Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF315 Compare Versions

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11 1.1 A bill for an act​
22 1.2 relating to energy; requiring certain grantees to submit an annual diversity report;​
33 1.3 requiring utilities to submit an annual diversity report; amending Minnesota Statutes​
44 1.4 2022, sections 116C.779, subdivision 1; 216B.1641; proposing coding for new​
55 1.5 law in Minnesota Statutes, chapter 216C.​
66 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
77 1.7 Section 1. Minnesota Statutes 2022, section 116C.779, subdivision 1, is amended to read:​
88 1.8 Subdivision 1.Renewable development account.(a) The renewable development​
99 1.9account is established as a separate account in the special revenue fund in the state treasury.​
1010 1.10Appropriations and transfers to the account shall be credited to the account. Earnings, such​
1111 1.11as interest, dividends, and any other earnings arising from assets of the account, shall be​
1212 1.12credited to the account. Funds remaining in the account at the end of a fiscal year are not​
1313 1.13canceled to the general fund but remain in the account until expended. The account shall​
1414 1.14be administered by the commissioner of management and budget as provided under this​
1515 1.15section.​
1616 1.16 (b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating​
1717 1.17plant must transfer all funds in the renewable development account previously established​
1818 1.18under this subdivision and managed by the public utility to the renewable development​
1919 1.19account established in paragraph (a). Funds awarded to grantees in previous grant cycles​
2020 1.20that have not yet been expended and unencumbered funds required to be paid in calendar​
2121 1.21year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject​
2222 1.22to transfer under this paragraph.​
2323 1​Section 1.​
2424 23-00151 as introduced​12/28/22 REVISOR RSI/AK​
2525 SENATE​
2626 STATE OF MINNESOTA​
2727 S.F. No. 315​NINETY-THIRD SESSION​
2828 (SENATE AUTHORS: HAWJ, Dibble, Xiong, Klein and Frentz)​
2929 OFFICIAL STATUS​D-PG​DATE​
3030 Introduction and first reading​01/17/2023​
3131 Referred to Environment, Climate, and Legacy​ 2.1 (c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing​
3232 2.2each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating​
3333 2.3plant must transfer to the renewable development account $500,000 each year for each dry​
3434 2.4cask containing spent fuel that is located at the Prairie Island power plant for each year the​
3535 2.5plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by​
3636 2.6the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste​
3737 2.7is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any​
3838 2.8part of a year.​
3939 2.9 (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing​
4040 2.10each January 15 thereafter, the public utility that owns the Monticello nuclear generating​
4141 2.11plant must transfer to the renewable development account $350,000 each year for each dry​
4242 2.12cask containing spent fuel that is located at the Monticello nuclear power plant for each​
4343 2.13year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered​
4444 2.14by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear​
4545 2.15waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for​
4646 2.16any part of a year.​
4747 2.17 (e) Each year, the public utility shall withhold from the funds transferred to the renewable​
4848 2.18development account under paragraphs (c) and (d) the amount necessary to pay its obligations​
4949 2.19under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.​
5050 2.20 (f) If the commission approves a new or amended power purchase agreement, the​
5151 2.21termination of a power purchase agreement, or the purchase and closure of a facility under​
5252 2.22section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,​
5353 2.23the public utility subject to this section shall enter into a contract with the city in which the​
5454 2.24poultry litter plant is located to provide grants to the city for the purposes of economic​
5555 2.25development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each​
5656 2.26fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid​
5757 2.27by the public utility from funds withheld from the transfer to the renewable development​
5858 2.28account, as provided in paragraphs (b) and (e).​
5959 2.29 (g) If the commission approves a new or amended power purchase agreement, or the​
6060 2.30termination of a power purchase agreement under section 216B.2424, subdivision 9, with​
6161 2.31an entity owned or controlled, directly or indirectly, by two municipal utilities located north​
6262 2.32of Constitutional Route No. 8, that was previously used to meet the biomass mandate in​
6363 2.33section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a​
6464 2.34grant contract with such entity to provide $6,800,000 per year for five years, commencing​
6565 2.3530 days after the commission approves the new or amended power purchase agreement, or​
6666 2​Section 1.​
6767 23-00151 as introduced​12/28/22 REVISOR RSI/AK​ 3.1the termination of the power purchase agreement, and on each June 1 thereafter through​
6868 3.22021, to assist the transition required by the new, amended, or terminated power purchase​
6969 3.3agreement. The grant shall be paid by the public utility from funds withheld from the transfer​
7070 3.4to the renewable development account as provided in paragraphs (b) and (e).​
7171 3.5 (h) The collective amount paid under the grant contracts awarded under paragraphs (f)​
7272 3.6and (g) is limited to the amount deposited into the renewable development account, and its​
7373 3.7predecessor, the renewable development account, established under this section, that was​
7474 3.8not required to be deposited into the account under Laws 1994, chapter 641, article 1, section​
7575 3.910.​
7676 3.10 (i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello​
7777 3.11nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued​
7878 3.12facility, the commission shall require the public utility to pay $7,500,000 for the discontinued​
7979 3.13Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year​
8080 3.14in which the commission finds, by the preponderance of the evidence, that the public utility​
8181 3.15did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a​
8282 3.16permanent or interim storage site out of the state. This determination shall be made at least​
8383 3.17every two years.​
8484 3.18 (j) Funds in the account may be expended only for any of the following purposes:​
8585 3.19 (1) to stimulate research and development of renewable electric energy technologies;​
8686 3.20 (2) to encourage grid modernization, including, but not limited to, projects that implement​
8787 3.21electricity storage, load control, and smart meter technology; and​
8888 3.22 (3) to stimulate other innovative energy projects that reduce demand and increase system​
8989 3.23efficiency and flexibility.​
9090 3.24Expenditures from the fund must benefit Minnesota ratepayers receiving electric service​
9191 3.25from the utility that owns a nuclear-powered electric generating plant in this state or the​
9292 3.26Prairie Island Indian community or its members.​
9393 3.27The utility that owns a nuclear generating plant is eligible to apply for grants under this​
9494 3.28subdivision.​
9595 3.29 (k) For the purposes of paragraph (j), the following terms have the meanings given:​
9696 3.30 (1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph​
9797 3.31(c), clauses (1), (2), (4), and (5); and​
9898 3.32 (2) "grid modernization" means:​
9999 3​Section 1.​
100100 23-00151 as introduced​12/28/22 REVISOR RSI/AK​ 4.1 (i) enhancing the reliability of the electrical grid;​
101101 4.2 (ii) improving the security of the electrical grid against cyberthreats and physical threats;​
102102 4.3and​
103103 4.4 (iii) increasing energy conservation opportunities by facilitating communication between​
104104 4.5the utility and its customers through the use of two-way meters, control technologies, energy​
105105 4.6storage and microgrids, technologies to enable demand response, and other innovative​
106106 4.7technologies.​
107107 4.8 (l) A renewable development account advisory group that includes, among others,​
108108 4.9representatives of the public utility and its ratepayers, and includes at least one representative​
109109 4.10of the Prairie Island Indian community appointed by that community's tribal council, shall​
110110 4.11develop recommendations on account expenditures. The advisory group must design a​
111111 4.12request for proposal and evaluate projects submitted in response to a request for proposals.​
112112 4.13The advisory group must utilize an independent third-party expert to evaluate proposals​
113113 4.14submitted in response to a request for proposal, including all proposals made by the public​
114114 4.15utility. A request for proposal for research and development under paragraph (j), clause (1),​
115115 4.16may be limited to or include a request to higher education institutions located in Minnesota​
116116 4.17for multiple projects authorized under paragraph (j), clause (1). The request for multiple​
117117 4.18projects may include a provision that exempts the projects from the third-party expert review​
118118 4.19and instead provides for project evaluation and selection by a merit peer review grant system.​
119119 4.20In the process of determining request for proposal scope and subject and in evaluating​
120120 4.21responses to request for proposals, the advisory group must strongly consider, where​
121121 4.22reasonable,:​
122122 4.23 (1) potential benefit to Minnesota citizens and businesses and the utility's ratepayers;​
123123 4.24and​
124124 4.25 (2) the proposer's commitment to increasing the diversity of the proposer's workforce​
125125 4.26and vendors.​
126126 4.27 (m) The advisory group shall submit funding recommendations to the public utility,​
127127 4.28which has full and sole authority to determine which expenditures shall be submitted by​
128128 4.29the advisory group to the legislature. The commission may approve proposed expenditures,​
129129 4.30may disapprove proposed expenditures that it finds not to be in compliance with this​
130130 4.31subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,​
131131 4.32modify proposed expenditures. The commission shall, by order, submit its funding​
132132 4.33recommendations to the legislature as provided under paragraph (n).​
133133 4​Section 1.​
134134 23-00151 as introduced​12/28/22 REVISOR RSI/AK​ 5.1 (n) The commission shall present its recommended appropriations from the account to​
135135 5.2the senate and house of representatives committees with jurisdiction over energy policy and​
136136 5.3finance annually by February 15. Expenditures from the account must be appropriated by​
137137 5.4law. In enacting appropriations from the account, the legislature:​
138138 5.5 (1) may approve or disapprove, but may not modify, the amount of an appropriation for​
139139 5.6a project recommended by the commission; and​
140140 5.7 (2) may not appropriate money for a project the commission has not recommended​
141141 5.8funding.​
142142 5.9 (o) A request for proposal for renewable energy generation projects must, when feasible​
143143 5.10and reasonable, give preference to projects that are most cost-effective for a particular energy​
144144 5.11source.​
145145 5.12 (p) The advisory group must annually, by February 15, report to the chairs and ranking​
146146 5.13minority members of the legislative committees with jurisdiction over energy policy on​
147147 5.14projects funded by the account for the prior year and all previous years. The report must,​
148148 5.15to the extent possible and reasonable, itemize the actual and projected financial benefit to​
149149 5.16the public utility's ratepayers of each project.​
150150 5.17 (q) By February 1, 2018, and each February 1 thereafter, the commissioner of​
151151 5.18management and budget shall submit a written report regarding the availability of funds in​
152152 5.19and obligations of the account to the chairs and ranking minority members of the senate​
153153 5.20and house committees with jurisdiction over energy policy and finance, the public utility,​
154154 5.21and the advisory group.​
155155 5.22 (r) A project receiving funds from the account must produce a written final report that​
156156 5.23includes sufficient detail for technical readers and a clearly written summary for nontechnical​
157157 5.24readers. The report must include an evaluation of the project's financial, environmental, and​
158158 5.25other benefits to the state and the public utility's ratepayers. A project receiving funds from​
159159 5.26the account must submit a report that meets the requirements of section 216C.51, subdivisions​
160160 5.273 and 4, each year the project funded by the account is in progress.​
161161 5.28 (s) Final reports, any mid-project status reports, and renewable development account​
162162 5.29financial reports must be posted online on a public website designated by the commissioner​
163163 5.30of commerce.​
164164 5.31 (t) All final reports must acknowledge that the project was made possible in whole or​
165165 5.32part by the Minnesota renewable development account, noting that the account is financed​
166166 5.33by the public utility's ratepayers.​
167167 5​Section 1.​
168168 23-00151 as introduced​12/28/22 REVISOR RSI/AK​ 6.1 (u) Of the amount in the renewable development account, priority must be given to​
169169 6.2making the payments required under section 216C.417.​
170170 6.3 Sec. 2. Minnesota Statutes 2022, section 216B.1641, is amended to read:​
171171 6.4 216B.1641 COMMUNITY SOLAR GARDEN.​
172172 6.5 (a) The public utility subject to section 116C.779 shall file by September 30, 2013, a​
173173 6.6plan with the commission to operate a community solar garden program which shall begin​
174174 6.7operations within 90 days after commission approval of the plan. Other public utilities may​
175175 6.8file an application at their election. The community solar garden program must be designed​
176176 6.9to offset the energy use of not less than five subscribers in each community solar garden​
177177 6.10facility of which no single subscriber has more than a 40 percent interest. The owner of the​
178178 6.11community solar garden may be a public utility or any other entity or organization that​
179179 6.12contracts to sell the output from the community solar garden to the utility under section​
180180 6.13216B.164. There shall be no limitation on the number or cumulative generating capacity of​
181181 6.14community solar garden facilities other than the limitations imposed under section 216B.164,​
182182 6.15subdivision 4c, or other limitations provided in law or regulations.​
183183 6.16 (b) A solar garden is a facility that generates electricity by means of a ground-mounted​
184184 6.17or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the​
185185 6.18electricity generated in proportion to the size of their subscription. The solar garden must​
186186 6.19have a nameplate capacity of no more than one megawatt. Each subscription shall be sized​
187187 6.20to represent at least 200 watts of the community solar garden's generating capacity and to​
188188 6.21supply, when combined with other distributed generation resources serving the premises,​
189189 6.22no more than 120 percent of the average annual consumption of electricity by each subscriber​
190190 6.23at the premises to which the subscription is attributed.​
191191 6.24 (c) The solar generation facility must be located in the service territory of the public​
192192 6.25utility filing the plan. Subscribers must be retail customers of the public utility located in​
193193 6.26the same county or a county contiguous to where the facility is located.​
194194 6.27 (d) The public utility must purchase from the community solar garden all energy generated​
195195 6.28by the solar garden. The purchase shall be at the rate calculated under section 216B.164,​
196196 6.29subdivision 10, or, until that rate for the public utility has been approved by the commission,​
197197 6.30the applicable retail rate. A solar garden is eligible for any incentive programs offered under​
198198 6.31section 116C.7792. A subscriber's portion of the purchase shall be provided by a credit on​
199199 6.32the subscriber's bill.​
200200 6​Sec. 2.​
201201 23-00151 as introduced​12/28/22 REVISOR RSI/AK​ 7.1 (e) The commission may approve, disapprove, or modify a community solar garden​
202202 7.2program. Any plan approved by the commission must:​
203203 7.3 (1) reasonably allow for the creation, financing, and accessibility of community solar​
204204 7.4gardens;​
205205 7.5 (2) establish uniform standards, fees, and processes for the interconnection of community​
206206 7.6solar garden facilities that allow the utility to recover reasonable interconnection costs for​
207207 7.7each community solar garden;​
208208 7.8 (3) not apply different requirements to utility and nonutility community solar garden​
209209 7.9facilities;​
210210 7.10 (4) be consistent with the public interest;​
211211 7.11 (5) identify the information that must be provided to potential subscribers to ensure fair​
212212 7.12disclosure of future costs and benefits of subscriptions;​
213213 7.13 (6) include a program implementation schedule;​
214214 7.14 (7) identify all proposed rules, fees, and charges; and​
215215 7.15 (8) identify the means by which the program will be promoted.; and​
216216 7.16 (9) require an owner of a solar garden to submit a report that meets the requirements of​
217217 7.17section 216C.51, subdivisions 3 and 4, each year the solar garden is in operation.​
218218 7.18 (f) Notwithstanding any other law, neither the manager of nor the subscribers to a​
219219 7.19community solar garden facility shall be considered a utility solely as a result of their​
220220 7.20participation in the community solar garden facility.​
221221 7.21 (g) Within 180 days of commission approval of a plan under this section, a utility shall​
222222 7.22begin crediting subscriber accounts for each community solar garden facility in its service​
223223 7.23territory, and shall file with the commissioner of commerce a description of its crediting​
224224 7.24system.​
225225 7.25 (h) For the purposes of this section, the following terms have the meanings given:​
226226 7.26 (1) "subscriber" means a retail customer of a utility who owns one or more subscriptions​
227227 7.27of a community solar garden facility interconnected with that utility; and​
228228 7.28 (2) "subscription" means a contract between a subscriber and the owner of a solar garden.​
229229 7​Sec. 2.​
230230 23-00151 as introduced​12/28/22 REVISOR RSI/AK​ 8.1 Sec. 3. [216C.51] UTILITY DIVERSITY REPORTING.​
231231 8.2 Subdivision 1.Public policy.It is the public policy of this state to encourage each utility​
232232 8.3that serves Minnesota residents to focus on and improve the diversity of the utility's​
233233 8.4workforce and suppliers.​
234234 8.5 Subd. 2.Definition.As used in this section, "utility" has the meaning given in section​
235235 8.6216C.06, subdivision 18.​
236236 8.7 Subd. 3.Annual report.(a) Beginning March 15, 2024, and each March 15 thereafter,​
237237 8.8each utility authorized to do business in Minnesota must file an annual diversity report to​
238238 8.9the commissioner that describes:​
239239 8.10 (1) the utility's goals and efforts to increase diversity in the workplace, including current​
240240 8.11workforce representation numbers and percentages; and​
241241 8.12 (2) all procurement goals and actual spending for female-owned, minority-owned,​
242242 8.13veteran-owned, and small business enterprises during the previous calendar year.​
243243 8.14 (b) The goals under paragraph (a), clause (2), must be expressed as a percentage of the​
244244 8.15total work performed by the utility submitting the report. The actual spending for​
245245 8.16female-owned, minority-owned, veteran-owned, and small business enterprises must also​
246246 8.17be expressed as a percentage of the total work performed by the utility submitting the report.​
247247 8.18 Subd. 4.Report elements.Each utility required to report under this section must include​
248248 8.19the following in the annual report to the department:​
249249 8.20 (1) an explanation of the plan to increase diversity in the utility's workforce and suppliers​
250250 8.21during the next year;​
251251 8.22 (2) an explanation of the plan to increase the goals;​
252252 8.23 (3) an explanation of the challenges faced to increase workforce and supplier diversity,​
253253 8.24including suggestions regarding actions the department could take to help identify potential​
254254 8.25employees and vendors;​
255255 8.26 (4) a list of the certifications the company recognizes;​
256256 8.27 (5) a point of contact for a potential employee or vendor that wishes to work for or do​
257257 8.28business with the utility; and​
258258 8.29 (6) a list of successful actions taken to increase workforce and supplier diversity, to​
259259 8.30encourage other companies to emulate best practices.​
260260 8​Sec. 3.​
261261 23-00151 as introduced​12/28/22 REVISOR RSI/AK​ 9.1 Subd. 5.State data.Each annual report must include as much state-specific data as​
262262 9.2possible. If the submitting utility does not submit state-specific data, the utility must include​
263263 9.3any relevant national data the utility possesses, explain why the utility could not submit​
264264 9.4state-specific data, and detail how the utility intends to include state-specific data in future​
265265 9.5reports, if possible.​
266266 9.6 Subd. 6.Publication; retention.The department must publish an annual report on the​
267267 9.7department's website and must maintain each annual report for at least five years.​
268268 9​Sec. 3.​
269269 23-00151 as introduced​12/28/22 REVISOR RSI/AK​