1 | 1 | | 1.1 A bill for an act |
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2 | 2 | | 1.2 relating to energy; requiring certain grantees to submit an annual diversity report; |
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3 | 3 | | 1.3 requiring utilities to submit an annual diversity report; amending Minnesota Statutes |
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4 | 4 | | 1.4 2022, sections 116C.779, subdivision 1; 216B.1641; proposing coding for new |
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5 | 5 | | 1.5 law in Minnesota Statutes, chapter 216C. |
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6 | 6 | | 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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7 | 7 | | 1.7 Section 1. Minnesota Statutes 2022, section 116C.779, subdivision 1, is amended to read: |
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8 | 8 | | 1.8 Subdivision 1.Renewable development account.(a) The renewable development |
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9 | 9 | | 1.9account is established as a separate account in the special revenue fund in the state treasury. |
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10 | 10 | | 1.10Appropriations and transfers to the account shall be credited to the account. Earnings, such |
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11 | 11 | | 1.11as interest, dividends, and any other earnings arising from assets of the account, shall be |
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12 | 12 | | 1.12credited to the account. Funds remaining in the account at the end of a fiscal year are not |
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13 | 13 | | 1.13canceled to the general fund but remain in the account until expended. The account shall |
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14 | 14 | | 1.14be administered by the commissioner of management and budget as provided under this |
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15 | 15 | | 1.15section. |
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16 | 16 | | 1.16 (b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating |
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17 | 17 | | 1.17plant must transfer all funds in the renewable development account previously established |
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18 | 18 | | 1.18under this subdivision and managed by the public utility to the renewable development |
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19 | 19 | | 1.19account established in paragraph (a). Funds awarded to grantees in previous grant cycles |
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20 | 20 | | 1.20that have not yet been expended and unencumbered funds required to be paid in calendar |
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21 | 21 | | 1.21year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject |
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22 | 22 | | 1.22to transfer under this paragraph. |
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23 | 23 | | 1Section 1. |
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24 | 24 | | 23-00151 as introduced12/28/22 REVISOR RSI/AK |
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25 | 25 | | SENATE |
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26 | 26 | | STATE OF MINNESOTA |
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27 | 27 | | S.F. No. 315NINETY-THIRD SESSION |
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28 | 28 | | (SENATE AUTHORS: HAWJ, Dibble, Xiong, Klein and Frentz) |
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29 | 29 | | OFFICIAL STATUSD-PGDATE |
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30 | 30 | | Introduction and first reading01/17/2023 |
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31 | 31 | | Referred to Environment, Climate, and Legacy 2.1 (c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing |
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32 | 32 | | 2.2each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating |
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33 | 33 | | 2.3plant must transfer to the renewable development account $500,000 each year for each dry |
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34 | 34 | | 2.4cask containing spent fuel that is located at the Prairie Island power plant for each year the |
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35 | 35 | | 2.5plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by |
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36 | 36 | | 2.6the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste |
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37 | 37 | | 2.7is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any |
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38 | 38 | | 2.8part of a year. |
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39 | 39 | | 2.9 (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing |
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40 | 40 | | 2.10each January 15 thereafter, the public utility that owns the Monticello nuclear generating |
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41 | 41 | | 2.11plant must transfer to the renewable development account $350,000 each year for each dry |
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42 | 42 | | 2.12cask containing spent fuel that is located at the Monticello nuclear power plant for each |
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43 | 43 | | 2.13year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered |
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44 | 44 | | 2.14by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear |
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45 | 45 | | 2.15waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for |
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46 | 46 | | 2.16any part of a year. |
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47 | 47 | | 2.17 (e) Each year, the public utility shall withhold from the funds transferred to the renewable |
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48 | 48 | | 2.18development account under paragraphs (c) and (d) the amount necessary to pay its obligations |
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49 | 49 | | 2.19under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year. |
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50 | 50 | | 2.20 (f) If the commission approves a new or amended power purchase agreement, the |
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51 | 51 | | 2.21termination of a power purchase agreement, or the purchase and closure of a facility under |
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52 | 52 | | 2.22section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, |
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53 | 53 | | 2.23the public utility subject to this section shall enter into a contract with the city in which the |
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54 | 54 | | 2.24poultry litter plant is located to provide grants to the city for the purposes of economic |
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55 | 55 | | 2.25development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each |
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56 | 56 | | 2.26fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid |
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57 | 57 | | 2.27by the public utility from funds withheld from the transfer to the renewable development |
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58 | 58 | | 2.28account, as provided in paragraphs (b) and (e). |
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59 | 59 | | 2.29 (g) If the commission approves a new or amended power purchase agreement, or the |
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60 | 60 | | 2.30termination of a power purchase agreement under section 216B.2424, subdivision 9, with |
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61 | 61 | | 2.31an entity owned or controlled, directly or indirectly, by two municipal utilities located north |
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62 | 62 | | 2.32of Constitutional Route No. 8, that was previously used to meet the biomass mandate in |
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63 | 63 | | 2.33section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a |
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64 | 64 | | 2.34grant contract with such entity to provide $6,800,000 per year for five years, commencing |
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65 | 65 | | 2.3530 days after the commission approves the new or amended power purchase agreement, or |
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66 | 66 | | 2Section 1. |
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67 | 67 | | 23-00151 as introduced12/28/22 REVISOR RSI/AK 3.1the termination of the power purchase agreement, and on each June 1 thereafter through |
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68 | 68 | | 3.22021, to assist the transition required by the new, amended, or terminated power purchase |
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69 | 69 | | 3.3agreement. The grant shall be paid by the public utility from funds withheld from the transfer |
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70 | 70 | | 3.4to the renewable development account as provided in paragraphs (b) and (e). |
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71 | 71 | | 3.5 (h) The collective amount paid under the grant contracts awarded under paragraphs (f) |
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72 | 72 | | 3.6and (g) is limited to the amount deposited into the renewable development account, and its |
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73 | 73 | | 3.7predecessor, the renewable development account, established under this section, that was |
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74 | 74 | | 3.8not required to be deposited into the account under Laws 1994, chapter 641, article 1, section |
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75 | 75 | | 3.910. |
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76 | 76 | | 3.10 (i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello |
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77 | 77 | | 3.11nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued |
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78 | 78 | | 3.12facility, the commission shall require the public utility to pay $7,500,000 for the discontinued |
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79 | 79 | | 3.13Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year |
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80 | 80 | | 3.14in which the commission finds, by the preponderance of the evidence, that the public utility |
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81 | 81 | | 3.15did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a |
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82 | 82 | | 3.16permanent or interim storage site out of the state. This determination shall be made at least |
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83 | 83 | | 3.17every two years. |
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84 | 84 | | 3.18 (j) Funds in the account may be expended only for any of the following purposes: |
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85 | 85 | | 3.19 (1) to stimulate research and development of renewable electric energy technologies; |
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86 | 86 | | 3.20 (2) to encourage grid modernization, including, but not limited to, projects that implement |
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87 | 87 | | 3.21electricity storage, load control, and smart meter technology; and |
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88 | 88 | | 3.22 (3) to stimulate other innovative energy projects that reduce demand and increase system |
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89 | 89 | | 3.23efficiency and flexibility. |
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90 | 90 | | 3.24Expenditures from the fund must benefit Minnesota ratepayers receiving electric service |
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91 | 91 | | 3.25from the utility that owns a nuclear-powered electric generating plant in this state or the |
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92 | 92 | | 3.26Prairie Island Indian community or its members. |
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93 | 93 | | 3.27The utility that owns a nuclear generating plant is eligible to apply for grants under this |
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94 | 94 | | 3.28subdivision. |
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95 | 95 | | 3.29 (k) For the purposes of paragraph (j), the following terms have the meanings given: |
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96 | 96 | | 3.30 (1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph |
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97 | 97 | | 3.31(c), clauses (1), (2), (4), and (5); and |
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98 | 98 | | 3.32 (2) "grid modernization" means: |
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99 | 99 | | 3Section 1. |
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100 | 100 | | 23-00151 as introduced12/28/22 REVISOR RSI/AK 4.1 (i) enhancing the reliability of the electrical grid; |
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101 | 101 | | 4.2 (ii) improving the security of the electrical grid against cyberthreats and physical threats; |
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102 | 102 | | 4.3and |
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103 | 103 | | 4.4 (iii) increasing energy conservation opportunities by facilitating communication between |
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104 | 104 | | 4.5the utility and its customers through the use of two-way meters, control technologies, energy |
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105 | 105 | | 4.6storage and microgrids, technologies to enable demand response, and other innovative |
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106 | 106 | | 4.7technologies. |
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107 | 107 | | 4.8 (l) A renewable development account advisory group that includes, among others, |
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108 | 108 | | 4.9representatives of the public utility and its ratepayers, and includes at least one representative |
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109 | 109 | | 4.10of the Prairie Island Indian community appointed by that community's tribal council, shall |
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110 | 110 | | 4.11develop recommendations on account expenditures. The advisory group must design a |
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111 | 111 | | 4.12request for proposal and evaluate projects submitted in response to a request for proposals. |
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112 | 112 | | 4.13The advisory group must utilize an independent third-party expert to evaluate proposals |
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113 | 113 | | 4.14submitted in response to a request for proposal, including all proposals made by the public |
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114 | 114 | | 4.15utility. A request for proposal for research and development under paragraph (j), clause (1), |
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115 | 115 | | 4.16may be limited to or include a request to higher education institutions located in Minnesota |
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116 | 116 | | 4.17for multiple projects authorized under paragraph (j), clause (1). The request for multiple |
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117 | 117 | | 4.18projects may include a provision that exempts the projects from the third-party expert review |
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118 | 118 | | 4.19and instead provides for project evaluation and selection by a merit peer review grant system. |
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119 | 119 | | 4.20In the process of determining request for proposal scope and subject and in evaluating |
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120 | 120 | | 4.21responses to request for proposals, the advisory group must strongly consider, where |
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121 | 121 | | 4.22reasonable,: |
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122 | 122 | | 4.23 (1) potential benefit to Minnesota citizens and businesses and the utility's ratepayers; |
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123 | 123 | | 4.24and |
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124 | 124 | | 4.25 (2) the proposer's commitment to increasing the diversity of the proposer's workforce |
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125 | 125 | | 4.26and vendors. |
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126 | 126 | | 4.27 (m) The advisory group shall submit funding recommendations to the public utility, |
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127 | 127 | | 4.28which has full and sole authority to determine which expenditures shall be submitted by |
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128 | 128 | | 4.29the advisory group to the legislature. The commission may approve proposed expenditures, |
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129 | 129 | | 4.30may disapprove proposed expenditures that it finds not to be in compliance with this |
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130 | 130 | | 4.31subdivision or otherwise not in the public interest, and may, if agreed to by the public utility, |
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131 | 131 | | 4.32modify proposed expenditures. The commission shall, by order, submit its funding |
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132 | 132 | | 4.33recommendations to the legislature as provided under paragraph (n). |
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133 | 133 | | 4Section 1. |
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134 | 134 | | 23-00151 as introduced12/28/22 REVISOR RSI/AK 5.1 (n) The commission shall present its recommended appropriations from the account to |
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135 | 135 | | 5.2the senate and house of representatives committees with jurisdiction over energy policy and |
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136 | 136 | | 5.3finance annually by February 15. Expenditures from the account must be appropriated by |
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137 | 137 | | 5.4law. In enacting appropriations from the account, the legislature: |
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138 | 138 | | 5.5 (1) may approve or disapprove, but may not modify, the amount of an appropriation for |
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139 | 139 | | 5.6a project recommended by the commission; and |
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140 | 140 | | 5.7 (2) may not appropriate money for a project the commission has not recommended |
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141 | 141 | | 5.8funding. |
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142 | 142 | | 5.9 (o) A request for proposal for renewable energy generation projects must, when feasible |
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143 | 143 | | 5.10and reasonable, give preference to projects that are most cost-effective for a particular energy |
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144 | 144 | | 5.11source. |
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145 | 145 | | 5.12 (p) The advisory group must annually, by February 15, report to the chairs and ranking |
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146 | 146 | | 5.13minority members of the legislative committees with jurisdiction over energy policy on |
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147 | 147 | | 5.14projects funded by the account for the prior year and all previous years. The report must, |
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148 | 148 | | 5.15to the extent possible and reasonable, itemize the actual and projected financial benefit to |
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149 | 149 | | 5.16the public utility's ratepayers of each project. |
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150 | 150 | | 5.17 (q) By February 1, 2018, and each February 1 thereafter, the commissioner of |
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151 | 151 | | 5.18management and budget shall submit a written report regarding the availability of funds in |
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152 | 152 | | 5.19and obligations of the account to the chairs and ranking minority members of the senate |
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153 | 153 | | 5.20and house committees with jurisdiction over energy policy and finance, the public utility, |
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154 | 154 | | 5.21and the advisory group. |
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155 | 155 | | 5.22 (r) A project receiving funds from the account must produce a written final report that |
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156 | 156 | | 5.23includes sufficient detail for technical readers and a clearly written summary for nontechnical |
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157 | 157 | | 5.24readers. The report must include an evaluation of the project's financial, environmental, and |
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158 | 158 | | 5.25other benefits to the state and the public utility's ratepayers. A project receiving funds from |
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159 | 159 | | 5.26the account must submit a report that meets the requirements of section 216C.51, subdivisions |
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160 | 160 | | 5.273 and 4, each year the project funded by the account is in progress. |
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161 | 161 | | 5.28 (s) Final reports, any mid-project status reports, and renewable development account |
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162 | 162 | | 5.29financial reports must be posted online on a public website designated by the commissioner |
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163 | 163 | | 5.30of commerce. |
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164 | 164 | | 5.31 (t) All final reports must acknowledge that the project was made possible in whole or |
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165 | 165 | | 5.32part by the Minnesota renewable development account, noting that the account is financed |
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166 | 166 | | 5.33by the public utility's ratepayers. |
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167 | 167 | | 5Section 1. |
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168 | 168 | | 23-00151 as introduced12/28/22 REVISOR RSI/AK 6.1 (u) Of the amount in the renewable development account, priority must be given to |
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169 | 169 | | 6.2making the payments required under section 216C.417. |
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170 | 170 | | 6.3 Sec. 2. Minnesota Statutes 2022, section 216B.1641, is amended to read: |
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171 | 171 | | 6.4 216B.1641 COMMUNITY SOLAR GARDEN. |
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172 | 172 | | 6.5 (a) The public utility subject to section 116C.779 shall file by September 30, 2013, a |
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173 | 173 | | 6.6plan with the commission to operate a community solar garden program which shall begin |
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174 | 174 | | 6.7operations within 90 days after commission approval of the plan. Other public utilities may |
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175 | 175 | | 6.8file an application at their election. The community solar garden program must be designed |
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176 | 176 | | 6.9to offset the energy use of not less than five subscribers in each community solar garden |
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177 | 177 | | 6.10facility of which no single subscriber has more than a 40 percent interest. The owner of the |
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178 | 178 | | 6.11community solar garden may be a public utility or any other entity or organization that |
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179 | 179 | | 6.12contracts to sell the output from the community solar garden to the utility under section |
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180 | 180 | | 6.13216B.164. There shall be no limitation on the number or cumulative generating capacity of |
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181 | 181 | | 6.14community solar garden facilities other than the limitations imposed under section 216B.164, |
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182 | 182 | | 6.15subdivision 4c, or other limitations provided in law or regulations. |
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183 | 183 | | 6.16 (b) A solar garden is a facility that generates electricity by means of a ground-mounted |
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184 | 184 | | 6.17or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the |
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185 | 185 | | 6.18electricity generated in proportion to the size of their subscription. The solar garden must |
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186 | 186 | | 6.19have a nameplate capacity of no more than one megawatt. Each subscription shall be sized |
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187 | 187 | | 6.20to represent at least 200 watts of the community solar garden's generating capacity and to |
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188 | 188 | | 6.21supply, when combined with other distributed generation resources serving the premises, |
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189 | 189 | | 6.22no more than 120 percent of the average annual consumption of electricity by each subscriber |
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190 | 190 | | 6.23at the premises to which the subscription is attributed. |
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191 | 191 | | 6.24 (c) The solar generation facility must be located in the service territory of the public |
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192 | 192 | | 6.25utility filing the plan. Subscribers must be retail customers of the public utility located in |
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193 | 193 | | 6.26the same county or a county contiguous to where the facility is located. |
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194 | 194 | | 6.27 (d) The public utility must purchase from the community solar garden all energy generated |
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195 | 195 | | 6.28by the solar garden. The purchase shall be at the rate calculated under section 216B.164, |
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196 | 196 | | 6.29subdivision 10, or, until that rate for the public utility has been approved by the commission, |
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197 | 197 | | 6.30the applicable retail rate. A solar garden is eligible for any incentive programs offered under |
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198 | 198 | | 6.31section 116C.7792. A subscriber's portion of the purchase shall be provided by a credit on |
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199 | 199 | | 6.32the subscriber's bill. |
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200 | 200 | | 6Sec. 2. |
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201 | 201 | | 23-00151 as introduced12/28/22 REVISOR RSI/AK 7.1 (e) The commission may approve, disapprove, or modify a community solar garden |
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202 | 202 | | 7.2program. Any plan approved by the commission must: |
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203 | 203 | | 7.3 (1) reasonably allow for the creation, financing, and accessibility of community solar |
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204 | 204 | | 7.4gardens; |
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205 | 205 | | 7.5 (2) establish uniform standards, fees, and processes for the interconnection of community |
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206 | 206 | | 7.6solar garden facilities that allow the utility to recover reasonable interconnection costs for |
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207 | 207 | | 7.7each community solar garden; |
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208 | 208 | | 7.8 (3) not apply different requirements to utility and nonutility community solar garden |
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209 | 209 | | 7.9facilities; |
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210 | 210 | | 7.10 (4) be consistent with the public interest; |
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211 | 211 | | 7.11 (5) identify the information that must be provided to potential subscribers to ensure fair |
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212 | 212 | | 7.12disclosure of future costs and benefits of subscriptions; |
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213 | 213 | | 7.13 (6) include a program implementation schedule; |
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214 | 214 | | 7.14 (7) identify all proposed rules, fees, and charges; and |
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215 | 215 | | 7.15 (8) identify the means by which the program will be promoted.; and |
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216 | 216 | | 7.16 (9) require an owner of a solar garden to submit a report that meets the requirements of |
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217 | 217 | | 7.17section 216C.51, subdivisions 3 and 4, each year the solar garden is in operation. |
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218 | 218 | | 7.18 (f) Notwithstanding any other law, neither the manager of nor the subscribers to a |
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219 | 219 | | 7.19community solar garden facility shall be considered a utility solely as a result of their |
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220 | 220 | | 7.20participation in the community solar garden facility. |
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221 | 221 | | 7.21 (g) Within 180 days of commission approval of a plan under this section, a utility shall |
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222 | 222 | | 7.22begin crediting subscriber accounts for each community solar garden facility in its service |
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223 | 223 | | 7.23territory, and shall file with the commissioner of commerce a description of its crediting |
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224 | 224 | | 7.24system. |
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225 | 225 | | 7.25 (h) For the purposes of this section, the following terms have the meanings given: |
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226 | 226 | | 7.26 (1) "subscriber" means a retail customer of a utility who owns one or more subscriptions |
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227 | 227 | | 7.27of a community solar garden facility interconnected with that utility; and |
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228 | 228 | | 7.28 (2) "subscription" means a contract between a subscriber and the owner of a solar garden. |
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229 | 229 | | 7Sec. 2. |
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230 | 230 | | 23-00151 as introduced12/28/22 REVISOR RSI/AK 8.1 Sec. 3. [216C.51] UTILITY DIVERSITY REPORTING. |
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231 | 231 | | 8.2 Subdivision 1.Public policy.It is the public policy of this state to encourage each utility |
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232 | 232 | | 8.3that serves Minnesota residents to focus on and improve the diversity of the utility's |
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233 | 233 | | 8.4workforce and suppliers. |
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234 | 234 | | 8.5 Subd. 2.Definition.As used in this section, "utility" has the meaning given in section |
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235 | 235 | | 8.6216C.06, subdivision 18. |
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236 | 236 | | 8.7 Subd. 3.Annual report.(a) Beginning March 15, 2024, and each March 15 thereafter, |
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237 | 237 | | 8.8each utility authorized to do business in Minnesota must file an annual diversity report to |
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238 | 238 | | 8.9the commissioner that describes: |
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239 | 239 | | 8.10 (1) the utility's goals and efforts to increase diversity in the workplace, including current |
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240 | 240 | | 8.11workforce representation numbers and percentages; and |
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241 | 241 | | 8.12 (2) all procurement goals and actual spending for female-owned, minority-owned, |
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242 | 242 | | 8.13veteran-owned, and small business enterprises during the previous calendar year. |
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243 | 243 | | 8.14 (b) The goals under paragraph (a), clause (2), must be expressed as a percentage of the |
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244 | 244 | | 8.15total work performed by the utility submitting the report. The actual spending for |
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245 | 245 | | 8.16female-owned, minority-owned, veteran-owned, and small business enterprises must also |
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246 | 246 | | 8.17be expressed as a percentage of the total work performed by the utility submitting the report. |
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247 | 247 | | 8.18 Subd. 4.Report elements.Each utility required to report under this section must include |
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248 | 248 | | 8.19the following in the annual report to the department: |
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249 | 249 | | 8.20 (1) an explanation of the plan to increase diversity in the utility's workforce and suppliers |
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250 | 250 | | 8.21during the next year; |
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251 | 251 | | 8.22 (2) an explanation of the plan to increase the goals; |
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252 | 252 | | 8.23 (3) an explanation of the challenges faced to increase workforce and supplier diversity, |
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253 | 253 | | 8.24including suggestions regarding actions the department could take to help identify potential |
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254 | 254 | | 8.25employees and vendors; |
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255 | 255 | | 8.26 (4) a list of the certifications the company recognizes; |
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256 | 256 | | 8.27 (5) a point of contact for a potential employee or vendor that wishes to work for or do |
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257 | 257 | | 8.28business with the utility; and |
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258 | 258 | | 8.29 (6) a list of successful actions taken to increase workforce and supplier diversity, to |
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259 | 259 | | 8.30encourage other companies to emulate best practices. |
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260 | 260 | | 8Sec. 3. |
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261 | 261 | | 23-00151 as introduced12/28/22 REVISOR RSI/AK 9.1 Subd. 5.State data.Each annual report must include as much state-specific data as |
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262 | 262 | | 9.2possible. If the submitting utility does not submit state-specific data, the utility must include |
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263 | 263 | | 9.3any relevant national data the utility possesses, explain why the utility could not submit |
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264 | 264 | | 9.4state-specific data, and detail how the utility intends to include state-specific data in future |
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265 | 265 | | 9.5reports, if possible. |
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266 | 266 | | 9.6 Subd. 6.Publication; retention.The department must publish an annual report on the |
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267 | 267 | | 9.7department's website and must maintain each annual report for at least five years. |
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268 | 268 | | 9Sec. 3. |
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269 | 269 | | 23-00151 as introduced12/28/22 REVISOR RSI/AK |
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