2. Establishment. A building energy benchmarking program
is established in the department. The
purpose of the program is to:
(1) make a building's owners, tenants,
and potential tenants aware of (i) the building's energy consumption levels and
patterns, and (ii) how the building's energy use compares with that of similar
buildings nationwide; and
(2) enhance the likelihood that owners
adopt energy conservation measures in the owners' buildings as a way to reduce
energy use, operating costs, and greenhouse gas emissions.
Subd. 3. Classification
of covered properties. For
the purposes of this section, a covered property is classified as follows:
Class
|
Total Floor Area (sq. ft.) |
1
|
150,000 or more |
2
|
100,000 to 149,999 |
3
|
75,000 to 99,999 |
4
|
50,000 to 74,999 |
Subd. 4. Benchmarking
requirement. (a) In
conformity with the schedule in subdivision 6, an owner must annually benchmark
all covered property owned as of December 31 during the previous calendar year. Energy use data must be compiled by:
(1) obtaining the data from the utility
providing the energy; or
(2) reading a master meter.
(b) Before entering information in a benchmarking
tool, an owner must run all automated data quality assurance functions
available within the benchmarking tool and must correct all missing or
incorrect data identified.
(c) An owner who becomes aware that any
information entered into a benchmarking tool is inaccurate or incomplete must
amend the information in the benchmarking tool within 30 days of the date the
owner learned of the inaccuracy.
Subd. 5. Exemption. (a) The commissioner may exempt an
owner from the requirements of subdivision 4 for a covered property if the
owner provides evidence satisfying the commissioner that the covered property:
(1) is presently experiencing financial
distress;
(2) has been less than 50 percent
occupied during the previous calendar year;
(3) does not have a certificate of
occupancy or temporary certificate of occupancy for the full previous calendar
year;
(4) was issued a demolition permit
during the previous calendar year that remains current;
(5) received no energy services for at
least 30 days during the previous calendar year; or
(6) is participating in a benchmarking
program operated by a city or other political subdivision that the commissioner
determines is equivalent to the benchmarking program established in this
section.
(b) An exemption granted under this
subdivision applies only to a single calendar year. An owner must reapply to the commissioner
each year an extension is sought.
(c) Within 30 days of the date an owner
makes a request under this paragraph, each tenant of a covered property subject
to this section must provide the owner with any information regarding energy
use of the tenant's rental unit that the property owner cannot otherwise obtain
and that is needed by the owner to comply with this section. The tenant must provide the information
required under this paragraph in a format approved by the commissioner.
Subd. 6. Benchmarking
schedule. An owner must
annually benchmark each covered property for the previous calendar year
according to the following schedule:
(1) all Class 1 properties by June 1,
2023, and by every June 1 thereafter;
(2) all Class 2 properties by June 1,
2024, and by every June 1 thereafter;
(3) all Class 3 properties by June 1,
2025, and by every June 1 thereafter; and
(4) all Class 4 properties by June 1,
2026, and by every June 1 thereafter.
Subd. 7. Energy
audit. (a) The commissioner
must notify in writing an owner of a building whose energy performance score is
25 or lower or whose calculated energy intensity is among the highest 25
percent compared to similar building types within the building's class, as
determined by the commissioner, that, except as provided in paragraph (c), the
owner is required to contract for an energy audit of the building no later than
one year after the notice is issued, unless the commissioner extends the
deadline.
(b) The commissioner must award a grant
to an owner who completes an energy audit after receiving notice under this
subdivision. The grant amount must be
the lower of $2,000 or 50 percent of the cost of the audit. An owner must not receive more than one grant
under this subdivision.
(c) If a building owner that receives
notice under this subdivision submits evidence to the commissioner's
satisfaction that an energy audit of the building that is the subject of the
notice was conducted within the previous five years, the owner is exempt from
the requirement to conduct an energy audit.
Subd. 8. Data
collection and management. (a)
The commissioner must:
(1) collect benchmarking information
generated by a benchmarking tool and other related information for each covered
property;
(2) provide technical assistance to
owners entering data into a benchmarking tool; and
(3) collaborate with utilities
regarding the provision of energy use information to owners and tenants to
enable owners to comply with this section.
(b) A utility must comply with a
request from the commissioner to provide to the commissioner or to an owner
energy use information that is needed to effectively operate the energy
benchmarking program.
(c) The commissioner must:
(1) rank benchmarked covered properties
in each property class from highest to lowest performance score, or, if a
performance score is unavailable for a covered property, from lowest to highest
energy use intensity;
(2)
divide covered properties in each property class into four quartiles based on
the applicable measure in clause (1);
(3) assign four stars to each covered
property in the quartile of each property class with the highest performance
scores or lowest energy use intensities, as applicable;
(4) assign three stars to each covered
property in the quartile of each property class with the second highest
performance scores or second lowest energy use intensities, as applicable;
(5) assign two stars to each
covered property in the quartile of each property class with the third highest
performance scores or third lowest energy use intensities, as applicable;
(6) assign one star to each covered
property in the quartile of each property class with the lowest performance
scores or highest energy use intensities, as applicable; and
(7) serve notice in writing to each
owner identifying the number of stars assigned the commissioner to each of the
owner's covered properties.
Subd. 9. Data
disclosure to public. (a) The
commissioner must post on the department's website and update annually the
following information for the previous calendar year:
(1) annual summary statistics on energy
use for all covered properties in Minnesota;
(2) annual summary statistics on energy
use for all covered properties, aggregated by (i) covered property class, as
defined in subdivision 3, (ii) city, and (iii) county;
(3) the percentage of covered properties
in each building class listed in subdivision 3 that are in compliance with the
benchmarking requirements under subdivisions 4 to 6; and
(4) for each covered property, at a
minimum, the total energy use, energy use per square foot of total floor area,
annual greenhouse gas emissions, and an energy performance score, if available.
(b) The commissioner must post the
information required under this subdivision for each class of covered property
beginning one year after the date the initial benchmarking submission is made
by the owner under the schedule in subdivision 6.
Subd. 10. Building
performance disclosure to potential tenants. An owner must, on any application
provided to a potential tenant seeking to rent a unit in a covered property,
include the following language in a 12‑point or larger font on the first page
of the application: "This building
has received a [insert number of stars assigned to the building by the
commissioner under subdivision 8, paragraph (c)] star rating of the building's
energy efficiency from the Minnesota Department of Commerce, where four stars
represents the most energy efficient buildings and one star represents the
least energy efficient buildings."
Subd. 11. Notifications. (a) By March 1 each year, the
commissioner must notify the owner of each covered property required to
benchmark for the previous calendar year of the requirement to benchmark by
June 1 of that year.
(b) By July 15 each year, the
commissioner must notify the owner of each covered property required to
benchmark for the previous calendar year that failed to benchmark that the
owner has 30 days to comply with the benchmarking requirement.
Subd. 12. Program
implementation. The
commissioner may contract with an independent third party to implement any or
all of the duties the commissioner is required to perform under subdivisions 2
to 10.
Subd. 13. Enforcement. If the commissioner determines that an
owner has failed to benchmark in a timely, complete, and accurate fashion as
required under this section, the commissioner may impose on the owner a civil
fine of up to $1,000. Each day that the
owner fails to benchmark to the satisfaction of the commissioner for each
covered property owned by the owner may be deemed a separate offense and the
commissioner may impose a separate civil penalty.
Subd. 14. Rules. The commissioner is authorized to
adopt rules under chapter 14 to implement this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2020, section 326B.106, subdivision 1, is amended to read:
Subdivision 1. Adoption of code. (a) Subject to paragraphs (c) and (d) and sections 326B.101 to 326B.194, the commissioner shall by rule and in consultation with the Construction Codes Advisory Council establish a code of standards for the construction, reconstruction, alteration, and repair of buildings, governing matters of structural materials, design and construction, fire protection, health, sanitation, and safety, including design and construction standards regarding heat loss control, illumination, and climate control. The code must also include duties and responsibilities for code administration, including procedures for administrative action, penalties, and suspension and revocation of certification. The code must conform insofar as practicable to model building codes generally accepted and in use throughout the United States, including a code for building conservation. In the preparation of the code, consideration must be given to the existing statewide specialty codes presently in use in the state. Model codes with necessary modifications and statewide specialty codes may be adopted by reference. The code must be based on the application of scientific principles, approved tests, and professional judgment. To the extent possible, the code must be adopted in terms of desired results instead of the means of achieving those results, avoiding wherever possible the incorporation of specifications of particular methods or materials. To that end the code must encourage the use of new methods and new materials. Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall administer and enforce the provisions of those sections.
(b) The commissioner shall develop rules addressing the plan review fee assessed to similar buildings without significant modifications including provisions for use of building systems as specified in the industrial/modular program specified in section 326B.194. Additional plan review fees associated with similar plans must be based on costs commensurate with the direct and indirect costs of the service.
(c) Beginning with the 2018 edition of the model building codes and every six years thereafter, the commissioner shall review the new model building codes and adopt the model codes as amended for use in Minnesota, within two years of the published edition date. The commissioner may adopt amendments to the building codes prior to the adoption of the new building codes to advance construction methods, technology, or materials, or, where necessary to protect the health, safety, and welfare of the public, or to improve the efficiency or the use of a building.
(d) Notwithstanding paragraph (c), the
commissioner shall act on each new model residential energy code and the new
model commercial energy code in accordance with federal law for which the
United States Department of Energy has issued an affirmative determination in
compliance with United States Code, title 42, section 6833. A municipality may adopt the most recently
published new model commercial energy code ASHRAE 90.1 until a more energy
efficient code is adopted by the commissioner.
A municipality may not amend or otherwise change any provisions of the
most recent ASHRAE 90.1 standard, except that a municipality is required to
adopt amendments to the previous version of ASHRAE 90.1 in the current
commercial energy code adopted by the commissioner. The commissioner may adopt amendments prior
to adoption of the new energy codes, as amended for use in Minnesota, to
advance construction methods, technology, or materials, or, where necessary to
protect the health, safety, and welfare of the public, or to improve the
efficiency or use of a building. The
commissioner of commerce may include energy code support measures in the
technical guidance developed under section 216B.241, subdivision 1d.
ARTICLE 4
COMMISSION PROCEEDINGS
Section 1. Minnesota Statutes 2020, section 216B.17, subdivision 1, is amended to read:
Subdivision 1. Investigation. On its the commission's own
motion or upon a complaint made against any public utility, by the
governing body of any political subdivision, by another public utility, by the
department, or by any 50 consumers of the a particular
utility, or by a complainant under section 216B.172 that any of the
rates, tolls, tariffs, charges, or schedules or any joint rate or any
regulation, measurement, practice, act, or omission affecting or
relating to the production, transmission, delivery, or furnishing of natural gas or electricity or any service in connection therewith is in any respect unreasonable, insufficient, or unjustly discriminatory, or that any service is inadequate or cannot be obtained, the commission shall proceed, with notice, to make such investigation as it may deem necessary. The commission may dismiss any complaint without a hearing if in its opinion a hearing is not in the public interest.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to any complaint filed
with the commission on or after that date.
Sec. 2. [216B.172]
CONSUMER DISPUTES.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Appeal" means a request
filed with the commission by a complainant to review and make a final decision
regarding the resolution of the complainant's complaint by the consumer affairs
office.
(c) "Complainant" means an
individual residential customer of a public utility who has filed a complaint
with the consumer affairs office.
(d) "Complaint" means an
allegation submitted to the consumer affairs office by a complainant that a
public utility's action or practice regarding billing or terms and conditions
of service:
(1) violates a statute, rule, tariff,
service contract, or other provision of law;
(2) is unreasonable; or
(3) has harmed or, if not addressed,
will harm a complainant.
Complaint does not include an objection to or a request to
modify a natural gas or electricity rate contained in a tariff that has been
approved by the commission. A complaint
under this section is an informal complaint under Minnesota Rules, chapter
7829.
(e) "Consumer affairs office"
means the staff unit of the commission that is organized to receive and respond
to complaints.
(f) "Informal proceeding" has
the meaning given in Minnesota Rules, part 7829.0100, subpart 8.
(g) "Public assistance" has
the meaning given in section 550.37, subdivision 14.
(h) "Public utility" has the
meaning given in section 216B.02, subdivision 4.
Subd. 2. Complaint
resolution procedure. A
complainant must first attempt to resolve a dispute with a public utility by
filing a complaint with the consumer affairs office. The consumer affairs office must (1) notify
the complainant of the resolution of the complaint, (2) provide written notice
of the complainant's right to appeal the resolution to the commission, and (3)
provide steps the complainant may take to appeal the resolution. Upon request, the consumer affairs office
must provide to the complainant a written notice containing the substance of
and basis for the resolution.
Subd. 3. Appeal;
final commission decision. (a)
If a complainant is not satisfied with the resolution of a complaint by the
consumer affairs office, the complainant may file an appeal with the commission
requesting the commission to make a final decision on the complaint. The commission's response to an appeal filed
under this subdivision must comply with the notice requirements under section
216B.17, subdivisions 2 to 5.
(b) Upon the commission's
receipt of an appeal filed under paragraph (a), the chair of the commission or
a subcommittee delegated under section 216A.03, subdivision 8, to review the
resolution of the complaint must decide whether the complaint should be:
(1) dismissed because there is no
reasonable basis on which to proceed;
(2) resolved through an informal
commission proceeding; or
(3) referred to the Office of
Administrative Hearings for a contested case proceeding under chapter 14.
A decision made under this paragraph must be provided in
writing to the complainant and the public utility.
(c) If the commission decides that the
complaint should be resolved through an informal commission proceeding or
referred to the Office of Administrative Hearings for a contested case
proceeding, the executive secretary must issue
a procedural schedule and any notices or orders required to initiate a
contested case proceeding under chapter 14.
(d) The commission's dismissal of an
appeal request or a decision rendered after conducting an informal proceeding
is a final decision constituting an order or determination of the commission.
Subd. 4. Judicial
review. Notwithstanding
section 216B.27, a complainant may seek judicial review in district court of an
adverse final decision under subdivision 3, paragraph (b), clause (1) or (2). Judicial review of the commission's decision
in a contested case referred under subdivision 3, paragraph (b), clause (3), is
governed by chapter 14.
Subd. 5. Right
to service during pendency of dispute.
A public utility must continue or promptly restore service to a
complainant during the pendency of an administrative or judicial procedure
pursued by a complainant under this section, provided that the complainant:
(1) agrees to enter into a payment
agreement under section 216B.098, subdivision 3;
(2) posts the full disputed payment in
escrow;
(3) demonstrates receipt of public
assistance or eligibility for legal aid services; or
(4) demonstrates the complainant's
household income is at or below 50 percent of state median income.
Subd. 6. Rulemaking
authority. The commission may
adopt rules to carry out the purposes of this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to any complaint filed
with the commission on or after that date.
Sec. 3. Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision to read:
Subd. 8. Transmission
planning in advance of generation retirement. A utility must identify in a resource
plan each nonrenewable energy facility on the utility's system that has a
depreciation term, probable service life, or operating license term that ends
within 15 years of the resource plan filing date. For each nonrenewable energy facility identified,
the utility must include in the resource plan an initial plan to: (1) replace the nonrenewable energy facility;
and (2) upgrade any transmission or other grid capabilities needed to support
the retirement of that nonrenewable energy facility.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to an integrated
resource plan filed with the commission on or after that date.
Sec. 4. [216B.491]
DEFINITIONS.
Subdivision 1. Scope. For the purposes of sections 216B.491
to 216B.499, the terms defined in this subdivision have the meanings given.
Subd. 2. Ancillary
agreement. "Ancillary
agreement" means any bond, insurance policy, letter of credit, reserve
account, surety bond, interest rate lock or swap arrangement, liquidity or
credit support arrangement, or other financial arrangement entered into in
connection with extraordinary event bonds that is designed to promote the
credit quality and marketability of extraordinary event bonds or to mitigate
the risk of an increase in interest rates.
Subd. 3. Assignee. "Assignee" means any person
to which an interest in extraordinary event property is sold, assigned,
transferred, or conveyed, other than as security, and any successor to or
subsequent assignee of the person.
Subd. 4. Bondholder. "Bondholder" means any
holder or owner of extraordinary event bonds.
Subd. 5. Customer. "Customer" means a person
who takes natural gas service from a natural gas utility for consumption of
natural gas in Minnesota.
Subd. 6. Extraordinary
event. (a)
"Extraordinary event" means an event arising from unforeseen
circumstances and of sufficient magnitude, as determined by the commission:
(1) to impose significant costs on
customers; and
(2) for which the issuance of
extraordinary event bonds in response to the event meets the conditions of
section 216B.492, subdivision 2, as determined by the commission.
(b) Extraordinary event includes but is
not limited to a storm event or other natural disaster, an act of God, war,
terrorism, sabotage or vandalism, a cybersecurity attack, or a temporary
significant increase in the wholesale price of natural gas.
Subd. 7. Extraordinary
event activity. "Extraordinary
event activity" means an activity undertaken by or on behalf of a utility
to restore or maintain the utility's ability to provide natural gas service
following one or more extraordinary events, including but not limited to
activities related to mobilization, staging, construction, reconstruction,
replacement, or repair of natural gas transmission, distribution, storage, or
general facilities.
Subd. 8. Extraordinary
event bonds. "Extraordinary
event bonds" means low-cost corporate securities, including but not
limited to senior secured bonds, debentures, notes, certificates of
participation, certificates of beneficial interest, certificates of ownership,
or other evidences of indebtedness or ownership that have a scheduled maturity
of no longer than 30 years and a final legal maturity date that is not later
than 32 years from the issue date, that are rated AA or Aa2 or better by a
major independent credit rating agency at the time of issuance, and that are
issued by a utility or an assignee under a financing order.
Subd. 9. Extraordinary
event charge. "Extraordinary
event charge" means a nonbypassable charge that:
(1) is imposed on all customer bills by
a utility that is the subject of a financing order or the utility's successors
or assignees;
(2) is separate from the utility's base
rates; and
(3) provides a source of revenue solely
to repay, finance, or refinance extraordinary event costs.
Subd. 10. Extraordinary
event costs. "Extraordinary
event costs":
(1) means all incremental costs of
extraordinary event activities that are approved by the commission in a
financing order issued under section 216B.492 as being:
(i) necessary to enable the utility to
restore or maintain natural gas service to customers after the utility
experiences an extraordinary event; and
(ii) prudent and reasonable;
(2) includes costs to repurchase equity
or retire any indebtedness relating to extraordinary event activities;
(3) shall be net of applicable insurance
proceeds, tax benefits, and any other amounts intended to reimburse the utility
for extraordinary event activities, including government grants or aid of any
kind;
(4) do not include any monetary penalty,
fine, or forfeiture assessed against a utility by a government agency or court
under a federal or state environmental statute, rule, or regulation; and
(5) must be adjusted to reflect:
(i) the difference, as determined by the
commission, between extraordinary event costs that the utility expects to incur
and actual, reasonable, and prudent costs incurred; or
(ii) a more fair or reasonable
allocation of extraordinary event costs to customers over time, as expressed in
a commission order.
Subd. 11. Extraordinary
event property. "Extraordinary
event property" means:
(1) all rights and interests of a utility
or the utility's successor or assignee under a financing order for the right to
impose, bill, collect, receive, and obtain periodic adjustments to
extraordinary event charges authorized under a financing order issued by the
commission; and
(2) all revenue, collections, claims,
rights to payments, payments, money, or proceeds arising from the rights and
interests specified in clause (1), regardless of whether any are commingled
with other revenue, collections, rights to payment, payments, money, or
proceeds.
Subd. 12. Extraordinary
event revenue. "Extraordinary
event revenue" means revenue, receipts, collections, payments, money,
claims, or other proceeds arising from extraordinary event property.
Subd. 13. Financing
costs. "Financing
costs" means:
(1) principal, interest, and redemption
premiums that are payable on extraordinary event bonds;
(2) payments required under an ancillary
agreement and amounts required to fund or replenish a reserve account or other
accounts established under the terms of any indenture, ancillary agreement, or
other financing document pertaining to the bonds;
(3) other demonstrable costs related to
issuing, supporting, repaying, refunding, and servicing the bonds, including
but not limited to servicing fees, accounting and auditing fees, trustee fees,
legal fees, consulting fees, financial adviser fees, administrative fees,
placement and underwriting fees, capitalized interest, rating agency fees,
stock exchange listing and compliance fees, security registration fees, filing
fees, information technology programming costs, and any other demonstrable
costs necessary to otherwise ensure and guarantee the timely payment of the
bonds or other amounts or charges payable in connection with the bonds;
(4) taxes and license fees
imposed on the revenue generated from collecting an extraordinary event charge;
(5) state and local taxes, including
franchise, sales and use, and other taxes or similar charges, including but not
limited to regulatory assessment fees, whether paid, payable, or accrued; and
(6) costs incurred by the commission to
hire and compensate additional temporary staff needed to perform the
commission's responsibilities under this section and, in accordance with
section 216B.494, to engage specialized counsel and expert consultants
experienced in securitized utility ratepayer-backed bond financing similar to
extraordinary event bonds.
Subd. 14. Financing
order. "Financing
order" means an order issued by the commission under section 216B.492 that
authorizes an applicant to:
(1) issue extraordinary event bonds in
one or more series;
(2) impose, charge, and collect
extraordinary event charges; and
(3) create extraordinary event property.
Subd. 15. Financing
party. "Financing
party" means a holder of extraordinary event bonds and a trustee, a collateral
agent, a party under an ancillary agreement, or any other person acting for the
benefit of extraordinary event bondholders.
Subd. 16. Natural
gas facility. "Natural
gas facility" means natural gas pipelines, including distribution lines,
underground storage areas, liquefied natural gas facilities, propane storage
tanks, and other facilities the commission determines are used and useful to
provide natural gas service to retail and transportation customers in
Minnesota.
Subd. 17. Nonbypassable. "Nonbypassable" means that
the payment of an extraordinary event charge required to repay bonds and
related costs may not be avoided by any retail customer located within a
utility service area.
Subd. 18. Pretax
costs. "Pretax
costs" means costs incurred by a utility and approved by the commission,
including but not limited to:
(1) unrecovered capitalized costs of
replaced natural gas facilities damaged or destroyed by a storm event;
(2) costs to decommission and restore
the site of a natural gas facility damaged or destroyed by an extraordinary
event;
(3) other applicable capital and
operating costs, accrued carrying charges, deferred expenses, reductions for
applicable insurance, and salvage proceeds; and
(4) costs to retire any existing
indebtedness, fees, costs, and expenses to modify existing debt agreements, or
for waivers or consents related to existing debt agreements.
Subd. 19. Storm
event. "Storm
event" means a tornado, derecho, ice or snow storm, flood, earthquake, or
other significant weather or natural disaster that causes substantial damage to
a utility's infrastructure.
Subd. 20. Successor. "Successor" means a legal
entity that succeeds by operation of law to the rights and obligations of
another legal entity as a result of bankruptcy, reorganization, restructuring,
other insolvency proceeding, merger, acquisition, consolidation, or sale or
transfer of assets.
Subd. 21. Utility. "Utility" means a public
utility, as defined in section 216B.02, subdivision 4, that provides natural
gas service to Minnesota customers. Utility
includes the utility's successors or assignees.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. [216B.492]
FINANCING ORDER.
Subdivision 1. Application.
(a) A utility may file an
application with the commission for the issuance of a financing order to enable
the utility to recover extraordinary event costs through the issuance of
extraordinary event bonds under this section.
(b) The application must include the
following information, as applicable:
(1) a description of each natural gas
facility to be repaired or replaced;
(2) the undepreciated value remaining in
the natural gas facility whose repair or replacement is proposed to be financed
through the issuance of bonds under sections 216B.491 to 216B.499, and the
method used to calculate the amount;
(3) the estimated amount of costs
imposed on customers resulting from an extraordinary event that involves no
physical damage to natural gas facilities;
(4) the estimated savings or estimated
mitigation of rate impacts to utility customers if the financing order is
issued as requested in the application, calculated by comparing the costs to
customers that are expected to result from implementing the financing order and
the estimated costs associated with implementing traditional utility financing
mechanisms with respect to the same undepreciated balance, expressed in net
present value terms;
(5) a description of (i) the
nonbypassable extraordinary event charge utility customers would be required to
pay in order to fully recover financing costs, and (ii) the method and
assumptions used to calculate the amount;
(6) a proposed methodology to allocate
the revenue requirement for the extraordinary event charge among the utility's
customer classes;
(7) a description of a proposed
adjustment mechanism to be implemented when necessary to correct any
overcollection or undercollection of extraordinary event charges, in order to
complete payment of scheduled principal and interest on extraordinary event
bonds and other financing costs in a timely fashion;
(8) a memorandum with supporting
exhibits, from a securities firm that is experienced in the marketing of bonds
and that is approved by the commissioner of management and budget, indicating
the proposed issuance satisfies the current published AA or Aa2 or higher
rating or equivalent rating criteria of at least one nationally recognized
securities rating organization for issuances similar to the proposed
extraordinary event bonds;
(9) an estimate of the timing of the
issuance and the term of the extraordinary event bonds, or series of bonds,
provided that the scheduled final maturity for each bond issuance does not
exceed 30 years;
(10) identification of plans to sell,
assign, transfer, or convey, other than as a security, interest in
extraordinary event property, including identification of an assignee, and
demonstration that the assignee is a financing entity wholly owned, directly or
indirectly, by the utility;
(11) identification of ancillary
agreements that may be necessary or appropriate;
(12) one or more alternative financing
scenarios in addition to the preferred scenario contained in the application;
(13) the extent of damage to the utility's
infrastructure caused by an extraordinary event and the estimated costs to
repair or replace the damaged infrastructure;
(14) a schedule of the proposed repairs
to and replacement of damaged infrastructure;
(15) a description of the
steps taken to provide customers interim natural gas service while the damaged
infrastructure is being repaired or replaced; and
(16) a description of the impacts on
the utility's current workforce resulting from implementing an infrastructure
repair or replacement plan following an extraordinary event.
Subd. 2. Findings. After providing notice and holding a
public hearing on an application filed under subdivision 1, the commission may
issue a financing order if the commission finds that:
(1) the extraordinary event costs
described in the application are reasonable;
(2) the proposed issuance of
extraordinary event bonds and the imposition and collection of extraordinary
event charges:
(i) are just and reasonable;
(ii) are consistent with the public
interest;
(iii) constitute a prudent and
reasonable mechanism to finance the extraordinary event costs; and
(iv) provide tangible and quantifiable
benefits to customers that exceed the benefits that would have been achieved
absent the issuance of extraordinary event bonds; and
(3) the proposed structuring,
marketing, and pricing of the extraordinary event bonds:
(i) significantly lower overall costs
to customers or significantly mitigate rate impacts to customers relative to
traditional methods of financing; and
(ii) achieve significant customer
savings or significant mitigation of rate impacts to customers, as determined
by the commission in a financing order, consistent with market conditions at
the time of sale and the terms of the financing order.
Subd. 3. Contents. (a) A financing order issued under
this section must:
(1) determine the maximum amount of
extraordinary event costs that may be financed from proceeds of extraordinary
event bonds issued pursuant to the financing order;
(2) describe the proposed customer
billing mechanism for extraordinary event charges and include a finding that
the mechanism is just and reasonable;
(3) describe the financing costs that
may be recovered through extraordinary event charges and the period over which
the costs may be recovered, which must end no earlier than the date of final
legal maturity of the extraordinary event bonds;
(4) describe the extraordinary event
property that is created and that may be used to pay, and secure the payment
of, the extraordinary event bonds and financing costs authorized in the
financing order;
(5) authorize the utility to finance
extraordinary event costs through the issuance of one or more series of
extraordinary event bonds. A utility is
not required to secure a separate financing order for each issuance of
extraordinary event bonds or for each scheduled phase of the replacement of
natural gas facilities approved in the financing order;
(6) include a formula-based
mechanism that must be used to make expeditious periodic adjustments to the
extraordinary event charge authorized by the financing order that are necessary
to correct for any overcollection or undercollection, or to otherwise guarantee
the timely payment of extraordinary event bonds, financing costs, and other
required amounts and charges payable in connection with extraordinary event
bonds;
(7) specify the degree of flexibility
afforded to the utility in establishing the terms and conditions of the
extraordinary event bonds, including but not limited to repayment schedules,
expected interest rates, and other financing costs;
(8) specify that the extraordinary
event bonds must be issued as soon as feasible following issuance of the
financing order;
(9) require the utility, at the same
time as extraordinary event charges are initially collected and independent of
the schedule to close and decommission any natural gas facility replaced as the
result of an extraordinary event, to remove the natural gas facility from the
utility's rate base and commensurately reduce the utility's base rates;
(10) specify a future ratemaking
process to reconcile any difference between the projected pretax costs included
in the amount financed by extraordinary event bonds and the final actual pretax
costs incurred by the utility to retire or replace the natural gas facility;
(11) specify information regarding bond
issuance and repayments, financing costs, energy transaction charges,
extraordinary event property, and related matters that the natural gas utility
is required to provide to the commission on a schedule determined by the
commission;
(12) allow and may require the creation
of a utility's extraordinary event property to be conditioned on, and occur
simultaneously with, the sale or other transfer of the extraordinary event
property to an assignee and the pledge of the extraordinary event property to
secure the extraordinary event bonds;
(13) ensure that the structuring,
marketing, and pricing of extraordinary event bonds result in reasonable
securitization bond charges and significant customer savings or rate impact
mitigation, consistent with market conditions and the terms of the financing
order; and
(14) specify that a utility financing
the replacement of one or more natural gas facilities after the natural gas facilities
subject to the finance order are removed from the utility's rate base is
prohibited from:
(i) operating the natural gas
facilities; or
(ii) selling the natural gas facilities
to another entity to be operated as natural gas facilities.
(b) A financing order issued under this
section may:
(1) include conditions different from
those requested in the application that the commission determines are necessary
to:
(i) promote the public interest; and
(ii) maximize the financial benefits or
minimize the financial risks of the transaction to customers and to directly
impacted Minnesota workers and communities; and
(2) specify the selection of one or
more underwriters of the extraordinary event bonds.
Subd. 4. Duration;
irrevocability; subsequent order. (a)
A financing order remains in effect until the extraordinary event bonds issued
under the financing order and all financing costs related to the bonds have
been paid in full.
(b) A financing order remains in effect
and unabated notwithstanding the bankruptcy, reorganization, or insolvency of
the utility to which the financing order applies or any affiliate, successor,
or assignee of the utility to which the financing order applies.
(c) Subject to judicial review under
section 216B.52, a financing order is irrevocable and is not reviewable by a
future commission. The commission may
not reduce, impair, postpone, or terminate extraordinary event charges approved
in a financing order, or impair extraordinary event property or the collection
or recovery of extraordinary event revenue.
(d) Notwithstanding paragraph (c), the
commission may, on the commission's own motion or at the request of a utility
or any other person, commence a proceeding and issue a subsequent financing
order that provides for refinancing, retiring, or refunding extraordinary event
bonds issued under the original financing order if:
(1) the commission makes all of the
findings specified in subdivision 2 with respect to the subsequent financing
order; and
(2) the modification contained in the
subsequent financing order does not in any way impair the covenants and terms
of the extraordinary event bonds being refinanced, retired, or refunded.
Subd. 5. Effect
on commission jurisdiction. (a)
Except as provided in paragraph (b), the commission, in exercising the powers
and carrying out the duties under this section, is prohibited from:
(1) considering extraordinary event
bonds issued under this section to be debt of the utility other than for income
tax purposes, unless it is necessary to consider the extraordinary event bonds
to be debt in order to achieve consistency with prevailing utility debt rating
methodologies;
(2) considering the extraordinary event
charges paid under the financing order to be revenue of the utility;
(3) considering the extraordinary event
or financing costs specified in the financing order to be the regulated costs
or assets of the utility; or
(4) determining that any prudent action
taken by a utility that is consistent with the financing order is unjust or
unreasonable.
(b) Nothing in this subdivision:
(1) affects the authority of the
commission to apply or modify any billing mechanism designed to recover
extraordinary event charges;
(2) prevents or precludes the
commission from (i) investigating a utility's compliance with the terms and
conditions of a financing order, and (ii) requiring compliance with the
financing order; or
(3) prevents or precludes the
commission from imposing regulatory sanctions against a utility for failure to
comply with the terms and conditions of a financing order or the requirements
of this section.
(c) The commission is
prohibited from refusing to allow a utility to recover any costs associated
with the replacement of natural gas facilities solely because the utility has
elected to finance the natural gas facility replacement through a financing
mechanism other than extraordinary event bonds.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. [216B.493]
POSTORDER COMMISSION DUTIES.
Subdivision 1. Financing
cost review. Within 120 days
after the date extraordinary event bonds are issued, a utility subject to a
financing order must file with the commission the actual initial and ongoing
financing costs, the final structure and pricing of the extraordinary event
bonds, and the actual extraordinary event charge. The commission must review the prudence of
the natural gas utility's actions to determine whether the actual financing
costs were the lowest that could reasonably be achieved given the terms of the
financing order and market conditions prevailing at the time of the bond's
issuance.
Subd. 2. Enforcement. If the commission determines that a
utility's actions under this section are not prudent or are inconsistent with
the financing order, the commission may apply any remedies available, provided
that any remedy applied may not directly or indirectly impair the security for
the extraordinary event bonds.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. [216B.494]
USE OF OUTSIDE EXPERTS.
(a) In carrying out the duties under
this section, the commission may:
(1) contract with outside consultants
and counsel experienced in securitized utility customer-backed bond financing similar
to extraordinary event bonds; and
(2) hire and compensate additional
temporary staff as needed.
Expenses incurred by the commission under this paragraph
must be treated as financing costs and included in the extraordinary event
charge. The costs incurred under clause
(1) are not an obligation of the state and are assigned solely to the
transaction.
(b) A utility presented with a written
request from the commission for reimbursement of the commission's expenses
incurred under paragraph (a), accompanied by a detailed account of those
expenses, must remit full payment of the expenses to the commission within 30
days of receiving the request.
(c) If a utility's application for a
financing order is denied or withdrawn for any reason and extraordinary event
bonds are not issued, the commission's costs to retain expert consultants under
this section must be paid by the applicant utility and are deemed to be prudent
deferred expenses eligible for recovery in the utility's future rates.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. [216B.495]
EXTRAORDINARY EVENT CHARGE; BILLING TREATMENT.
(a) A utility that obtains a financing
order and causes extraordinary event bonds to be issued must:
(1) include on each customer's monthly
natural gas bill:
(i) a statement that a portion of the
charges represents extraordinary event charges approved in a financing order;
(ii) the amount and rate of the
extraordinary event charge as a separate line item titled "extraordinary
event charge"; and
(iii) if extraordinary event
property has been transferred to an assignee, a statement that the assignee is
the owner of the rights to extraordinary event charges and that the utility or
other entity, if applicable, is acting as a collection agent or servicer for
the assignee; and
(2) file annually with the commission:
(i) a calculation of the impact of
financing the retirement or replacement of natural gas facilities on customer
rates, itemized by customer class; and
(ii) evidence demonstrating that
extraordinary event revenues are applied solely to the repayment of
extraordinary event bonds and other financing costs.
(b) Extraordinary event charges are
nonbypassable and must be paid by all existing and future customers receiving
service from the utility or the utility's successors or assignees under
commission-approved rate schedules or special contracts.
(c) A utility's failure to comply with
this section does not invalidate, impair, or affect any financing order,
extraordinary event property, extraordinary event charge, or extraordinary
event bonds, but does subject the utility to penalties under applicable
commission rules.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. [216B.496]
EXTRAORDINARY EVENT PROPERTY.
Subdivision 1. General. (a) Extraordinary event property is an
existing present property right or interest in a property right, even though
the imposition and collection of extraordinary event charges depend on the
utility collecting extraordinary event charges and on future natural gas
consumption. The property right or
interest exists regardless of whether the revenues or proceeds arising from the
extraordinary event property have been billed, have accrued, or have been collected.
(b) Extraordinary event property exists
until all extraordinary event bonds issued under a financing order are paid in
full and all financing costs and other costs of the extraordinary event bonds
have been recovered in full.
(c) All or any portion of extraordinary
event property described in a financing order issued to a utility may be
transferred, sold, conveyed, or assigned to a successor or assignee that is
wholly owned, directly or indirectly, by the utility and is created for the
limited purpose of acquiring, owning, or administering extraordinary event
property or issuing extraordinary event bonds authorized by the financing order. All or any portion of extraordinary event
property may be pledged to secure extraordinary event bonds issued under a
financing order, amounts payable to financing parties and to counterparties
under any ancillary agreements, and other financing costs. Each transfer, sale, conveyance, assignment,
or pledge by a utility or an affiliate of extraordinary event property is a
transaction in the ordinary course of business.
(d) If a utility defaults on any
required payment of charges arising from extraordinary event property described
in a financing order, a court, upon petition by an interested party and without
limiting any other remedies available to the petitioner, must order the
sequestration and payment of the revenues arising from the extraordinary event
property to the financing parties.
(e) The interest of a transferee,
purchaser, acquirer, assignee, or pledgee in extraordinary event property
specified in a financing order issued to a utility, and in the revenue and
collections arising from the property, is not subject to setoff, counterclaim,
surcharge, or defense by the utility or any other person, or in connection with
the reorganization, bankruptcy, or other insolvency of the utility or any other
entity.
(f) A successor to a utility,
whether resulting from a reorganization, bankruptcy, or other insolvency
proceeding; merger or acquisition; sale; other business combination; transfer
by operation of law; utility restructuring; or otherwise, must perform and
satisfy all obligations of, and has the same duties and rights under, a
financing order as the utility to which the financing order applies. A successor to a utility must perform the
duties and exercise the rights in the same manner and to the same extent as the
utility, including collecting and paying to any person entitled to receive
revenues, collections, payments, or proceeds of extraordinary event property.
Subd. 2. Security
interests in extraordinary event property.
(a) The creation, perfection, and enforcement of any security
interest in extraordinary event property to secure the repayment of the
principal and interest on extraordinary event bonds, amounts payable under any
ancillary agreement, and other financing costs are governed solely by this
section.
(b) A security interest in
extraordinary event property is created, valid, and binding when:
(1) the financing order that describes the
extraordinary event property is issued;
(2) a security agreement is executed
and delivered; and
(3) value is received for the
extraordinary event bonds.
(c) Once a security interest in
extraordinary event property is created, the security interest attaches without
any physical delivery of collateral or any other act. The lien of the security interest is valid,
binding, and perfected against all parties having claims of any kind in tort,
contract, or otherwise against the person granting the security interest,
regardless of whether the parties have notice of the lien, upon the filing of a
financing statement with the secretary of state.
(d) The description or indication of
extraordinary event property in a transfer or security agreement and a financing
statement is sufficient only if the description or indication refers to this
section and the financing order creating the extraordinary event property.
(e) A security interest in
extraordinary event property is a continuously perfected security interest and
has priority over any other lien, created by operation of law or otherwise,
which may subsequently attach to the extraordinary event property unless the
holder of the security interest has agreed otherwise in writing.
(f) The priority of a security interest
in extraordinary event property is not affected by the commingling of
extraordinary event property or extraordinary event revenue with other money. An assignee, bondholder, or financing party
has a perfected security interest in the amount of all extraordinary event
property or extraordinary event revenue that is pledged to pay extraordinary
event bonds, even if the extraordinary event property or extraordinary event
revenue is deposited in a cash or deposit account of the utility in which the
extraordinary event revenue is commingled with other money. Any other security interest that applies to
the other money does not apply to the extraordinary event revenue.
(g) Neither a subsequent commission
order amending a financing order under section 216B.492, subdivision 4, nor
application of an adjustment mechanism authorized by a financing order under
section 216B.492, subdivision 3, affects the validity, perfection, or priority
of a security interest in or transfer of extraordinary event property.
(h) A valid and enforceable security
interest in extraordinary event property is perfected only when the security
interest has attached and when a financing order has been filed with the
secretary of state in accordance with procedures established by the secretary
of state. The financing order must name
the pledgor of the extraordinary event property as debtor and identify the
property.
Subd. 3. Sales
of extraordinary event property. (a)
A sale, assignment, or transfer of extraordinary event property is an absolute
transfer and true sale of, and not a pledge of or secured transaction relating
to, the seller's right, title, and interest in, to, and under the extraordinary
event property if the documents governing the transaction expressly state that
the transaction is a sale or other absolute transfer. A transfer of an interest in extraordinary
event property may be created when:
(1) the financing order creating and
describing the extraordinary event property is effective;
(2) the documents evidencing the
transfer of the extraordinary event property are executed and delivered to the
assignee; and
(3) value is received.
(b) A transfer of an interest in
extraordinary event property must be filed with the secretary of state against
all third persons and perfected under sections 336.3-301 to 336.3-312,
including any judicial lien or other lien creditors or any claims of the seller
or creditors of the seller, other than creditors holding a prior security
interest, ownership interest, or assignment
in the extraordinary event property previously perfected under this subdivision
or subdivision 2.
(c) The characterization of a sale,
assignment, or transfer as an absolute transfer and true sale, and the
corresponding characterization of the property interest of the assignee, is not
affected or impaired by:
(1) commingling of extraordinary event
revenue with other money;
(2) the retention by the seller of:
(i) a partial or residual interest,
including an equity interest, in the extraordinary event property, whether
direct or indirect, or whether subordinate or otherwise; or
(ii) the right to recover costs
associated with taxes, franchise fees, or license fees imposed on the
collection of extraordinary event revenue;
(3) any recourse that the purchaser may
have against the seller;
(4) any indemnification rights,
obligations, or repurchase rights made or provided by the seller;
(5) an obligation of the seller to
collect extraordinary event revenues on behalf of an assignee;
(6) the treatment of the sale,
assignment, or transfer for tax, financial reporting, or other purposes;
(7) any subsequent financing order
amending a financing order under section 216B.492, subdivision 4, paragraph
(d); or
(8)
any application of an adjustment mechanism under section 216B.492, subdivision
3, paragraph (a), clause (6).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. [216B.497]
EXTRAORDINARY EVENT BONDS.
(a) Banks, trust companies, savings and
loan associations, insurance companies, executors, administrators, guardians,
trustees, and other fiduciaries may legally invest any money within the
individual's or entity's control in extraordinary event bonds.
(b) Extraordinary event bonds
issued under a financing order are not debt of or a pledge of the faith and
credit or taxing power of the state, any agency of the state, or any political
subdivision. Holders of extraordinary
event bonds may not have taxes levied by the state or a political subdivision
in order to pay the principal or interest on extraordinary event bonds. The issuance of extraordinary event bonds
does not directly, indirectly, or contingently obligate the state or a
political subdivision to levy any tax or make any appropriation to pay principal
or interest on the extraordinary event bonds.
(c) The state pledges to and agrees
with holders of extraordinary event bonds, any assignee, and any financing
parties that the state will not:
(1) take or permit any action that
impairs the value of extraordinary event property; or
(2) reduce, alter, or impair
extraordinary event charges that are imposed, collected, and remitted for the
benefit of holders of extraordinary event bonds, any assignee, and any
financing parties until any principal, interest, and redemption premium payable
on extraordinary event bonds, all financing costs, and all amounts to be paid
to an assignee or financing party under an ancillary agreement are paid in
full.
(d) A person who issues extraordinary
event bonds may include the pledge specified in paragraph (c) in the
extraordinary event bonds, ancillary agreements, and documentation related to
the issuance and marketing of the extraordinary event bonds.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. [216B.498]
ASSIGNEE OF FINANCING PARTY NOT SUBJECT TO COMMISSION REGULATION.
An assignee or financing party that is
not already regulated by the commission does not become subject to commission
regulation solely as a result of engaging in any transaction authorized by or
described in sections 216B.491 to 216B.499.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. [216B.499]
EFFECT ON OTHER LAWS.
(a) If any provision of sections
216B.491 to 216B.499 conflicts with any other law regarding the attachment,
assignment, perfection, effect of perfection, or priority of any security
interest in or transfer of extraordinary event property, sections 216B.491 to
216B.499 govern.
(b) Nothing in this section precludes a
utility for which the commission has initially issued a financing order from
applying to the commission for:
(1) a subsequent financing order
amending the financing order under section 216B.492, subdivision 4, paragraph (d);
or
(2) approval to issue extraordinary
event bonds to refund all or a portion of an outstanding series of
extraordinary event bonds.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. Minnesota Statutes 2020, section 216B.50, subdivision 1, is amended to read:
Subdivision 1. Commission
approval required. No public utility
shall sell, acquire, lease, or rent any plant as an operating unit or system in
this state for a total consideration in excess of $100,000 $1,000,000,
or merge or consolidate with another public utility or transmission company
operating in this state, without first being authorized so to do by the
commission. Upon the filing of an
application for the approval and consent of the commission, the commission
shall investigate, with or without public hearing. The commission shall hold a public hearing,
upon such notice as the commission may require.
If the commission finds that the proposed action is consistent with the
public interest, it shall give its consent and approval by order in writing. In reaching its determination, the commission
shall take into consideration the reasonable value of the property, plant, or
securities to be acquired or disposed of, or merged and consolidated.
This section does not apply to the purchase of property to replace or add to the plant of the public utility by construction.
Sec. 14. [216B.631]
COMPENSATION FOR PARTICIPANTS IN PROCEEDINGS.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Participant" means a
person who:
(1) meets the requirements of
subdivision 2;
(2) either (i) files comments or appears
in a commission proceeding concerning one or more public utilities, excluding
public hearings held in contested cases and commission proceedings conducted to
receive general public comments; or (ii) is permitted by the commission to
intervene in a commission proceeding concerning one or more public utilities;
and
(3) files a request for compensation
under this section.
(c) "Party" means a person who
files comments or appears in a commission proceeding, other than public
hearings, concerning one or more public utilities.
(d) "Proceeding" means an
undertaking of the commission in which the commission seeks to resolve an issue
affecting one or more public utilities and which results in a commission order.
(e) "Public utility" has the
meaning given in section 216B.02, subdivision 4.
Subd. 2. Participants;
eligibility. The following
participants are eligible to receive compensation under this section:
(1) a nonprofit organization that is:
(i) exempt from taxation under section
501(c)(3) of the United States Internal Revenue Code;
(ii) incorporated or organized in
Minnesota;
(iii) governed under chapter 317A or
section 322C.1101; and
(iv) determined by the commission under
subdivision 3, paragraph (c), to suffer financial hardship if not compensated
for the nonprofit organization's participation in the applicable proceeding;
(2) a Tribal government of a federally
recognized Indian Tribe that is located in Minnesota; or
(3) a Minnesota resident,
except that an individual who owns a for-profit business that has earned
revenue from a Minnesota utility in the past two years is not eligible for
compensation.
Subd. 3. Compensation;
conditions. (a) The
commission may order a public utility to compensate all or part of a
participant's reasonable costs to participate in a proceeding before the
commission if the commission finds:
(1) that the participant has materially
assisted the commission's deliberation; and
(2) if the participant is a nonprofit
organization, that the participant would suffer financial hardship if the
nonprofit organization's participation in the proceeding was not compensated.
(b) When determining whether a
participant has materially assisted the commission's deliberation, the
commission must find that:
(1) the participant made a unique
contribution to the record and represented an interest that would not otherwise
have been adequately represented;
(2) the evidence or arguments presented
or the positions taken by the participant were an important factor in producing
a fair decision;
(3) the participant's position promoted
a public purpose or policy;
(4) the evidence presented, arguments
made, issues raised, or positions taken by the participant would not otherwise
have been part of the record;
(5) the participant was active in any
stakeholder process included in the proceeding; and
(6) the proceeding resulted in a
commission order that adopted, in whole or in part, a position advocated by the
participant.
(c) When determining whether a
nonprofit participant has demonstrated that a lack of compensation would
present financial hardship, the commission must find that the nonprofit
participant:
(1) incorporated or organized within
three years of the date the applicable proceeding began;
(2) has payroll expenses below
$750,000; or
(3) has secured less than $100,000 in
current year funding dedicated to participation in commission proceedings, not
including any participant compensation awarded under this section.
(d) When reviewing a compensation
request, the commission must consider whether the costs presented in the
participant's claim are reasonable.
Subd. 4. Compensation;
amount. (a) Compensation must
not exceed $50,000 for a single participant in any proceeding, except that:
(1) if a proceeding extends longer than
12 months, a participant may request compensation of up to $50,000 for costs
incurred in each calendar year; and
(2) in a general rate case
proceeding under section 216B.16 or an integrated resource plan proceeding
under section 216B.2422, the maximum single participant compensation per
proceeding under this section must not exceed $75,000.
(b) A single participant must not be
granted more than $200,000 under this section in a single calendar year.
(c) Compensation requests from joint
participants must be presented as a single request.
(d) Notwithstanding paragraphs (a) and (b),
the commission must not, in any calendar year, require a single public utility
to pay aggregate compensation under this section that exceeds the following
amounts:
(1) $100,000, for a public utility with
up to $300,000,000 annual gross operating revenue in Minnesota;
(2) $275,000, for a public utility with
at least $300,000,000 but less than $900,000,000 annual gross operating revenue
in Minnesota;
(3) $375,000, for a public utility with
at least $900,000,000 but less than $2,000,000,000 annual gross operating
revenue in Minnesota; and
(4) $1,250,000, for a public utility with
$2,000,000,000 or more annual gross operating revenue in Minnesota.
(e) When requests for compensation from
any public utility approach the limits established in paragraph (d), the
commission may prioritize requests from participants that received less than
$150,000 in total compensation during the previous two years.
Subd. 5. Compensation;
process. (a) A participant
seeking compensation must file a request and an affidavit of service with the
commission, and serve a copy of the request on each party to the proceeding. The request must be filed no more than 30
days after the later of: (1) the
expiration of the period within which a petition for rehearing, amendment,
vacation, reconsideration, or reargument must be filed; or (2) the date the
commission issues an order following rehearing, amendment, vacation,
reconsideration, or reargument.
(b) A compensation request must
include:
(1) the name and address of the
participant or nonprofit organization the participant is representing;
(2) evidence of the organization's
nonprofit, tax-exempt status, if applicable;
(3) the name and docket number of the
proceeding for which compensation is requested;
(4) for a nonprofit participant,
evidence supporting the nonprofit's eligibility for compensation under the
financial hardship test under subdivision 3, paragraph (c);
(5) amounts of compensation awarded to
the participant under this section during the current year and any pending
requests for compensation, itemized by docket;
(6) an itemization of the participant's
costs, including (i) hours worked and associated hourly rates for each
individual contributing to the participation, not including overhead costs;
(ii) participant revenues dedicated for the proceeding; and (iii) the total
compensation request; and
(7) a narrative describing the unique
contribution made to the proceeding by the participant.
(c) A participant must comply
with reasonable requests for information by the commission and other parties or
participants. A participant must reply
to information requests within ten calendar days of the date the request is
received, unless doing so would place an extreme hardship upon the replying
participant. The replying participant
must provide a copy of the information to any other participant or interested
person upon request. Disputes regarding
information requests may be resolved by the commission.
(d) A party objecting to a request for
compensation must, within 30 days after service of the request for
compensation, file a response and an affidavit of service with the commission. A copy of the response must be served on the
requesting participant and all other parties to the proceeding.
(e) The requesting participant may file a
reply with the commission within 15 days after the date a response is filed
under paragraph (d). A copy of the reply
and an affidavit of service must be served on all other parties to the
proceeding.
(f) If additional costs are incurred by a
participant as a result of additional proceedings following the commission's
initial order, the participant may file an amended request within 30 days after
the date the commission issues an amended order. Paragraphs (b) to (e) apply to an amended
request.
(g) The commission must issue a decision
on participant compensation within 120 days of the date a request for
compensation is filed by a participant.
(h) The commission may extend the
deadlines in paragraphs (d), (e), and (g) for up to 30 days upon the request of
a participant or on the commission's own initiative.
(i) A participant may request
reconsideration of the commission's compensation decision within 30 days of the
decision date.
Subd. 6. Compensation;
orders. (a) If the commission
issues an order requiring payment of participant compensation, the public
utility that was the subject of the proceeding must pay the full compensation
to the participant and file proof of payment with the commission within 30 days
after the later of: (1) the expiration
of the period within which a petition for reconsideration of the commission's
compensation decision must be filed; or (2) the date the commission issues an
order following reconsideration of the commission's order on participant
compensation.
(b) If the commission issues an order
requiring payment of participant compensation in a proceeding involving
multiple public utilities, the commission must apportion costs among the public
utilities in proportion to each public utility's annual revenue.
(c) The commission may issue orders
necessary to allow a public utility to recover the costs of participant
compensation on a timely basis.
Subd. 7. Report. By July 1, 2025, the commission must
report to the chairs and ranking minority members of the senate and house of
representatives committees with primary jurisdiction over energy policy on the
operation of this section, including but not limited to:
(1) the amount of compensation paid each
year by each utility;
(2) each recipient of compensation, the
commission dockets in which compensation was awarded, and the compensation
amounts; and
(3) the impact resulting from the
commission's adoption of positions advocated by compensated participants.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to any proceeding in
which the commission has not issued a final order as of that date.
Sec. 15. Minnesota Statutes 2020, section 216E.03, subdivision 11, is amended to read:
Subd. 11. Department of Commerce to provide technical expertise and other assistance. (a) The commissioner of the Department of Commerce shall consult with other state agencies and provide technical expertise and other assistance to the commission or to individual members of the commission for activities and proceedings under this chapter and chapters 216F and 216G. This assistance shall include the sharing of power plant siting and routing staff and other resources as necessary. The commissioner shall periodically report to the commission concerning the Department of Commerce's costs of providing assistance. The report shall conform to the schedule and include the required contents specified by the commission. The commission shall include the costs of the assistance in assessments for activities and proceedings under those sections and reimburse the special revenue fund for those costs. If either the commissioner or the commission deems it necessary, the department and the commission shall enter into an interagency agreement establishing terms and conditions for the provision of assistance and sharing of resources under this subdivision.
(b) Notwithstanding the requirements of
section 216B.33, the commissioner may take any action required or requested by
the commission related to the environmental review requirements under chapter
216E or 216F immediately following a hearing and vote by the commission, prior
to issuing a written order, finding, authorization, or certificate.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2020, section 216E.04, subdivision 2, is amended to read:
Subd. 2. Applicable projects. The requirements and procedures in this section apply to the following projects:
(1) large electric power generating plants with a capacity of less than 80 megawatts;
(2) large electric power generating plants that are fueled by natural gas;
(3) high-voltage transmission lines of between 100 and 200 kilovolts;
(4) high-voltage transmission lines in
excess of 200 kilovolts and less than five 30 miles in length in
Minnesota;
(5) high-voltage transmission lines in excess of 200 kilovolts if at least 80 percent of the distance of the line in Minnesota will be located along existing high-voltage transmission line right-of-way;
(6) a high-voltage transmission line service extension to a single customer between 200 and 300 kilovolts and less than ten miles in length;
(7) a high-voltage transmission line rerouting to serve the demand of a single customer when the rerouted line will be located at least 80 percent on property owned or controlled by the customer or the owner of the transmission line; and
(8) large electric power generating plants that are powered by solar energy.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to a high-voltage
transmission line in excess of 200 kilovolts whose owner has filed an
application for a route permit with the Public Utilities Commission on or after
that date.
Sec. 17. REPEALER.
Minnesota Statutes 2020, section
216B.16, subdivision 10, is repealed.
ARTICLE 5
ENERGY STORAGE
Section 1. Minnesota Statutes 2020, section 216B.1611, is amended by adding a subdivision to read:
Subd. 5. Energy
storage; capacity; treatment. This
subdivision applies to a public utility, as defined in section 216B.02,
subdivision 4. For the purpose of
interconnecting a distributed generation facility that operates in conjunction
with an energy storage system, as defined in section 216B.2422, subdivision 1,
paragraph (f), the system capacity must be calculated as the alternating
current capacity of the distributed generation facility alone, provided that
the energy storage system is connected to the distributed generating facility:
(1) by direct current; or
(2) by alternating current and is
configured to limit the maximum export of electricity beyond the common point
of coupling with the utility to an amount no greater than the capacity of the
distributed generation facility.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. [216B.1616]
ENERGY STORAGE; PEAK SHAVING TARIFF.
No later than September 15, 2022, the
commission must initiate a docket designed to determine fair compensation paid
to customer-owners of on-site energy storage systems, as defined in section
216B.2422, subdivision 1, paragraph (f), for voluntarily discharging stored
energy and capacity during periods of peak electricity demand or at other times
as dispatched or requested by a public utility, as defined in section 216B.02,
subdivision 4.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2020, section 216B.2422, subdivision 7, is amended to read:
Subd. 7. Energy storage systems assessment. (a) Each public utility required to file a resource plan under subdivision 2 must include in the filing an assessment of energy storage systems that analyzes how the deployment of energy storage systems contributes to:
(1) meeting identified generation and capacity needs; and
(2) evaluating ancillary services.
(b) The assessment must:
(1) employ appropriate modeling
methods to enable the analysis required in paragraph (a).; and
(2) address how energy storage systems
may contribute to achieving the goals under subdivision 4, clause (1).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2020, section 216B.2425, subdivision 8, is amended to read:
Subd. 8. Distribution study for distributed generation. Each entity subject to this section that is operating under a multiyear rate plan approved under section 216B.16, subdivision 19, shall conduct a distribution study to identify interconnection points on its distribution system for small-scale distributed generation resources and shall identify necessary distribution upgrades, including the deployment of energy storage systems, as defined in section 216B.2422, subdivision 1, paragraph (f), to support the continued development of distributed generation resources, and shall include the study in its report required under subdivision 2.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. [216C.378]
STORAGE REWARDS INCENTIVE PROGRAM.
(a) The electric utility subject to
section 116C.779 must develop and operate a program to provide a lump-sum grant
to customers to reduce the cost of purchasing and installing an on-site energy
storage system, as defined in section 216B.2422, subdivision 1, paragraph (f). The utility subject to this section must file
a plan with the commissioner to operate the program no later than October 1,
2022. The utility may not operate the
program until the program is approved by the commissioner. Any change to an operating program must be
approved by the commissioner.
(b) To be eligible to receive a grant
under this section, an energy storage system must:
(1) have a capacity no greater than 50
kilowatt hours; and
(2) be located within the electric
service area of the utility subject to this section.
(c) An owner of an energy storage system
is eligible to receive a grant under this section if:
(1) a solar energy generating system is
operating at the same site as the proposed energy storage system; or
(2) the owner has filed an application
with the utility subject to this section to interconnect a solar energy
generating system at the same site as the proposed energy storage system.
(d) The commissioner must annually review
and may adjust the amount of grants awarded under this section, but must not
increase the amount over that awarded in previous years unless the commissioner
demonstrates in writing that an upward adjustment is warranted by market
conditions.
(e) A customer who receives a grant
under this section is eligible to receive financial assistance under programs
operated by the state or the utility for the solar energy generating system
operating in conjunction with the energy storage system.
(f) For the purposes of this section,
"solar energy generating system" has the meaning given in section
216E.01, subdivision 9a.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 6
RENEWABLE ENERGY
Section 1. Minnesota Statutes 2020, section 16B.32, subdivision 1, is amended to read:
Subdivision 1. Alternative
energy sources. Plans prepared by
the commissioner for a new building or for a renovation of 50 percent or more
of an existing building or its energy systems must include designs which use
active and passive solar energy systems, earth sheltered construction, and
other alternative energy sources where feasible. (a) If incorporating cost-effective energy
efficiency measures into the design, materials, and operations of a building or
major building renovation subject to section 16B.325 is not sufficient to meet
Sustainable Building 2030 energy performance standards required under section
216B.241, subdivision 9, cost-effective renewable energy sources or solar
thermal energy systems, or both, must be deployed to achieve the standards.
(b) The commissioners of administration
and commerce must review compliance of building designs and plans subject to
this section with Sustainable Building 2030 performance standards developed under
section 216B.241, subdivision 9, and must make recommendations to the
legislature as necessary to ensure that the performance standards are met.
(c) For the purposes of this
section:
(1) "energy efficiency" has
the meaning given in section 216B.241, subdivision 1, paragraph (f);
(2) "renewable energy" has the
meaning given in section 216B.2422, subdivision 1, paragraph (c), and includes
hydrogen generated from wind, solar, or hydroelectric; and
(3) "solar thermal energy
systems" has the meaning given to "qualifying solar thermal
project" in section 216B.2411, subdivision 2, paragraph (e).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2020, section 16B.32, subdivision 1a, is amended to read:
Subd. 1a. Onsite
energy generation from renewable sources.
A state agency that prepares a predesign for a new building must
consider meeting at least two percent of the energy needs of the building from
renewable sources located on the building site.
For purposes of this subdivision, "renewable sources" are
limited to wind and the sun. The
predesign must include an explicit cost and price analysis of complying with
the two-percent requirement compared with the present and future costs of energy
supplied by a public utility from a location away from the building site and
the present and future costs of controlling carbon emissions. If the analysis concludes that the building
should not meet at least two percent of its energy needs from renewable sources
located on the building site, the analysis must provide explicit reasons why
not. The building may not receive
further state appropriations for design or construction unless at least two
percent of its energy needs are designed to be met from renewable sources,
unless the commissioner finds that the reasons given by the agency for not
meeting the two-percent requirement were supported by evidence in the record. The total aggregate nameplate capacity of
all renewable energy sources utilized to meet Sustainable Building 2030
standards in a state-owned building or facility, including any subscription to
a community solar garden under section 216B.1641, must not exceed 120 percent
of the state‑owned building's or facility's average annual electric
energy consumption.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2021 Supplement, section 116C.7792, is amended to read:
116C.7792
SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM.
(a) The utility subject to section 116C.779 shall operate a program to provide solar energy production incentives for solar energy systems of no more than a total aggregate nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar energy system installed before June 1, 2018, is eligible to receive a production incentive under this section for any additional solar energy systems constructed at the same customer location, provided that the aggregate capacity of all systems at the customer location does not exceed 40 kilowatts.
(b) The program is funded by money withheld from transfer to the renewable development account under section 116C.779, subdivision 1, paragraphs (b) and (e). Program funds must be placed in a separate account for the purpose of the solar energy production incentive program operated by the utility and not for any other program or purpose.
(c) Funds allocated to the solar energy production incentive program in 2019 and 2020 remain available to the solar energy production incentive program.
(d) The following amounts are allocated to the solar energy production incentive program:
(1) $10,000,000 in 2021;
(2) $10,000,000 in 2022;
(3) $5,000,000 $10,000,000
in 2023; and
(4) $5,000,000 $10,000,000
in 2024; and
(5) $10,000,000 in 2025.
(e) Funds allocated to the solar energy production incentive program that have not been committed to a specific project at the end of a program year remain available to the solar energy production incentive program.
(f) Any unspent amount remaining on January
1, 2025 2027, must be transferred to the renewable development
account.
(g) A solar energy system receiving a production incentive under this section must be sized to less than 120 percent of the customer's on-site annual energy consumption when combined with other distributed generation resources and subscriptions provided under section 216B.1641 associated with the premise. The production incentive must be paid for ten years commencing with the commissioning of the system.
(h) The utility must file a plan to operate the program with the commissioner of commerce. The utility may not operate the program until it is approved by the commissioner. A change to the program to include projects up to a nameplate capacity of 40 kilowatts or less does not require the utility to file a plan with the commissioner. Any plan approved by the commissioner of commerce must not provide an increased incentive scale over prior years unless the commissioner demonstrates that changes in the market for solar energy facilities require an increase.
(i) Contractors and subcontractors
installing a solar energy generating system awarded financial assistance under
this section must comply with sections 177.41 to 177.43 with respect to the
installation.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. [116C.7793]
SOLAR ENERGY; CONTINGENCY ACCOUNT.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Agency" means the
Pollution Control Agency.
(c) "Area C" means the site
located west of Mississippi River Boulevard in St. Paul that served as an
industrial waste dump for the former Ford Twin Cities Assembly Plant.
(d) "Corrective action determination"
means a decision by the agency regarding actions to be taken to remediate
contaminated soil and groundwater at Area C.
(e) "Owner" means the owner
of a solar energy generating system planned to be deployed at Area C.
(f) "Solar energy generating
system" has the meaning given in section 216E.01, subdivision 9a.
Subd. 2. Account
established. The Area C
contingency account is established as a separate account in the special revenue
fund in the state treasury. Transfers
and appropriations to the account, and any earnings or dividends accruing to
assets in the account, must be credited to the account. The commissioner must serve as fiscal agent
and must manage the account.
Subd. 3. Distribution
of funds; conditions. Money from
the account may be distributed by the commissioner to the owner of a solar
energy generating system planned to be deployed on Area C under the following
conditions:
(1) the agency issues a corrective
action determination after the owner has begun to design or construct the
project, and the nature of the corrective action determination requires the
project to be redesigned or construction to be interrupted or altered; or
(2) the agency issues a corrective
action determination whose work plan requires temporary cessation or partial or
complete removal of the solar energy generating system after the solar energy
generating system has become operational.
Subd. 4. Distribution
of funds; process. (a) The
owner may file a request for distribution of funds from the commissioner if
either of the conditions in subdivision 3 occur. The filing must describe (1) the nature of
the impact of the agency's work plan that results in economic losses to the
owner, and (2) a reasonable estimate of the amount of the economic losses.
(b) The owner must provide the
commissioner with information the commissioner determines to be necessary to
assist in reviewing the filing required under this subdivision.
(c) The commissioner must review the
owner's filing within 60 days of submission and must approve a request the
commissioner determines is reasonable.
Subd. 5. Expenditures. Money distributed by the commissioner
to the owner under this section may be used by the owner only to pay for:
(1) removal, storage, and transportation
costs incurred for equipment removed, and any costs to reinstall equipment;
(2) costs of redesign or new equipment
made necessary by the activities under the agency's work plan;
(3) lost revenues resulting from the
inability of the solar energy generating system to generate sufficient
electricity to fulfill the terms of the power purchase agreement between the
owner and the purchaser of electricity generated by the solar energy generating
system;
(4) other damages incurred under the
power purchase agreement resulting from the cessation of operations made
necessary by the activities of the agency's work plan; and
(5) the cost of energy required to
replace the energy that would have been generated by the solar energy
generating system and purchased under the power purchase agreement.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2020, section 216B.1641, is amended to read:
216B.1641
COMMUNITY SOLAR GARDEN.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Subscribed energy" means
electricity generated by the community solar garden that is attributable to a
subscriber's subscription.
(c) "Subscriber" means a retail
customer who owns one or more subscriptions of a community solar garden
interconnected with the retail customer's utility.
(d) "Subscription" means a
contract between a subscriber and the owner of a solar garden.
Subd. 2. Solar garden; project requirements. (a) The public utility subject to section 116C.779 shall file by September 30, 2013, a plan with the commission to operate a community solar garden program which shall begin operations within 90 days after commission approval of the plan. Other public utilities may file an application at their election. The community solar garden program must be designed to offset the energy use of not less than five subscribers in each community solar garden facility of which no single subscriber has more than a 40 percent interest. The owner of the community solar garden may be a public utility or any other entity or organization that contracts to sell the output from the community solar garden to the utility under section 216B.164. There shall be no limitation on the number or cumulative generating capacity of community solar garden facilities other than the limitations imposed under section 216B.164, subdivision 4c, or other limitations provided in law or regulations.
(b) A solar garden is a facility that
generates electricity by means of a ground-mounted or roof-mounted solar
photovoltaic device whereby subscribers receive a bill credit for the
electricity generated in proportion to the size of their subscription. The solar garden must have a nameplate capacity
of no more than one megawatt three megawatts. Each subscription shall be sized to represent
at least 200 watts of the community solar garden's generating capacity and to
supply, when combined with other distributed generation resources serving the
premises, no more than 120 percent of the average annual consumption of
electricity by each subscriber at the premises to which the subscription is
attributed.
(c) The solar generation facility must be located in the service territory of the public utility filing the plan. Subscribers must be retail customers of the public utility and, unless the facility has a minimum setback of 100 feet from the nearest residential property, must be located in the same county or a county contiguous to where the facility is located.
(d) The public utility must purchase from the community solar garden all energy generated by the solar garden. Unless specified elsewhere in this section, the purchase shall be at the most recent three-year average of the rate calculated under section 216B.164, subdivision 10, or, until that rate for the public utility has been approved by the commission, the applicable retail rate. A solar garden is eligible for any incentive programs offered under section 116C.7792. A subscriber's portion of the purchase shall be provided by a credit on the subscriber's bill.
Subd. 3. Solar
garden plan; requirements; nonutility status. (e) (a) The commission may
approve, disapprove, or modify a community solar garden program plan. Any plan approved by the commission must:
(1) reasonably allow for the creation, financing, and accessibility of community solar gardens;
(2) establish uniform standards, fees, and processes for the interconnection of community solar garden facilities that allow the utility to recover reasonable interconnection costs for each community solar garden;
(3) not apply different requirements to utility and nonutility community solar garden facilities;
(4) be consistent with the public interest;
(5) identify the information that must be provided to potential subscribers to ensure fair disclosure of future costs and benefits of subscriptions;
(6) include a program implementation schedule;
(7) identify all proposed rules, fees, and
charges; and
(8) identify the means by which the
program will be promoted.;
(9)
require that residential subscribers have a right to cancel a community solar
garden subscription within three business days, as provided under section
325G.07;
(10) require that the following
information is provided by the solar garden owner in writing to any prospective
subscriber asked to make a prepayment to the solar garden owner prior to the
delivery of subscribed energy by the solar garden:
(i) an estimate of the annual
generation of subscribed energy, based on the methodology approved by the
commission; and
(ii) an estimate of the length of time
required to fully recover a subscriber's prepayments made to the owner of the solar
garden prior to the delivery of subscribed energy, calculated using the formula
developed by the commission under paragraph (d); and
(11) require new residential
subscription agreements that require a prepayment to allow the subscriber to,
on commercially reasonable terms, (i) transfer the subscription to other new or
current subscribers, or (ii) cancel the subscription; and
(12) require an owner of a solar garden
to submit a report that meets the requirements of section 216C.51, subdivisions
3 and 4, each year the solar garden is in operation.
(f) (b) Notwithstanding any
other law, neither the manager of nor the subscribers to a community solar
garden facility shall be considered a utility solely as a result of their
participation in the community solar garden facility.
(g) (c) Within 180 days of
commission approval of a plan under this section, a utility shall begin
crediting subscriber accounts for each community solar garden facility in its
service territory, and shall file with the commissioner of commerce a
description of its crediting system.
(h) For the purposes of this section,
the following terms have the meanings given:
(1) "subscriber" means a
retail customer of a utility who owns one or more subscriptions of a community
solar garden facility interconnected with that utility; and
(2) "subscription" means a
contract between a subscriber and the owner of a solar garden.
Subd. 4. Community
access project; eligibility. (a)
An owner of a community solar garden may apply to the utility to be designated
as a community access project at any time:
(1) before the owner makes an initial
payment under an interconnection agreement entered into with a public utility;
or
(2) if the owner made an initial
payment under an interconnection agreement between January 1, 2021, and the
effective date of this act, before commercial operation begins.
(b) The utility must designate a solar
garden as a community access project if the owner of a solar garden commits in
writing to meet the following conditions:
(1) at least 50 percent of the solar
garden's generating capacity is subscribed by residential customers;
(2) the contract between the
owner of the solar garden and the public utility that purchases the garden's
electricity, and any agreement between the utility or owner of the solar garden
and subscribers, states that the owner of the solar garden does not
discriminate against or screen subscribers based on income or credit score and
that any customer of a utility with a community solar garden plan approved by
the commission under subdivision 3 is eligible to become a subscriber;
(3) the solar garden is operated by an
entity that maintains a physical address in Minnesota and has designated a
contact person in Minnesota who responds to subscriber inquiries; and
(4) the agreement between the owner of
the solar garden and subscribers states that the owner must adequately
publicize and convene at least one meeting annually to provide an opportunity
for subscribers to pose questions to the manager or owner.
Subd. 5. Community
access project; financial arrangements.
(a) If a solar garden is approved by the utility as a community
access project:
(1) the public utility purchasing the
electricity generated by the community access project may charge the owner of
the community access project no more than one cent per watt alternating current
based on the solar garden's generating capacity for any refundable deposit the
utility requires of a solar garden during the application process;
(2) notwithstanding subdivision 2,
paragraph (d), the public utility must purchase all energy generated by the
community access project at the retail rate; and
(3) all renewable energy credits
generated by the community access project belong to subscribers unless the
owner of the solar garden:
(i) contracts to:
(A) sell the credits to a third party;
or
(B) sell or transfer the credits to the
utility; and
(ii) discloses a sale or transfer to
subscribers at the time the subscribers enter into a subscription.
(b) If at any time after commercial
operation begins a solar garden approved by the utility as a community access
project fails to meet the conditions under subdivision 4, the solar garden (1)
is no longer subject to the provisions of this subdivision and subdivision 6,
and (2) must operate under the program rules established by the commission for
a solar garden that does not qualify as a community access project.
(c) An owner of a solar garden whose
designation as a community access project is revoked under this subdivision may
reapply to the commission at any time to have the designation as a community
access project reinstated under subdivision 4.
Subd. 6. Community
access project; reporting. The
owner of a community access project must include the following information in
an annual report to the community access project subscribers and the utility:
(1) a description of the process by
which subscribers can provide input to solar garden policy and decision making;
(2)
the amount of revenues received by the solar garden in the previous year that
were allocated to categories that include but are not limited to operating
costs, debt service, profits distributed to subscribers, and profits
distributed to others; and
(3) an estimate of the proportion of
low- and moderate-income subscribers, and a description of one or more of the
following methods used to make the estimate:
(i) evidence provided by a subscriber
that the subscriber or a member of the subscriber's household receives assistance
from any of the following sources:
(A) the federal Low-Income Home Energy
Assistance Program;
(B) federal Section 8 housing
assistance;
(C) medical assistance;
(D) the federal Supplemental Nutrition
Assistance Program; or
(E) the federal National School Lunch
Program;
(ii) characterization of the census
tract where the subscriber resides as low- or moderate-income by the Federal
Financial Institutions Examination Council; or
(iii) other methods approved by the
commission.
Subd. 7. Commission
order. Within 180 days of the
effective date of this section, the commission must issue an order addressing
the requirements of this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2020, section 216B.243, subdivision 8, is amended to read:
Subd. 8. Exemptions. (a) This section does not apply to:
(1) cogeneration or small power production facilities as defined in the Federal Power Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and paragraph (18), subparagraph (A), and having a combined capacity at a single site of less than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or any case where the commission has determined after being advised by the attorney general that its application has been preempted by federal law;
(2) a high-voltage transmission line proposed primarily to distribute electricity to serve the demand of a single customer at a single location, unless the applicant opts to request that the commission determine need under this section or section 216B.2425;
(3) the upgrade to a higher voltage of an existing transmission line that serves the demand of a single customer that primarily uses existing rights-of-way, unless the applicant opts to request that the commission determine need under this section or section 216B.2425;
(4) a high-voltage transmission line of one mile or less required to connect a new or upgraded substation to an existing, new, or upgraded high-voltage transmission line;
(5) conversion of the fuel source of an existing electric generating plant to using natural gas;
(6) the modification of an existing electric generating plant to increase efficiency, as long as the capacity of the plant is not increased more than ten percent or more than 100 megawatts, whichever is greater;
(7) a large wind energy conversion
system, as defined in section 216F.01, subdivision 2, or a solar electric
generation facility energy generating system, as defined in section
216E.01, subdivision 9a, if the system or facility is owned and
operated by an independent power producer and the electric output of the system
or facility:
(i) is not sold to an entity that provides retail service in Minnesota or wholesale electric service to another entity in Minnesota other than an entity that is a federally recognized regional transmission organization or independent system operator; or
(ii) is sold to an entity that provides
retail service in Minnesota or wholesale electric service to another entity in
Minnesota other than an entity that is a federally recognized regional
transmission organization or independent system operator, provided that the
system represents solar or wind capacity that the entity purchasing the
system's electric output was ordered by the commission to develop in the
entity's most recent integrated resource plan approved under section 216B.2422;
or
(8) a large wind energy conversion system, as defined in section 216F.01, subdivision 2, or a solar energy generating system that is a large energy facility, as defined in section 216B.2421, subdivision 2, engaging in a repowering project that:
(i) will not result in the facility
system exceeding the nameplate capacity under its most recent
interconnection agreement; or
(ii) will result in the facility system
exceeding the nameplate capacity under its most recent interconnection
agreement, provided that the Midcontinent Independent System Operator has
provided a signed generator interconnection agreement that reflects the
expected net power increase.
(b) For the purpose of this subdivision, "repowering project" means:
(1) modifying a large wind energy conversion system or a solar energy generating system that is a large energy facility to increase its efficiency without increasing its nameplate capacity;
(2) replacing turbines in a large wind energy conversion system without increasing the nameplate capacity of the system; or
(3) increasing the nameplate capacity of a large wind energy conversion system.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to a large wind energy
conversion system or a solar energy generating system whose owner has filed an
application for a certificate of need with the Public Utilities Commission on
or after that date.
Sec. 7. Minnesota Statutes 2021 Supplement, section 216C.375, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For the purposes of this section and section 216C.376, the following terms have the meanings given them.
(b) "Developer" means an entity that installs a solar energy system on a school building that has been awarded a grant under this section.
(c) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
(d) "School" means: (1) a school that operates as part of an
independent or special school district; (2) a Tribal contract school; or
(2) (3) a state college or university that is under the
jurisdiction of the Board of Trustees of the Minnesota State Colleges and
Universities.
(e) "School district" means an independent or special school district.
(f) "Solar energy system" means photovoltaic or solar thermal devices.
(g) "Solar thermal" has the meaning given to "qualifying solar thermal project" in section 216B.2411, subdivision 2, paragraph (d).
(h) "State colleges and universities" has the meaning given in section 136F.01, subdivision 4.
Sec. 8. [216C.377]
SOLAR GRANT PROGRAM; PUBLIC BUILDINGS.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Developer" means an
entity that applies for a grant on behalf of a public building under this
section to install a solar energy generating system on the public building.
(c) "Local unit of government"
means a county, statutory or home rule charter city, town, or other local
government jurisdiction, excluding a school district eligible to receive
financial assistance under section 216C.375 or 216C.376.
(d) "Municipal electric
utility" means a utility that provides electric service to retail
customers in Minnesota and is governed by a city council or a local utilities
commission.
(e) "Public building" means a building owned and operated by a local unit of government.
(f) "Solar energy generating
system" has the meaning given in section 216E.01, subdivision 9a.
(g) "Utility" means a public
utility, as defined in section 216B.02, subdivision 4, that provides electric
service, or a municipal electric utility.
Subd. 2. Establishment;
purpose. A solar on public
buildings grant program is established in the Department of Commerce. The purpose of the program is to provide
grants to stimulate the installation of solar energy generating systems on
public buildings.
Subd. 3. Establishment
of account. A solar on public
buildings grant program account is established in the special revenue fund. Money received from the general fund and the
renewable development account established in section 116C.779, subdivision 1,
must be transferred to the commissioner of commerce and credited to the account. Earnings, including interest, dividends, and
any other earnings arising from the assets of the account, must be credited to
the account. Earnings remaining in the
account at the end of a fiscal year do not cancel to the general fund or
renewable development account but remain in the account until expended. The commissioner must manage the account.
Subd. 4. Expenditures. Money in the account must be used
only:
(1) for grant awards made under this
section; and
(2) to pay the reasonable costs incurred
by the department to administer this section.
Subd. 5. Eligible
applicants. Only a local unit
of government or a municipal electric utility may apply for or be awarded a
grant under this section.
Subd. 6. Eligible
system. (a) A grant may be
awarded under this section only if the solar energy system that is the subject
of the grant:
(1) is installed on or adjacent to a
public building that consumes the electricity generated by the solar energy
generating system, on property within the service territory of the utility
currently providing electric service to the public building; and
(2) has a capacity that does not exceed
the lesser of 40 kilowatts or 120 percent of the average annual electricity
consumption of the public building, measured over the most recent three
calendar years, at which the solar energy generating system is installed.
(b) A public building that receives a
rebate or other financial incentive under section 216B.241 for a solar energy
system is eligible for a grant under this section for the same solar energy
generating system.
(c) Before filing an application for a
grant under this section, a local unit of government or public building that is
served by a municipal electric utility must inform the municipal electric
utility of the local unit of government's or public building's intention to do
so. A municipal electric utility may,
under an agreement with a local unit of government, own and operate a solar
energy generating system awarded a grant under this section on behalf of and
for the benefit of the local unit of government.
Subd. 7. Application
process. (a) The commissioner
must issue a request for proposals to utilities, local units of government, and
developers who may wish to apply for a grant under this section on behalf of a
public building.
(b) A utility or developer must submit
an application to the commissioner on behalf of a public building on a form
prescribed by the commissioner. The form
must include, at a minimum, the following information:
(1) the capacity of the proposed solar
energy system and the amount of electricity that is expected to be generated;
(2) the current energy demand of the
public building on which the solar energy generating system is to be installed,
information regarding any distributed energy resource that currently provides
electricity to the public building, and the size of the public building's
subscription to a community solar garden, if applicable;
(3) information sufficient to estimate
the energy and monetary savings that are projected to result from installation
of the solar energy generating system over the system's useful life;
(4) the total cost to purchase and
install the solar energy system and the solar energy system's lifecycle cost,
including removal and disposal at the end of the system's life; and
(5) a copy of the proposed contract
agreement between the local unit of government and the public utility or
developer that includes provisions addressing the responsibility to maintain,
remove, and dispose of the solar energy system.
(c) The commissioner must administer an
open application process under this section at least twice annually.
(d) The commissioner must develop
administrative procedures governing the application and grant award process
under this section.
Subd. 8. Energy
conservation review. At the commissioner's
request, a local unit of government awarded a grant under this section must
provide the commissioner with information regarding energy conservation
measures implemented at the public building at which the solar energy
generating system is to be installed. The
commissioner may make recommendations to the local unit of government regarding
cost-effective conservation measures the local unit of government can implement
and may provide technical assistance and direct the local unit of government to
available financial assistance programs.
Subd. 9. Technical
assistance. The commissioner
must provide technical assistance to local units of government to develop and
execute projects under this section.
Subd. 10. Grant
payments. A grant awarded
under this section must be used only to pay the necessary and reasonable costs
associated with purchasing and installing a solar energy system.
Subd. 11. Installation. Contractors and subcontractors
installing a solar energy generating system funded by a grant awarded under
this section must comply with sections 177.41 to 177.43 with respect to the
installation.
Subd. 12. Reporting. Beginning January 15, 2023, and each
year thereafter until January 15, 2026, the commissioner must report to the
chairs and ranking minority members of the legislative committees with
jurisdiction over energy finance and policy regarding (1) grants and amounts
awarded to local units of government under this section during the previous
year, and (2) any remaining balance available in the account established under
this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2020, section 216E.01, subdivision 9a, is amended to read:
Subd. 9a. Solar energy generating system. "Solar energy generating system" means a set of devices whose primary purpose is to produce electricity by means of any combination of collecting, transferring, or converting solar-generated energy, and may include transmission lines designed for and capable of operating at 100 kilovolts or less that interconnect a solar energy generating system with a high-voltage transmission line.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. Minnesota Statutes 2020, section 216E.03, subdivision 5, is amended to read:
Subd. 5. Environmental review. (a) The commissioner of the Department of Commerce shall prepare for the commission an environmental impact statement on each proposed large electric power generating plant or high‑voltage transmission line for which a complete application has been submitted. The commissioner shall not consider whether or not the project is needed. No other state environmental review documents shall be required. The commissioner shall study and evaluate any site or route proposed by an applicant and any other site, other than a site for a solar energy generating system, or route the commission deems necessary that was proposed in a manner consistent with rules concerning the form, content, and timeliness of proposals for alternate sites or routes.
(b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is a large electric power generating plant and is not proposed by a utility, the commissioner must make a finding in the environmental impact statement whether the project is likely to result in a net reduction of carbon dioxide emissions, considering both the utility providing electric service to the proposed cogeneration facility and any reduction in carbon dioxide emissions as a result of increased efficiency from the production of thermal energy on the part of the customer operating or owning the proposed cogeneration facility.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. [500.216]
LIMITS ON CERTAIN RESIDENTIAL SOLAR ENERGY SYSTEMS PROHIBITED.
Subdivision 1. Definitions. (a) The definitions in this
subdivision apply to this section.
(b) "Private entity" means a
homeowners association, community association, or other association that is
subject to a homeowners association document.
(c) "Homeowners association
document" means a document containing the declaration, articles of
incorporation, bylaws, or rules and regulations of:
(1) a common interest community, as defined in section 515B.1-103, regardless of whether the common interest community is subject to chapter 515B; and
(2) a residential community that is not
a common interest community.
(d) "Solar energy system" has
the meaning given in section 216C.06, subdivision 17.
Subd. 2. General
rule. A private entity must
not prohibit or refuse to permit installation, maintenance, or use of a
roof-mounted solar energy system by the owner of a single-family dwelling,
notwithstanding any covenant, restriction, or condition contained in a deed,
security instrument, homeowners association document, or any other instrument
affecting the transfer, sale of, or an interest in real property, except as
provided in this section.
Subd. 3. Applicability. This section applies to single-family
detached dwellings whose owner is the sole owner of the entire building in
which the dwelling is located and who is solely responsible to maintain,
repair, replace, and insure the entire building.
Subd. 4. Allowable
conditions. (a) This section
does not prohibit a private entity from requiring that:
(1) a licensed contractor install a
solar energy system;
(2) a roof-mounted solar energy system
not extend above the peak of a pitched roof or beyond the edge of the roof;
(3) the owner or installer of a solar
energy system indemnify or reimburse the private entity or the private entity's
members for loss or damage caused by the installation, maintenance, use,
repair, or removal of a solar energy system;
(4) the owner and each successive owner
of a solar energy system list the private entity as a certificate holder on the
homeowner's insurance policy; or
(5) the owner and each successive owner
of a solar energy system be responsible for removing the system if reasonably
necessary to repair, maintain, or replace common elements or limited common
elements, as defined in section 515B.1-103.
(b) A private entity may impose other reasonable restrictions on the installation, maintenance, or use of solar energy systems, provided that those restrictions do not decrease the projected generation of energy by a solar energy system by more than 20 percent or increase the solar energy system's cost by more than (1) 20 percent for a solar water heater, or (2) $2,000 for a solar photovoltaic system, compared with the generation of energy and the cost of labor and materials certified by the designer or installer of the solar energy system as originally proposed without the restrictions. A private entity may obtain an alternative bid and design from a solar energy system designer or installer for the purposes of this paragraph.
(c) A solar energy system must
meet applicable standards and requirements imposed by the state and by
governmental units, as defined in section 462.384.
(d) A solar energy system for heating
water must be certified by the Solar Rating Certification Corporation or an
equivalent certification agency. A solar
energy system for producing electricity must meet all applicable safety and
performance standards established by the National Electrical Code, the
Institute of Electrical and Electronics Engineers, and accredited testing
laboratories, including but not limited to Underwriters Laboratories and, where
applicable, Public Utilities Commission rules regarding safety and reliability.
(e) If approval by a private entity is
required to install or use a solar energy system, the application for approval
(1) must be processed and approved in the same manner as an application for
approval of an architectural modification to the property, and (2) must not be
willfully avoided or delayed.
(f) An application for approval must be made in writing and must contain certification that the applicant meets any conditions required by a private entity under this subdivision. An application must include a copy of the interconnection application submitted to the applicable electric utility.
(g) A private entity shall approve or
deny an application in writing. If an
application is not denied in writing within 60 days from the date the
application is received, the application is deemed approved unless the delay is
the result of a reasonable request for additional information. If a private entity receives an incomplete
application that the private entity determines prevents a decision to approve
or disapprove the application, a new 60-day limit begins only if the private
entity sends written notice to the applicant, within 15 business days of the
date the incomplete application is received, informing the applicant what additional
information is required.
Sec. 12. PHOTOVOLTAIC
DEMAND CREDIT RIDER.
By October 1, 2022, an investor-owned
utility that has not already done so must submit to the Public Utilities
Commission a photovoltaic demand credit rider that reimburses all demand-metered
customers with solar photovoltaic systems greater than 40 kilowatts alternating
current for the demand charge overbilling that occurs. The utility may submit to the commission
multiple options to calculate reimbursement for demand charge overbilling. At least one submission must use a capacity
value stack methodology. The commission
is prohibited from approving a photovoltaic demand credit rider unless the
rider allows stand-alone photovoltaic systems and photovoltaic systems coupled
with storage. The commission must
approve the photovoltaic demand credit rider by June 30, 2023.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. REPEALER.
Minnesota Statutes 2020, sections
16B.323, subdivisions 1 and 2; and 16B.326, are repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 7
ELECTRIC VEHICLES
Section 1. Minnesota Statutes 2021 Supplement, section 16C.135, subdivision 3, is amended to read:
Subd. 3. Vehicle
purchases. (a) Consistent
with section 16C.137, subdivision 1, when purchasing a motor vehicle for the
enterprise fleet or for use by an agency, the commissioner or the agency shall
purchase a motor vehicle that is capable of being powered by cleaner fuels,
or a motor vehicle powered by electricity or by a
combination of electricity and
liquid fuel, if the total life-cycle cost of ownership is less than or
comparable to that of other vehicles and if the vehicle is capable the
motor vehicle in conformity with the following vehicle preference hierarchy,
with clause (1) representing the top of the hierarchy:
(1) an electric vehicle;
(2) a hybrid electric vehicle;
(3) a vehicle capable of being powered
by cleaner fuels; and
(4) a vehicle powered by gasoline or
diesel fuel.
(b)
The commissioner or agency may only reject a vehicle type that is higher on the
vehicle preference hierarchy if:
(1) the vehicle type is incapable
of carrying out the purpose for which it is purchased.; or
(2) the total life-cycle cost of
ownership of a vehicle type that is higher on the vehicle preference hierarchy
is more than ten percent higher than the next lower vehicle type or the vehicle
preference hierarchy.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2020, section 16C.137, subdivision 1, is amended to read:
Subdivision 1. Goals and actions. Each state department must, whenever legally, technically, and economically feasible, subject to the specific needs of the department and responsible management of agency finances:
(1) ensure that all new on-road vehicles purchased,
excluding emergency and law enforcement vehicles:, are purchased in
conformity with the hierarchy of preferences established in section 16C.135,
subdivision 3;
(i) use "cleaner fuels" as
that term is defined in section 16C.135, subdivision 1;
(ii) have fuel efficiency ratings that
exceed 30 miles per gallon for city usage or 35 miles per gallon for highway
usage, including but not limited to hybrid electric cars and hydrogen-powered
vehicles; or
(iii) are powered solely by
electricity;
(2) increase its use of renewable transportation fuels, including ethanol, biodiesel, and hydrogen from agricultural products; and
(3) increase its use of web-based Internet applications and other electronic information technologies to enhance the access to and delivery of government information and services to the public, and reduce the reliance on the department's fleet for the delivery of such information and services.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2020, section 160.08, subdivision 7, is amended to read:
Subd. 7. No
commercial establishment within right-of-way; exceptions. No commercial establishment, including
but not limited to automotive service stations, for serving motor vehicle users
shall be constructed or located within the right-of-way of, or on publicly
owned or publicly leased land acquired or used for or in connection with, a
controlled-access highway;, except that:
(1) structures may be built within safety rest and travel information center areas;
(2) space within state-owned buildings in those areas may be leased for the purpose of providing information to travelers through advertising as provided in section 160.276;
(3) advertising signs may be erected within the right-of-way of interstate or controlled-access trunk highways by franchise agreements under section 160.80;
(4) vending machines may be placed in rest
areas, travel information centers, or weigh stations constructed or located
within trunk highway rights-of-way; and
(5) acknowledgment signs may be erected
under sections 160.272 and 160.2735.; and
(6) electric vehicle charging stations
may be installed, operated, and maintained in safety rest areas.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2020, section 168.27, is amended by adding a subdivision to read:
Subd. 2a. Dealer
training; electric vehicles. (a)
A new motor vehicle dealer licensed under this chapter that operates under an
agreement or franchise from a manufacturer and sells electric vehicles must
maintain at least one employee who is certified as having completed a training
course offered by a Minnesota motor vehicle dealership association that
addresses at least the following elements:
(1) fundamentals of electric vehicles;
(2) electric vehicle charging options
and costs;
(3) publicly available electric vehicle
incentives;
(4) projected maintenance and fueling
costs for electric vehicles;
(5) reduced tailpipe emissions,
including greenhouse gas emissions, produced by electric vehicles;
(6) the impacts of Minnesota's cold
climate on electric vehicle operation; and
(7) best practices to sell electric
vehicles.
(b) For the purposes of this section,
"electric vehicle" has the meaning given in section 169.011,
subdivision 26a, paragraphs (a) and (b), clause (3).
EFFECTIVE
DATE. This section is
effective January 1, 2023.
Sec. 5. [216B.1615]
ELECTRIC VEHICLE DEPLOYMENT PROGRAM.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Battery exchange
station" means a physical location deploying equipment that enables a used
electric vehicle battery to be removed and exchanged for a fresh electric
vehicle battery.
(c) "Electric vehicle" means
any device or contrivance that transports persons or property and is capable of
being powered by an electric motor drawing current from rechargeable storage
batteries, fuel cells, or other portable sources of electricity. Electric vehicle includes but is not limited
to:
(1) an electric vehicle, as defined in
section 169.011, subdivision 26a;
(2) an electric-assisted bicycle, as
defined in section 169.011, subdivision 27;
(3) an off-road vehicle, as defined in
section 84.797, subdivision 7;
(4) a motorboat, as defined in section
86B.005, subdivision 9; or
(5) an aircraft, as defined in section
360.013, subdivision 37.
(d) "Electric vehicle charging
station" means a physical location deploying equipment that:
(1) transfers electricity to an
electric vehicle battery;
(2) dispenses hydrogen into an electric
vehicle powered by a fuel cell;
(3) exchanges electric vehicle
batteries; or
(4) provides other equipment used to
charge or fuel electric vehicles.
(e) "Electric vehicle
infrastructure" means electric vehicle charging stations and any
associated machinery, equipment, and infrastructure necessary for a public
utility to supply electricity or hydrogen to an electric vehicle charging
station and to support electric vehicle operation.
(f) "Fuel cell" means a cell
that converts the chemical energy of hydrogen directly into electricity through
electrochemical reactions.
(g) "Government entity" means
the state, a state agency, or a political subdivision, as defined in section 13.02,
subdivision 11.
(h) "Public utility" has the
meaning given in section 216B.02, subdivision 4.
Subd. 2. Transportation
electrification plan; contents. (a)
By June 1, 2023, and at least every three years thereafter, a public utility
must file a transportation electrification plan with the commission that is
designed to (1) maximize the overall benefits of electric vehicles and other
electrified transportation while minimizing overall costs, and (2) promote the:
(i) purchase of electric vehicles by
the public utility's customers; and
(ii) deployment of electric vehicle
infrastructure in the public utility's service territory.
(b) A transportation
electrification plan may include but is not limited to the following elements:
(1) programs to educate and increase
the awareness and benefits of electric vehicles and electric vehicle charging
equipment among individuals, electric vehicle dealers, single-family and
multifamily housing developers and property management companies, building
owners and tenants, vehicle service stations, vehicle fleet owners and
managers, and other potential users of electric vehicles;
(2) utility investments and incentives
the utility provides and offers to support transportation electrification
across all customer classes, including but not limited to investments and
incentives to facilitate:
(i) the deployment of electric vehicles
for personal and commercial use; customer- and utility-owned electric vehicle
charging stations; electric vehicle infrastructure to support light-duty,
medium-duty, and heavy-duty vehicle electrification; and other electric utility
infrastructure;
(ii) widespread access to publicly
available electric vehicle charging stations; and
(iii) the electrification of public
transit and vehicle fleets owned or operated by a government entity;
(3) research and demonstration projects
to increase access to electricity as a transportation fuel, minimize the system
costs of electric transportation, and inform future transportation
electrification plans;
(4) rate structures or programs that
encourage electric vehicle charging that optimizes electric grid operation,
including time-varying rates and charging optimization programs;
(5) programs to increase access to the
benefits of electricity as a transportation fuel for low- or moderate-income
customers and communities and in neighborhoods most affected by
transportation-related air emissions; and
(6) proposals to expedite commission
consideration of program adjustments requested during the term of an approved
transportation electrification plan.
(c) If funding is limited, a public
utility must give priority under this section to investments in communities
whose governing body has enacted a resolution or goal supporting electric
vehicle adoption. A public utility must
cooperate with local communities to identify suitable locations, consistent
with a community's local development plans, where electric vehicle
infrastructure may be strategically deployed.
Subd. 3. Transportation
electrification plan; review and implementation. The commission may approve, modify, or
reject a transportation electrification plan.
When reviewing a transportation electrification plan, the commission must consider whether the programs,
investments, and expenditures as a whole are reasonably expected to:
(1) improve the operation of the
electric grid;
(2) increase access to the use of
electricity as a transportation fuel for all customers, including those in low-
or moderate-income communities, rural communities, and communities most
affected by emissions from the transportation sector;
(3) increase access to publicly
available electric vehicle charging and destination charging for all types of
electric vehicles;
(4) support the electrification of
medium-duty and heavy-duty vehicles and associated charging infrastructure;
(5) reduce statewide
greenhouse gas emissions, as defined in section 216H.01, and emissions of other
air pollutants that impair the environment and public health;
(6) stimulate private capital
investment and the creation of skilled jobs;
(7) educate the public about the
benefits of electric vehicles and related infrastructure; and
(8) be transparent and incorporate
reasonable public reporting of program activities, consistent with existing
technology and data capabilities, to inform program design and commission
policy with respect to electric vehicles.
Subd. 4. Cost
recovery. (a) Notwithstanding
any other provision of this chapter, the commission may approve, with respect
to any prudent and reasonable investments made or expenses incurred by a public
utility to administer and implement a transportation electrification plan
approved under subdivision 3:
(1) a rider or other tariff mechanism
to automatically adjust charges annually;
(2) performance-based incentives;
(3) placing the investment, including
rebates, in the public utility's rate base and allowing the public utility to
earn a rate of return on the investment at:
(i) the public utility's average weighted
cost of capital, including the rate of return on equity, approved by the
commission in the public utility's most recent general rate case; or
(ii) another rate determined by the
commission; or
(4) any other recovery mechanism that
the commission determines is fair, reasonable, and supports the objectives of
this section.
(b) Notwithstanding section 216B.16,
subdivision 8, paragraph (a), clause (3), the commission must approve recovery
costs for expenses reasonably incurred by a public utility to provide public
advertisement as part of a transportation electrification plan approved by the
commission under subdivision 3.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. [216B.1617]
ELECTRIC SCHOOL BUS DEPLOYMENT PROGRAM.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Battery exchange
station" means a physical location where equipment is deployed that
enables a used electric vehicle battery to be exchanged for a fully charged
battery.
(c) "Electric school bus"
means an electric vehicle that is a school bus.
(d) "Electric vehicle" has
the meaning given in section 169.011, subdivision 26a.
(e) "Electric vehicle charging station"
means a physical location deploying equipment that provides electricity to
charge a battery in an electric vehicle.
(f) "Electric vehicle
infrastructure" means electric vehicle charging stations and battery
exchange stations, and includes any infrastructure necessary to make
electricity from a public utility's electric distribution system available to
electric vehicle charging stations or battery exchange stations.
(g) "Poor air quality" means: (1) ambient air levels that air monitoring
data reveals approach or exceed state or federal air quality standards or
chronic health inhalation risk benchmarks for total suspended particulates,
particulate matter less than ten microns wide (PM-10), particulate matter less
than 2.5 microns wide (PM-2.5), sulfur dioxide, or nitrogen dioxide; or (2)
levels of asthma among children that significantly exceed the statewide
average.
(h) "School bus" has the
meaning given in section 169.011, subdivision 71.
Subd. 2. Program. (a) A public utility may file with the
commission a program to promote deployment of electric school buses.
(b) The program may include but is not
limited to the following elements:
(1) a school district may purchase one or more electric school buses;
(2) the public utility may provide a
rebate to the school district for the incremental cost the school district
incurs to purchase one or more electric school buses when compared with
fossil-fuel-powered school buses;
(3) at the request of a school district, the public utility may deploy on the school district's real property electric vehicle infrastructure required to charge electric school buses;
(4) for any electric school bus
purchased by a school district with a rebate provided by the public utility,
the school district must enter into a contract with the public utility under
which the school district:
(i) accepts any and all liability for
operating the electric school bus;
(ii) accepts responsibility to maintain
and repair the electric school bus; and
(iii) must allow the public utility an
option to own the electric school bus's battery at the time the battery is
retired from the electric school bus; and
(5) in collaboration with a school
district, prioritize the deployment of electric school buses in areas of the
school district that suffer from poor air quality.
Subd. 3. Program
review and implementation. The
commission must approve, modify, or reject a proposal for a program filed under
this section within 180 days of the date the proposal is received. The commission's approval, modification, or
rejection must be based on the proposal's likelihood to, through prudent and
reasonable utility investments:
(1) accelerate deployment of electric school buses in the public utility's service territory, particularly in areas with poor air quality; and
(2) reduce emissions of greenhouse
gases and particulates compared to fossil-fuel-powered school buses.
Subd. 4. Cost
recovery. (a) Any prudent and
reasonable investment made by a public utility on electric vehicle infrastructure
installed on a school district's real property may be placed in the public
utility's rate base and earn a rate of return, as determined by the commission.
(b) Notwithstanding any other
provision of this chapter, the commission may approve a tariff mechanism to
automatically adjust annual charges for prudent and reasonable investments made
by a public utility to implement and administer a program approved by the
commission under subdivision 3.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. [216C.402]
GRANT PROGRAM; MANUFACTURERS' CERTIFICATION OF AUTO DEALERS TO SELL ELECTRIC
VEHICLES.
Subdivision 1. Establishment. A grant program is established in the
Department of Commerce to award grants to dealers to offset the costs to obtain
the necessary training and equipment that is required by electric vehicle
manufacturers in order to certify a dealer to sell electric vehicles produced
by the manufacturer.
Subd. 2. Application. An application for a grant under this
section must be made to the commissioner on a form developed by the
commissioner. The commissioner must
develop administrative procedures and processes to review applications and
award grants under this section.
Subd. 3. Eligible
applicants. An applicant for
a grant awarded under this section must be a dealer of new motor vehicles
licensed under chapter 168 operating under a franchise from a manufacturer of
electric vehicles.
Subd. 4. Eligible
expenditures. Appropriations
made to support the activities of this section must be used only to reimburse:
(1) a dealer for the reasonable costs
to obtain training and certification for the dealer's employees from the
electric vehicle manufacturer that awarded the franchise to the dealer;
(2) a dealer for the reasonable costs
to purchase and install equipment to service and repair electric vehicles, as
required by the electric vehicle manufacturer that awarded the franchise to the
dealer; and
(3) the department for the reasonable
costs incurred to administer this section.
Subd. 5. Limitation. A grant awarded under this section to
a single dealer must not exceed $40,000.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2020, section 326B.103, is amended by adding a subdivision to read:
Subd. 6a. Electric
vehicle capable space. "Electric
vehicle capable space" means a designated automobile parking space that
has electrical infrastructure, including but not limited to raceways, cables,
electrical capacity, and panelboard or other electrical distribution space,
necessary to install an electric vehicle charging station.
Sec. 9. Minnesota Statutes 2020, section 326B.103, is amended by adding a subdivision to read:
Subd. 6b. Electric
vehicle charging station. "Electric
vehicle charging station" means a designated automobile parking space that
has a dedicated connection for charging an electric vehicle.
Sec. 10. Minnesota Statutes 2020, section 326B.103, is amended by adding a subdivision to read:
Subd. 6c. Electric
vehicle ready space. "Electric
vehicle ready space" means a designated automobile parking space that has
a branch circuit capable of supporting the installation of an electric vehicle
charging station.
Sec. 11. Minnesota Statutes 2020, section 326B.103, is amended by adding a subdivision to read:
Subd. 10a. Parking
facilities. "Parking
facilities" includes parking lots, garages, ramps, or decks.
Sec. 12. Minnesota Statutes 2020, section 326B.106, is amended by adding a subdivision to read:
Subd. 16. Electric
vehicle charging. The code
shall require a minimum number of electric vehicle-ready spaces, electric
vehicle capable spaces, and electric vehicle charging stations either within or
adjacent to new commercial and multifamily structures that provide on-site
parking facilities. Residential
structures with fewer than four dwelling units are exempt from this
subdivision.
Sec. 13. ELECTRIC
VEHICLE CHARGING STATIONS; INSTALLATIONS IN STATE AND REGIONAL PARKS.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "DC fast charger" means
electric vehicle charging station equipment that transfers direct current
electricity directly to an electric vehicle's battery.
(c) "Electric vehicle" has the
meaning given in Minnesota Statutes, section 169.011, subdivision 26a.
(d) "Electric vehicle charging
station" means infrastructure that connects an electric vehicle to a Level
2 or DC fast charger to recharge the electric vehicle's batteries.
(e) "Level 2 charger" means
electric vehicle charging station equipment that transfers 208- to 240-volt
alternating current electricity to a device in an electric vehicle that
converts alternating current to direct current to recharge an electric vehicle
battery.
Subd. 2. Program. The commissioner of natural resources,
in consultation with the commissioners of the Pollution Control Agency,
administration, and commerce, must develop and fund the installation of a network
of electric vehicle charging stations in Minnesota state parks. The commissioners must issue a request for
proposals to entities that have experience installing, owning, operating, and
maintaining electric vehicle charging stations.
The request for proposal must establish technical specifications that
electric vehicle charging stations are required to meet and must request
responders to address:
(1) the optimal number and location of
charging stations installed in a given state park;
(2) alternative arrangements that may be
made to allocate responsibility for electric vehicle charging station (i)
ownership, operation, and maintenance, and (ii) billing procedures; and
(3) any other issues deemed relevant by
the commissioners.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. ELECTRIC
VEHICLE CHARGING STATIONS; INSTALLATIONS AT COUNTY GOVERNMENT CENTERS.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "DC fast charger" means
electric vehicle charging station equipment that transfers direct current
electricity directly to an electric vehicle's battery.
(c) "Electric vehicle" has the
meaning given in Minnesota Statutes, section 169.011, subdivision 26a.
(d) "Electric vehicle
charging station" means infrastructure that connects an electric vehicle
to a Level 2 or DC fast charger to recharge the electric vehicle's batteries.
(e) "Level 2 charger" means
electric vehicle charging station equipment that transfers 208- to 240-volt
alternating current electricity to a device in an electric vehicle that
converts alternating current to direct current to recharge an electric vehicle
battery.
Subd. 2. Program. The commissioner of commerce must
develop and fund the installation of a network of electric vehicle charging
stations in public parking facilities at county government centers located in
Minnesota. The commissioner must issue a
request for proposals to entities that have experience installing, owning,
operating, and maintaining electric vehicle charging stations. The request for proposal must establish
technical specifications that electric vehicle charging stations are required
to meet and must request responders to address:
(1) the optimal number and location of
charging stations installed at each county government center;
(2) alternative arrangements that may be made to allocate responsibility for electric vehicle charging station (i) ownership, operation, and maintenance, and (ii) billing procedures;
(3) software used to allow payment for
electricity consumed at the charging stations; and
(4) any other issues deemed relevant by
the commissioner.
Subd. 3. County
role. (a) A county has a
right of first refusal with respect to ownership of electric vehicle charging
stations receiving funding under this section and installed at the county
government center.
(b) A county may enter into agreements
to (1) wholly or partially own, operate, or maintain an electric vehicle
charging system receiving funding under this section and installed at the
county government center, or (2) receive reports on the electric vehicle
charging system operations.
(c) A county must authorize and approve
the installation and location of an electric vehicle charging station at a
county government center under this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 8
ECONOMIC DEVELOPMENT
Section 1. Minnesota Statutes 2020, section 116C.779, subdivision 1, is amended to read:
Subdivision 1. Renewable development account. (a) The renewable development account is established as a separate account in the special revenue fund in the state treasury. Appropriations and transfers to the account shall be credited to the account. Earnings, such as interest, dividends, and any other earnings arising from assets of the account, shall be credited to the account. Funds remaining in the account at the end of a fiscal year are not canceled to the general fund but remain in the account until expended. The account shall be administered by the commissioner of management and budget as provided under this section.
(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating plant must transfer all funds in the renewable development account previously established under this subdivision and managed by the public utility to the renewable development account established in paragraph (a). Funds awarded to grantees in previous grant cycles that have not yet been expended and unencumbered funds required to be paid in calendar year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject to transfer under this paragraph.
(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating plant must transfer to the renewable development account $500,000 each year for each dry cask containing spent fuel that is located at the Prairie Island power plant for each year the plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any part of a year.
(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing each January 15 thereafter, the public utility that owns the Monticello nuclear generating plant must transfer to the renewable development account $350,000 each year for each dry cask containing spent fuel that is located at the Monticello nuclear power plant for each year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for any part of a year.
(e) Each year, the public utility shall withhold from the funds transferred to the renewable development account under paragraphs (c) and (d) the amount necessary to pay its obligations under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.
(f) If the commission approves a new or amended power purchase agreement, the termination of a power purchase agreement, or the purchase and closure of a facility under section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, the public utility subject to this section shall enter into a contract with the city in which the poultry litter plant is located to provide grants to the city for the purposes of economic development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid by the public utility from funds withheld from the transfer to the renewable development account, as provided in paragraphs (b) and (e).
(g) If the commission approves a new or amended power purchase agreement, or the termination of a power purchase agreement under section 216B.2424, subdivision 9, with an entity owned or controlled, directly or indirectly, by two municipal utilities located north of Constitutional Route No. 8, that was previously used to meet the biomass mandate in section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a grant contract with such entity to provide $6,800,000 per year for five years, commencing 30 days after the commission approves the new or amended power purchase agreement, or the termination of the power purchase agreement, and on each June 1 thereafter through 2021, to assist the transition required by the new, amended, or terminated power purchase agreement. The grant shall be paid by the public utility from funds withheld from the transfer to the renewable development account as provided in paragraphs (b) and (e).
(h) The collective amount paid under the grant contracts awarded under paragraphs (f) and (g) is limited to the amount deposited into the renewable development account, and its predecessor, the renewable development account, established under this section, that was not required to be deposited into the account under Laws 1994, chapter 641, article 1, section 10.
(i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued facility, the commission shall require the public utility to pay $7,500,000 for the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year in which the commission finds, by the preponderance of the evidence, that the public utility did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a permanent or interim storage site out of the state. This determination shall be made at least every two years.
(j) Funds in the account may be expended only for any of the following purposes:
(1) to stimulate research and development of renewable electric energy technologies;
(2) to encourage grid modernization, including, but not limited to, projects that implement electricity storage, load control, and smart meter technology; and
(3) to stimulate other innovative energy projects that reduce demand and increase system efficiency and flexibility.
Expenditures from the fund must benefit Minnesota ratepayers receiving electric service from the utility that owns a nuclear-powered electric generating plant in this state or the Prairie Island Indian community or its members.
The utility that owns a nuclear generating plant is eligible to apply for grants under this subdivision.
(k) For the purposes of paragraph (j), the following terms have the meanings given:
(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph (c), clauses (1), (2), (4), and (5); and
(2) "grid modernization" means:
(i) enhancing the reliability of the electrical grid;
(ii) improving the security of the electrical grid against cyberthreats and physical threats; and
(iii) increasing energy conservation opportunities by facilitating communication between the utility and its customers through the use of two-way meters, control technologies, energy storage and microgrids, technologies to enable demand response, and other innovative technologies.
(l) A renewable development account advisory group that includes, among others, representatives of the public utility and its ratepayers, and includes at least one representative of the Prairie Island Indian community appointed by that community's tribal council, shall develop recommendations on account expenditures. The advisory group must design a request for proposal and evaluate projects submitted in response to a request for proposals. The advisory group must utilize an independent third-party expert to evaluate proposals submitted in response to a request for proposal, including all proposals made by the public utility. A request for proposal for research and development under paragraph (j), clause (1), may be limited to or include a request to higher education institutions located in Minnesota for multiple projects authorized under paragraph (j), clause (1). The request for multiple projects may include a provision that exempts the projects from the third-party expert review and instead provides for project evaluation and selection by a merit peer review grant system. In the process of determining request for proposal scope and subject and in evaluating responses to request for proposals, the advisory group must strongly consider, where reasonable, potential benefit to Minnesota citizens and businesses and the utility's ratepayers.
(m) The advisory group shall submit funding recommendations to the public utility, which has full and sole authority to determine which expenditures shall be submitted by the advisory group to the legislature. The commission may approve proposed expenditures, may disapprove proposed expenditures that it finds not to be in compliance with this subdivision or otherwise not in the public interest, and may, if agreed to by the public utility, modify proposed expenditures. The commission shall, by order, submit its funding recommendations to the legislature as provided under paragraph (n).
(n) The commission shall present its recommended appropriations from the account to the senate and house of representatives committees with jurisdiction over energy policy and finance annually by February 15. Expenditures from the account must be appropriated by law. In enacting appropriations from the account, the legislature:
(1) may approve or disapprove, but may not modify, the amount of an appropriation for a project recommended by the commission; and
(2) may not appropriate money for a project the commission has not recommended funding.
(o) A request for proposal for renewable energy generation projects must, when feasible and reasonable, give preference to projects that are most cost-effective for a particular energy source.
(p) The advisory group must annually, by February 15, report to the chairs and ranking minority members of the legislative committees with jurisdiction over energy policy on projects funded by the account for the prior year and all previous years. The report must, to the extent possible and reasonable, itemize the actual and projected financial benefit to the public utility's ratepayers of each project.
(q) By February 1, 2018, and each February 1 thereafter, the commissioner of management and budget shall submit a written report regarding the availability of funds in and obligations of the account to the chairs and ranking minority members of the senate and house committees with jurisdiction over energy policy and finance, the public utility, and the advisory group.
(r) A project receiving funds from the account must produce a written final report that includes sufficient detail for technical readers and a clearly written summary for nontechnical readers. The report must include an evaluation of the project's financial, environmental, and other benefits to the state and the public utility's ratepayers.
(s) Final reports, any mid-project status reports, and renewable development account financial reports must be posted online on a public website designated by the commissioner of commerce.
(t) All final reports must acknowledge that the project was made possible in whole or part by the Minnesota renewable development account, noting that the account is financed by the public utility's ratepayers.
(u) Of the amount in the renewable development account, priority must be given to making the payments required under section 216C.417.
(v) A construction project funded from
an appropriation made under this section must comply with sections 177.41 to
177.43.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to appropriations made
on or after that date.
Sec. 2. Minnesota Statutes 2020, section 116J.55, subdivision 5, is amended to read:
Subd. 5. Grant
awards; limitations. (a) The
commissioner must award grants under this section to eligible communities
through a competitive grant process.
(b) (a) A grant awarded to an
eligible community under this section must not exceed $500,000 in any
calendar year. The commissioner may
accept grant applications on an ongoing or rolling basis.
(c) (b) Grants funded with
revenues from the renewable development account established in section 116C.779
must be awarded to an eligible community located within the retail electric
service territory of the public utility that is subject to section 116C.779 or
to an eligible community in which an electric generating plant owned by that
public utility is located.
Sec. 3. Minnesota Statutes 2020, section 216B.16, subdivision 13, is amended to read:
Subd. 13. Economic and community development. The commission may allow a public utility to recover from ratepayers the reasonable expenses incurred (1) for economic and community development, and (2) to employ local workers, as defined in section 216B.2422, subdivision 1, to construct and maintain generation facilities that supply power to the utility's customers.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2020, section 216B.1645, subdivision 2, is amended to read:
Subd. 2. Cost
recovery. The expenses incurred by
the utility over the duration of the approved contract or useful life of the
investment and, expenditures made pursuant to section 116C.779 shall
be, and the expenses incurred to employ local workers to construct and
maintain generation facilities that supply power to the utility's customers are
recoverable from the ratepayers of the utility, (1) to the extent
they the expenses or expenditures are not offset by utility
revenues attributable to the contracts, investments, or expenditures, and
(2) if the expenses or expenditures are deemed reasonable by the commission. Upon petition by a public utility, the
commission shall approve or approve as modified a rate schedule providing for
the automatic adjustment of charges to recover the expenses or costs approved
by the commission under subdivision 1, which, in the case of transmission
expenditures, are limited to the portion of actual transmission costs that are
directly allocable to the need to transmit power from the renewable sources of
energy. The commission may not approve
recovery of the costs for that portion of the power generated from sources
governed by this section that the utility sells into the wholesale market.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2020, section 216B.1691, subdivision 9, is amended to read:
Subd. 9. Local
benefits. The commission shall take
all reasonable actions within its the commission's statutory
authority to ensure this section is implemented to maximize benefits to
Minnesota citizens and local workers, as defined in section 216B.2422,
subdivision 1, balancing factors such as local ownership of or
participation in energy production,; local job impacts, as defined in
section 216B.2422, subdivision 1; development and ownership of eligible
energy technology facilities by independent power producers,; Minnesota
utility ownership of eligible energy technology facilities,; the
costs of energy generation to satisfy the renewable standard,; and
the reliability of electric service to Minnesotans.
Sec. 6. Minnesota Statutes 2020, section 216B.2422, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in this subdivision have the meanings given them.
(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more of electric power and serving, either directly or indirectly, the needs of 10,000 retail customers in Minnesota. Utility does not include federal power agencies.
(c) "Renewable energy" means electricity generated through use of any of the following resources:
(1) wind;
(2) solar;
(3) geothermal;
(4) hydro;
(5) trees or other vegetation;
(6) landfill gas; or
(7) predominantly organic components of wastewater effluent, sludge, or related by-products from publicly owned treatment works, but not including incineration of wastewater sludge.
(d) "Resource plan" means a set of resource options that a utility could use to meet the service needs of its customers over a forecast period, including an explanation of the supply and demand circumstances under which, and the extent to which, each resource option would be used to meet those service needs. These resource options include using, refurbishing, and constructing utility plant and equipment, buying power generated by other entities, controlling customer loads, and implementing customer energy conservation.
(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating resource of 30 megawatts or greater.
(f) "Energy storage system" means a commercially available technology that:
(1) uses mechanical, chemical, or thermal processes to:
(i) store energy, including energy generated from renewable resources and energy that would otherwise be wasted, and deliver the stored energy for use at a later time; or
(ii) store thermal energy for direct use for heating or cooling at a later time in a manner that reduces the demand for electricity at the later time;
(2) is composed of stationary equipment;
(3) if being used for electric grid benefits, is operationally visible and capable of being controlled by the distribution or transmission entity managing it, to enable and optimize the safe and reliable operation of the electric system; and
(4) achieves any of the following:
(i) reduces peak or electrical demand;
(ii) defers the need or substitutes for an investment in electric generation, transmission, or distribution assets;
(iii) improves the reliable operation of the electrical transmission or distribution systems, while ensuring transmission or distribution needs are not created; or
(iv) lowers customer costs by storing energy when the cost of generating or purchasing it is low and delivering it to customers when the costs are high.
(g) "Local job impacts" means
the impacts of a certificate of need, a power purchase agreement, or commission
approval of a new or refurbished energy facility on the availability of
construction employment opportunities to local workers.
(h) "Local workers" means
workers who (1) are employed to construct and maintain energy infrastructure;
and (2) are Minnesota residents, are residents of the utility's service
territory, or permanently reside within 150 miles of a proposed new or
refurbished energy facility.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision to read:
Subd. 4a. Preference
for local job creation. As
part of a resource plan filing, a utility must report on associated local job
impacts and the steps the utility and the utility's energy suppliers and
contractors are taking to maximize the availability of construction employment
opportunities for local workers. The
commission must consider local job impacts and give preference to proposals
that maximize the creation of construction employment opportunities for local
workers, consistent with the public interest, when evaluating any utility
proposal that involves the selection or construction of facilities used to
generate or deliver energy to serve the utility's customers, including but not
limited to an integrated resource plan, a certificate of need, a power purchase
agreement, or commission approval of a new or refurbished electric generation
facility. The commission must, to the
maximum extent possible, prioritize the hiring of workers from communities
hosting retiring electric generation facilities, including workers previously
employed at the retiring facilities.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to an integrated
resource plan filed with the commission on or after that date.
Sec. 8. Minnesota Statutes 2020, section 216B.2422, subdivision 5, is amended to read:
Subd. 5. Bidding;
exemption from certificate of need proceeding.
(a) A utility may select resources to meet its projected energy
demand through a bidding process approved or established by the commission. A utility shall use the environmental cost
estimates determined under subdivision 3 in and consider local job
impacts when evaluating bids submitted in a process established under this
subdivision.
(b) Notwithstanding any other provision of this section, if an electric power generating plant, as described in section 216B.2421, subdivision 2, clause (1), is selected in a bidding process approved or established by the commission, a certificate of need proceeding under section 216B.243 is not required.
(c) A certificate of need proceeding is also not required for an electric power generating plant that has been selected in a bidding process approved or established by the commission, or such other selection process approved by the commission, to satisfy, in whole or in part, the wind power mandate of section 216B.2423 or the biomass mandate of section 216B.2424.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to an integrated
resource plan filed with the commission on or after that date.
Sec. 9. Minnesota Statutes 2020, section 216C.435, subdivision 8, is amended to read:
Subd. 8. Qualifying
commercial real property. "Qualifying
commercial real property" means a multifamily residential dwelling, or
a commercial or industrial building, or farmland, as defined in section
216C.436, subdivision 1b, that the implementing entity has determined,
after review of an energy audit or, renewable energy system
feasibility study, or agronomic assessment, as defined in section 216C.436,
subdivision 1b, can be benefited by benefit from the
installation of cost-effective energy improvements or land and water
improvements, as defined in section 216C.436, subdivision 1b. Qualifying commercial real property includes
new construction.
Sec. 10. Minnesota Statutes 2020, section 216C.436, is amended by adding a subdivision to read:
Subd. 1b. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Agronomic assessment"
means a study by an independent third party that assesses the environmental
impacts of proposed land and water improvements on farmland.
(c) "Farmland" means
land classified as 2a, 2b, or 2c for property tax purposes under section
273.13, subdivision 23.
(d) "Land and water
improvement" means:
(1) an improvement to farmland that is
permanent, results in improved agricultural profitability or resiliency, and
reduces the environmental impact of agricultural production; or
(2) water conservation and quality
measures, which include permanently affixed equipment, appliances, or
improvements that reduce a property's water consumption or that enable water to
be managed more efficiently.
Land and water improvement does not include drainage.
(e) "Resiliency" means the
ability of farmland to maintain and enhance profitability, soil health, and
water quality.
Sec. 11. Minnesota Statutes 2020, section 216C.436, subdivision 2, is amended to read:
Subd. 2. Program requirements. A commercial PACE loan program must:
(1) impose requirements and conditions on financing arrangements to ensure timely repayment;
(2) require an energy audit or,
renewable energy system feasibility study, or agronomic or soil health
assessment to be conducted on the qualifying commercial real property and
reviewed by the implementing entity prior to approval of the financing;
(3) require the inspection of all installations and a performance verification of at least ten percent of the cost‑effective energy improvements or land and water improvements financed by the program;
(4) not prohibit the financing of all cost-effective energy improvements or land and water improvements not otherwise prohibited by this section;
(5) require that all cost-effective energy improvements or land and water improvements be made to a qualifying commercial real property prior to, or in conjunction with, an applicant's repayment of financing for cost-effective energy improvements or land and water improvements for that property;
(6) have cost-effective energy improvements or land and water improvements financed by the program performed by a licensed contractor as required by chapter 326B or other law or ordinance;
(7) require disclosures to borrowers by the implementing entity of the risks involved in borrowing, including the risk of foreclosure if a tax delinquency results from a default;
(8) provide financing only to those who demonstrate an ability to repay;
(9) not provide financing for a qualifying commercial real property in which the owner is not current on mortgage or real property tax payments;
(10) require a petition to the implementing entity by all owners of the qualifying commercial real property requesting collections of repayments as a special assessment under section 429.101;
(11) provide that payments and assessments
are not accelerated due to a default and that a tax delinquency exists only for
assessments not paid when due; and
(12) require that liability
for special assessments related to the financing runs with the qualifying
commercial real property.; and
(13) prior to financing any improvements
to or imposing any assessment upon qualifying commercial real property, require
notice to and written consent from the mortgage lender of any mortgage encumbering
or otherwise secured by the qualifying commercial real property.
Sec. 12. [216C.441]
MINNESOTA INNOVATION FINANCE AUTHORITY.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Advisory task force"
means the Minnesota Innovation Finance Authority advisory task force.
(c) "Authority" means the
Minnesota Innovation Finance Authority.
(d) "Clean energy project" has
the meaning given to "qualified project" in paragraph (k), clauses (1)
to (4).
(e) "Credit enhancement" means
a pool of capital set aside to cover potential losses on loans made by private
lenders. Credit enhancement includes but
is not limited to loan loss reserves and loan guarantees.
(f) "Energy storage system"
has the meaning given in section 216B.2422, subdivision 1, paragraph (f).
(g) "Fuel cell" means a cell
that converts the chemical energy of hydrogen directly into electricity through
electrochemical reactions.
(h) "Greenhouse gas emissions"
has the meaning given to "statewide greenhouse gas emissions" in
section 216H.01, subdivision 2.
(i) "Loan loss reserve" means
a pool of capital set aside to reimburse a private lender if a customer
defaults on a loan, up to an agreed-upon percentage of loans originated by the
private lender.
(j) "Microgrid system" means
an electrical grid that (1) serves a discrete geographical area from
distributed energy resources, and (2) can operate independently from the
central electric grid on a temporary basis.
(k) "Qualified project" means
a project, technology, product, service, or measure predominantly focused on
clean energy, electrification, or energy or climate resilience as follows:
(1) a project, technology, product,
service, or measure that:
(i) results in the reduction of energy
use while providing the same level of service or output obtained before the
project, technology, product, service, function, or measure was applied;
(ii) shifts the use of electricity by
retail customers in response to changes in the price of electricity that vary
over time or provides other incentives designed to shift electricity demand
from times when market prices are high or when system reliability is
jeopardized; or
(iii) significantly reduces greenhouse
gas emissions relative to greenhouse gas emissions produced before the project
is implemented, excluding projects that generate power from the combustion of
fossil fuels;
(2) the development, construction,
deployment, alteration, or repair of any:
(i) project, technology, product, service, or measure that generates electric power from renewable energy; or
(ii) distributed generation
system, energy storage system, smart grid technology, microgrid system, fuel
cell system, or combined heat and power system;
(3) the installation, construction, or
use of end-use electric technology that replaces existing fossil-fuel-based
technology;
(4) a project, technology, product,
service, or measure that supports the development and deployment of electric
vehicle charging stations and associated infrastructure;
(5) a project that reduces net
greenhouse gas emissions or improves climate resiliency, including but not
limited to reforestation, afforestation, forestry management, and regenerative
agriculture;
(6) the construction or enhancement of
infrastructure that is planned, designed, and operated in a manner that
anticipates, prepares for, and adapts to current and projected changing climate
conditions so that the infrastructure withstands, responds to, and more readily
recovers from disruptions caused by the current and projected changing climate
conditions; and
(7) the development, construction,
deployment, alteration, or repair of any project, technology, product, service,
or measure that: (i) reduces water use
while providing the same or better level and quality of service or output that
was obtained before implementing the water-saving approach; or (ii) protects,
restores, or preserves the quality of groundwater and surface waters, including
but not limited to actions that further the purposes of the Clean Water Legacy
Act, as provided in section 114D.10, subdivision 1.
(l) "Regenerative agriculture"
means farming methods that reduce agriculture's contribution to climate change
by increasing the soil's ability to absorb atmospheric carbon and convert the
atmospheric carbon to soil carbon.
(m) "Renewable energy" has the
meaning given in section 216B.2422 and includes fuel cells generated from
renewable energy.
(n) "Smart grid" means a
digital technology that (1) allows for two-way communication between a utility
and the utility's customers, and (2) enables the utility to control power flow
and load in real time.
Subd. 2. Establishment;
purpose. (a) By September 1,
2022, the department must establish and convene a Minnesota Innovation Finance
Authority Advisory Task Force.
(b) By February 1, 2023, the Minnesota
Innovation Finance Authority Advisory Task Force convened by the department
must establish the Minnesota innovation finance authority as a nonprofit corporation,
including the development of the nonprofit board under chapter 317A, and must
seek designation as a charitable tax-exempt organization under section
501(c)(3) of the Internal Revenue Code of 1986, as amended. The advisory task force must engage
independent legal counsel with relevant experience in nonprofit corporate law
to help establish the nonprofit corporation.
The nonprofit corporation must be governed by a board of directors.
(c) The authority must establish bylaws,
subject to the prior approval by the commissioner.
(d) The initial board of directors must
include at least a majority of the members of the advisory task force
established under subdivision 5.
(e) When incorporated, the authority
must serve as an independent, nonprofit corporation for public benefit whose
purpose is to (1) promote investments in qualified clean energy, efficiency,
electrification, and other climate‑mitigation-related projects, and (2)
accelerate the deployment of qualified projects by reducing the up-front and
total cost of adoption. The authority
may achieve the purposes under this paragraph by leveraging public sources and
additional private sources of capital through the strategic deployment of
public money in the form of loans, credit enhancements, and other financing
mechanisms, along with strategies that stimulate demand.
(f) The authority must:
(1) identify underserved markets for
qualified projects in Minnesota, develop programs to overcome market
impediments, and provide access to financing to serve the projects and
underserved markets;
(2) except in cases of projects within
identified disadvantaged communities, as determined by the commissioner, that
may limit an investment, strategically prioritize money to leverage private
investment in qualified projects, achieving a high ratio of private to public
money invested through funding mechanisms that support, enhance, and complement
private investment;
(3) coordinate with existing
government- and utility-based programs to ensure (i) the most effective use of
the authority's resources, (ii) that financing terms and conditions offered are
well-suited to qualified projects, (iii) coordination of communication with
respect to all financing options under this section and other state and utility
programs, and (iv) the authority's activities add to and complement the efforts
of state and utility partners;
(4) serve as an informational resource
for contractors interested in installing qualified projects by forming
partnerships with and educating contractors regarding the authority's financing
programs and coordinating multiple contractors on projects that install
multiple qualifying technologies;
(5) develop innovative and inclusive
marketing strategies to stimulate project owner interest in targeted underserved
markets;
(6) serve as a financial resource to
reduce the up-front and total costs to borrowers;
(7) prioritize projects that maximize
greenhouse gas emission reductions or address disparities in access to clean
energy projects for underserved communities;
(8) ensure that workers employed by
contractors and subcontractors performing construction work on projects over
$100,000, financed all or in part by the authority, are paid wages not less
than the prevailing wage on similar construction projects in the applicable
locality;
(9) develop rules, policies, and
procedures specifying borrower eligibility and other terms and conditions for
financial support offered by the fund that must be met before financing support
is provided for any qualified clean energy project;
(10) develop and administer (i)
policies to collect reasonable fees for authority services, and (ii) risk
management activities that are sufficient to support ongoing authority
activities;
(11) subject to review by the
department, develop and adopt a work plan to accomplish all of the activities
required of the authority and update the work plan on an annual basis;
(12) develop consumer protection
standards governing the authority's investments to ensure the authority and
partners provide financial support in a responsible and transparent manner that
is in the financial interest of participating project owners and serves the
defined underserved markets and disadvantaged communities; or
(13) establish and maintain an online
and mobile-access portal that provides access to all authority programs and
financial products, including rates, terms, and conditions of all financing
support programs, unless disclosure of the information constitutes a trade
secret or confidential commercial or financial information.
Subd. 3. Additional
department responsibilities. In
addition to the responsibilities listed in this chapter, the department must:
(1) review consumer protection
standards established by the authority; and
(2) provide standard state oversight to
money appropriated under this section.
Subd. 4. Additional
authorized activities. The
authority is authorized to:
(1) engage in any activities of a
Minnesota nonprofit corporation operating under chapter 317A;
(2) develop and employ financing
methods to support qualified projects, including:
(i) credit enhancement mechanisms that
reduce financial risk for private lenders by providing assurance that a limited
portion of a loan is assumed by the fund via a loan loss reserve, loan
guarantee, or other mechanism;
(ii) co-investment, where the fund
invests directly in a clean energy project by providing senior or subordinated
debt, equity, or other mechanisms in conjunction with a private financier's
investment; and
(iii) serving as an aggregator of many
small and geographically dispersed qualified projects, where the authority may
provide direct lending, investment, or other financial support in order to
diversify risk; and
(3) seek to qualify as a community
development financial institution under United States Code, title 12, section
4702, in which case the authority must be treated as a qualified community
development entity for the purposes of sections 45D and 1400(m) of the Internal
Revenue Code.
Subd. 5. Advisory
task force; membership. (a)
The Minnesota Innovation Finance Authority Advisory Task Force is established
and consists of 15 members as follows:
(1) the commissioner of commerce or the
commissioner's designee, who serves as chair of the advisory task force;
(2) the commissioner of employment and
economic development or the commissioner's designee;
(3) the commissioner of the Pollution
Control Agency or the commissioner's designee;
(4) the commissioner of agriculture or
the commissioner's designee;
(5) two additional members appointed by
the governor;
(6) two additional members appointed by
the speaker of the house;
(7) two additional members appointed by
the president of the senate; and
(8) five members that have extensive
life or work experience within economically disadvantaged communities that the
authority aims to serve, appointed by the governor and the commissioners
identified in clauses (1) to (4).
(b) The members appointed to the
advisory task force under paragraph (a), clauses (6) and (7), must have
expertise in matters relating to energy conservation, clean energy, economic
development, banking, law, finance, or other matters relevant to the work of
the advisory task force.
(c) When appointing a member
to the advisory task force, consideration must be given to whether the advisory
task force members collectively reflect the geographical and ethnic diversity
of Minnesota.
(d) Members of the advisory task force must abide by the conflict of interest provisions in section 43A.38.
(e) In order to ensure participation,
the commissioner may provide a nominal grant to any advisory task force member
that demonstrates financial need in order to participate.
Subd. 6. Report;
audit. Beginning February 1,
2024, the authority must annually submit a comprehensive report on the
authority's activities for the previous fiscal year to the governor and the
chairs and ranking minority members of the legislative committees with primary
jurisdiction over energy policy. The
report must contain, at a minimum, information on:
(1) the amount of authority capital
invested, itemized by project type;
(2) the amount of private capital
leveraged as a result of authority investments, itemized by project type;
(3) the number of qualified projects
supported, itemized by project type and location within Minnesota;
(4) the estimated number of jobs
created and tax revenue generated as a result of the authority's activities;
(5) the number of clean energy projects
financed in low- and moderate-income households; and
(6) the authority's financial
statements.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. [216C.46]
ENERGY ALLEY START-UP FUND.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Decarbonization
technology" means a technology whose implementation results in a reduction
in statewide greenhouse gas emissions, as defined in section 216H.01,
subdivision 2.
(c) "Emerging energy
technology" means carbon-reducing energy technologies, systems, or
practices that are not yet at the commercialization stage.
(d) "Qualified equity
business" means a minority-, women-, or veteran-owned business, as the
terms are defined in section 116J.8737.
(e) "Qualified greater Minnesota
business" means a business that is certified by the commissioner as a
qualified small business and as a qualified greater Minnesota business under
section 116J.8737, subdivision 2.
Subd. 2. Establishment;
purpose. An energy alley
start-up fund account is established in the Department of Commerce to provide
loans and grants to qualified businesses to:
(1) promote the start-up, expansion,
and attraction of emerging energy technologies and businesses within Minnesota;
and
(2) stimulate other innovative
decarbonization technology projects that are capable of being developed at a
large scale.
Subd. 3. Account
established. An energy alley
start-up fund account is established in the special revenue fund in the state
treasury. Earnings, including interest,
dividends, and any other earnings arising from assets of the account, must be
credited to the account. Nonstate money
obtained by the commissioner for the purposes of this section must be credited
to the account. The commissioner must
manage the account. Money in the account
is appropriated to the commissioner for the purposes of this section and must
be expended only as provided in this section.
Subd. 4. Nonstate
contributions; influence prohibited.
(a) The commissioner must ensure any nonstate money deposited in
the account, and the sources of nonstate money, have no influence over (1)
awarding grants or loans, or (2) other activities conducted under this section.
(b) The commissioner may retain no more
than three percent annually of money credited to the account for the
department's administrative expenses.
Subd. 5. Allocation
of funds. Money in the
account must be allocated as follows:
(1) at least 50 percent to qualified
greater Minnesota businesses or qualified equity businesses;
(2) up to 65 percent to establish a
low-interest loan fund and loan loss reserve;
(3) at least 35 percent to provide
grants under this section.
Subd. 6. Loans. (a) Loan recipients must repay loan
amounts awarded under this section by the end of the loan term. Loan repayment amounts must be credited to
the account. The department may use up
to ten percent of the low-interest land funds or 6.5 percent of total money
available, whichever is greater, under this section to: (1) establish a loan loss reserve in order to
leverage additional investments; (2) ensure funding for emerging, innovative
energy products; and (3) ensure accessibility by small businesses.
(b) No loans may be awarded under this
section after June 30, 2025.
Subd. 7. Application
process. (a) An application
for a grant or loan under this section must be made to the commissioner on a
form developed by the commissioner.
(b) An application made under this
section must be evaluated by the investment committee established under
subdivision 10.
(c) The commissioner must develop
administrative procedures necessary to implement this section.
Subd. 8. Grant
awards; limitations. (a) The
commissioner must award grants under this section to eligible applicants through
a competitive process.
(b) An eligible entity must be (1)
located in Minnesota, or (2) able to demonstrate how the grant directly and
significantly benefits Minnesotans in a manner that meets criteria established
by the commissioner.
Subd. 9. Technical advisory committee; membership. (a) The commissioner must establish and appoint members to the technical advisory committee to assist in the development of criteria governing the award of grants under this section. The technical advisory committee must have expertise in energy research and development, energy conservation, clean energy technology development, economic development, or energy project financing.
(b) The commissioner must appoint
members to the technical advisory committee who collectively reflect the
geographic and ethnic diversity of Minnesota.
(c) Members of the technical advisory
committee must comply with the conflicts of interest provisions under section
43A.38.
Subd. 10. Investment
committee; duties; membership. (a)
The commissioner, in consultation with the commissioner of employment and
economic development, must establish and appoint members to an investment
committee to review and recommend applications for grant and loan awards under
this section.
(b) The investment committee must
consist of seven members with expertise and experience in investments and
finance. The commissioner or the
commissioner's designee, and the commissioner of employment and economic
development or the commissioner of employment and economic development's
designee, must serve as members of the investment committee. The commissioner or the commissioner's
designee serves as chair of the investment committee.
(c) The commissioner must appoint
members of the investment committee who collectively reflect the geographic and
ethnic diversity of Minnesota.
(d) Members of the investment committee
must comply with the conflicts of interest provisions under section 43A.38. Entities represented by members of the
investment committee are ineligible to receive grants under this section.
Subd. 11. Annual
report; audit. On or before
February 15, 2024, and by February 15 each year thereafter, the commissioner
must report on the activities of the fund for the preceding calendar year to
the chairs and ranking minority members of the senate and house of
representatives committees with jurisdiction over energy finance and policy and
economic development finance. The report
must include but is not limited to information specifying:
(1) the number of applications for
funding received;
(2) the number of applications selected
for grants and loans;
(3) the total amount of grants and loans
issued in the previous year and to date, itemized by project type; and
(4) a complete operating and financial
statement covering the fund's operations for the preceding year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. [216C.47]
GRANTS FOR RENEWABLE INTEGRATION AND DEMONSTRATION.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Grid modernization"
means:
(1) enhancing electric grid service
quality and reliability;
(2)
improving the security of the electric grid and critical infrastructure against
cyberthreats and physical threats; and
(3) increasing energy conservation
opportunities by facilitating communication between the utility and the
utility's customers through the use of two-way meters, control technologies,
energy storage and microgrids, technologies that enable demand flexibility, and
other innovative technologies.
(c) "Renewable energy" has the
meaning given in section 216B.2422, subdivision 1, paragraph (c).
Subd. 2. Establishment;
purpose. A grants for
renewable integration and demonstration program is established in the
department. The purpose of the program
is to provide grants for projects to:
(1) stimulate research, deployment, and
grid integration of renewable electric energy technologies;
(2) encourage grid
modernization, including but not limited to projects that implement electricity
storage, generation control, load control, and smart meter technology; and
(3) stimulate other innovative energy
projects that (i) reduce demand, and (ii) increase system efficiency and
flexibility to benefit customers of the utility that owns nuclear generating
units in Minnesota.
Subd. 3. Program
account. A grants for
renewable integration and demonstration program account is established as a
separate account in the special revenue fund in the state treasury.
Subd. 4. Expenditures. Money in the account may be used only:
(1) for grant awards made under this
section;
(2) for costs to procure technical
evaluation services; and
(3) to pay reasonable costs incurred by
the department to administer this section.
Subd. 5. Eligibility. The commissioner must determine
whether a project is eligible for a grant under this section. When evaluating a project for approval, the
commissioner must consider:
(1) diversity, equity, and inclusion;
(2) greenhouse gas emissions;
(3) resiliency value;
(4) grid security;
(5) jobs and economic development; and
(6) other potential benefits to
Minnesota citizens and businesses, ratepayers receiving electric service from
the utility that owns a nuclear-powered electric generating plant in Minnesota,
the Prairie Island Indian community, or Prairie Island Indian community
members.
Subd. 6. Reporting. (a) A project that receives money from
a grant approved under this section must produce a written final report that
includes sufficient detail for technical readers and a clearly written summary
for nontechnical readers. The report
must include an evaluation of the project's financial, environmental, and other
benefits to Minnesota and the public utility's ratepayers.
(b) Final reports, any project status
reports, and grants for renewable integration and demonstration program
balances must be posted on a public website designated by the commissioner.
(c) All final reports must acknowledge
that the project was made possible in whole or part by the Minnesota renewable
development account, noting that the account is financed by the public
utility's ratepayers.
(d) By February 15 each year, the
commissioner must report to the chairs and ranking minority members of the
legislative committees with primary jurisdiction over energy regarding: (1) grants issued under this section during
the previous calendar year; and (2) any remaining balance available under this
section.
Subd. 7. Gifts;
grants; donations. The
program may accept gifts and grants on behalf of the state that constitute
donations to the state. Money received
under this subdivision is appropriated to the commissioner of commerce to
support the program under this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 15. Minnesota Statutes 2020, section 216E.03, subdivision 7, is amended to read:
Subd. 7. Considerations in designating sites and routes. (a) The commission's site and route permit determinations must be guided by the state's goals to conserve resources, minimize environmental impacts, minimize human settlement and other land use conflicts, and ensure the state's electric energy security through efficient, cost-effective power supply and electric transmission infrastructure.
(b) To facilitate the study, research, evaluation, and designation of sites and routes, the commission shall be guided by, but not limited to, the following considerations:
(1) evaluation of research and investigations relating to the effects on land, water and air resources of large electric power generating plants and high-voltage transmission lines and the effects of water and air discharges and electric and magnetic fields resulting from such facilities on public health and welfare, vegetation, animals, materials and aesthetic values, including baseline studies, predictive modeling, and evaluation of new or improved methods for minimizing adverse impacts of water and air discharges and other matters pertaining to the effects of power plants on the water and air environment;
(2) environmental evaluation of sites and routes proposed for future development and expansion and their relationship to the land, water, air and human resources of the state;
(3) evaluation of the effects of new electric power generation and transmission technologies and systems related to power plants designed to minimize adverse environmental effects;
(4) evaluation of the potential for beneficial uses of waste energy from proposed large electric power generating plants;
(5) analysis of the direct and indirect economic impact of proposed sites and routes including, but not limited to, productive agricultural land lost or impaired;
(6) evaluation of adverse direct and indirect environmental effects that cannot be avoided should the proposed site and route be accepted;
(7) evaluation of alternatives to the applicant's proposed site or route proposed pursuant to subdivisions 1 and 2;
(8) evaluation of potential routes that would use or parallel existing railroad and highway rights-of-way;
(9) evaluation of governmental survey lines and other natural division lines of agricultural land so as to minimize interference with agricultural operations;
(10) evaluation of the future needs for additional high-voltage transmission lines in the same general area as any proposed route, and the advisability of ordering the construction of structures capable of expansion in transmission capacity through multiple circuiting or design modifications;
(11) evaluation of irreversible and
irretrievable commitments of resources should the proposed site or route be
approved; and
(12) when appropriate,
consideration of problems raised by other state and federal agencies and local
entities.;
(13) evaluation of the benefits of the
proposed facility with respect to protecting and enhancing environmental
quality, and to the reliability of state and regional energy supplies;
(14) evaluation of the proposed
facility's impact on socioeconomic factors; and
(15) evaluation of the proposed
facility's employment and economic impacts in the vicinity of the facility site
and throughout the state, including the quantity and quality of construction
and permanent jobs and the jobs' compensation levels. The commission must consider a facility's
local employment and economic impacts, and may reject or place conditions on a
site or route permit based on the factors under this clause.
(c) If the commission's rules are substantially similar to existing regulations of a federal agency to which the utility in the state is subject, the federal regulations must be applied by the commission.
(d) No site or route shall be designated which violates state agency rules.
(e) The commission must make specific findings that it has considered locating a route for a high-voltage transmission line on an existing high-voltage transmission route and the use of parallel existing highway right‑of‑way and, to the extent those are not used for the route, the commission must state the reasons.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2020, section 216E.03, subdivision 10, is amended to read:
Subd. 10. Final decision. (a) No site permit shall be issued in violation of the site selection standards and criteria established in this section and in rules adopted by the commission. When the commission designates a site, it shall issue a site permit to the applicant with any appropriate conditions. The commission shall publish a notice of its decision in the State Register within 30 days of issuance of the site permit.
(b) No route permit shall be issued in violation of the route selection standards and criteria established in this section and in rules adopted by the commission. When the commission designates a route, it shall issue a permit for the construction of a high-voltage transmission line specifying the design, routing, right-of-way preparation, and facility construction it deems necessary, and with any other appropriate conditions. The commission may order the construction of high-voltage transmission line facilities that are capable of expansion in transmission capacity through multiple circuiting or design modifications. The commission shall publish a notice of its decision in the State Register within 30 days of issuance of the permit.
(c) No site permit may be issued under
this chapter for a large electric power generating plant, including the
modification of a site permit for a repowering project, as defined in section
216B.243, subdivision 8, paragraph (b), unless the applicant certifies to the
commission in writing that all employees who perform construction work on the
large electric power generating plant, including the employees of contractors
and subcontractors, are paid no less than the prevailing wage, as defined in
section 177.42.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to a site permit, or
the modification of a site permit for a repowering project, whose application
is filed with the commission on or after that date.
Sec. 17. Minnesota Statutes 2020, section 216F.04, is amended to read:
216F.04
SITE PERMIT.
(a) No person may construct an LWECS without a site permit issued by the Public Utilities Commission.
(b) Any person seeking to construct an LWECS shall submit an application to the commission for a site permit in accordance with this chapter and any rules adopted by the commission. The permitted site need not be contiguous land.
(c) The commission shall make a final decision on an application for a site permit for an LWECS within 180 days after acceptance of a complete application by the commission. The commission may extend this deadline for cause.
(d) The commission may place conditions in a permit and may deny, modify, suspend, or revoke a permit.
(e) No site permit may be issued for an
LWECS with a combined nameplate capacity of 25,000 kilowatts or more under this
chapter, including the modification of a site permit for a repowering project,
as defined in section 216B.243, subdivision 8, paragraph (b), unless the
applicant certifies in writing to the commission that all employees who perform
construction work on the LWECS, including the employees of contractors and subcontractors,
are paid no less than the prevailing wage, as defined in section 177.42.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to a site permit, or
the modification of a site permit for a repowering project, whose application
is filed with the commission on or after that date.
Sec. 18. Laws 2020, chapter 118, section 5, subdivision 1, is amended to read:
Subdivision 1. Community
energy transition grants. (a)
Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph
(j), $2,000,000 in fiscal year 2021 is appropriated from the renewable
development account established in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of employment and economic development for
deposit in the community energy transition account established in Minnesota
Statutes, section 116J.55, subdivision 3.
This is a onetime appropriation and is available until June 30, 2022
2025.
(b) If another bill is enacted during the 2020 regular legislative session that appropriates money from the renewable development account established in Minnesota Statutes, section 116C.779, subdivision 1, for the same general purpose as provided under Minnesota Statutes, section 116J.55, the appropriation under this subdivision cancels to the renewable development account under Minnesota Statutes, section 116C.779, subdivision 1.
ARTICLE 9
GREENHOUSE GAS EMISSIONS
Section 1. Minnesota Statutes 2020, section 216B.2422, subdivision 3, is amended to read:
Subd. 3. Environmental
costs. (a) The commission shall, to
the extent practicable using the best available scientific and economic
information and data, quantify and establish a range of environmental costs
associated with each method of electricity generation. The commission must (1) adopt and apply
the interim cost of greenhouse gas emissions valuations presented in Technical
Support Document: Social Cost of Carbon,
Methane, and Nitrous Oxide Interim Estimates, released by the federal government
in February 2021, adopting the 300-year time horizon and the full range of
discount rates from 2.5 to five percent, with three percent as the central
estimate; and (2) update the parameters as necessary to conform with updates
released by the federal Interagency Working Group on the Social Cost of
Greenhouse Gases, or the working group's successors, that are above the
February 2021 interim valuations.
(b) When evaluating and
selecting resource options in all proceedings before the commission, including
but not limited to proceedings regarding power purchase agreements, resource
plans, and certificates of need, a utility shall must use the
values established by the commission in conjunction with other external
factors, including socioeconomic costs, when evaluating and selecting resource
options in all proceedings before the commission, including resource plan and
certificate of need proceedings. under this subdivision to quantify and
monetize greenhouse gas and other emissions from the full lifecycle of fuels
used for in-state or imported electricity generation, including extraction,
processing, transport, and combustion.
(c) When evaluating resource options,
the commission must include and consider the environmental cost values adopted
under this subdivision. When considering
the costs of a nonrenewable energy facility under this section, the commission
must consider only nonzero values for the environmental costs analyzed under
this subdivision, including both the low and high values of any cost range
adopted by the commission.
(b) The commission shall establish
interim environmental cost values associated with each method of electricity
generation by March 1, 1994. These
values expire on the date the commission establishes environmental cost values
under paragraph (a).
EFFECTIVE
DATE. This section is
effective August 1, 2022, and applies to dockets initiated at the Public
Utilities Commission on or after that date.
Sec. 2. ENVIRONMENTAL
STANDARDS PROCUREMENT TASK FORCE.
(a) No later than June 30, 2022, the
commissioners of administration and transportation must establish an
environmental standards procurement task force to examine issues surrounding
the implementation of a program requiring vendors of certain construction
materials purchased by the state to:
(1) submit environmental product
declarations that assess the lifecycle environmental impacts of the
construction materials to state officials as part of the procurement process;
and
(2) meet standards established by the commissioner
of administration that limit greenhouse gas emissions impacts of the
construction materials.
(b) The task force must examine, at a
minimum, the following issues:
(1) which construction materials should
be subject to the program requirements;
(2) what factors should be considered
in establishing greenhouse gas emissions standards;
(3) a schedule to develop standards for
specific materials and incorporate the standards into the purchasing process;
(4) the development and use of
financial incentives to reward vendors for developing products whose greenhouse
gas emissions are below the standards;
(5) the provision of grants to defer a
vendor's cost to obtain environmental product declarations;
(6) how the issues in clauses (1) to
(5) are addressed by existing programs in other states and countries; and
(7) any other issues the task force
deems relevant.
(c) The advisory committee
must include two members of the house of representatives appointed by the
speaker of the house of representatives and two members of the senate appointed
by the senate majority leader. The
commissioners of administration and transportation must appoint additional
members of the advisory committee, who must include but may not be limited to
representatives of:
(1) the Departments of Administration
and Transportation;
(2) the Center for Sustainable Building
Research at the University of Minnesota;
(3) manufacturers of eligible materials;
(4) suppliers of eligible materials;
(5) building and transportation
construction firms;
(6) organized labor in the construction
trades;
(7) organized labor representing
materials manufacturing workers; and
(8) environmental advocacy
organizations.
(d) The Department of Administration
must provide meeting space and serve as staff to the advisory committee.
(e) The commissioner of administration,
or the commissioner's designee, shall serve as chair of the advisory committee. The advisory committee must meet at least
four times annually and must convene additional meetings at the call of the
chair.
(f) The commissioner of administration
must summarize the findings and recommendations of the task force in a report
submitted to the chairs and ranking minority members of the senate and house of
representatives committees with primary jurisdiction over state government,
transportation, and energy no later than January 1, 2023.
(g) The advisory committee is subject to
section 15.059, subdivision 6.
(h) For the purposes of this section,
"environmental product declaration" means a supply-chain-specific
type III environmental product declaration that:
(1) contains a lifecycle assessment of
the environmental impacts of manufacturing a specific product by a specific
firm, including the impacts of extracting and producing the raw materials and
components that compose the product;
(2) is verified and registered by a
third party; and
(3) meets the ISO 14025 standard
developed and maintained by the International Organization for Standardization
(ISO).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. LOCAL
CLIMATE ACTION GRANT PROGRAM.
Subdivision 1. Definitions. For the purpose of this section, the
following terms have the meanings given:
(1) "climate change" means a
change in global or regional climate patterns associated with increased levels
of greenhouse gas emissions entering the atmosphere largely as a result of
human activity;
(2) "commissioner"
means the commissioner of the Pollution Control Agency;
(3) "greenhouse gas emission"
means an emission of carbon dioxide, methane, nitrous oxide,
chlorofluorocarbons, hydrofluorocarbons, sulfur hexafluoride, and other gases
that trap heat in the atmosphere; and
(4) "political subdivision"
means a county, home rule charter or statutory city, town, or school district.
Subd. 2. Establishment. The commissioner must establish a
local climate action grant program in the Pollution Control Agency. The purpose of the program is to provide
grants to encourage political subdivisions to address climate change by
developing and implementing plans of action or creating new organizations and
institutions to devise policies and programs that:
(1) seek to mitigate the impacts of
climate change on the political subdivision; or
(2) reduce the political subdivision's
contributions to the causes of climate change.
Subd. 3. Application. (a) Application for a grant under this
section must be made to the commissioner on a form developed by the
commissioner. The commissioner must
develop procedures to (1) solicit and review applications, and (2) award grants
under this section.
(b) Eligible applicants for a grant
under this section must be located in or conduct the preponderance of the
applicant's work in the locality where the grant activities are to take place. Eligible applicants include political
subdivisions, organizations that are exempt from taxation under section
501(c)(3) of the Internal Revenue Code, and educational institutions.
Subd. 4. Awarding
grants. When awarding grants
under this section, the commissioner must give preference to proposals that
seek to involve a broad array of community residents, organizations, and
institutions in the political subdivision's efforts to address climate change.
Subd. 5. Grant
amounts. (a) A grant awarded
under this section must not exceed $50,000.
(b) A grant awarded under this section
for activities taking place at a county-wide level or in a city or town with a
population that exceeds 20,000 must be matched 100 percent with local funding.
(c) A grant awarded under this section
for activities taking place in a city or town with a population that is less
than 20,000 or in a school district must be matched a minimum of five percent
with local funding or equivalent in‑kind services.
Subd. 6. Eligible expenditures. Appropriations made to support the
activities of this section may be used only to:
(1) provide grants under this section;
and
(2) reimburse the reasonable expenses
incurred by the Pollution Control Agency to administer the grant program.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 10
MISCELLANEOUS
Section 1. Minnesota Statutes 2020, section 116C.779, subdivision 1, is amended to read:
Subdivision 1. Renewable development account. (a) The renewable development account is established as a separate account in the special revenue fund in the state treasury. Appropriations and transfers to the account shall be credited to the account. Earnings, such as interest, dividends, and any other earnings arising from assets of the account, shall be credited to the account. Funds remaining in the account at the end of a fiscal year are not canceled to the general fund but remain in the account until expended. The account shall be administered by the commissioner of management and budget as provided under this section.
(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating plant must transfer all funds in the renewable development account previously established under this subdivision and managed by the public utility to the renewable development account established in paragraph (a). Funds awarded to grantees in previous grant cycles that have not yet been expended and unencumbered funds required to be paid in calendar year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject to transfer under this paragraph.
(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating plant must transfer to the renewable development account $500,000 each year for each dry cask containing spent fuel that is located at the Prairie Island power plant for each year the plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any part of a year.
(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing each January 15 thereafter, the public utility that owns the Monticello nuclear generating plant must transfer to the renewable development account $350,000 each year for each dry cask containing spent fuel that is located at the Monticello nuclear power plant for each year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for any part of a year.
(e) Each year, the public utility shall withhold from the funds transferred to the renewable development account under paragraphs (c) and (d) the amount necessary to pay its obligations under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.
(f) If the commission approves a new or amended power purchase agreement, the termination of a power purchase agreement, or the purchase and closure of a facility under section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, the public utility subject to this section shall enter into a contract with the city in which the poultry litter plant is located to provide grants to the city for the purposes of economic development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid by the public utility from funds withheld from the transfer to the renewable development account, as provided in paragraphs (b) and (e).
(g) If the commission approves a new or amended power purchase agreement, or the termination of a power purchase agreement under section 216B.2424, subdivision 9, with an entity owned or controlled, directly or indirectly, by two municipal utilities located north of Constitutional Route No. 8, that was previously used to meet the biomass mandate in section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a grant contract with such entity to provide $6,800,000 per year for five years, commencing 30 days after the commission approves the new or amended power purchase agreement, or the termination of the power purchase agreement, and on each June 1 thereafter through 2021, to assist the transition required by the new, amended, or terminated power purchase agreement. The grant shall be paid by the public utility from funds withheld from the transfer to the renewable development account as provided in paragraphs (b) and (e).
(h) The collective amount paid under the grant contracts awarded under paragraphs (f) and (g) is limited to the amount deposited into the renewable development account, and its predecessor, the renewable development account, established under this section, that was not required to be deposited into the account under Laws 1994, chapter 641, article 1, section 10.
(i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued facility, the commission shall require the public utility to pay $7,500,000 for the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year in which the commission finds, by the preponderance of the evidence, that the public utility did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a permanent or interim storage site out of the state. This determination shall be made at least every two years.
(j) Funds in the account may be expended only for any of the following purposes:
(1) to stimulate research and development of renewable electric energy technologies;
(2) to encourage grid modernization, including, but not limited to, projects that implement electricity storage, load control, and smart meter technology; and
(3) to stimulate other innovative energy projects that reduce demand and increase system efficiency and flexibility.
Expenditures from the fund must benefit Minnesota ratepayers receiving electric service from the utility that owns a nuclear-powered electric generating plant in this state or the Prairie Island Indian community or its members.
The utility that owns a nuclear generating plant is eligible to apply for grants under this subdivision.
(k) For the purposes of paragraph (j), the following terms have the meanings given:
(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph (c), clauses (1), (2), (4), and (5); and
(2) "grid modernization" means:
(i) enhancing the reliability of the electrical grid;
(ii) improving the security of the electrical grid against cyberthreats and physical threats; and
(iii) increasing energy conservation opportunities by facilitating communication between the utility and its customers through the use of two-way meters, control technologies, energy storage and microgrids, technologies to enable demand response, and other innovative technologies.
(l) A renewable development account advisory group that includes, among others, representatives of the public utility and its ratepayers, and includes at least one representative of the Prairie Island Indian community appointed by that community's Tribal council, shall develop recommendations on account expenditures. The advisory group must design a request for proposal and evaluate projects submitted in response to a request for proposals. The advisory group must utilize an independent third-party expert to evaluate proposals submitted in response to a request for proposal, including all proposals made by the public utility. A request for proposal for research and development under paragraph (j), clause (1), may be limited to or include a request to higher education institutions located in Minnesota for multiple projects authorized under paragraph (j), clause (1). The request for multiple projects may include a provision that exempts the projects from the third-party expert review and instead provides
for
project evaluation and selection by a merit peer review grant system. In the process of determining request for
proposal scope and subject and in evaluating responses to request for
proposals, the advisory group must strongly consider, where reasonable,:
(1) potential benefit to Minnesota
citizens and businesses and the utility's ratepayers.; and
(2) the proposer's commitment to
increasing the diversity of the proposer's workforce and vendors.
(m) The advisory group shall submit funding recommendations to the public utility, which has full and sole authority to determine which expenditures shall be submitted by the advisory group to the legislature. The commission may approve proposed expenditures, may disapprove proposed expenditures that it finds not to be in compliance with this subdivision or otherwise not in the public interest, and may, if agreed to by the public utility, modify proposed expenditures. The commission shall, by order, submit its funding recommendations to the legislature as provided under paragraph (n).
(n) The commission shall present its recommended appropriations from the account to the senate and house of representatives committees with jurisdiction over energy policy and finance annually by February 15 following any year in which the commission has acted on recommendations submitted by the advisory group and the public utility. Expenditures from the account must be appropriated by law. In enacting appropriations from the account, the legislature:
(1) may approve or disapprove, but may not modify, the amount of an appropriation for a project recommended by the commission; and
(2) may not appropriate money for a project the commission has not recommended funding.
(o) A request for proposal for renewable energy generation projects must, when feasible and reasonable, give preference to projects that are most cost-effective for a particular energy source.
(p) The advisory group must annually, by February 15, report to the chairs and ranking minority members of the legislative committees with jurisdiction over energy policy on projects funded by the account for the prior year and all previous years. The report must, to the extent possible and reasonable, itemize the actual and projected financial benefit to the public utility's ratepayers of each project.
(q) By February 1, 2018, and each February 1 thereafter, the commissioner of management and budget shall submit a written report regarding the availability of funds in and obligations of the account to the chairs and ranking minority members of the senate and house committees with jurisdiction over energy policy and finance, the public utility, and the advisory group.
(r) A project receiving funds from the
account must produce a written final report that includes sufficient detail for
technical readers and a clearly written summary for nontechnical readers. The report must include an evaluation of the
project's financial, environmental, and other benefits to the state and the
public utility's ratepayers. A
project receiving money from the account must submit a report that meets the
requirements of section 216C.51, subdivisions 3 and 4, each year the project
funded by the account is in progress.
(s) Final reports, any mid-project status reports, and renewable development account financial reports must be posted online on a public website designated by the commissioner of commerce.
(t) All final reports must acknowledge that the project was made possible in whole or part by the Minnesota renewable development account, noting that the account is financed by the public utility's ratepayers.
(u) Of the amount in the renewable development account, priority must be given to making the payments required under section 216C.417.
Sec. 2. [216C.391]
MINNESOTA STATE COMPETITIVENESS FUND.
Subdivision 1. Establishment;
purpose. (a) A state
competitiveness fund account is created in the special revenue fund of the
state treasury. The commissioner must
credit to the account appropriations and transfers to the account. Earnings, such as interest, dividends, and
any other earnings arising from assets of the account, must be credited to the
account. Money remaining in the account
at the end of a fiscal year does not cancel to the general fund but remains in
the account until expended. The
commissioner must manage the account.
(b) The money in the account must be used to:
(1) meet requirements to match federal funds awarded to the state by the United States Department of Energy or another federal entity;
(2) increase Minnesota's ability to successfully compete for federal funds;
(3) assist eligible entities to access available federal funds; or
(4) pay the reasonable costs incurred by the department to:
(i) pursue and administer energy-related federal funds; and
(ii) assist eligible grantees in the
pursuit and management of energy-related federal funds.
(c) State matching grants may be awarded to eligible entities, as defined by the federal fund source, with priority given in the following order:
(1) federal formula funds directed to the state that require a match;
(2) federal formula or competitive funds in which a state match allows disadvantaged communities, utilities, or businesses to be competitive in the pursuit of funding; and
(3) all other competitive or formula
grant opportunities in which matching state funds enhance or enable federal
dollars to be leveraged.
(d) By August 1, 2022, the department
must establish and convene a Minnesota State Competitiveness Fund Advisory Task
Force.
(e) By October 1, 2022, the advisory
task force must develop administrative procedures governing the determination
of state grants so that the grant money is prioritized, to the extent
practicable, in an equitable manner.
Subd. 2. Advisory
task force; membership. (a)
The Minnesota State Competitiveness Fund Advisory Task Force is established and
consists of 13 members as follows:
(1) the commissioner of commerce or the
commissioner's designee, who serves as a nonvoting chair of the advisory task
force;
(2) the chair of the house of
representatives committee having jurisdiction over energy finance and policy or
the chair's designee;
(3) the chair of the senate committee
having jurisdiction over energy finance and policy or the chair's designee;
(4) the chair of the Public Utilities Commission or the chair's designee, as a nonvoting member; and
(5) nine members determined by the
commissioner and chairs that represent the following interests and entities:
(i) two members representing Minnesota
utilities;
(ii) one member representing labor;
(iii) two members representing energy
justice, rural, low-income, or historically disadvantaged communities;
(iv) one member representing clean
energy businesses;
(v) one member representing
manufacturing;
(vi) one member representing higher
education; and
(vii) one member with policy or
implementation expertise on workforce development for displaced energy workers
or persons from low-income or environmental justice communities.
(b) A voting member serving on the
Minnesota State Competitiveness Fund Advisory Task Force and the voting
member's respective organization are ineligible from receiving state matching
funds authorized under this section. A
nominal stipend may be provided from grant funds to participating members who
would otherwise be unable to attend.
Subd. 3. Report;
audit. Beginning February 15,
2024, and each year thereafter until February 15, 2035, the commissioner must
report to the chairs and ranking minority members of the legislative committees
with jurisdiction over energy finance and policy regarding: (1) grants and amounts awarded under this
section during the previous year; and (2) the remaining balance available under
this section and any additional funding opportunities that require additional
funding beyond the remaining balance.
Sec. 3. [216C.45]
RESIDENTIAL ELECTRIC PANEL UPGRADE GRANTS; PILOT PROGRAM.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Contractor" means a
person licensed under section 326B.33 to perform work required under this
section, or the licensed person's employer.
(c) "Electric panel" means a
panel, including any subpanels, that consists of a main circuit breaker that
regulates several other circuit breakers to prevent overloading and distributes
electricity throughout a building.
(d) "Income eligible" means:
(1) a single-family residence whose
residents received assistance from the federal Low-Income Home Energy
Assistance Program during the most recent program year or who the commissioner
determines are eligible to receive assistance under the federal Low-Income Home
Energy Assistance Program; or
(2) a multifamily building in which at
least 66 percent of the units are occupied by households whose income is 60
percent or less of the state median individual or household income, as
applicable.
(e) "Multifamily building"
means a building that contains two or more units.
(f) "Phase I" means
the phase of the program established in this section that begins when the first
grant application is received by the department and ends the later of one year
after the date the first grant application is received or when 40 percent of
funds appropriated to the program have been expended.
(g) "Phase II" means the
phase of the program established in this section that begins when Phase I
terminates and ends when the appropriation made under article 1, section 2,
subdivision 2, paragraph (d), is exhausted.
(h) "Single-family residence"
means a building that contains one unit or a manufactured home, as defined in
section 327.31, subdivision 6.
(i) "Unit" means a residential living space occupied by an individual or a household.
(j) "Upgrade" means:
(1) for a single-family residence:
(i) the installation of equipment or
devices required to bring an electrical panel to a total rating of not less
than 200 amperes; and
(ii) the repair or replacement of the
wiring attached to the equipment or devices in item (i) to ensure safe
operation; or
(2) for a multifamily building:
(i) the installation of equipment or
devices required to bring an electrical panel to a rating that allows for full
electrification of the building, as described in National Electrical Code
Section 220; and
(ii) the repair or replacement of the
wiring attached to the equipment or devices in item (i) to ensure safe
operation.
Subd. 2. Program
establishment. A residential
electric panel upgrade grant program is established as a pilot program in the
department to provide financial assistance to owners of single-family
residences and multifamily buildings to upgrade a residence's electric panel.
Subd. 3. Application
process. An applicant seeking
a grant under this section must submit an application to the commissioner on a
form developed by the commissioner. The
commissioner must develop administrative procedures to govern how eligibility is
determined, applications are reviewed, and grants are awarded. The commissioner is the fiscal agent for the
grant program and is responsible for reviewing applications and awarding grants
under this section. The commissioner may
contract with a third party to conduct some or all of the pilot program's
operations.
Subd. 4. Eligibility. (a) In Phase I, an owner of a
single-family residence that is income-eligible is eligible to receive a grant
under this section.
(b) In Phase I, an owner of a multifamily
building that is income-eligible is eligible to receive a grant under this
section.
(c) In Phase II, all owners of
single-family residences and multifamily buildings are eligible to receive a
grant under this section, regardless of the income of the occupants of the
building.
Subd. 5. Grant
awards. (a) A grant may be
awarded under this section to:
(1) an owner of a single-family
residence or multifamily building;
(2) a contractor performing an upgrade,
provided that the contractor submits to the commissioner written consent from
the owner of the single-family residence or multifamily building receiving the
upgrade to receive a grant on behalf of the owner; or
(3) a third party, provided that the
third party submits to the commissioner written consent from the owner of the
single-family residence or multifamily building receiving the upgrade to
receive a grant on behalf of the owner.
(b) At the discretion of the
commissioner, a grant may be awarded for a single-family home or multifamily
building that is not income eligible under this section to reimburse the cost
of an upgrade that has previously been installed.
Subd. 6. Grant
amount. (a) A grant issued
under this section must be used only to pay the full equipment and installation
costs of an upgrade made by an owner, subject to the limits established in this
subdivision.
(b) The maximum grant amount under this
section that may be awarded per single-family residence that is:
(1) income eligible is $10,000; and
(2) not income eligible is $1,000.
(c) The grant amount under this section
that may be awarded per multifamily building that is:
(1) income eligible is the sum of (i)
$9,500, plus (ii) $500 multiplied by the number of units containing a separate
electric panel that received an upgrade in the multifamily building, not to
exceed $50,000 per multifamily building; and
(2) not income eligible is the sum of
(i) $1,000, plus (ii) $500 multiplied by the number of units containing a
separate electric panel that received an upgrade in the multifamily building,
not to exceed $10,000 per multifamily building.
Subd. 7. Limitation. No more than one grant may be awarded
to an owner under this section for work conducted at the same single-family
residence or multifamily building.
Subd. 8. Outreach. The department must publicize the
availability of grants under this section to, at a minimum:
(1) income-eligible households;
(2) community action agencies and other
public and private nonprofit organizations that provide weatherization and
other energy services to income-eligible households; and
(3) multifamily property owners and
property managers.
Subd. 9. Report. (a) No later than 120 days after the
date each of Phases I and II of the pilot program ends, the department must
submit a report to the chairs and ranking minority members of the legislative
committees with primary jurisdiction over climate and energy policy.
(b) The report must summarize
program outcomes and must report separately, at a minimum:
(1) the number of units in multifamily
buildings and the number of single-family residences whose owners received
grants;
(2) the median income of the households
in multifamily buildings and in single-family residences whose owners received
grants; and
(3) the average amount of grants
awarded in multifamily buildings and in single-family residences.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. [216C.51]
UTILITY DIVERSITY REPORTING.
Subdivision 1. Policy. It is the policy of the state of
Minnesota to encourage each utility that serves Minnesota residents to focus on
and improve the diversity of the utility's workforce and suppliers.
Subd. 2. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Certification" means
official recognition by a governmental unit that a business is a preferred
vendor as a result of the characteristics of the business owner or owners or
the location of the business.
(c) "Utility" has the meaning
given in section 216C.06, subdivision 18.
Subd. 3. Annual
report. (a) Beginning March
15, 2023, and each March 15 thereafter, each utility authorized to do business
in Minnesota must file an annual diversity report to the commissioner on:
(1) the utility's goals and efforts to
increase diversity in the workplace, including current workforce representation
numbers and percentages; and
(2) all procurement goals and actual
spending for female-owned, minority-owned, veteran-owned, and small business
enterprises during the previous calendar year.
(b) The goals under paragraph (a), clause
(2), must be expressed as a percentage of the total work performed by the
utility submitting the report. The
actual spending for female-owned, minority-owned, veteran-owned, and small
business enterprises must also be expressed as a percentage of the total work
performed by the utility submitting the report.
Subd. 4. Report
elements. Each utility
required to report under this section must include the following in the annual
report:
(1) an explanation of the plan to
increase diversity in the utility's workforce and suppliers during the next
year;
(2) an explanation of the plan to
increase the goals;
(3) an explanation of the challenges
faced to increase workforce and supplier diversity, including suggestions
regarding actions the department could take to help identify potential
employees and vendors;
(4) a list of the certifications the
company recognizes;
(5)
a point of contact for a potential employee or vendor that wishes to work for
or do business with the utility; and
(6) a list of successful
actions taken to increase workforce and supplier diversity, in order to
encourage other companies to emulate best practices.
Subd. 5. State
data. Each annual report must
include as much state-specific data as possible. If a utility does not submit state-specific
data, the utility must include any relevant national data the utility
possesses, explain why the utility could not submit state-specific data, and
explain how the utility intends to include state-specific data in future
reports, if possible.
Subd. 6. Publication;
retention. The department
must publish an annual report on the department's website and must maintain
each annual report for at least five years.
Sec. 5. Minnesota Statutes 2020, section 216E.03, subdivision 1, is amended to read:
Subdivision 1. Site permit. No person may construct a large electric power generating plant without a site permit from the commission. A large electric generating plant may be constructed only on a site approved by the commission. The commission must incorporate into one proceeding the route selection for a high-voltage transmission line that is directly associated with and necessary to interconnect the large electric generating plant to the transmission system and whose need is certified under section 216B.243.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. DECOMMISSIONING
AND DEMOLITION PLAN FOR COAL-FIRED PLANT.
As a part of the next resource plan
filing under Minnesota Statutes, section 216B.2422, subdivision 2, but no later
than December 31, 2025, the public utility that owns an electric generation
facility that is powered by coal, scheduled for retirement in 2028, and located
within the St. Croix National Scenic Riverway must provide, to the extent
known, the public utility's plan and detailed timeline to decommission and
demolish the electric generation facility and remediate pollution at the
electric generation facility site. The
public utility must also provide a copy of the plan and timeline to the
governing body of the municipality where the electric generation facility is
located on the same date the plan and timeline are submitted to the Public
Utilities Commission. If a resource plan
is not filed or required before December 31, 2025, the plan and timeline must
be submitted to the Public Utilities Commission and the municipality as a
separate filing by December 31, 2025.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 7. TRIBAL
ADVOCACY COUNCIL ON ENERGY; DEPARTMENT OF COMMERCE SUPPORT.
(a) The Department of Commerce must
provide technical support and subject matter expertise to help facilitate
efforts taken by the 11 federally recognized Indian Tribes in Minnesota to
establish and operate a Tribal advocacy council on energy.
(b) When requested by a Tribal advocacy
council on energy, the Department of Commerce must assist the council to:
(1) assess and evaluate common Tribal
energy issues, including:
(i) identifying and prioritizing energy
issues;
(ii) facilitating idea sharing among
the Tribes to generate solutions to energy issues; and
(iii) assisting decision making with
respect to resolving energy issues;
(2) develop new statewide
energy policies or proposed legislation, including:
(i) organizing stakeholder meetings;
(ii) gathering input and other relevant
information;
(iii) assisting with policy proposal
development, evaluation, and decision making; and
(iv) helping facilitate actions taken
to submit, and obtain approval for or have enacted, policies or legislation
approved by the council;
(3) make efforts to raise awareness of
and provide educational opportunities with respect to Tribal energy issues among
Tribal members by:
(i) identifying information resources;
(ii) gathering feedback on issues and
topics the council identifies as areas of interest; and
(iii) identifying topics for and
helping to facilitate educational forums; and
(4) identify, evaluate, disseminate,
and implement successful energy-related practices.
(c) Nothing in this section requires or
otherwise obligates the 11 federally recognized Indian Tribes in Minnesota to
establish a Tribal advocacy council on energy, nor does it require or obligate
a federally recognized Indian Tribe in Minnesota to participate in or implement
a decision or support an effort made by a Tribal advocacy council on energy.
(d) Any support provided by the
Department of Commerce to a Tribal advocacy council on energy under this
section must be provided only upon request of the council and is limited to
issues and areas where the Department of Commerce's expertise and assistance is
requested.
Sec. 8. REPEALER.
Laws 2017, chapter 5, section 1, is
repealed."
Delete the title and insert:
"A bill for an act relating to energy; establishing a supplemental budget for energy and climate change needs; adding and modifying provisions governing energy conservation, Public Utility Commission proceedings, energy storage, renewable energy, electric vehicles, energy-related economic development, greenhouse gas emissions, and other energy and climate policy; creating accounts; establishing grant programs; authorizing rulemaking; requiring reports; making technical changes; appropriating and transferring money; amending Minnesota Statutes 2020, sections 16B.32, subdivisions 1, 1a; 16C.137, subdivision 1; 116C.779, subdivision 1; 116J.55, subdivision 5; 160.08, subdivision 7; 168.27, by adding a subdivision; 216B.16, subdivision 13; 216B.1611, by adding a subdivision; 216B.1641; 216B.1645, subdivision 2; 216B.1691, subdivision 9; 216B.17, subdivision 1; 216B.2422, subdivisions 1, 3, 5, 7, by adding subdivisions; 216B.2425, subdivision 8; 216B.243, subdivision 8; 216B.50, subdivision 1; 216C.264, subdivision 5, by adding a subdivision; 216C.435, subdivision 8; 216C.436, subdivision 2, by adding a subdivision; 216E.01, subdivision 9a; 216E.03, subdivisions 1, 5, 7, 10, 11; 216E.04, subdivision 2; 216F.04; 326B.103, by adding subdivisions; 326B.106, subdivision 1, by adding a subdivision; Minnesota Statutes
2021 Supplement, sections 16C.135, subdivision 3; 116C.7792; 216C.375, subdivision 1; Laws 2020, chapter 118, section 5, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 116C; 216B; 216C; 500; repealing Minnesota Statutes 2020, sections 16B.323, subdivisions 1, 2; 16B.326; 216B.16, subdivision 10; Laws 2017, chapter 5, section 1."
With the recommendation that when so amended the bill be re-referred to the Committee on Ways and Means.
The
report was adopted.
Moran from the Committee on Ways and Means to which was referred:
H. F. No. 3438, A bill for an act relating to legacy; appropriating money from outdoor heritage fund, clean water fund, parks and trails fund, and arts and cultural heritage fund; modifying terms of Clean Water Council; modifying prior appropriations; amending Minnesota Statutes 2020, section 114D.30, subdivisions 2, 7; Laws 2019, First Special Session chapter 2, article 4, section 2, subdivision 4; Laws 2021, First Special Session chapter 1, article 3, sections 2, subdivision 1; 3; 4; 7; article 4, section 2.
Reported the same back with the recommendation that the bill be placed on the General Register.
The
report was adopted.
Stephenson from the Committee on Commerce Finance and Policy to which was referred:
H. F. No. 3607, A bill for an act relating to commerce; modifying department enforcement powers; regulating market conduct examinations; requiring a report; amending Minnesota Statutes 2020, sections 45.027, subdivisions 1a, 6, by adding a subdivision; 60A.031, subdivision 3, by adding a subdivision; 60A.033, subdivision 9, by adding subdivisions; 70A.06, by adding a subdivision; 72A.19, subdivision 1; repealing Minnesota Statutes 2020, section 60A.033, subdivision 3.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
SUPPLEMENTAL APPROPRIATIONS
Section
1. APPROPRIATIONS. |
The sums shown in the columns marked
"Appropriations" are appropriated to the agencies and for the
purposes specified in this article. The
appropriations are from the general fund, or another named fund, and are
available for the fiscal years indicated for each purpose. The figures "2022" and
"2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, or June 30, 2023,
respectively. "The first year"
is fiscal year 2022. "The second
year" is fiscal year 2023. "The
biennium" is fiscal years 2022 and 2023.
If an appropriation in this act is enacted more than once in the 2022
legislative session, the appropriation must be given effect only once. Appropriations for the fiscal year ending June
30, 2022, are effective the day following final enactment. The appropriations made under this article
supplement, and do not supersede or replace, the appropriations made under Laws
2021, First Special Session chapter 4, article 1.
|
|
|
APPROPRIATIONS |
|
|
|
|
Available for the Year |
|
|
|
|
Ending June 30 |
|
|
|
|
2022 |
2023 |
Sec. 2. DEPARTMENT
OF COMMERCE |
|
|
|
|
Subdivision
1. Total Appropriation |
|
$-0- |
|
$6,153,000 |
Appropriations
by Fund |
||
|
||
|
2022
|
2023
|
|
|
|
General |
-0-
|
5,653,000
|
Special Revenue |
-0-
|
500,000
|
The amounts that may be spent for each
purpose are specified in the following subdivisions.
Subd. 2. Administrative
Services |
|
-0-
|
|
392,000
|
$301,000 in fiscal year 2023 is for the
senior fraud prevention program.
$91,000 in fiscal year 2023 is for the
licensing disqualification and preliminary application requirements under
article 2, section 52.
Subd. 3. Financial
Services |
|
-0-
|
|
533,000
|
$300,000 in fiscal year 2023 is for
additional securities staff.
$233,000 in fiscal year 2023 is to
establish and operate a student loan advocate under Minnesota Statutes, section
58B.011. The base for this appropriation
is $233,000 in fiscal year 2024 and $233,000 in fiscal year 2025.
Subd. 4. Insurance
|
|
-0-
|
|
633,000
|
$108,000 in fiscal year 2023 is for a study
and report on disparities in geographic rating areas in individual and small
group market health insurance under article 3, section 34. This is a onetime appropriation.
$525,000 in fiscal year 2023 is for
additional staff in the insurance division.
The additional staff must focus on property- and casualty-related
insurance products.
Subd. 5. Enforcement
|
|
-0-
|
|
4,595,000
|
$4,095,000 in fiscal year 2023 is for the
automobile theft prevention program under Minnesota Statutes, section 65B.84. This is a onetime appropriation.
$500,000 in fiscal year 2023
is appropriated from the auto theft prevention account in the special revenue
fund to the commissioner of commerce to reimburse law enforcement agencies for
investigation and enforcement activities to combat automobile theft. This appropriation does not cancel and
remains available until expended. This
is a onetime appropriation.
Sec. 3. BOARD
OF ACCOUNTANCY |
|
$-0- |
|
$6,000 |
Licensing Disqualifications; Preliminary Applications.
$6,000 in fiscal year 2023 is to the Board
of Accountancy for the licensing disqualification and preliminary application
requirements under article 2, section 52.
This is a onetime appropriation.
Sec. 4. ATTORNEY
GENERAL |
|
$-0- |
|
$27,000 |
Licensing Disqualifications; Preliminary Applications.
$27,000 in fiscal year 2023 is to the
attorney general for the licensing disqualification and preliminary application
requirements under article 2, section 52.
Sec. 5. PROFESSIONAL
EDUCATOR LICENSING AND STANDARDS BOARD |
$-0- |
|
$514,000 |
Licensing Disqualifications; Preliminary Applications.
$514,000 in fiscal year 2023 is to the Professional
Educator Licensing and Standards Board for the licensing disqualification and
preliminary application requirements under article 2, section 52. The base for this appropriation is $142,000
in fiscal year 2024 and $142,000 in fiscal year 2025.
Sec. 6. DEPARTMENT
OF REVENUE |
|
$-0- |
|
$19,000 |
Licensing Disqualifications; Preliminary Applications.
$19,000 in fiscal year 2023 is to the
Department of Revenue for the licensing disqualification and preliminary
application requirements under article 2, section 52. The base for this appropriation is $3,000 in
fiscal year 2024 and $3,000 in fiscal year 2025.
Sec. 7. GAMBLING
CONTROL BOARD |
|
$-0- |
|
$3,000 |
Licensing Disqualifications; Preliminary Applications.
$3,000 in fiscal year 2023 is from the
lawful gambling regulation account in the special revenue fund to the Gambling
Control Board for the licensing disqualification and preliminary application
requirements under article 2, section 52.
Sec. 8. COMMERCE
FRAUD BUREAU; TRANSFER.
$870,000 in fiscal year 2023 is
transferred from the general fund to the insurance fraud prevention account for
five additional peace officers in the Commerce Fraud Bureau. The base for this transfer is $811,000 in
fiscal year 2024 and $811,000 in fiscal year 2025.
ARTICLE 2
COMMERCE POLICY
Section 1. Minnesota Statutes 2020, section 45.0135, subdivision 2a, is amended to read:
Subd. 2a. Authorization. (a) The commissioner may appoint
peace officers, as defined in section 626.84, subdivision 1, paragraph (c), and
establish a law enforcement agency, as defined in section 626.84, subdivision
1, paragraph (f), known as the Commerce Fraud Bureau, to conduct
investigations, and to make arrests under sections 629.30 and 629.34. The primary jurisdiction of the law
enforcement agency is limited to offenses related to insurance fraud with
a nexus to insurance-related crimes or financial crimes.
(b) Upon request and at the
commissioner's discretion, the Commerce Fraud Bureau may respond to a law
enforcement agency's request to exercise law enforcement duties in cooperation
with the law enforcement agency that has jurisdiction over the particular
matter.
(c) The Commerce Fraud Bureau must
allocate at least 70 percent of its work to insurance-related crimes.
Sec. 2. Minnesota Statutes 2020, section 45.0135, subdivision 2b, is amended to read:
Subd. 2b. Duties. The Commerce Fraud Bureau shall:
(1) review notices and reports of
insurance fraud within the Commerce Fraud Bureau's primary jurisdiction
submitted by authorized insurers, their employees, and agents or producers;
(2) respond to notifications or complaints
of suspected insurance fraud within the Commerce Fraud Bureau's
primary jurisdiction generated by other law enforcement agencies, state or
federal governmental units, or any other person;
(3) initiate inquiries and conduct
investigations when the bureau has reason to believe that insurance fraud
an offense within the Commerce Fraud Bureau's primary jurisdiction has
been or is being committed; and
(4) report incidents of alleged
insurance fraud crimes disclosed by its the Commerce Fraud
Bureau's investigations to appropriate law enforcement agencies, including,
but not limited to, the attorney general, county attorneys, or any other
appropriate law enforcement or regulatory agency, and shall assemble evidence,
prepare charges, and otherwise assist any law enforcement authority having
jurisdiction.
Sec. 3. Minnesota Statutes 2020, section 45.25, is amended by adding a subdivision to read:
Subd. 9a. Live
course. "Live
course" means any learning experience that is actively led by an
instructor, either online or in a classroom setting, that offers
person-to-person, real-time feedback. A
live course offered online must:
(1) specify the minimum system
requirements;
(2) provide encryption that ensures
that all personal information, including the student's name, address, and
credit card number, cannot be read as it passes across the Internet;
(3) include technology to
guarantee seat time;
(4) include the ability for the student
to get technical support within a reasonable amount of time;
(5) include a statement that the
student's information will not be sold or distributed to any third party
without the prior written consent of the student. Taking the course does not constitute
consent; and
(6) include a process to authenticate
the student's identity.
Sec. 4. Minnesota Statutes 2020, section 45.25, is amended by adding a subdivision to read:
Subd. 9b. On-demand
course. "On-demand
course" means an online learning experience that enables a student to
review learning material at a time and location that is convenient for the
student. On-demand course includes but
is not limited to asynchronous online courses, text-based courses, and other
courses not offered live that include prerecorded videos, class recordings,
documents, or other learning activities.
Sec. 5. Minnesota Statutes 2020, section 45.25, subdivision 12, is amended to read:
Subd. 12. Proctor. (a) "Proctor" means a disinterested
third party with no conflict of interest person who (1)
verifies a student's identity, and (2) processes an affidavit
testifying that the student received no outside assistance with the course or
examination.
(b) A proctor must be 18 years of age
or older. A proctor must not have a
financial or other conflict of interest with respect to a student's successful
completion of the course or the examination.
A proctor must not be:
(1) a relative of the student;
(2) the student's supervisor at work;
(3) a person the student supervises at
work; or
(4) a student who is completing the
same course.
Sec. 6. Minnesota Statutes 2020, section 45.25, subdivision 13, is amended to read:
Subd. 13. Professional
designation. "Professional
designation" means a written, proctored, and graded examination, the
passage of which leads to a bona fide an industry-recognized
professional designation used by licensees a licensee after
completing a series of courses and passing a graded, proctored examination.
Sec. 7. [45.301]
ON-DEMAND CONTINUING EDUCATION; REQUIREMENTS.
Subdivision 1. On-demand
course requirements. An
on-demand continuing education course offered online must:
(1) specify the minimum system
requirements;
(2) provide encryption that ensures
that all personal information, including the student's name, address, and
credit card number, cannot be read as it passes across the Internet;
(3) include technology to guarantee
seat time;
(4) include a high level of
interactivity;
(5) include graphics that reinforce the
content;
(6) include the ability for the student
to contact an instructor within a reasonable amount of time;
(7) include the ability for the student
to get technical support within a reasonable amount of time;
(8) include a statement that the
student's information will not be sold or distributed to any third party
without prior written consent of the student.
Taking the course does not constitute consent;
(9) be available 24 hours a day, seven
days a week, excluding minimal down time for updating and administration;
(10) provide viewing access to the
online course at all times to the commissioner, excluding minimal down time for
updating and administration;
(11) include a process to authenticate
the student's identity;
(12) inform the student and the
commissioner how long a course is accessible after the course is purchased;
(13) inform the student that license
education credit is not awarded for taking the course after the course loses
status as an approved course;
(14) provide clear instructions on how
to navigate through the course;
(15) provide automatic bookmarking at
any point in the course;
(16) provide questions after each unit
or chapter that must be answered before the student can proceed to the next
unit or chapter;
(17) include a reinforcement response
when a quiz question is answered correctly;
(18) include a response when a quiz
question is answered incorrectly;
(19) include a final examination;
(20) allow the student to return to and
review any unit at any time, except during the final examination;
(21) provide a course evaluation at the
end of the course. At a minimum, the
evaluation must ask the student to report any difficulties caused by the online
education delivery method; and
(22) provide a completion certificate
when the course and exam have been completed and the provider has verified the
completion. An electronic certificate is
sufficient.
Subd. 2. Final
examination. The final
examination must be either an encrypted online examination or a paper
examination that is monitored by a proctor who certifies that the student took
the examination. The student must not be
allowed to review the course content once the examination has begun.
Sec. 8. Minnesota Statutes 2020, section 45.31, subdivision 2, is amended to read:
Subd. 2. Approval. (a) The commissioner must approve as a
coordinator a person meeting one or more of the following criteria: at least three years of full-time experience
in the administration of an education program during the five-year period
immediately before the date of application, or a degree in education plus two
years experience during the immediately preceding five-year period in one of
the regulated industries for which courses are being approved, or a minimum of
five years experience within the previous six years in the regulated industry
for which courses are held. A person
applying for approval as a course coordinator must:
(1) be qualified or have experience in
the applicable subject matter of courses offered by the education provider or
have experience administering an education program; and
(2) make available upon request such records and data required by the commissioner to administer the provisions and further the purposes of this chapter.
(b) Coordinator approval may not be transferred to an individual who has not already been approved as an additional coordinator for the applicable license type for the providership in question. An individual must be approved as a coordinator by the commissioner before acting on behalf of an approved education provider.
Sec. 9. Minnesota Statutes 2020, section 45.31, subdivision 3, is amended to read:
Subd. 3. Responsibilities. A coordinator An education
provider is responsible for:
(1) assuring compliance with all laws and rules relating to educational offerings governed by the commissioner;
(2) assuring that students are provided with current and accurate information relating to the laws and rules governing their licensed activity;
(3) supervising and evaluating courses and instructors. Supervision includes assuring, especially when a course will be taught by more than one instructor, that all areas of the curriculum are addressed without redundancy and that continuity is present throughout the entire course;
(4) ensuring that instructors are qualified to teach the course offering;
(5) furnishing the commissioner, upon request, with copies of course and instructor evaluations and qualifications of instructors. Evaluations must be completed by students and coordinators;
(6) investigating complaints related to course offerings and instructors and forwarding a copy of the written complaints to the Department of Commerce;
(7) maintaining accurate records relating to course offerings, instructors, tests taken by students, and student attendance for a period of three years from the date on which the course was completed. These records must be made available to the commissioner upon request. In the event that an education provider ceases operation for any reason, the coordinator is responsible for maintaining the records or providing a custodian for the records acceptable to the commissioner. The coordinator must notify the commissioner of the name and address of that person. In order to be acceptable to the commissioner, custodians must agree to make copies of acknowledgments available to students at a reasonable fee. Under no circumstances will the commissioner act as custodian of the records;
(8) ensuring that the coordinator is available to instructors and students throughout course offerings and providing to the students and instructor the name of the coordinator and a telephone number at which the coordinator can be reached;
(9) attending workshops or instructional programs as reasonably required by the commissioner;
(10) providing course completion certificates within ten days of, but not before, completion of the entire course. Course completion certificates must be completed in their entirety. It is not necessary to provide a written course completion certificate if the course completion certificate has been electronically delivered to the department or its designated licensing contractor. A coordinator may require payment of the course tuition as a condition for receiving the course completion certificate;
(11) notifying the commissioner immediately of any change in an application for the course, coordinator, or instructor approval application; and
(12) in conjunction with the instructor, assuring and certifying attendance of students enrolled in courses.
Sec. 10. Minnesota Statutes 2020, section 46.131, subdivision 2, is amended to read:
Subd. 2. Assessment
authority. Each bank, trust
company, savings bank, savings association, regulated lender, industrial loan
and thrift company, credit union, motor vehicle sales finance company, debt management
services provider, debt settlement services provider, insurance premium finance
company, and residential PACE administrator, as defined in section 216C.435,
subdivision 10a, financial institution governed by chapters 46 to 59A,
216C, and 332 to 332B that is organized under the laws of this state or
required to be administered by the commissioner of commerce shall pay into the
state treasury its proportionate share of the cost of maintaining the
Department of Commerce. This
subdivision does not apply to student loan servicers or collection agencies.
Sec. 11. Minnesota Statutes 2020, section 46.131, subdivision 4, is amended to read:
Subd. 4. General assessment basis. (a) Assessments shall be made by the commissioner against each institution within the industry on an equitable basis, according to the total assets or business volume of each institution as of the end of the previous calendar year.
(b) Assessments against residential PACE administrators, as defined in section 216C.435, subdivision 10a, must be made by the commissioner according to the total business volume as of the end of the previous calendar year.
Sec. 12. Minnesota Statutes 2020, section 46.131, subdivision 11, is amended to read:
Subd. 11. Financial institutions account; appropriation. (a) The financial institutions account is created as a separate account in the special revenue fund. Earnings, including interest, dividends, and any other earnings arising from account assets, must be credited to the account.
(b) The account consists of funds received
from assessments under subdivision 7, examination fees under subdivision 8, and
funds received pursuant to subdivision 10 and the following provisions: sections 46.04; 46.041; 46.048,
subdivision 1; 47.101; 47.54, subdivision 1; 47.60, subdivision 3; 47.62,
subdivision 4; 48.61, subdivision 7, paragraph (b); 49.36, subdivision 1;
52.203; 53B.09; 53B.11, subdivision 1; 53C.02; 56.02; 58.10;
58A.045, subdivision 2; and 59A.03; 216C.437, subdivision 12;
332A.04; and 332B.04.
(c) Funds in the account are annually appropriated to the commissioner of commerce for activities under this section.
Sec. 13. Minnesota Statutes 2020, section 47.08, is amended to read:
47.08
ARTICLES OF INCORPORATION FILED WITH COMMISSIONER.
All persons proposing to incorporate and
organize any financial institution, whether defined or described as such by the
laws of the state, shall, before doing any business in the state as a
corporation, and before filing their articles of incorporation with the secretary
of state or with any other officer with whom the law requires such articles to
be filed or recorded, file a copy of such the proposed
articles of incorporation with the commissioner of commerce.
Sec. 14. Minnesota Statutes 2020, section 47.16, subdivision 1, is amended to read:
Subdivision 1. Filing. The certificate of a corporation must be
filed for record with the secretary of state commissioner of commerce. If the secretary of state commissioner
of commerce finds that it conforms to law and that the required fee has
been paid, the secretary of state commissioner of commerce must
record it and certify that fact on it. The
secretary of state may not accept a certificate for filing unless the
certificate also contains the endorsement of the commissioner of commerce.
Sec. 15. Minnesota Statutes 2020, section 47.16, subdivision 2, is amended to read:
Subd. 2. Certificate
of authority. If the commissioner of
commerce is satisfied that the corporation has been organized for legitimate
purposes, and under such conditions as to merit and have public confidence, and
that all provisions of law applicable to every branch of business in which, by
the terms of its certificate, it is authorized to engage, have been complied
with, the commissioner shall so certify.
When the original certificate and the certificate of
incorporation from the secretary of state is filed with the commissioner
of commerce, the commissioner shall, within 60 days thereafter, execute and
deliver to it a certificate of authority.
Sec. 16. Minnesota Statutes 2020, section 47.172, subdivision 2, is amended to read:
Subd. 2. Effect.
The certificate to be filed to
accomplish a restated certificate of incorporation must be entitled
"restated certificate of incorporation of (name of financial
corporation)" and must contain a statement that the restated certificate
supersedes and takes the place of the existing certificate of incorporation and
all amendments to it. The restated
certificate of incorporation when executed, filed and recorded in the manner
prescribed for certificate of amendment supersedes and takes the place of an
existing certificate of incorporation and amendments to it. The secretary of state upon request must
certify the restated certificate of incorporation.
Sec. 17. Minnesota Statutes 2020, section 47.28, subdivision 3, is amended to read:
Subd. 3. Recording. Upon receipt of the fees required for
filing and recording amended articles of incorporation of savings banks, the secretary
of state commissioner of commerce shall record the amended articles
of incorporation and certify that fact thereon, whereupon the conversion of
such savings bank into a savings association shall become final and complete
and thereafter said corporation shall have the powers and be subject to the
duties and obligations prescribed by the laws of this state applicable to
savings associations.
Sec. 18. Minnesota Statutes 2020, section 47.30, subdivision 5, is amended to read:
Subd. 5. Recording. Upon receipt of the fees required for
filing and recording amended articles of incorporation of savings associations,
the secretary of state commissioner of commerce shall record the
amended articles of incorporation and certify that fact thereon, whereupon the
conversion of such savings association into a savings bank shall become final
and complete and thereafter the signers of said amended articles and their
successors shall be a corporation, and have the powers and be subject to the
duties and obligations prescribed by the laws of this state applicable to
savings banks.
Sec. 19. Minnesota Statutes 2020, section 48A.15, subdivision 1, is amended to read:
Subdivision 1. Authorization. (a) A trust company organized under the laws of this state or a state bank and trust may, after completing the notification procedure required by this subdivision, establish and maintain a trust service office at any office in this state or of any other state or national bank. A state bank may, after completing the notification procedure required by this subdivision, permit a trust company organized under the laws of this state or a state bank and trust or a national bank in this state that is authorized to exercise trust powers to establish and maintain a trust service office at any of its banking offices.
(b) The trust company or state bank
and trust and a state bank at which a trust service office is to be established
according to this section shall jointly file, on forms provided by the
commissioner, a notification of intent to establish a trust service office. The notification must be accompanied by a
filing fee of $100 payable to the commissioner, to be deposited in the general
fund of the state financial institutions account under section 46.131,
subdivision 11. No trust service
office shall be established according to this section if disallowed by order of
the commissioner within 30 days of the filing of a complete and acceptable
notification of intent to establish a trust service office. An order of the commissioner to disallow the
establishment of a trust service office under this section is subject to
judicial review under sections 14.63 to 14.69.
Sec. 20. Minnesota Statutes 2020, section 53.03, subdivision 1, is amended to read:
Subdivision 1. Application,
fee, notice. Any corporation
hereafter organized as an industrial loan and thrift company, shall, after
compliance with the requirements set forth in sections 53.01 and 53.02, file a
written application with the Department of Commerce for a certificate of
authorization. A corporation that will
not sell or issue thrift certificates for investment as permitted by this
chapter need not comply with subdivision 2b.
The application must be in the form prescribed by the Department of
Commerce. The application must be made
in the name of the corporation, executed and acknowledged by an officer
designated by the board of directors of the corporation, requesting a
certificate authorizing the corporation to transact business as an industrial
loan and thrift company, at the place and in the name stated in the application. At the time of filing the application the
applicant shall pay $1,500 filing fee if the corporation will not sell or issue
thrift certificates for investment, and a filing fee of $8,000 if the
corporation will sell or issue thrift certificates for investment. The fees must be turned over by the
commissioner to the commissioner of management and budget and credited to the
general fund collected by the commissioner and deposited in the
financial institutions account under section 46.131, subdivision 11. The applicant shall also submit a copy of the
bylaws of the corporation, its articles of incorporation and all amendments
thereto at that time. An application for
powers under subdivision 2b must also require that a notice of the filing of
the application must be published once within 30 days of the receipt of the
form prescribed by the Department of Commerce, at the expense of the applicant,
in a qualified newspaper published in the municipality in which the proposed
industrial loan and thrift company is to be located, or, if there be none, in a
qualified newspaper likely to give notice in the municipality in which the
company is proposed to be located. If
the Department of Commerce receives a written objection to the application from
any person within 15 days of the notice having been fully published, the commissioner shall proceed in the
same manner as required under section 46.041, subdivisions 3 and 4,
relating to state banks.
Sec. 21. Minnesota Statutes 2020, section 53.03, subdivision 5, is amended to read:
Subd. 5. Place of business. Not more than one place of business may be maintained under any certificate of authorization issued subsequent to the enactment of Laws 1943, chapter 67, pursuant to the provisions of this chapter, but the Department of Commerce may issue more than one certificate of authorization to the same corporation upon compliance with all the provisions of this chapter governing an original issuance of a certificate of authorization. To the extent that previously filed applicable information remains unchanged, the applicant need not refile this information, unless requested. The filing fee for a branch application shall be $500 and the investigation
fee $250. An industrial loan and thrift corporation
with deposit liabilities may change one or more of its locations upon the
written approval of the commissioner of commerce. A fee of $100 must accompany each application
to the commissioner for approval to change the location of an established
office. An industrial loan and thrift
corporation that does not sell and issue thrift certificates for investment may
change one or more locations by giving 30 days' written notice to the
Department of Commerce which shall promptly amend the certificate of
authorization accordingly. No change in
place of business of a company to a location outside of its current trade area
or more than 25 miles from its present location, whichever distance is greater,
shall be permitted under the same certificate unless all of the applicable
requirements of this section have been met.
All money collected by the commissioner under this chapter must be
deposited into the financial institutions account under section 46.131,
subdivision 11.
Sec. 22. Minnesota Statutes 2020, section 53C.02, is amended to read:
53C.02
SALES FINANCE COMPANY; LICENSE, FEES, REFUND.
(a) No person shall engage in the business of a sales finance company in this state without a license therefor as provided in sections 53C.01 to 53C.14 provided, however, that no bank, trust company, savings bank, savings association, or credit union, whether state or federally chartered, industrial loan and thrift company, or licensee under the Minnesota Regulated Loan Act authorized to do business in this state shall be required to obtain a license under sections 53C.01 to 53C.14.
(b) The application for a license shall be in writing, under oath and in the form prescribed by the commissioner. The application shall contain the name of the applicant; date of incorporation, if incorporated; the address where the business is or is to be conducted and similar information as to any branch office of the applicant; the name and resident address of the owner or partners, or, if a corporation or association, of the directors, trustees and principal officers, and other pertinent information the commissioner requires.
(c) The licensee fee for the fiscal year
beginning July 1 and ending June 30 of the following year, or any part thereof
shall be the sum of $250 for the principal place of business of the licensee,
and the sum of $125 for each branch of the licensee. Any licensee who proves to the satisfaction
of the commissioner, by affidavit or other proof satisfactory to the
commissioner, that during the 12 calendar months of the immediately preceding
fiscal year, for which the license has been paid that the licensee has not held
retail installment contracts exceeding $15,000 in amount, shall be entitled to
a refund of that portion of each license fee paid in excess of $25. The commissioner shall certify to the
commissioner of management and budget that the licensee is entitled to a
refund, and payment thereof of the refund shall be made by the
commissioner of management and budget.
The amount necessary to pay for the refundment of the license fee is
appropriated out of the general fund from the financial institutions
account under section 46.131, subdivision 11. All license fees received by the commissioner
under sections 53C.01 to 53C.14 shall be deposited with the commissioner of
management and budget.
(d) Each license shall specify the location of the office or branch and must be conspicuously displayed there. In case the location be changed, the commissioner shall endorse the change of location on the license.
(e) Upon the filing of such application, and the payment of the fee, the commissioner shall issue a license to the applicant to engage in the business of a sales finance company under and in accordance with the provisions of sections 53C.01 to 53C.14 for a period which shall expire the last day of June next following the date of its issuance. The license shall not be transferable or assignable. No licensee shall transact any business provided for by sections 53C.01 to 53C.14 under any other name.
(f) Section 58A.04, subdivisions 2 and 3, apply to this section.
Sec. 23. Minnesota Statutes 2020, section 55.10, subdivision 1, is amended to read:
Subdivision 1. Permitting
access, removal, or delivery. When a
safe deposit box shall have been hired from any licensed safe deposit company
in the name of two or more persons, including husband and wife a
married couple, with the right of access being given to either, or with
access to either or the survivor or survivors of the person, or property is
held for safekeeping by any licensed safe deposit company for two or more
persons, including husband and wife a married couple, with the
right of delivery being given to either, or with the right of delivery to
either of the survivor or survivors of these persons, any one or more of these
persons, whether the other or others be living or not, shall have the right of
access to the safe deposit box and the right to remove all, or any part, of the
contents thereof, or to have delivered to all or any one of them, or any part
of the valuable personal property so held for safekeeping; and, in case of this
access, removal, or delivery, the safe deposit company shall be exempt from any
liability for permitting the access, removal, or delivery.
Sec. 24. Minnesota Statutes 2020, section 56.02, is amended to read:
56.02
APPLICATION FEE.
(a) Application for license shall be in
writing, under oath, and in the form prescribed by the commissioner, and
contain the name and the address, both of the residence and place of business,
of the applicant and, if the applicant is a copartnership or association, of
every member thereof, and if a corporation, of each officer and director
thereof; also the county and municipality, with street and number, if any,
where the business is to be conducted, and such further information as the
commissioner may require. The applicant
at the time of making application, shall pay to the commissioner the sum of
$500 as a fee for investigating the application, and the additional sum of $250
as an annual license fee for a period terminating on the last day of the
current calendar year. In addition to
the annual license fee, every licensee hereunder shall pay to the commissioner
the actual costs of each examination, as provided for in section 56.10. All moneys money collected by
the commissioner under this chapter shall be turned over to the commissioner
of management and budget and credited by the commissioner of management and
budget to the general fund of the state deposited in the financial
institutions account under section 46.131, subdivision 11.
(b) Every applicant shall also prove, in form satisfactory to the commissioner, that the applicant has available for the operation of the business at the location specified in the application, liquid assets of at least $50,000.
(c) Section 58A.04, subdivisions 2 and 3, apply to this section.
Sec. 25. Minnesota Statutes 2020, section 60A.033, subdivision 8, is amended to read:
Subd. 8. Costs. All bills for examination costs being charged to an insurance company pursuant to subdivision 5 or section 60A.031, subdivision 3, paragraph (c), must:
(1) be itemized and, with respect to examiner billings, contain activity detail on a quarterly hourly basis by an individual examiner and disclose the applicable hourly billing rates, together with per-charge detail for related travel or other expenses; and
(2) provide a due date no less than 30
60 days from receipt of the bill.
Sec. 26. Minnesota Statutes 2020, section 60A.033, subdivision 9, is amended to read:
Subd. 9. Completion of examination. An examination under section 60A.031 must not exceed 18 months from the date the commissioner receives the insurance company's first submission pursuant to a scheduling order, unless:
(1) the commissioner determines that there has been a material lack of cooperation by the insurance company and advises the company in writing of the specific instances demonstrating a lack of cooperation;
(2) the examination is a multistate examination; or
(3) the commissioner determines that additional time is necessary to complete the examination and the commissioner notifies the insurance company in writing of the reasons why the examination requires additional time.
Sec. 27. Minnesota Statutes 2020, section 60A.033, is amended by adding a subdivision to read:
Subd. 11. Informal
disposition. (a) The
commissioner must make an attempt to informally resolve any alleged violations
of law identified during the examination or investigation. An attempt to informally resolve a violation
may consist of a consent order, nonpublic letter of reprimand, or other
informal resolution or disposition.
(b) The terms of a consent order or
other informal disposition that prescribes compliance requirements must be
consistent with the requirements of Minnesota law.
Sec. 28. Minnesota Statutes 2020, section 60A.033, is amended by adding a subdivision to read:
Subd. 12. Report
to the legislature. Each year
by February 1, the commissioner must report the following information to the
chairs and ranking minority members of the house of representatives and senate
committees having jurisdiction over commerce:
(1) a listing of the number of pending
market conduct exams and the year the exams were commenced;
(2) the number of exams closed during
the prior year and the current total of costs charged to the companies for each
exam;
(3) whether the exam is being conducted,
in whole or in part, by third-party examiners; and
(4) other information that the chairs or
ranking minority members may reasonably request, subject to the limitations of
section 60A.031, subdivision 4, paragraph (f).
Sec. 29. Minnesota Statutes 2020, section 60A.952, subdivision 2, is amended to read:
Subd. 2. Notice
to and cooperation with the Commerce Fraud Bureau. Any insurer or insurance professional
that has reasonable belief that an act of insurance fraud will be, is being, or
has been committed, shall may furnish and disclose all relevant
information to the Commerce Fraud Bureau or to any authorized person and
cooperate fully with any investigation conducted by the Commerce Fraud Bureau. Any person that has a reasonable belief that
an act of insurance fraud will be, is being, or has been committed, or any
person who collects, reviews, or analyzes information concerning insurance
fraud may furnish and disclose any information in its possession concerning the
act to the Commerce Fraud Bureau, any authorized person, or to an authorized
representative of an insurer that requests the information for the purpose of
detecting, prosecuting, or preventing insurance fraud. The insurer may also release relevant
information to any person authorized to receive the information under section
72A.502, subdivision 2. If disclosure is
made to an authorized person other than the Commerce Fraud Bureau, a copy of
the disclosure must be sent to the Commerce Fraud Bureau.
Sec. 30. Minnesota Statutes 2020, section 60A.953, is amended to read:
60A.953
ENFORCEMENT; REFUSAL TO COOPERATE WITH AN INVESTIGATION.
The intentional failure to provide relevant
information as required by section 60A.952, subdivision 1, or to provide
notification of insurance fraud as required by section 60A.952, subdivision 2,
is punishable as a misdemeanor. It is
unlawful for any person to knowingly or intentionally interfere with the
enforcement of the provisions of sections 60A.951 to 60A.956 or investigation
of suspected or actual violations of sections 60A.951 to 60A.956 and is
punishable as a misdemeanor.
Sec. 31. Minnesota Statutes 2020, section 60A.954, subdivision 1, is amended to read:
Subdivision 1. Establishment. An insurer shall institute, implement, and maintain an antifraud plan. For the purpose of this section, the term insurer does not include reinsurers, the Workers' Compensation Reinsurance Association, self-insurers, and excess insurers. Within 30 days after instituting or materially modifying an antifraud plan, the insurer shall notify the commissioner in writing. The notice must include the name of the person responsible for administering the plan. An antifraud plan shall establish procedures to:
(1) prevent insurance fraud, including: internal fraud involving the insurer's officers, employees, or agents; fraud resulting from misrepresentations on applications for insurance; and claims fraud;
(2) report insurance fraud to appropriate law enforcement authorities; and
(3) cooperate with the prosecution of insurance fraud cases.
Sec. 32. Minnesota Statutes 2020, section 65B.84, subdivision 1, is amended to read:
Subdivision 1. Program described; commissioner's duties; appropriation. (a) The commissioner of commerce shall:
(1) develop and sponsor the implementation of statewide plans, programs, and strategies to combat automobile theft, improve the administration of the automobile theft laws, and provide a forum for identification of critical problems for those persons dealing with automobile theft;
(2) coordinate the development, adoption, and implementation of plans, programs, and strategies relating to interagency and intergovernmental cooperation with respect to automobile theft enforcement;
(3) annually audit the plans and programs that have been funded in whole or in part to evaluate the effectiveness of the plans and programs and withdraw funding should the commissioner determine that a plan or program is ineffective or is no longer in need of further financial support from the fund;
(4) develop a plan of operation including:
(i) an assessment of the scope of the problem of automobile theft, including areas of the state where the problem is greatest;
(ii) an analysis of various methods of combating the problem of automobile theft;
(iii) a plan for providing financial support to combat automobile theft;
(iv) a plan for eliminating car hijacking; and
(v) an estimate of the funds required to implement the plan; and
(5) distribute money, in consultation with the commissioner of public safety, pursuant to subdivision 3 from the automobile theft prevention special revenue account for automobile theft prevention activities, including:
(i) paying the administrative costs of the program;
(ii) providing financial support to the State Patrol and local law enforcement agencies for automobile theft enforcement teams;
(iii) providing financial support to state or local law enforcement agencies for programs designed to reduce the incidence of automobile theft and for improved equipment and techniques for responding to automobile thefts;
(iv) providing financial support to local prosecutors for programs designed to reduce the incidence of automobile theft;
(v) providing financial support to judicial agencies for programs designed to reduce the incidence of automobile theft;
(vi) providing financial support for neighborhood or community organizations or business organizations for programs designed to reduce the incidence of automobile theft and to educate people about the common methods of automobile theft, the models of automobiles most likely to be stolen, and the times and places automobile theft is most likely to occur; and
(vii) providing financial support for automobile theft educational and training programs for state and local law enforcement officials, driver and vehicle services exam and inspections staff, and members of the judiciary.
(b) The commissioner may not spend in any
fiscal year more than ten 7.5 percent of the money in the fund
for the program's administrative and operating costs. The commissioner is annually appropriated and
must distribute the amount of the proceeds credited to the automobile theft
prevention special revenue account each year, less the transfer of $1,300,000 each year to the insurance fraud prevention
account described in section 297I.11, subdivision 2.
(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances in the auto theft prevention account to the insurance fraud prevention account under section 45.0135, subdivision 6.
Sec. 33. Minnesota Statutes 2020, section 65B.84, subdivision 2, is amended to read:
Subd. 2. Annual
report. By January 15 of September
30 each year, the commissioner shall report to the governor and the chairs
and ranking minority members of the house of representatives and senate
committees having jurisdiction over the Departments of Commerce and Public
Safety on the activities and expenditures in the preceding year.
Sec. 34. Minnesota Statutes 2020, section 80A.61, is amended to read:
80A.61
SECTION 406; REGISTRATION BY BROKER-DEALER, AGENT, FUNDING PORTAL, INVESTMENT
ADVISER, AND INVESTMENT ADVISER REPRESENTATIVE.
(a) Application for initial registration by broker-dealer, agent, investment adviser, or investment adviser representative. A person shall register as a broker-dealer, agent, investment adviser, or investment adviser representative by filing an application and a consent to service of process complying with section 80A.88, and paying the fee specified in section 80A.65 and any reasonable fees charged by the designee of the administrator for processing the filing. The application must contain:
(1) the information or record required for the filing of a uniform application; and
(2) upon request by the administrator, any other financial or other information or record that the administrator determines is appropriate.
(b) Amendment. If the information or record contained in an application filed under subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting amendment.
(c) Effectiveness of registration. If an order is not in effect and a proceeding is not pending under section 80A.67, registration becomes effective at noon on the 45th day after a completed application is filed, unless the registration is denied. A rule adopted or order issued under this chapter may set an earlier effective date or may defer the effective date until noon on the 45th day after the filing of any amendment completing the application.
(d) Registration renewal. A registration is effective until midnight on December 31 of the year for which the application for registration is filed. Unless an order is in effect under section 80A.67, a registration may be automatically renewed each year by filing such records as are required by rule adopted or order issued under this chapter, by paying the fee specified in section 80A.65, and by paying costs charged by the designee of the administrator for processing the filings.
(e) Additional conditions or waivers. A rule adopted or order issued under this chapter may impose such other conditions, not inconsistent with the National Securities Markets Improvement Act of 1996. An order issued under this chapter may waive, in whole or in part, specific requirements in connection with registration as are in the public interest and for the protection of investors.
(f) Funding portal registration. A funding portal that has its principal place of business in the state of Minnesota shall register with the state of Minnesota by filing with the administrator a copy of the information or record required for the filing of an application for registration as a funding portal in the manner established by the Securities and Exchange Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with any rule adopted or order issued, and any amendments thereto.
(g) Application
for investment adviser representative registration.
(1) The application for initial registration as an investment adviser representative pursuant to section 80A.58 is made by completing Form U-4 (Uniform Application for Securities Industry Registration or Transfer) in accordance with the form instructions and by filing the form U-4 with the IARD. The application for initial registration must also include the following:
(i) proof of compliance by the investment adviser representative with the examination requirements of:
(A) the Uniform Investment Adviser Law Examination (Series 65); or
(B) the General Securities Representative
Examination (Series 7) and the Uniform Combined State Law Examination
(Series 66);
(ii) any other information the administrator may reasonably require.
(2) The application for the annual renewal registration as an investment adviser representative shall be filed with the IARD.
(3)(i) The investment adviser representative is under a continuing obligation to update information required by Form U-4 as changes occur;
(ii) An investment adviser representative and the investment adviser must file promptly with the IARD any amendments to the representative's Form U-4; and
(iii) An amendment will be considered to be filed promptly if the amendment is filed within 30 days of the event that requires the filing of the amendment.
(4) An application for initial or renewal of registration is not considered filed for purposes of section 80A.58 until the required fee and all required submissions have been received by the administrator.
(5) The application for withdrawal of registration as an investment adviser representative pursuant to section 80A.58 shall be completed by following the instructions on Form U-5 (Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5 with the IARD.
Sec. 35. Minnesota Statutes 2020, section 80C.05, subdivision 2, is amended to read:
Subd. 2. Commissioner's
powers. The commissioner shall have
power to place such conditions, limitations, and restrictions on any
registration as may be necessary to carry out the purposes of sections 80C.01
to 80C.22. Upon compliance with the
provisions of sections 80C.01 to 80C.22 and other requirements of the
commissioner, and if the commissioner finds no ground for denial of the
registration, the commissioner shall register the franchise. Registration shall be by entry in a book
called Register of Franchises, which entry shall show the franchise
registered and for whom registered, and shall specify the conditions,
limitations, and restrictions upon such registration, if any, or shall make
proper reference to a formal order of the commissioner on file showing such conditions,
limitations, and restrictions. The
registration shall become effective upon issuance by the commissioner of an
order for registration.
Sec. 36. Minnesota Statutes 2020, section 80C.08, subdivision 1, is amended to read:
Subdivision 1. Filing;
fee. Within 120 days after the
fiscal year end of the registrant, the registrant shall A registration
is effective for 12 months from the date the commissioner's order is issued. A registrant must file a report in the
form prescribed by rule of the commissioner before the end of the
registration effective period. A fee
of $200 shall accompany the annual report.
EFFECTIVE
DATE; APPLICABILITY. This
section is effective January 1, 2023, and applies to initial registrations
filed on or after that date.
Sec. 37. Minnesota Statutes 2020, section 80G.01, subdivision 3, is amended to read:
Subd. 3. Dealer. (a) Subject to the exceptions in
paragraph (b), a "dealer" means any person who buys, sells, solicits,
or markets bullion products or investments in bullion products to consumers and: conducts Minnesota transactions.
(1) is incorporated, registered,
domiciled, or otherwise located in this state;
(2) has a dealer representative located
in this state; or
(3) does business with a consumer at a
location in this state, or delivers or ships a bullion product or makes a
payment to a consumer at an address in this state, unless the transaction
occurs when the consumer is at a business location outside of this state.
(b) A dealer does not include any of the following persons:
(1) a person who engages only in wholesale bullion product transactions with other persons who engage only in wholesale bullion product transactions or with dealers who buy or sell at retail and are properly registered under this chapter;
(2) a person who engages only in transactions at occasional garage or yard sales held at the seller's residence, farm auctions held at the seller's residence, or estate sales held at the decedent's residence;
(3) a person who is properly registered pursuant to chapter 80A, or the federal Securities Exchange Act of 1934 and rules promulgated thereunder as a securities broker dealer or broker dealer agent;
(4) an auctioneer who auctions
bullion products on behalf of an owner, if the auctioneer does not take title
or ownership of the bullion products, or the operator of an Internet website
that allows users to offer the sale of bullion products through that website,
does not set the price, is not the seller of record, and does not take
possession of any bullion products to be offered; or
(5) a person who engages only in
transactions at no more than 12 trade shows per year in this state where the
consumer is present and the transaction is made at the trade show; or
(6) (5) a federally or
state-chartered bank, bank and trust, savings bank, savings association, or
credit union or any operating subsidiary of them.
Sec. 38. Minnesota Statutes 2020, section 80G.01, is amended by adding a subdivision to read:
Subd. 5a. Minnesota
transaction. "Minnesota
transaction" means a bullion product transaction conducted:
(1) by a dealer that is incorporated,
registered, domiciled, or otherwise located in Minnesota;
(2) by a dealer representative at a
location in Minnesota;
(3) between a dealer and a consumer who
lives in Minnesota; or
(4) between a dealer and a Minnesota
consumer when the transaction involves:
(i) delivering or shipping a bullion
product to an address in Minnesota;
(ii) delivering to or shipping from a
precious metal depository on behalf of a Minnesota resident; or
(iii) making payment to a consumer or receiving a payment from a consumer at an address in Minnesota, unless the transacti