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