1.1.................... moves to amend H.F. No. 956, the delete everything amendment
1.2(H0956DE3), as follows:
1.3Page 2, after line 26, insert:

1.4    "Sec. 4. Minnesota Statutes 2012, section 216B.1611, is amended to read:
1.5216B.1611 INTERCONNECTION OF ON-SITE DISTRIBUTED
1.6GENERATION.
1.7    Subdivision 1. Purpose. The purpose of this section is to:
1.8(1) establish the terms and conditions that govern the interconnection and parallel
1.9operation of on-site distributed generation resources interconnected with a public utility's
1.10distribution system;
1.11(2) provide cost savings and reliability benefits to customers;
1.12(3) establish technical requirements that will promote the safe and reliable parallel
1.13operation of on-site distributed generation resources interconnected with a public utility's
1.14distribution system;
1.15(4) enhance both the reliability of electric service and economic efficiency in the
1.16production and consumption of electricity; and
1.17(5) promote the use of distributed resources in order to provide electric system
1.18benefits during periods of capacity constraints.
1.19    Subd. 2. Distributed generation; generic proceeding. (a) The commission shall
1.20initiate a proceeding within 30 days of July 1, 2001 2013, to establish, by order, generic
1.21standards for utility tariffs for the interconnection and parallel operation of distributed
1.22generation projects, including a qualified cogeneration project under section 216B.164
1.23that are:
1.24(1) fueled by natural gas or a renewable fuel, or another similarly clean fuel or
1.25combination of fuels of;
1.26(2) no more than ten megawatts of interconnected capacity; and
2.1(3) interconnected with a public utility's distribution system where system voltages
2.2are less than 100 kilovolts.
2.3(b) At a minimum, these the tariff standards established in paragraph (a) must:
2.4(1) to the extent possible, be consistent with industry and other federal and state
2.5operational and safety standards;
2.6(2) provide for the low-cost, safe, and standardized interconnection of facilities;
2.7(3) take into account differing system requirements and hardware, as well as
2.8encourage maximum penetration of distributed generation while considering the overall
2.9demand load requirements of individual utilities;
2.10(4) allow for just and reasonable terms and conditions, consistent with the cost and
2.11operating characteristics of the various technologies, so that a utility can reasonably be
2.12assured of the reliable, safe, and efficient operation of the interconnected equipment while
2.13expediting the evaluation of interconnection applications; and
2.14(5) establish (i) a standard interconnection agreement that sets forth the contractual
2.15conditions under which a company and a customer agree that one or more facilities may
2.16be interconnected with the company's utility system, and (ii) a standard application for
2.17interconnection and parallel operation with the utility system;
2.18(6) establish a procedure whereby, when the size of a distributed generation resource
2.19causes power to flow intermittently into transmission facilities operated by the Midwest
2.20Independent Systems Operator, a local load-serving utility may coordinate with the
2.21Midwest Independent Systems Operator to conduct the interconnection transmission
2.22system analysis and transmission system usage reservations, as needed;
2.23(7) include payments for ancillary services and other system benefits provided by a
2.24distributed generation resource;
2.25(8) reflect the savings that accrue to a public utility's distribution system resulting
2.26from avoided demand charges and avoided transmission and transmission infrastructure
2.27costs; and
2.28(9) recognize the role played by the regional wholesale electricity market and demand
2.29side and storage resources as a source of standby power for a distributed energy resource.
2.30(b) (c) The commission may shall develop financial incentives based on a public
2.31utility's performance in encouraging residential and small business customers to participate
2.32in on-site generation interconnected with a public utility's distribution system. A public
2.33utility's performance shall be evaluated on:
2.34(1) steps taken by the public utility to reduce barriers to the development of
2.35distributed generation resources, including, but not limited to, financial, technical, and
2.36interconnection barriers; and
3.1(2) the extent to which a public utility has effectively and thoroughly analyzed
3.2available locations on its distribution system for siting future distributed generation
3.3resources and provided that information to developers.
3.4    Subd. 3. Distributed generation tariff. Within 90 days of the issuance of an order
3.5under subdivision 2:
3.6(1) each public utility providing electric service at retail shall file a distributed
3.7generation tariff consistent with that order, for commission approval or approval with
3.8modification; and
3.9(2) each municipal utility and cooperative electric association shall adopt a
3.10distributed generation tariff that addresses the issues included in the commission's order.
3.11    Subd. 4. Reporting requirements. (a) Each electric utility shall maintain records
3.12concerning applications received for interconnection and parallel operation of distributed
3.13generation. The records must include the date each application is received, documents
3.14generated in the course of processing each application, correspondence regarding each
3.15application, and the final disposition of each application.
3.16(b) Every electric utility shall file with the commissioner a distributed generation
3.17interconnection report for the preceding calendar year that identifies:
3.18(1) each distributed generation facility interconnected with the utility's distribution
3.19system. The report must list the;
3.20(2) new distributed generation facilities interconnected with the system since the
3.21previous year's report, any distributed generation facilities no longer interconnected with
3.22the utility's system since the previous report, the capacity of each facility, and the feeder or
3.23other point on the company's utility system where the facility is connected. The annual
3.24report must also identify;
3.25(3) all applications for interconnection received during the previous one-year period,
3.26and the disposition of the applications; and
3.27(4) the most optimal locations on its distribution system for the interconnection
3.28of future distributed generation resources, considering the technical feasibility of
3.29accommodating a project of up to ten megawatts capacity, the system benefits that accrue
3.30for power quality improvements from distributed generation resources and from reducing
3.31local system demand, and the avoidance of future expenditures to expand generation
3.32or transmission or distribution capacity.
3.33EFFECTIVE DATE.This section is effective the day following final enactment."
3.34Renumber the sections in sequence and correct the internal references
3.35Amend the title accordingly