| 253 | | - | 8.7Sec. 3. DEPARTMENT OF |
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| 254 | | - | 8.8ADMINISTRATION |
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| 255 | | - | 8.9$92,000 each year is for software and |
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| 256 | | - | 8.10administrative costs associated with the state |
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| 257 | | - | 8.11building energy conservation improvement |
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| 258 | | - | 8.12revolving loan program under Minnesota |
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| 259 | | - | 8.13Statutes, section 16B.87. |
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| 260 | | - | -0-$5,000,000$8.14Sec. 4. UNIVERSITY OF MINNESOTA |
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| 261 | | - | 8.15$5,000,000 the first year is for research, |
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| 262 | | - | 8.16development, outreach, and demonstration of |
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| 263 | | - | 8.17energy systems that use hydrogen and |
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| 264 | | - | 8.18ammonia production from renewable energy |
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| 265 | | - | 8.19resources and other sources of clean energy |
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| 266 | | - | 8.20as a means of storing and generating |
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| 267 | | - | 8.21electricity. This is a onetime appropriation and |
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| 268 | | - | 8.22is available until June 30, 2028. |
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| 269 | | - | -0-$3,000,000$8.23Sec. 5. POLLUTION CONTROL AGENCY |
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| 270 | | - | 8.24$3,000,000 the first year is for a grant to the |
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| 271 | | - | 8.25owner of a biomass energy generation plant |
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| 272 | | - | 8.26in Shakopee that uses waste heat from the |
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| 273 | | - | 8.27generation of electricity in the malting process |
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| 274 | | - | 8.28to purchase equipment to facilitate the disposal |
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| 275 | | - | 8.29of wood that is infested by emerald ash borer. |
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| 276 | | - | 8.30This is a onetime appropriation and is |
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| 277 | | - | 8.31available until June 30, 2028. Notwithstanding |
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| 278 | | - | 8.32Minnesota Statutes, section 16B.98, |
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| 279 | | - | 8.33subdivision 14, the commissioner of the |
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| 280 | | - | 8.34Pollution Control Agency may use up to |
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| 281 | | - | 8Article 2 Sec. 5. |
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| 282 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 9.1$25,000 of the amount in this section for the |
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| 283 | | - | 9.2administrative costs of this grant. |
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| 284 | | - | 9.3 Sec. 6. TRANSFER. |
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| 285 | | - | 9.4 $2,000,000 in fiscal year 2026 is transferred from the renewable development account |
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| 286 | | - | 9.5in the special revenue fund to the geothermal planning grant account under Minnesota |
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| 287 | | - | 9.6Statutes, section 216C.47, subdivision 3. |
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| 288 | | - | 9.7 Sec. 7. APPROPRIATION EXTENSION. |
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| 289 | | - | 9.8 Notwithstanding Minnesota Statutes, section 16A.28, and Laws 2023, chapter 60, article |
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| 290 | | - | 9.911, section 2, subdivision 3, paragraph (c), the availability of the fiscal year 2024 and fiscal |
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| 291 | | - | 9.10year 2025 appropriations for grants to the University of St. Thomas Center for Microgrid |
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| 292 | | - | 9.11Research in Laws 2023, chapter 60, article 11, section 2, subdivision 3, are extended to June |
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| 293 | | - | 9.1230, 2028. |
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| 294 | | - | 9.13 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 295 | | - | 9.14 ARTICLE 3 |
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| 296 | | - | 9.15 ENERGY POLICY |
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| 297 | | - | 9.16 Section 1. Minnesota Statutes 2024, section 116D.04, subdivision 4a, is amended to read: |
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| 298 | | - | 9.17 Subd. 4a.Alternative review.(a) The board shall by rule identify alternative forms of |
|---|
| 299 | | - | 9.18environmental review which will address the same issues and utilize similar procedures as |
|---|
| 300 | | - | 9.19an environmental impact statement in a more timely or more efficient manner to be utilized |
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| 301 | | - | 9.20in lieu of an environmental impact statement. |
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| 302 | | - | 9.21 (b) Upon adoption by the responsible governmental unit of the environmental document |
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| 303 | | - | 9.22and plan for mitigation under an alternative urban areawide review process, and |
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| 304 | | - | 9.23notwithstanding any additional environmental review that may otherwise be required for a |
|---|
| 305 | | - | 9.24phased action or connected action, or project component that was not evaluated in the |
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| 306 | | - | 9.25alternative urban areawide review process, environmental review is complete and the |
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| 307 | | - | 9.26prerequisites under subdivision 2b are satisfied with regards to the anticipated residential, |
|---|
| 308 | | - | 9.27commercial, warehousing, and light industrial development projects that are consistent with |
|---|
| 309 | | - | 9.28development assumptions within the established boundaries of the geographic area to which |
|---|
| 310 | | - | 9.29the alternative urban areawide review applies. |
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| 311 | | - | 9.30 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 312 | | - | 9Article 3 Section 1. |
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| 313 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 10.1 Sec. 2. Minnesota Statutes 2024, section 216B.02, is amended by adding a subdivision to |
|---|
| 314 | | - | 10.2read: |
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| 315 | | - | 10.3 Subd. 11.Emergency backup generator."Emergency backup generator" means a |
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| 316 | | - | 10.4stationary compressed ignition or spark ignition engine described under Code of Federal |
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| 317 | | - | 10.5Regulations, title 40, parts 60.4211(f) and 60.4243(d), respectively, that is installed with |
|---|
| 318 | | - | 10.6equipment that prevents the flow of electricity to the electric grid. |
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| 319 | | - | 10.7 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 320 | | - | 10.8 Sec. 3. Minnesota Statutes 2024, section 216B.02, is amended by adding a subdivision to |
|---|
| 321 | | - | 10.9read: |
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| 322 | | - | 10.10 Subd. 12.Data center."Data center" means a freestanding structure that primarily |
|---|
| 323 | | - | 10.11contains electronic equipment used to process, store, and transmit digital information. |
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| 324 | | - | 10.12Sec. 4. Minnesota Statutes 2024, section 216B.16, is amended by adding a subdivision to |
|---|
| 325 | | - | 10.13read: |
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| 326 | | - | 10.14 Subd. 1b.Definitions.For the purposes of this section, "low-income" means a household: |
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| 327 | | - | 10.15 (1) who is approved as qualified for energy assistance from the low-income home energy |
|---|
| 328 | | - | 10.16assistance program; |
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| 329 | | - | 10.17 (2) whose household income is 50 percent or less of the state median income; or |
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| 330 | | - | 10.18 (3) who meets another qualification established by the commission. |
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| 331 | | - | 10.19Sec. 5. Minnesota Statutes 2024, section 216B.16, subdivision 14, is amended to read: |
|---|
| 332 | | - | 10.20 Subd. 14.Low-income electric rate discount.A public utility shall fund an affordability |
|---|
| 333 | | - | 10.21program for low-income customers at a base annual funding level of $8,000,000. The annual |
|---|
| 334 | | - | 10.22funding level shall increase in the calendar years subsequent to each commission approval |
|---|
| 335 | | - | 10.23of a rate increase for the public utility's residential customers by the same percentage as the |
|---|
| 336 | | - | 10.24approved residential rate increase. Costs for the program shall be included in the utility's |
|---|
| 337 | | - | 10.25base rate. For the purposes of this subdivision, "low-income" describes a customer who is |
|---|
| 338 | | - | 10.26receiving assistance from the federal low-income home energy assistance program. The |
|---|
| 339 | | - | 10.27affordability program must be designed to target participating customers with the lowest |
|---|
| 340 | | - | 10.28incomes and highest energy costs in order to lower the percentage of income they devote |
|---|
| 341 | | - | 10.29to energy bills, increase their payments, lower utility service disconnections, and decrease |
|---|
| 342 | | - | 10.30costs associated with collection activities on their accounts. For low-income customers who |
|---|
| 343 | | - | 10.31are 62 years of age or older or disabled, the program must include a $15 discount in each |
|---|
| 344 | | - | 10Article 3 Sec. 5. |
|---|
| 345 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 11.1billing period. For the purposes of this subdivision, "public utility" includes only those |
|---|
| 346 | | - | 11.2public utilities with more than 200,000 residential electric service customers. The commission |
|---|
| 347 | | - | 11.3may issue orders necessary to implement, administer, and recover the costs of the program |
|---|
| 348 | | - | 11.4on a timely basis. |
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| 349 | | - | 11.5 Sec. 6. Minnesota Statutes 2024, section 216B.16, subdivision 15, is amended to read: |
|---|
| 350 | | - | 11.6 Subd. 15.Low-income affordability programs.(a) The commission must consider |
|---|
| 351 | | - | 11.7ability to pay as a factor in setting utility rates and may establish affordability programs for |
|---|
| 352 | | - | 11.8low-income residential ratepayers in order to ensure affordable, reliable, and continuous |
|---|
| 353 | | - | 11.9service to low-income utility customers. A public utility serving low-income residential |
|---|
| 354 | | - | 11.10ratepayers who use natural gas for heating must file an affordability program with the |
|---|
| 355 | | - | 11.11commission. For purposes of this subdivision, "low-income residential ratepayers" means |
|---|
| 356 | | - | 11.12ratepayers who receive energy assistance from the low-income home energy assistance |
|---|
| 357 | | - | 11.13program (LIHEAP). |
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| 358 | | - | 11.14 (b) Any affordability program the commission orders a utility to implement must: |
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| 359 | | - | 11.15 (1) lower the percentage of income that participating low-income households devote to |
|---|
| 360 | | - | 11.16energy bills; |
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| 361 | | - | 11.17 (2) increase participating customer payments over time by increasing the frequency of |
|---|
| 362 | | - | 11.18payments; |
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| 363 | | - | 11.19 (3) decrease or eliminate participating customer arrears; |
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| 364 | | - | 11.20 (4) lower the utility costs associated with customer account collection activities; and |
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| 365 | | - | 11.21 (5) coordinate the program with other available low-income bill payment assistance and |
|---|
| 366 | | - | 11.22conservation resources. |
|---|
| 367 | | - | 11.23 (c) In ordering affordability programs, the commission may require public utilities to |
|---|
| 368 | | - | 11.24file program evaluations that measure the effect of the affordability program on: |
|---|
| 369 | | - | 11.25 (1) the percentage of income that participating households devote to energy bills; |
|---|
| 370 | | - | 11.26 (2) service disconnections; and |
|---|
| 371 | | - | 11.27 (3) frequency of customer payments, utility collection costs, arrearages, and bad debt. |
|---|
| 372 | | - | 11.28 (d) The commission must issue orders necessary to implement, administer, and evaluate |
|---|
| 373 | | - | 11.29affordability programs, and to allow a utility to recover program costs, including |
|---|
| 374 | | - | 11.30administrative costs, on a timely basis. The commission may not allow a utility to recover |
|---|
| 375 | | - | 11.31administrative costs, excluding start-up costs, in excess of five percent of total program |
|---|
| 376 | | - | 11Article 3 Sec. 6. |
|---|
| 377 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 12.1costs, or program evaluation costs in excess of two percent of total program costs. The |
|---|
| 378 | | - | 12.2commission must permit deferred accounting, with carrying costs, for recovery of program |
|---|
| 379 | | - | 12.3costs incurred during the period between general rate cases. |
|---|
| 380 | | - | 12.4 (e) Public utilities may use information collected or created for the purpose of |
|---|
| 381 | | - | 12.5administering energy assistance to administer affordability programs. |
|---|
| 382 | | - | 12.6 Sec. 7. Minnesota Statutes 2024, section 216B.164, subdivision 2a, is amended to read: |
|---|
| 383 | | - | 12.7 Subd. 2a.Definitions.(a) For the purposes of this section, the following terms have the |
|---|
| 384 | | - | 12.8meanings given them. |
|---|
| 385 | | - | 12.9 (b) "Aggregated meter" means a meter located on the premises of a customer's owned |
|---|
| 386 | | - | 12.10or leased property that is contiguous with property containing the customer's designated |
|---|
| 387 | | - | 12.11meter. |
|---|
| 388 | | - | 12.12 (c) "Capacity" means the number of megawatts alternating current (AC) at the point of |
|---|
| 389 | | - | 12.13interconnection between a distributed generation facility and a utility's electric system that |
|---|
| 390 | | - | 12.14a qualifying facility is capable of producing. |
|---|
| 391 | | - | 12.15 (d) "Cogeneration" means a combined process whereby electrical and useful thermal |
|---|
| 392 | | - | 12.16energy are produced simultaneously. |
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| 393 | | - | 12.17 (e) "Contiguous property" means property owned or leased by the customer sharing a |
|---|
| 394 | | - | 12.18common border, without regard to interruptions in contiguity caused by easements, public |
|---|
| 395 | | - | 12.19thoroughfares, transportation rights-of-way, or utility rights-of-way. |
|---|
| 396 | | - | 12.20 (f) "Customer" means the person who is named on the utility electric bill for the premises. |
|---|
| 397 | | - | 12.21 (g) "Designated meter" means a meter that is physically attached to the customer's facility |
|---|
| 398 | | - | 12.22that the customer-generator designates as the first meter to which net metered credits are |
|---|
| 399 | | - | 12.23to be applied as the primary meter for billing purposes when the customer is serviced by |
|---|
| 400 | | - | 12.24more than one meter. |
|---|
| 401 | | - | 12.25 (h) "Distributed generation" means a facility that: |
|---|
| 402 | | - | 12.26 (1) has a capacity of ten megawatts or less; |
|---|
| 403 | | - | 12.27 (2) is interconnected with a utility's distribution system, over which the commission has |
|---|
| 404 | | - | 12.28jurisdiction; and |
|---|
| 405 | | - | 12.29 (3) generates electricity from natural gas, renewable fuel, or a similarly clean fuel, and |
|---|
| 406 | | - | 12.30may include waste heat, cogeneration, or fuel cell technology. |
|---|
| 407 | | - | 12Article 3 Sec. 7. |
|---|
| 408 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 13.1 (i) "High-efficiency distributed generation" means a distributed energy facility that has |
|---|
| 409 | | - | 13.2a minimum efficiency of 40 percent, as calculated under section 272.0211, subdivision 1. |
|---|
| 410 | | - | 13.3 (j) "Net metered facility" means an electric generation facility constructed for the purpose |
|---|
| 411 | | - | 13.4of offsetting energy use through the use of renewable energy or high-efficiency distributed |
|---|
| 412 | | - | 13.5generation sources. |
|---|
| 413 | | - | 13.6 (k) "Renewable energy" has the meaning given in section 216B.2411, subdivision 2. |
|---|
| 414 | | - | 13.7 (l) "Standby charge" means a charge imposed by an electric utility upon a distributed |
|---|
| 415 | | - | 13.8generation facility for the recovery of costs for the provision of standby services, as provided |
|---|
| 416 | | - | 13.9for in a utility's tariffs approved by the commission, necessary to make electricity service |
|---|
| 417 | | - | 13.10available to the distributed generation facility. |
|---|
| 418 | | - | 13.11Sec. 8. Minnesota Statutes 2024, section 216B.164, subdivision 3, is amended to read: |
|---|
| 419 | | - | 13.12 Subd. 3.Purchases; small facilities.(a) This paragraph applies to cooperative electric |
|---|
| 420 | | - | 13.13associations and municipal utilities. For a qualifying facility having less than 40-kilowatt |
|---|
| 421 | | - | 13.14capacity, the customer shall be billed for the net energy supplied by the utility according to |
|---|
| 422 | | - | 13.15the applicable rate schedule for sales to that class of customer. A cooperative electric |
|---|
| 423 | | - | 13.16association or municipal utility may charge an additional fee to recover the fixed costs not |
|---|
| 424 | | - | 13.17already paid for by the customer through the customer's existing billing arrangement. Any |
|---|
| 425 | | - | 13.18additional charge by the utility must be reasonable and appropriate for that class of customer |
|---|
| 426 | | - | 13.19based on the most recent cost of service study. The cost of service study must be made |
|---|
| 427 | | - | 13.20available for review by a customer of the utility upon request. In the case of net input into |
|---|
| 428 | | - | 13.21the utility system by a qualifying facility having less than 40-kilowatt capacity, compensation |
|---|
| 429 | | - | 13.22to the customer shall be at a per kilowatt-hour rate determined under paragraph (c), (d), or |
|---|
| 430 | | - | 13.23(f). |
|---|
| 431 | | - | 13.24 (b) This paragraph applies to public utilities. For a qualifying facility having less than |
|---|
| 432 | | - | 13.251,000-kilowatt capacity, the customer shall be billed for the net energy supplied by the |
|---|
| 433 | | - | 13.26utility according to the applicable rate schedule for sales to that class of customer. In the |
|---|
| 434 | | - | 13.27case of net input into the utility system by a qualifying facility having: (1) more than |
|---|
| 435 | | - | 13.2840-kilowatt but less than 1,000-kilowatt capacity, compensation to the customer shall be at |
|---|
| 436 | | - | 13.29a per kilowatt-hour rate determined under paragraph (c); or (2) less than 40-kilowatt capacity, |
|---|
| 437 | | - | 13.30compensation to the customer shall be at a per-kilowatt rate determined under paragraph |
|---|
| 438 | | - | 13.31(c) or (d). |
|---|
| 439 | | - | 13.32 (c) In setting rates, the commission shall consider the fixed distribution costs to the |
|---|
| 440 | | - | 13.33utility not otherwise accounted for in the basic monthly charge and shall ensure that the |
|---|
| 441 | | - | 13Article 3 Sec. 8. |
|---|
| 442 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 14.1costs charged to the qualifying facility are not discriminatory in relation to the costs charged |
|---|
| 443 | | - | 14.2to other customers of the utility. The commission shall set the rates for net input into the |
|---|
| 444 | | - | 14.3utility system based on avoided costs as defined in the Code of Federal Regulations, title |
|---|
| 445 | | - | 14.418, section 292.101, paragraph (b)(6), the factors listed in Code of Federal Regulations, |
|---|
| 446 | | - | 14.5title 18, section 292.304, and all other relevant factors. |
|---|
| 447 | | - | 14.6 (d) Notwithstanding any provision in this chapter to the contrary, a qualifying facility |
|---|
| 448 | | - | 14.7having that is interconnected to a public utility and has less than 40-kilowatt capacity may |
|---|
| 449 | | - | 14.8elect that the compensation for net input by the qualifying facility into the utility system |
|---|
| 450 | | - | 14.9shall be is at the average retail utility energy rate. "Average retail utility energy rate" is |
|---|
| 451 | | - | 14.10defined as the average of the retail energy rates, exclusive of special rates based on income, |
|---|
| 452 | | - | 14.11age, or energy conservation, according to the applicable rate schedule of the utility for sales |
|---|
| 453 | | - | 14.12to that class of customer. |
|---|
| 454 | | - | 14.13 (e) If the qualifying facility or net metered facility is interconnected with a nongenerating |
|---|
| 455 | | - | 14.14utility which has a sole source contract with a municipal power agency or a generation and |
|---|
| 456 | | - | 14.15transmission utility, the nongenerating utility may elect to treat its purchase of any net input |
|---|
| 457 | | - | 14.16under this subdivision as being made on behalf of its supplier and shall be reimbursed by |
|---|
| 458 | | - | 14.17its supplier for any additional costs incurred in making the purchase. Qualifying facilities |
|---|
| 459 | | - | 14.18or net metered facilities having less than 1,000-kilowatt capacity if interconnected to a |
|---|
| 460 | | - | 14.19public utility, or less than 40-kilowatt capacity if interconnected to a cooperative electric |
|---|
| 461 | | - | 14.20association or municipal utility may, at the customer's option, elect to be governed by the |
|---|
| 462 | | - | 14.21provisions of subdivision 4. |
|---|
| 463 | | - | 14.22 (f) A customer with a qualifying facility or net metered facility having a capacity below |
|---|
| 464 | | - | 14.2340 kilowatts that is interconnected to a cooperative electric association or a municipal utility |
|---|
| 465 | | - | 14.24may elect to be compensated for the customer's net input into the utility system in the form |
|---|
| 466 | | - | 14.25of a kilowatt-hour credit on the customer's energy bill carried forward and applied to |
|---|
| 467 | | - | 14.26subsequent energy bills. Any kilowatt-hour credits carried forward by the customer cancel |
|---|
| 468 | | - | 14.27at the end of the calendar year with no additional compensation. A customer must be |
|---|
| 469 | | - | 14.28compensated for a canceled credit at the per kilowatt-hour rate determined under paragraph |
|---|
| 470 | | - | 14.29(c). |
|---|
| 471 | | - | 14.30 (g) This section applies only to qualifying facilities that have submitted interconnection |
|---|
| 472 | | - | 14.31applications after December 31, 2026. Qualifying facilities with interconnection applications |
|---|
| 473 | | - | 14.32submitted on or before that date are subject to Minnesota Statutes 2024, section 216B.164. |
|---|
| 474 | | - | 14.33 EFFECTIVE DATE.This section is effective July 1, 2025. |
|---|
| 475 | | - | 14Article 3 Sec. 8. |
|---|
| 476 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 15.1 Sec. 9. Minnesota Statutes 2024, section 216B.164, subdivision 4a, is amended to read: |
|---|
| 477 | | - | 15.2 Subd. 4a.Aggregation of meters.(a) For the purpose of measuring electricity under |
|---|
| 478 | | - | 15.3subdivisions 3 and 3a, a public utility must aggregate for billing purposes a customer's |
|---|
| 479 | | - | 15.4designated meter with one or more aggregated meters if a customer requests that it do so. |
|---|
| 480 | | - | 15.5To qualify for aggregation under this subdivision, a meter must be owned by the customer |
|---|
| 481 | | - | 15.6requesting the aggregation, must be located on contiguous property owned by the customer |
|---|
| 482 | | - | 15.7requesting the aggregation, and the total of all aggregated meters must be subject to the size |
|---|
| 483 | | - | 15.8limitation in this section. A cooperative electric association or a municipal utility must |
|---|
| 484 | | - | 15.9aggregate for billing purposes one or more aggregated meters if a customer requests that it |
|---|
| 485 | | - | 15.10do so. |
|---|
| 486 | | - | 15.11 (b) A public utility must comply with a request by a customer-generator to aggregate |
|---|
| 487 | | - | 15.12additional meters within 90 days. The specific meters must be identified at the time of the |
|---|
| 488 | | - | 15.13request. In the event that more than one meter is identified, the customer must designate |
|---|
| 489 | | - | 15.14the rank order for the aggregated meters to which the net metered credits are to be applied. |
|---|
| 490 | | - | 15.15At least 60 days prior to the beginning of the next annual billing period, a customer may |
|---|
| 491 | | - | 15.16amend the rank order of the aggregated meters, subject to this subdivision. |
|---|
| 492 | | - | 15.17 (c) The aggregation of meters applies only to charges that use kilowatt-hours as the |
|---|
| 493 | | - | 15.18billing determinant. All other charges applicable to each meter account shall be billed to |
|---|
| 494 | | - | 15.19the customer. |
|---|
| 495 | | - | 15.20 (d) A public utility will first apply the kilowatt-hour credit to the charges for the |
|---|
| 496 | | - | 15.21designated meter and then to the charges for the aggregated meters in the rank order specified |
|---|
| 497 | | - | 15.22by the customer. If the net metered facility supplies more electricity to the public utility |
|---|
| 498 | | - | 15.23than the energy usage recorded by the customer-generator's designated and aggregated |
|---|
| 499 | | - | 15.24meters during a monthly billing period, the public utility shall apply credits to the customer's |
|---|
| 500 | | - | 15.25next monthly bill for the excess kilowatt-hours. |
|---|
| 501 | | - | 15.26 (e) With the commission's prior approval, a public utility may charge the |
|---|
| 502 | | - | 15.27customer-generator requesting to aggregate meters a reasonable fee to cover the |
|---|
| 503 | | - | 15.28administrative costs incurred in implementing the costs of this subdivision, pursuant to a |
|---|
| 504 | | - | 15.29tariff approved by the commission for a public utility. |
|---|
| 505 | | - | 15.30Sec. 10. Minnesota Statutes 2024, section 216B.1641, is amended by adding a subdivision |
|---|
| 506 | | - | 15.31to read: |
|---|
| 507 | | - | 15.32 Subd. 15.Sunset.This section expires July 31, 2028. |
|---|
| 508 | | - | 15Article 3 Sec. 10. |
|---|
| 509 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 16.1 Sec. 11. Minnesota Statutes 2024, section 216B.1691, subdivision 1, is amended to read: |
|---|
| 510 | | - | 16.2 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have |
|---|
| 511 | | - | 16.3the meaning meanings given them. |
|---|
| 512 | | - | 16.4 (b) "Carbon-free" means a technology that generates electricity without emitting carbon |
|---|
| 513 | | - | 16.5dioxide. Carbon-free includes a technology that, as of the effective date of this act and |
|---|
| 514 | | - | 16.6thereafter, is used by a utility to generate electricity for retail sale in Minnesota by combusting |
|---|
| 515 | | - | 16.7wood chips derived from: |
|---|
| 516 | | - | 16.8 (1) limbs, branches, and other by-products of timber harvesting operations conducted |
|---|
| 517 | | - | 16.9to obtain wood for nonenergy purposes; or |
|---|
| 518 | | - | 16.10 (2) discarded wood products. |
|---|
| 519 | | - | 16.11 (c) Unless otherwise specified in law, "eligible energy technology" means an energy |
|---|
| 520 | | - | 16.12technology that generates electricity from the following renewable energy sources: |
|---|
| 521 | | - | 16.13 (1) solar; |
|---|
| 522 | | - | 16.14 (2) wind; |
|---|
| 523 | | - | 16.15 (3) hydroelectric with a capacity of: (i) less than 100 megawatts; or (ii) 100 megawatts |
|---|
| 524 | | - | 16.16or more, provided that the facility is in operation as of February 8, 2023; |
|---|
| 525 | | - | 16.17 (4) hydrogen generated from the resources listed in this paragraph; or |
|---|
| 526 | | - | 16.18 (5) biomass, which includes, without limitation, landfill gas; an anaerobic digester |
|---|
| 527 | | - | 16.19system; the predominantly organic components of wastewater effluent, sludge, or related |
|---|
| 528 | | - | 16.20by-products from publicly owned treatment works, but not including incineration of |
|---|
| 529 | | - | 16.21wastewater sludge to produce electricity; and, except as provided in subdivision 1a, an |
|---|
| 530 | | - | 16.22energy recovery facility used to capture the heat value of mixed municipal solid waste or |
|---|
| 531 | | - | 16.23refuse-derived fuel from mixed municipal solid waste as a primary fuel. |
|---|
| 532 | | - | 16.24 (d) "Electric utility" means: (1) a public utility providing electric service; (2) a generation |
|---|
| 533 | | - | 16.25and transmission cooperative electric association; (3) a municipal power agency; (4) a power |
|---|
| 534 | | - | 16.26district; or (5) a cooperative electric association or municipal utility providing electric service |
|---|
| 535 | | - | 16.27that is not a member of an entity in clauses (2) to (4). |
|---|
| 536 | | - | 16.28 (e) "Environmental justice area" means an area in Minnesota that, based on the most |
|---|
| 537 | | - | 16.29recent data published by the United States Census Bureau, meets one or more of the following |
|---|
| 538 | | - | 16.30criteria: |
|---|
| 539 | | - | 16.31 (1) 40 percent or more of the area's total population is nonwhite; |
|---|
| 540 | | - | 16Article 3 Sec. 11. |
|---|
| 541 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 17.1 (2) 35 percent or more of households in the area have an income that is at or below 200 |
|---|
| 542 | | - | 17.2percent of the federal poverty level; |
|---|
| 543 | | - | 17.3 (3) 40 percent or more of the area's residents over the age of five have limited English |
|---|
| 544 | | - | 17.4proficiency; or |
|---|
| 545 | | - | 17.5 (4) the area is located within Indian country, as defined in United State Code, title 18, |
|---|
| 546 | | - | 17.6section 1151. |
|---|
| 547 | | - | 17.7 (f) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year by |
|---|
| 548 | | - | 17.8an electric utility to retail customers of the electric utility or to a distribution utility for |
|---|
| 549 | | - | 17.9distribution to the retail customers of the distribution utility. |
|---|
| 550 | | - | 17.10 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 551 | | - | 17.11Sec. 12. Minnesota Statutes 2024, section 216B.1691, subdivision 2g, is amended to read: |
|---|
| 552 | | - | 17.12 Subd. 2g.Carbon-free standard.(a) In addition to the requirements under subdivisions |
|---|
| 553 | | - | 17.132a and 2f, each electric utility must generate or procure sufficient electricity generated from |
|---|
| 554 | | - | 17.14a carbon-free energy technology to provide the electric utility's retail customers in Minnesota, |
|---|
| 555 | | - | 17.15or the retail customers of a distribution utility to which the electric utility provides wholesale |
|---|
| 556 | | - | 17.16electric service, so that the electric utility generates or procures an amount of electricity |
|---|
| 557 | | - | 17.17from carbon-free energy technologies that is equivalent to at least the following standard |
|---|
| 558 | | - | 17.18percentages of the electric utility's total retail electric sales to retail customers in Minnesota |
|---|
| 559 | | - | 17.19by the end of the year indicated: |
|---|
| 560 | | - | 80 percent for public utilities; 60 percent for |
|---|
| 561 | | - | 17.21 other electric utilities |
|---|
| 562 | | - | 203017.20 (1) |
|---|
| 563 | | - | 90 percent for all electric utilities203517.22 (2) |
|---|
| 564 | | - | 100 percent for all electric utilities.204017.23 (3) |
|---|
| 565 | | - | 17.24 (b) For purposes of this section, electricity generated from a carbon-free technology |
|---|
| 566 | | - | 17.25includes electricity generated by a peaking facility that uses only biodiesel fuel, as defined |
|---|
| 567 | | - | 17.26in section 239.77, subdivision 1, paragraph (b), for the first 400 hours each year in which |
|---|
| 568 | | - | 17.27the peaking facility uses only biodiesel fuel. |
|---|
| 569 | | - | 17.28 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 570 | | - | 17.29Sec. 13. Minnesota Statutes 2024, section 216B.2402, subdivision 16, is amended to read: |
|---|
| 571 | | - | 17.30 Subd. 16.Low-income household."Low-income household" means a household whose |
|---|
| 572 | | - | 17.31household income: |
|---|
| 573 | | - | 17Article 3 Sec. 13. |
|---|
| 574 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 18.1 (1) is 80 percent or less of the area median household income for the geographic area |
|---|
| 575 | | - | 18.2in which the low-income household is located, as calculated by the United States Department |
|---|
| 576 | | - | 18.3of Housing and Urban Development a body of the state or federal government; or |
|---|
| 577 | | - | 18.4 (2) meets the income eligibility standards, as determined by the commissioner, required |
|---|
| 578 | | - | 18.5for a household to receive financial assistance from a federal, state, municipal, or utility |
|---|
| 579 | | - | 18.6program administered or approved by the department. |
|---|
| 580 | | - | 18.7 Sec. 14. Minnesota Statutes 2024, section 216B.2421, subdivision 2, is amended to read: |
|---|
| 581 | | - | 18.8 Subd. 2.Large energy facility."Large energy facility" means: |
|---|
| 582 | | - | 18.9 (1) any electric power generating plant or combination of plants at a single site with a |
|---|
| 583 | | - | 18.10combined capacity of 50,000 kilowatts or more and transmission lines directly associated |
|---|
| 584 | | - | 18.11with the plant that are necessary to interconnect the plant to the transmission system; |
|---|
| 585 | | - | 18.12 (2) any high-voltage transmission line with a capacity of 300 kilovolts or more and |
|---|
| 586 | | - | 18.13greater than one mile in length in Minnesota; |
|---|
| 587 | | - | 18.14 (3) any high-voltage transmission line with a capacity of 100 kilovolts or more with |
|---|
| 588 | | - | 18.15more than ten miles of its length in Minnesota; |
|---|
| 589 | | - | 18.16 (4) any pipeline greater than six inches in diameter and having more than 50 miles of |
|---|
| 590 | | - | 18.17its length in Minnesota used for the transportation of coal, crude petroleum or petroleum |
|---|
| 591 | | - | 18.18fuels or oil, or their derivatives; |
|---|
| 592 | | - | 18.19 (5) any pipeline for transporting natural or synthetic gas at pressures in excess of 200 |
|---|
| 593 | | - | 18.20pounds per square inch with more than 50 miles of its length in Minnesota; |
|---|
| 594 | | - | 18.21 (6) any facility designed for or capable of storing on a single site more than 100,000 |
|---|
| 595 | | - | 18.221,000,000 gallons of liquefied natural gas or synthetic gas; |
|---|
| 596 | | - | 18.23 (7) any underground gas storage facility requiring a permit pursuant to section 103I.681; |
|---|
| 597 | | - | 18.24 (8) any nuclear fuel processing or nuclear waste storage or disposal facility; and |
|---|
| 598 | | - | 18.25 (9) any facility intended to convert any material into any other combustible fuel and |
|---|
| 599 | | - | 18.26having the capacity to process in excess of 75 tons of the material per hour. |
|---|
| 600 | | - | 18.27Sec. 15. Minnesota Statutes 2024, section 216B.243, subdivision 8, is amended to read: |
|---|
| 601 | | - | 18.28 Subd. 8.Exemptions.(a) This section does not apply to: |
|---|
| 602 | | - | 18.29 (1) cogeneration or small power production facilities as defined in the Federal Power |
|---|
| 603 | | - | 18.30Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and |
|---|
| 604 | | - | 18Article 3 Sec. 15. |
|---|
| 605 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 19.1paragraph (18), subparagraph (A), and having a combined capacity at a single site of less |
|---|
| 606 | | - | 19.2than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or |
|---|
| 607 | | - | 19.3any case where the commission has determined after being advised by the attorney general |
|---|
| 608 | | - | 19.4that its application has been preempted by federal law; |
|---|
| 609 | | - | 19.5 (2) a high-voltage transmission line proposed primarily to distribute electricity to serve |
|---|
| 610 | | - | 19.6the demand of a single customer at a single location, unless the applicant opts to request |
|---|
| 611 | | - | 19.7that the commission determine need under this section or section 216B.2425; |
|---|
| 612 | | - | 19.8 (3) the upgrade to a higher voltage of an existing transmission line that serves the demand |
|---|
| 613 | | - | 19.9of a single customer that primarily uses existing rights-of-way, unless the applicant opts to |
|---|
| 614 | | - | 19.10request that the commission determine need under this section or section 216B.2425; |
|---|
| 615 | | - | 19.11 (4) a high-voltage transmission line of one mile or less required to connect a new or |
|---|
| 616 | | - | 19.12upgraded substation to an existing, new, or upgraded high-voltage transmission line; |
|---|
| 617 | | - | 19.13 (5) conversion of the fuel source of an existing electric generating plant to using natural |
|---|
| 618 | | - | 19.14gas; |
|---|
| 619 | | - | 19.15 (6) the modification of an existing electric generating plant to increase efficiency, as |
|---|
| 620 | | - | 19.16long as the capacity of the plant is not increased more than ten percent or more than 100 |
|---|
| 621 | | - | 19.17megawatts, whichever is greater; |
|---|
| 622 | | - | 19.18 (7) a large wind energy conversion system, as defined in section 216I.02, subdivision |
|---|
| 623 | | - | 19.1912, or a solar energy generating system, as defined in section 216I.02, subdivision 18, for |
|---|
| 624 | | - | 19.20which a site permit application is submitted by an independent power producer under chapter |
|---|
| 625 | | - | 19.21216I; |
|---|
| 626 | | - | 19.22 (8) a large wind energy conversion system, as defined in section 216I.02, subdivision |
|---|
| 627 | | - | 19.2312, or a solar energy generating system, as defined in section 216I.02, subdivision 18, |
|---|
| 628 | | - | 19.24engaging in a repowering project that: |
|---|
| 629 | | - | 19.25 (i) will not result in the system exceeding the nameplate capacity under its most recent |
|---|
| 630 | | - | 19.26interconnection agreement; or |
|---|
| 631 | | - | 19.27 (ii) will result in the system exceeding the nameplate capacity under its most recent |
|---|
| 632 | | - | 19.28interconnection agreement, provided that the Midcontinent Independent System Operator |
|---|
| 633 | | - | 19.29has provided a signed generator interconnection agreement that reflects the expected net |
|---|
| 634 | | - | 19.30power increase; |
|---|
| 635 | | - | 19.31 (9) energy storage systems, as defined in section 216I.02, subdivision 6; |
|---|
| 636 | | - | 19Article 3 Sec. 15. |
|---|
| 637 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 20.1 (10) transmission lines that directly interconnect large wind energy conversion systems, |
|---|
| 638 | | - | 20.2solar energy generating systems, or energy storage systems to the transmission system; or |
|---|
| 639 | | - | 20.3 (11) relocation of an existing high voltage transmission line to new right-of-way, provided |
|---|
| 640 | | - | 20.4that any new structures that are installed are not designed for and capable of operation at |
|---|
| 641 | | - | 20.5higher voltage.; or |
|---|
| 642 | | - | 20.6 (12) a combination of emergency backup generators at a single site with a combined |
|---|
| 643 | | - | 20.7capacity of 50,000 kilowatts or more that provides power to a data center and is eligible for |
|---|
| 644 | | - | 20.8permitting as a single stationary source under Minnesota Rules, part 7007.0200, 7007.0250, |
|---|
| 645 | | - | 20.97007.1100, or 7007.1110 to 7007.1141. |
|---|
| 646 | | - | 20.10 (b) For the purpose of this subdivision, "repowering project" means: |
|---|
| 647 | | - | 20.11 (1) modifying a large wind energy conversion system or a solar energy generating system |
|---|
| 648 | | - | 20.12that is a large energy facility to increase its efficiency without increasing its nameplate |
|---|
| 649 | | - | 20.13capacity; |
|---|
| 650 | | - | 20.14 (2) replacing turbines in a large wind energy conversion system without increasing the |
|---|
| 651 | | - | 20.15nameplate capacity of the system; or |
|---|
| 652 | | - | 20.16 (3) increasing the nameplate capacity of a large wind energy conversion system. |
|---|
| 653 | | - | 20.17 EFFECTIVE DATE; APPLICATION.This section is effective the day following |
|---|
| 654 | | - | 20.18final enactment and applies to applications under Minnesota Statutes, section 216B.243, |
|---|
| 655 | | - | 20.19that are pending before or submitted to the Public Utilities Commission on or after that date. |
|---|
| 656 | | - | 20.20Sec. 16. Minnesota Statutes 2024, section 216C.09, is amended to read: |
|---|
| 657 | | - | 20.21 216C.09 COMMISSIONER DUTIES. |
|---|
| 658 | | - | 20.22 (a) The commissioner shall: |
|---|
| 659 | | - | 20.23 (1) manage the department as the central repository within the state government for the |
|---|
| 660 | | - | 20.24collection of data on energy; |
|---|
| 661 | | - | 20.25 (2) prepare and adopt an emergency allocation plan specifying actions to be taken in the |
|---|
| 662 | | - | 20.26event of an impending serious shortage of energy, or a threat to public health, safety, or |
|---|
| 663 | | - | 20.27welfare; |
|---|
| 664 | | - | 20.28 (3) undertake a continuing assessment of trends in the consumption of all forms of energy |
|---|
| 665 | | - | 20.29and analyze the social, economic, and environmental consequences of these trends; |
|---|
| 666 | | - | 20.30 (4) carry out energy conservation and efficiency measures as specified by the legislature |
|---|
| 667 | | - | 20.31and recommend to the governor and the legislature additional energy policies and energy |
|---|
| 668 | | - | 20Article 3 Sec. 16. |
|---|
| 669 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 21.1conservation measures and efficiency programming as required to meet the objectives of |
|---|
| 670 | | - | 21.2this chapter; |
|---|
| 671 | | - | 21.3 (5) collect and analyze data relating to present and future demands and resources for all |
|---|
| 672 | | - | 21.4sources of energy; |
|---|
| 673 | | - | 21.5 (6) evaluate policies governing the establishment of rates and prices for energy as related |
|---|
| 674 | | - | 21.6to energy conservation and energy efficiency, and other goals and policies of this chapter, |
|---|
| 675 | | - | 21.7and make recommendations for changes in energy pricing policies and rate schedules; |
|---|
| 676 | | - | 21.8 (7) study the impact and relationship of the state energy policies to international, national, |
|---|
| 677 | | - | 21.9and regional energy policies; |
|---|
| 678 | | - | 21.10 (8) design and implement a state program for the energy conservation of energy and |
|---|
| 679 | | - | 21.11efficiency; this the program shall must include but is not be limited to, general commercial, |
|---|
| 680 | | - | 21.12industrial, and residential, and transportation areas; such the program shall must also provide |
|---|
| 681 | | - | 21.13for the evaluation of energy systems as they relate to lighting, heating, refrigeration, air |
|---|
| 682 | | - | 21.14conditioning, building design and operation, and appliance manufacturing and operation; |
|---|
| 683 | | - | 21.15 (9) inform and educate the public about the sources and uses of energy and the ways in |
|---|
| 684 | | - | 21.16which persons Minnesotans can transition to a clean energy future, conserve energy, and |
|---|
| 685 | | - | 21.17save money; |
|---|
| 686 | | - | 21.18 (10) dispense funds made available for the purpose of research studies and projects of |
|---|
| 687 | | - | 21.19professional and civic orientation, which are related to either energy conservation, resource |
|---|
| 688 | | - | 21.20recovery, or the development of alternative energy technologies which conserve |
|---|
| 689 | | - | 21.21nonrenewable energy resources while creating minimum environmental impact; |
|---|
| 690 | | - | 21.22 (11) charge other governmental departments and agencies involved in energy-related |
|---|
| 691 | | - | 21.23activities with specific information gathering goals and require that those goals be met; |
|---|
| 692 | | - | 21.24 (12) design a comprehensive program for the development of indigenous energy |
|---|
| 693 | | - | 21.25resources. The program shall include, but not be limited to, providing technical, |
|---|
| 694 | | - | 21.26informational, educational, and financial services and materials to persons, businesses, |
|---|
| 695 | | - | 21.27municipalities, and organizations involved in the development of primary and emerging |
|---|
| 696 | | - | 21.28energy sources, including but not limited to solar, wind, hydropower, peat, fiber fuels, |
|---|
| 697 | | - | 21.29biomass, and other alternative energy resources. The program shall be evaluated by the |
|---|
| 698 | | - | 21.30alternative energy technical activity; and |
|---|
| 699 | | - | 21.31 (13) dispense loans, grants, or other financial aid resources from money received from |
|---|
| 700 | | - | 21.32litigation or a settlement of alleged violations of federal petroleum-pricing regulations made |
|---|
| 701 | | - | 21.33available to the department for that purpose. |
|---|
| 702 | | - | 21Article 3 Sec. 16. |
|---|
| 703 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 22.1 (b) Further, the commissioner may participate fully in hearings before the Public Utilities |
|---|
| 704 | | - | 22.2Commission on matters pertaining to rate design, cost allocation, efficient resource utilization, |
|---|
| 705 | | - | 22.3utility conservation investments, small power production, cogeneration, and other rate issues. |
|---|
| 706 | | - | 22.4The commissioner shall support the policies stated in section 216C.05 and shall prepare |
|---|
| 707 | | - | 22.5and defend testimony proposed to encourage energy conservation improvements as defined |
|---|
| 708 | | - | 22.6in section 216B.241. |
|---|
| 709 | | - | 22.7 Sec. 17. Minnesota Statutes 2024, section 216C.10, is amended to read: |
|---|
| 710 | | - | 22.8 216C.10 COMMISSIONER POWERS. |
|---|
| 711 | | - | 22.9 (a) The commissioner may: |
|---|
| 712 | | - | 22.10 (1) adopt rules under chapter 14 as necessary to carry out the purposes of this chapter; |
|---|
| 713 | | - | 22.11 (2) make all contracts under this chapter and do all things necessary to cooperate with |
|---|
| 714 | | - | 22.12the United States government, and to qualify for, accept, and disburse any grant intended |
|---|
| 715 | | - | 22.13to administer this chapter; |
|---|
| 716 | | - | 22.14 (3) provide on-site technical assistance to units of local government in order to enhance |
|---|
| 717 | | - | 22.15local capabilities for dealing with energy problems to provide energy-related financial |
|---|
| 718 | | - | 22.16resources, planning, outreach, and engagement; |
|---|
| 719 | | - | 22.17 (4) administer for the state, energy programs under federal law, regulations, or guidelines, |
|---|
| 720 | | - | 22.18and coordinate the programs and activities with other state agencies, units of local |
|---|
| 721 | | - | 22.19government, and educational institutions; |
|---|
| 722 | | - | 22.20 (5) develop a state energy investment plan with yearly energy conservation and alternative |
|---|
| 723 | | - | 22.21energy development goals, investment targets, and marketing strategies; |
|---|
| 724 | | - | 22.22 (6) perform market analysis studies relating to conservation, alternative and renewable |
|---|
| 725 | | - | 22.23energy resources, and energy recovery; |
|---|
| 726 | | - | 22.24 (7) assist with the preparation of proposals for innovative conservation, renewable, |
|---|
| 727 | | - | 22.25alternative, or energy recovery projects; |
|---|
| 728 | | - | 22.26 (8) manage and disburse funds made available for the purpose of research studies or |
|---|
| 729 | | - | 22.27demonstration projects related to energy conservation or other activities deemed appropriate |
|---|
| 730 | | - | 22.28by the commissioner; |
|---|
| 731 | | - | 22.29 (9) intervene in certificate of need proceedings before the Public Utilities Commission; |
|---|
| 732 | | - | 22.30 (10) collect fees from recipients of loans, grants, or other financial aid from money |
|---|
| 733 | | - | 22.31received from litigation or settlement of alleged violations of federal petroleum-pricing |
|---|
| 734 | | - | 22Article 3 Sec. 17. |
|---|
| 735 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 23.1regulations, which fees must be used to pay the department's costs in administering those |
|---|
| 736 | | - | 23.2financial aids; and |
|---|
| 737 | | - | 23.3 (11) collect fees from proposers and operators of conservation and other energy-related |
|---|
| 738 | | - | 23.4programs that are reviewed, evaluated, or approved by the department, other than proposers |
|---|
| 739 | | - | 23.5that are political subdivisions or community or nonprofit organizations, to cover the |
|---|
| 740 | | - | 23.6department's cost in making the reviewal, evaluation, or approval and in developing additional |
|---|
| 741 | | - | 23.7programs for others to operate. |
|---|
| 742 | | - | 23.8 (b) Notwithstanding any other law, the commissioner is designated the state agent to |
|---|
| 743 | | - | 23.9apply for, receive, and accept federal or other funds made available to the state for the |
|---|
| 744 | | - | 23.10purposes of this chapter. |
|---|
| 745 | | - | 23.11Sec. 18. Minnesota Statutes 2024, section 216C.11, is amended to read: |
|---|
| 746 | | - | 23.12 216C.11 ENERGY CONSERVATION INFORMATION CENTER. |
|---|
| 747 | | - | 23.13 (a) The commissioner shall must establish an Energy Information Center in the |
|---|
| 748 | | - | 23.14department's offices in St. Paul department. The information center shall must maintain a |
|---|
| 749 | | - | 23.15toll-free telephone information service and disseminate printed materials on energy |
|---|
| 750 | | - | 23.16conservation topics, including but not limited to, availability of loans and other public and |
|---|
| 751 | | - | 23.17private financing methods for energy conservation physical improvements, the techniques |
|---|
| 752 | | - | 23.18and materials used to conserve energy in buildings, including retrofitting or upgrading |
|---|
| 753 | | - | 23.19insulation and installing weatherstripping, the projected prices and availability of different |
|---|
| 754 | | - | 23.20sources of energy, and alternative sources of energy physical, virtual, and mobile information |
|---|
| 755 | | - | 23.21service that collects, analyzes, and disseminates energy resources, data, technical assistance |
|---|
| 756 | | - | 23.22and expertise, financial assistance, connections, and information on a variety of energy |
|---|
| 757 | | - | 23.23topics relevant to Minnesota consumers, businesses, Tribal and local governments, and |
|---|
| 758 | | - | 23.24community organizations. The information center must be accessible and responsive to |
|---|
| 759 | | - | 23.25public inquiries and must conduct proactive outreach. |
|---|
| 760 | | - | 23.26 The Energy Information Center shall serve as the official Minnesota Alcohol Fuels |
|---|
| 761 | | - | 23.27Information Center and shall disseminate information, printed, by the toll-free telephone |
|---|
| 762 | | - | 23.28information service, or otherwise on the applicability and technology of alcohol fuels. |
|---|
| 763 | | - | 23.29 The information center shall include information on the potential hazards of energy |
|---|
| 764 | | - | 23.30conservation techniques and improvements in the printed materials disseminated. The |
|---|
| 765 | | - | 23.31commissioner shall not be liable for damages arising from the installation or operation of |
|---|
| 766 | | - | 23.32equipment or materials recommended by the information center. |
|---|
| 767 | | - | 23Article 3 Sec. 18. |
|---|
| 768 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 24.1 (b) The information center shall must use the information collected under section |
|---|
| 769 | | - | 24.2216C.02, subdivision 1, to maintain a central source of information on energy conservation, |
|---|
| 770 | | - | 24.3energy efficiency, and other energy-related programs, including both programs required by |
|---|
| 771 | | - | 24.4law or rule and programs developed and carried on voluntarily. |
|---|
| 772 | | - | 24.5 Sec. 19. Minnesota Statutes 2024, section 216C.12, is amended to read: |
|---|
| 773 | | - | 24.6 216C.12 ENERGY CONSERVATION PUBLICITY LITERACY. |
|---|
| 774 | | - | 24.7 (a) The commissioner, in consultation with other affected agencies or departments shall, |
|---|
| 775 | | - | 24.8must develop informational materials, pamphlets and radio and television messages and |
|---|
| 776 | | - | 24.9messaging on energy conservation and housing energy efficiency programs available in |
|---|
| 777 | | - | 24.10Minnesota, renewable energy resources, and energy supply and demand. The printed materials |
|---|
| 778 | | - | 24.11shall include information on available tax credits for residential energy conservation |
|---|
| 779 | | - | 24.12measures, residential retrofitting loan and grant programs, and data on the economics of |
|---|
| 780 | | - | 24.13energy conservation and renewable resource measures. Copies of printed materials shall be |
|---|
| 781 | | - | 24.14distributed to members of the appropriate standing committees of the legislature. The |
|---|
| 782 | | - | 24.15commissioner must use modern and current outreach strategies and media to distribute the |
|---|
| 783 | | - | 24.16informational materials and messaging to the widest possible audience. |
|---|
| 784 | | - | 24.17 (b) The informational materials must promote energy literacy for individuals and |
|---|
| 785 | | - | 24.18communities to help individuals and communities make informed decisions on topics ranging |
|---|
| 786 | | - | 24.19from smart energy use at home and consumer choices to national and international energy |
|---|
| 787 | | - | 24.20policy. The informational materials must include but are not limited to information on energy |
|---|
| 788 | | - | 24.21sources, energy generation, energy use, energy conservation strategies, the energy workforce |
|---|
| 789 | | - | 24.22sector, and state and federal energy-related programs administered by the department. |
|---|
| 790 | | - | 24.23Sec. 20. Minnesota Statutes 2024, section 216C.391, subdivision 1, is amended to read: |
|---|
| 791 | | - | 24.24 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have |
|---|
| 792 | | - | 24.25the meanings given. |
|---|
| 793 | | - | 24.26 (b) "Competitive funds" means federal funds awarded to selected applicants based on |
|---|
| 794 | | - | 24.27the grantor's evaluation of the strength of an application measured against all other |
|---|
| 795 | | - | 24.28applications. |
|---|
| 796 | | - | 24.29 (c) "Disadvantaged community" has the meaning given by the federal agency disbursing |
|---|
| 797 | | - | 24.30federal funds. |
|---|
| 798 | | - | 24Article 3 Sec. 20. |
|---|
| 799 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 25.1 (d) "Eligible entity" means an entity located in Minnesota that is eligible to receive |
|---|
| 800 | | - | 25.2federal funds, tax credits, loans, or an entity that has at least one Minnesota-based partner, |
|---|
| 801 | | - | 25.3as determined by the grantor of the federal funds, tax credits, or loans. |
|---|
| 802 | | - | 25.4 (e) "Federal funds" means federal formula or competitive funds available for award to |
|---|
| 803 | | - | 25.5applicants for energy projects under the Infrastructure Investment and Jobs Act, Public Law |
|---|
| 804 | | - | 25.6117-58, or the Inflation Reduction Act of 2022, Public Law 117-169. |
|---|
| 805 | | - | 25.7 (f) "Formula funds" means federal funds awarded to all eligible applicants on a |
|---|
| 806 | | - | 25.8noncompetitive basis. |
|---|
| 807 | | - | 25.9 (g) "Loans" means federal loans from loan funds authorized or funded in the Inflation |
|---|
| 808 | | - | 25.10Reduction Act of 2022, Public Law 117-169. |
|---|
| 809 | | - | 25.11 (h) "Match" means the amount of state nonfederal money a successful grantee in |
|---|
| 810 | | - | 25.12Minnesota is required to contribute to a project as a condition of receiving federal funds. |
|---|
| 811 | | - | 25.13 (i) "Political subdivision" has the meaning given in section 331A.01, subdivision 3. |
|---|
| 812 | | - | 25.14 (j) "Project" means the activities proposed to be undertaken by an eligible entity awarded |
|---|
| 813 | | - | 25.15federal funds and are located in Minnesota or will directly benefit Minnesotans. |
|---|
| 814 | | - | 25.16 (k) "Tax credits" means federal tax credits authorized in the Inflation Reduction Act of |
|---|
| 815 | | - | 25.172022, Public Law 117-169. |
|---|
| 816 | | - | 25.18 (l) "Tribal government" has the meaning given in section 116J.64, subdivision 4. |
|---|
| 817 | | - | 25.19Sec. 21. Minnesota Statutes 2024, section 216C.391, subdivision 3, is amended to read: |
|---|
| 818 | | - | 25.20 Subd. 3.Grant awards; eligible entities; priorities.(a) Grants may be awarded under |
|---|
| 819 | | - | 25.21this section to eligible entities in accordance with the following order of priorities: |
|---|
| 820 | | - | 25.22 (1) federal formula funds directed to the state that require a match; |
|---|
| 821 | | - | 25.23 (2) federal funds directed to a political subdivision or a Tribal government that require |
|---|
| 822 | | - | 25.24a match; |
|---|
| 823 | | - | 25.25 (3) federal funds directed to an institution of higher education, a consumer-owned utility, |
|---|
| 824 | | - | 25.26a business, or a nonprofit organization that require a match; |
|---|
| 825 | | - | 25.27 (4) federal funds directed to investor-owned utilities that require a match; |
|---|
| 826 | | - | 25.28 (5) federal funds directed to an eligible entity not included in clauses (1) to (4) that |
|---|
| 827 | | - | 25.29require a match; and |
|---|
| 828 | | - | 25Article 3 Sec. 21. |
|---|
| 829 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 26.1 (6) all other grant opportunities directed to eligible entities that do not require a match |
|---|
| 830 | | - | 26.2but for which the commissioner determines that a grant made under this section is likely to |
|---|
| 831 | | - | 26.3enhance the likelihood of an applicant receiving federal funds, or to increase the potential |
|---|
| 832 | | - | 26.4amount of federal funds received. |
|---|
| 833 | | - | 26.5 (b) By November 15, 2023, the commissioner must develop and publicly post, and report |
|---|
| 834 | | - | 26.6to the chairs and ranking minority members of the legislative committees with jurisdiction |
|---|
| 835 | | - | 26.7over energy finance, the federal energy grant funds that are eligible for state matching funds |
|---|
| 836 | | - | 26.8under this section. |
|---|
| 837 | | - | 26.9 (c) Notwithstanding section 16B.98, subdivision 5, paragraph (b), a grant made under |
|---|
| 838 | | - | 26.10this section may exceed five years. |
|---|
| 839 | | - | 26.11Sec. 22. Minnesota Statutes 2024, section 216C.47, subdivision 1, is amended to read: |
|---|
| 840 | | - | 26.12 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have |
|---|
| 841 | | - | 26.13the meanings given. |
|---|
| 842 | | - | 26.14 (b) "Eligible applicant" means a county, city, town, Tribal government, or the |
|---|
| 843 | | - | 26.15Metropolitan Council. |
|---|
| 844 | | - | 26.16 (c) "Geothermal energy system" means a system that heats and cools one or more |
|---|
| 845 | | - | 26.17buildings by using the constant temperature of the earth as both a heat source and heat sink, |
|---|
| 846 | | - | 26.18and a heat exchanger consisting of an underground closed loop system of piping containing |
|---|
| 847 | | - | 26.19a liquid to absorb and relinquish heat within the earth. Geothermal energy system includes: |
|---|
| 848 | | - | 26.20 (1) a bored geothermal heat exchanger, as defined in section 103I.005; |
|---|
| 849 | | - | 26.21 (2) a groundwater thermal exchange device, as defined in section 103I.005; and |
|---|
| 850 | | - | 26.22 (3) a submerged closed loop heat exchanger, as defined in section 103I.005. |
|---|
| 851 | | - | 26.23 (d) "Tribal government" means the elected government of a federally recognized Indian |
|---|
| 852 | | - | 26.24Tribe located in Minnesota. |
|---|
| 853 | | - | 26.25 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 854 | | - | 26.26Sec. 23. Minnesota Statutes 2024, section 216I.02, is amended by adding a subdivision |
|---|
| 855 | | - | 26.27to read: |
|---|
| 856 | | - | 26.28 Subd. 5a.Emergency backup generator."Emergency backup generator" has the |
|---|
| 857 | | - | 26.29meaning given in section 216B.02, subdivision 11. |
|---|
| 858 | | - | 26.30 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 859 | | - | 26Article 3 Sec. 23. |
|---|
| 860 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 27.1 Sec. 24. Minnesota Statutes 2024, section 216I.07, subdivision 2, is amended to read: |
|---|
| 861 | | - | 27.2 Subd. 2.Applicable projects.The requirements and procedures under this section apply |
|---|
| 862 | | - | 27.3to projects for which the applicant's proposal is: |
|---|
| 863 | | - | 27.4 (1) large electric power generating plants with a capacity of less than 80 megawatts; |
|---|
| 864 | | - | 27.5 (2) a combination of emergency backup generators designed to serve one person and |
|---|
| 865 | | - | 27.6located on property owned or controlled by the person; |
|---|
| 866 | | - | 27.7 (2) (3) large electric power generating plants that are fueled by natural gas; |
|---|
| 867 | | - | 27.8 (3) (4) high-voltage transmission lines with a capacity between 100 and 300 kilovolts; |
|---|
| 868 | | - | 27.9 (4) (5) high-voltage transmission lines with a capacity in excess of 300 kilovolts and |
|---|
| 869 | | - | 27.10less than 30 miles in length in Minnesota; |
|---|
| 870 | | - | 27.11 (5) (6) high-voltage transmission lines with a capacity in excess of 300 kilovolts, if at |
|---|
| 871 | | - | 27.12least 80 percent of the distance of the line in Minnesota, as proposed by the applicant, is |
|---|
| 872 | | - | 27.13located along existing high-voltage transmission line right-of-way; |
|---|
| 873 | | - | 27.14 (6) (7) solar energy systems; |
|---|
| 874 | | - | 27.15 (7) (8) energy storage systems; and |
|---|
| 875 | | - | 27.16 (8) (9) large wind energy conversion systems. |
|---|
| 876 | | - | 27.17 EFFECTIVE DATE; APPLICATION.This section is effective July 1, 2025, and |
|---|
| 877 | | - | 27.18applies to applications under Minnesota Statutes, section 216I.07, that are pending before |
|---|
| 878 | | - | 27.19or submitted to the Public Utilities Commission on or after that date. |
|---|
| 879 | | - | 27.20Sec. 25. Minnesota Statutes 2024, section 216I.07, subdivision 3, is amended to read: |
|---|
| 880 | | - | 27.21 Subd. 3.Environmental review.(a) For the projects identified in subdivision 2 and |
|---|
| 881 | | - | 27.22following the procedures under this section, the applicant must prepare and submit an |
|---|
| 882 | | - | 27.23environmental assessment with the application. A draft of the environmental assessment |
|---|
| 883 | | - | 27.24must also be provided to commission staff as part of the preapplication review under section |
|---|
| 884 | | - | 27.25216I.05, subdivision 6. The environmental assessment must (1) contain information regarding |
|---|
| 885 | | - | 27.26the proposed project's human and environmental impacts, and (2) address mitigating measures |
|---|
| 886 | | - | 27.27for identified impacts. The environmental assessment for projects identified in subdivision |
|---|
| 887 | | - | 27.282, clause (2), must also include a discussion of reasonable alternatives to the proposed |
|---|
| 888 | | - | 27.29project considering: (i) the appropriateness of the size and type of the proposed generation |
|---|
| 889 | | - | 27.30method compared to reasonable alternatives; (ii) the cost to the proposer of energy to be |
|---|
| 890 | | - | 27.31supplied by the project compared to the cost of energy that would be supplied by reasonable |
|---|
| 891 | | - | 27Article 3 Sec. 25. |
|---|
| 892 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 28.1alternatives; (iii) the effects of the proposed project on the natural and socioeconomic |
|---|
| 893 | | - | 28.2environments compared to the effects of reasonable alternatives; and (iv) the expected |
|---|
| 894 | | - | 28.3reliability of the proposed facility compared to the expected reliability of reasonable |
|---|
| 895 | | - | 28.4alternatives. The environmental assessment is the only state environmental review document |
|---|
| 896 | | - | 28.5that must be prepared for the proposed project. |
|---|
| 897 | | - | 28.6 (b) If after the public meeting the commission identifies other sites or routes or potential |
|---|
| 898 | | - | 28.7impacts for review, the commission must prepare an addendum to the environmental |
|---|
| 899 | | - | 28.8assessment that evaluates (1) the human and environmental impacts of the alternative site |
|---|
| 900 | | - | 28.9or route, and (2) any additional mitigating measures related to the identified impacts |
|---|
| 901 | | - | 28.10consistent with the scoping decision made pursuant to section 216I.06, subdivision 10, |
|---|
| 902 | | - | 28.11clause (2). The public may provide comments on the environmental assessment and any |
|---|
| 903 | | - | 28.12addendum to the environmental assessment at the public hearing and comment period under |
|---|
| 904 | | - | 28.13subdivision 4. When making the commission's final decision, the commission must consider |
|---|
| 905 | | - | 28.14the environmental assessment, the environmental assessment addendum, if any, and the |
|---|
| 906 | | - | 28.15entirety of the record related to human and environmental impacts. |
|---|
| 907 | | - | 28.16 ARTICLE 4 |
|---|
| 908 | | - | 28.17 SECURITIZATION |
|---|
| 909 | | - | 28.18Section 1. [216B.491] DEFINITIONS. |
|---|
| 910 | | - | 28.19 Subdivision 1.Scope.For the purposes of sections 216B.491 to 216B.499, the terms |
|---|
| 911 | | - | 28.20defined in this section have the meanings given. |
|---|
| 912 | | - | 28.21 Subd. 2.Ancillary agreement."Ancillary agreement" means a bond, insurance policy, |
|---|
| 913 | | - | 28.22letter of credit, reserve account, surety bond, interest rate lock or swap arrangement, liquidity |
|---|
| 914 | | - | 28.23or credit support arrangement, or other financial arrangement entered into in connection |
|---|
| 915 | | - | 28.24with extraordinary event bonds that is designed to promote the credit quality and |
|---|
| 916 | | - | 28.25marketability of extraordinary event bonds or to mitigate the risk of an increase in interest |
|---|
| 917 | | - | 28.26rates. |
|---|
| 918 | | - | 28.27 Subd. 3.Assignee."Assignee" means a person to which an interest in extraordinary |
|---|
| 919 | | - | 28.28event property is sold, assigned, transferred, or conveyed, other than as security, and any |
|---|
| 920 | | - | 28.29successor to or subsequent assignee of the person. |
|---|
| 921 | | - | 28.30 Subd. 4.Bondholder."Bondholder" means a holder or owner of extraordinary event |
|---|
| 922 | | - | 28.31bonds. |
|---|
| 923 | | - | 28Article 4 Section 1. |
|---|
| 924 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 29.1 Subd. 5.Customer."Customer" means a person who purchases natural gas or natural |
|---|
| 925 | | - | 29.2gas transportation services from a utility in Minnesota. Customer does not include a person |
|---|
| 926 | | - | 29.3who: |
|---|
| 927 | | - | 29.4 (1) purchases natural gas transportation services from a utility in Minnesota that serves |
|---|
| 928 | | - | 29.5fewer than 350,000 natural gas customers in Minnesota; and |
|---|
| 929 | | - | 29.6 (2) does not purchase natural gas from a utility in Minnesota. |
|---|
| 930 | | - | 29.7 Subd. 6.Extraordinary event.(a) "Extraordinary event" means an event arising from |
|---|
| 931 | | - | 29.8unforeseen circumstances of sufficient magnitude, as determined by the commission: |
|---|
| 932 | | - | 29.9 (1) to impose significant costs on customers; and |
|---|
| 933 | | - | 29.10 (2) for which the issuance of extraordinary event bonds in response to the event meets |
|---|
| 934 | | - | 29.11the conditions of section 216B.492, subdivision 2. |
|---|
| 935 | | - | 29.12 (b) Extraordinary event includes but is not limited to a storm event or other natural |
|---|
| 936 | | - | 29.13disaster, an act of God, war, terrorism, sabotage, vandalism, a cybersecurity attack, or a |
|---|
| 937 | | - | 29.14temporary significant increase in the wholesale price of natural gas. |
|---|
| 938 | | - | 29.15 Subd. 7.Extraordinary event activity."Extraordinary event activity" means an activity |
|---|
| 939 | | - | 29.16undertaken by or on behalf of a utility to restore or maintain the utility's ability to provide |
|---|
| 940 | | - | 29.17natural gas service following one or more extraordinary events, including but not limited |
|---|
| 941 | | - | 29.18to activities related to mobilizing, staging, constructing, reconstructing, replacing, or repairing |
|---|
| 942 | | - | 29.19natural gas transmission, distribution, storage, or general facilities. |
|---|
| 943 | | - | 29.20 Subd. 8.Extraordinary event bonds."Extraordinary event bonds" means debt securities, |
|---|
| 944 | | - | 29.21including but not limited to senior secured bonds, debentures, notes, certificates of |
|---|
| 945 | | - | 29.22participation, certificates of beneficial interest, certificates of ownership, or other evidences |
|---|
| 946 | | - | 29.23of indebtedness or ownership, that: (1) have a scheduled maturity of no longer than 30 years |
|---|
| 947 | | - | 29.24and a final legal maturity date that is not later than 32 years from the issue date; (2) are rated |
|---|
| 948 | | - | 29.25AA, Aa2, or higher by a major independent credit rating agency at the time of issuance; |
|---|
| 949 | | - | 29.26and (3) are issued by a utility or an assignee under a financing order. |
|---|
| 950 | | - | 29.27 Subd. 9.Extraordinary event charge."Extraordinary event charge" means a |
|---|
| 951 | | - | 29.28nonbypassable charge that: |
|---|
| 952 | | - | 29.29 (1) a utility that is the subject of a financing order or the utility's successor or assignee |
|---|
| 953 | | - | 29.30imposes on all of the utility's customers; |
|---|
| 954 | | - | 29.31 (2) is separate from the utility's base rates; and |
|---|
| 955 | | - | 29Article 4 Section 1. |
|---|
| 956 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 30.1 (3) provides a source of revenue used only to repay, finance, or refinance extraordinary |
|---|
| 957 | | - | 30.2event costs. |
|---|
| 958 | | - | 30.3 Subd. 10.Extraordinary event costs."Extraordinary event costs": |
|---|
| 959 | | - | 30.4 (1) means all incremental costs of extraordinary event activities that are approved by |
|---|
| 960 | | - | 30.5the commission in a financing order issued under section 216B.492 as being: |
|---|
| 961 | | - | 30.6 (i) necessary to enable the utility to restore or maintain natural gas service to customers |
|---|
| 962 | | - | 30.7after the utility experiences an extraordinary event; and |
|---|
| 963 | | - | 30.8 (ii) prudent and reasonable; |
|---|
| 964 | | - | 30.9 (2) includes costs to repurchase equity or retire any indebtedness relating to extraordinary |
|---|
| 965 | | - | 30.10event activities; |
|---|
| 966 | | - | 30.11 (3) are net of applicable insurance proceeds, tax benefits, and any other amounts intended |
|---|
| 967 | | - | 30.12to reimburse the utility for extraordinary event activities, including government grants or |
|---|
| 968 | | - | 30.13aid of any kind; |
|---|
| 969 | | - | 30.14 (4) do not include any monetary penalty, fine, or forfeiture assessed against a utility by |
|---|
| 970 | | - | 30.15a government agency or court under a federal or state environmental statute, rule, or |
|---|
| 971 | | - | 30.16regulation; and |
|---|
| 972 | | - | 30.17 (5) must be adjusted to reflect: |
|---|
| 973 | | - | 30.18 (i) the difference, as determined by the commission, between extraordinary event costs |
|---|
| 974 | | - | 30.19that the utility expects to incur and actual, reasonable, and prudent costs incurred; or |
|---|
| 975 | | - | 30.20 (ii) a more fair or reasonable allocation of extraordinary event costs to customers over |
|---|
| 976 | | - | 30.21time, as expressed in a commission order, provided that after the issuance of extraordinary |
|---|
| 977 | | - | 30.22event bonds relating to the extraordinary event costs, the adjustment must not (A) reduce |
|---|
| 978 | | - | 30.23or impair the extraordinary event property relating to the extraordinary event bonds, or (B) |
|---|
| 979 | | - | 30.24reduce, impair, postpone, or terminate extraordinary event charges relating to the |
|---|
| 980 | | - | 30.25extraordinary event bonds until all principal, interest, and redemption premium, if any, |
|---|
| 981 | | - | 30.26payable on the extraordinary event bonds, all financing costs for the extraordinary event |
|---|
| 982 | | - | 30.27bonds, and all amounts that must be paid to an assignee or financing party under an ancillary |
|---|
| 983 | | - | 30.28agreement relating to the extraordinary event bonds are paid in full. |
|---|
| 984 | | - | 30.29 Subd. 11.Extraordinary event property."Extraordinary event property" means: |
|---|
| 985 | | - | 30.30 (1) all rights and interests that a utility or the utility's successor or assignee possess under |
|---|
| 986 | | - | 30.31a financing order to impose, bill, collect, receive, and obtain periodic adjustments to |
|---|
| 987 | | - | 30Article 4 Section 1. |
|---|
| 988 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 31.1extraordinary event charges authorized under a financing order issued by the commission; |
|---|
| 989 | | - | 31.2and |
|---|
| 990 | | - | 31.3 (2) all revenue, collections, claims, rights to payments, payments, money, or proceeds |
|---|
| 991 | | - | 31.4arising from the rights and interests specified in clause (1), regardless of whether any are |
|---|
| 992 | | - | 31.5commingled with other revenue, collections, rights to payment, payments, money, or |
|---|
| 993 | | - | 31.6proceeds. |
|---|
| 994 | | - | 31.7 Subd. 12.Extraordinary event revenue."Extraordinary event revenue" means revenue, |
|---|
| 995 | | - | 31.8receipts, collections, payments, money, claims, or other proceeds arising from extraordinary |
|---|
| 996 | | - | 31.9event property. |
|---|
| 997 | | - | 31.10 Subd. 13.Financing costs."Financing costs" means: |
|---|
| 998 | | - | 31.11 (1) principal, interest, and redemption premiums, if any, that are payable on extraordinary |
|---|
| 999 | | - | 31.12event bonds; |
|---|
| 1000 | | - | 31.13 (2) payments required under an ancillary agreement and amounts required to fund or |
|---|
| 1001 | | - | 31.14replenish a reserve account or other accounts established under the terms of any indenture, |
|---|
| 1002 | | - | 31.15ancillary agreement, or other financing document pertaining to extraordinary event bonds; |
|---|
| 1003 | | - | 31.16 (3) other demonstrable costs related to issuing, supporting, repaying, refunding, and |
|---|
| 1004 | | - | 31.17servicing extraordinary event bonds, including but not limited to servicing fees, accounting |
|---|
| 1005 | | - | 31.18and auditing fees, trustee fees, legal fees, consulting fees, financial adviser fees, |
|---|
| 1006 | | - | 31.19administrative fees, placement and underwriting fees, capitalized interest, rating agency |
|---|
| 1007 | | - | 31.20fees, stock exchange listing and compliance fees, security registration fees, filing fees, |
|---|
| 1008 | | - | 31.21information technology programming costs, and any other demonstrable costs necessary to |
|---|
| 1009 | | - | 31.22otherwise ensure and guarantee the timely payment of extraordinary event bonds, other |
|---|
| 1010 | | - | 31.23amounts payable in connection with extraordinary event bonds, or other extraordinary event |
|---|
| 1011 | | - | 31.24charges payable in connection with extraordinary event bonds; |
|---|
| 1012 | | - | 31.25 (4) taxes and license fees imposed on the revenue generated from collecting an |
|---|
| 1013 | | - | 31.26extraordinary event charge; |
|---|
| 1014 | | - | 31.27 (5) state and local taxes, including franchise, sales and use, and other taxes or similar |
|---|
| 1015 | | - | 31.28charges, including but not limited to regulatory assessment fees, whether paid, payable, or |
|---|
| 1016 | | - | 31.29accrued; and |
|---|
| 1017 | | - | 31.30 (6) costs incurred by the commission to (i) hire and compensate additional temporary |
|---|
| 1018 | | - | 31.31staff needed to perform the commission's responsibilities under this section, and (ii) engage |
|---|
| 1019 | | - | 31.32specialized counsel and expert consultants experienced in securitized utility ratepayer-backed |
|---|
| 1020 | | - | 31Article 4 Section 1. |
|---|
| 1021 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 32.1bond financings similar to extraordinary event bonds financings, as provided under section |
|---|
| 1022 | | - | 32.2216B.494. |
|---|
| 1023 | | - | 32.3 Subd. 14.Financing order."Financing order" means an order issued by the commission |
|---|
| 1024 | | - | 32.4under section 216B.492 that authorizes an applicant to: |
|---|
| 1025 | | - | 32.5 (1) issue extraordinary event bonds in one or more series; |
|---|
| 1026 | | - | 32.6 (2) impose, charge, and collect extraordinary event charges; and |
|---|
| 1027 | | - | 32.7 (3) create extraordinary event property. |
|---|
| 1028 | | - | 32.8 Subd. 15.Financing party."Financing party" means a holder of extraordinary event |
|---|
| 1029 | | - | 32.9bonds and a trustee, a collateral agent, a party under an ancillary agreement, or any other |
|---|
| 1030 | | - | 32.10person acting for the benefit of extraordinary event bondholders. |
|---|
| 1031 | | - | 32.11 Subd. 16.Natural gas facility."Natural gas facility" means natural gas pipelines, |
|---|
| 1032 | | - | 32.12including distribution lines, underground storage areas, liquefied natural gas facilities, |
|---|
| 1033 | | - | 32.13propane storage tanks, and other facilities the commission determines are used and useful |
|---|
| 1034 | | - | 32.14to provide natural gas service to retail and transportation customers in Minnesota. |
|---|
| 1035 | | - | 32.15 Subd. 17.Nonbypassable."Nonbypassable" means an extraordinary event charge that |
|---|
| 1036 | | - | 32.16a retail customer located within a utility service area cannot avoid and must pay. |
|---|
| 1037 | | - | 32.17 Subd. 18.Pretax costs."Pretax costs" means costs incurred by a utility and approved |
|---|
| 1038 | | - | 32.18by the commission, including but not limited to: |
|---|
| 1039 | | - | 32.19 (1) unrecovered capitalized costs of replaced natural gas facilities damaged or destroyed |
|---|
| 1040 | | - | 32.20by an extraordinary event; |
|---|
| 1041 | | - | 32.21 (2) costs to decommission and restore the site of a natural gas facility damaged or |
|---|
| 1042 | | - | 32.22destroyed by an extraordinary event; |
|---|
| 1043 | | - | 32.23 (3) other applicable capital and operating costs, accrued carrying charges, deferred |
|---|
| 1044 | | - | 32.24expenses, reductions for applicable insurance, and salvage proceeds; and |
|---|
| 1045 | | - | 32.25 (4) costs to retire any existing indebtedness, fees, costs, and expenses to modify existing |
|---|
| 1046 | | - | 32.26debt agreements, or for waivers or consents related to existing debt agreements. |
|---|
| 1047 | | - | 32.27 Subd. 19.Storm event."Storm event" means a tornado, derecho, ice or snow storm, |
|---|
| 1048 | | - | 32.28wildfire, flood, earthquake, or other significant weather or natural disaster that causes |
|---|
| 1049 | | - | 32.29substantial damage to a utility's infrastructure. |
|---|
| 1050 | | - | 32.30 Subd. 20.Successor."Successor" means a legal entity that succeeds by operation of law |
|---|
| 1051 | | - | 32.31to the rights and obligations of another legal entity as a result of bankruptcy, reorganization, |
|---|
| 1052 | | - | 32Article 4 Section 1. |
|---|
| 1053 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 33.1restructuring, other insolvency proceeding, merger, acquisition, consolidation, or sale or |
|---|
| 1054 | | - | 33.2transfer of assets. |
|---|
| 1055 | | - | 33.3 Subd. 21.Utility."Utility" means a public utility, as defined in section 216B.02, |
|---|
| 1056 | | - | 33.4subdivision 4, that provides natural gas service to Minnesota customers. Utility includes |
|---|
| 1057 | | - | 33.5the utility's successors or assignees. |
|---|
| 1058 | | - | 33.6 Sec. 2. [216B.492] FINANCING ORDER. |
|---|
| 1059 | | - | 33.7 Subdivision 1.Application.(a) A utility may file an application with the commission |
|---|
| 1060 | | - | 33.8requesting a financing order to enable the utility to recover extraordinary event costs by |
|---|
| 1061 | | - | 33.9issuing extraordinary event bonds under this section. |
|---|
| 1062 | | - | 33.10 (b) The application must include the following information, as applicable: |
|---|
| 1063 | | - | 33.11 (1) a description of each natural gas facility to be repaired or replaced; |
|---|
| 1064 | | - | 33.12 (2) the undepreciated value remaining in each natural gas facility under clause (1) that |
|---|
| 1065 | | - | 33.13the utility proposes to repair or replace using financing obtained by issuing extraordinary |
|---|
| 1066 | | - | 33.14event bonds under sections 216B.491 to 216B.499, and the method used to calculate the |
|---|
| 1067 | | - | 33.15undepreciated value remaining; |
|---|
| 1068 | | - | 33.16 (3) the estimated costs imposed on customers resulting from an extraordinary event that |
|---|
| 1069 | | - | 33.17involves no physical damage to natural gas facilities; |
|---|
| 1070 | | - | 33.18 (4) the estimated savings or estimated mitigation of rate impacts to utility customers if |
|---|
| 1071 | | - | 33.19the financing order is issued as requested in the application, calculated by comparing the |
|---|
| 1072 | | - | 33.20costs to customers that are expected to result from implementing the financing order and |
|---|
| 1073 | | - | 33.21the estimated costs associated with implementing traditional utility financing mechanisms |
|---|
| 1074 | | - | 33.22with respect to the same undepreciated balance, expressed in net present value terms; |
|---|
| 1075 | | - | 33.23 (5) a description of (i) the nonbypassable extraordinary event charge utility customers |
|---|
| 1076 | | - | 33.24must pay in order to fully recover financing costs, and (ii) the method and assumptions used |
|---|
| 1077 | | - | 33.25to calculate the nonbypassable extraordinary event charge; |
|---|
| 1078 | | - | 33.26 (6) a proposed methodology to allocate the revenue requirement for the extraordinary |
|---|
| 1079 | | - | 33.27event charge among the utility's customer classes; |
|---|
| 1080 | | - | 33.28 (7) a description of a proposed adjustment mechanism that is implemented when necessary |
|---|
| 1081 | | - | 33.29to correct any overcollection or undercollection of extraordinary event charges, in order to |
|---|
| 1082 | | - | 33.30complete payment of scheduled principal and interest on extraordinary event bonds and |
|---|
| 1083 | | - | 33.31other financing costs in a timely fashion; |
|---|
| 1084 | | - | 33Article 4 Sec. 2. |
|---|
| 1085 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 34.1 (8) a memorandum with supporting exhibits, developed by a securities firm that is |
|---|
| 1086 | | - | 34.2experienced in the marketing of securitized utility ratepayer-backed bonds, indicating the |
|---|
| 1087 | | - | 34.3proposed issuance satisfies: (i) the current published AA, Aa2, or higher rating; or (ii) |
|---|
| 1088 | | - | 34.4equivalent rating criteria of at least one nationally recognized securities rating organization |
|---|
| 1089 | | - | 34.5for issuances similar to the proposed extraordinary event bonds; |
|---|
| 1090 | | - | 34.6 (9) an estimate of: (i) the timing of the extraordinary event bonds issuance; and (ii) the |
|---|
| 1091 | | - | 34.7term of the extraordinary event bonds or series of bonds, provided that the scheduled final |
|---|
| 1092 | | - | 34.8maturity for each bond issuance does not exceed 30 years; |
|---|
| 1093 | | - | 34.9 (10) identification of plans to sell, assign, transfer, or convey, other than as a security, |
|---|
| 1094 | | - | 34.10interest in extraordinary event property, including identification of an assignee and |
|---|
| 1095 | | - | 34.11demonstration that the assignee is a financing entity that is wholly owned, directly or |
|---|
| 1096 | | - | 34.12indirectly, by the utility; |
|---|
| 1097 | | - | 34.13 (11) identification of ancillary agreements that may be necessary or appropriate; |
|---|
| 1098 | | - | 34.14 (12) one or more alternative financing scenarios in addition to the preferred scenario |
|---|
| 1099 | | - | 34.15contained in the application; |
|---|
| 1100 | | - | 34.16 (13) the extent of damage to the utility's natural gas facility caused by an extraordinary |
|---|
| 1101 | | - | 34.17event and the estimated costs to repair or replace the damaged natural gas facility; |
|---|
| 1102 | | - | 34.18 (14) a schedule of the proposed repairs to and replacement of the damaged natural gas |
|---|
| 1103 | | - | 34.19facility; |
|---|
| 1104 | | - | 34.20 (15) a description of the steps taken to provide customers interim natural gas service |
|---|
| 1105 | | - | 34.21while the damaged natural gas facility is being repaired or replaced; and |
|---|
| 1106 | | - | 34.22 (16) a description of the impacts on the utility's current workforce resulting from |
|---|
| 1107 | | - | 34.23implementing a repair or replacement plan following an extraordinary event. |
|---|
| 1108 | | - | 34.24 Subd. 2.Findings.After providing notice and holding a public hearing on an application |
|---|
| 1109 | | - | 34.25filed under subdivision 1, the commission may issue a financing order if the commission |
|---|
| 1110 | | - | 34.26finds that: |
|---|
| 1111 | | - | 34.27 (1) the extraordinary event costs described in the application are reasonable; |
|---|
| 1112 | | - | 34.28 (2) the proposed issuance of extraordinary event bonds and the imposition and collection |
|---|
| 1113 | | - | 34.29of extraordinary event charges: |
|---|
| 1114 | | - | 34.30 (i) are just and reasonable; |
|---|
| 1115 | | - | 34.31 (ii) are consistent with the public interest; |
|---|
| 1116 | | - | 34Article 4 Sec. 2. |
|---|
| 1117 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 35.1 (iii) constitute a prudent and reasonable mechanism to finance the extraordinary event |
|---|
| 1118 | | - | 35.2costs; and |
|---|
| 1119 | | - | 35.3 (iv) provide tangible and quantifiable benefits to customers, either by providing lower |
|---|
| 1120 | | - | 35.4overall costs or mitigating rate impacts relative to traditional methods of financing, that |
|---|
| 1121 | | - | 35.5exceed the benefits achieved absent the issuance of extraordinary event bonds; and |
|---|
| 1122 | | - | 35.6 (3) the proposed structuring, marketing, and pricing of the extraordinary event bonds: |
|---|
| 1123 | | - | 35.7 (i) lower overall costs to customers or mitigate rate impacts to customers relative to |
|---|
| 1124 | | - | 35.8traditional methods of financing; and |
|---|
| 1125 | | - | 35.9 (ii) achieve customer savings or mitigate rate impacts to customers, as determined by |
|---|
| 1126 | | - | 35.10the commission in a financing order, consistent with market conditions at the time of sale |
|---|
| 1127 | | - | 35.11and the terms of the financing order. |
|---|
| 1128 | | - | 35.12 Subd. 3.Contents.(a) A financing order issued under this section must: |
|---|
| 1129 | | - | 35.13 (1) determine the maximum amount of extraordinary event costs that may be financed |
|---|
| 1130 | | - | 35.14from proceeds of extraordinary event bonds issued pursuant to the financing order; |
|---|
| 1131 | | - | 35.15 (2) describe the proposed customer billing mechanism for extraordinary event charges |
|---|
| 1132 | | - | 35.16and include a finding that the mechanism is just and reasonable; |
|---|
| 1133 | | - | 35.17 (3) describe the financing costs that may be recovered through extraordinary event |
|---|
| 1134 | | - | 35.18charges and the period over which the costs may be recovered, which must end no earlier |
|---|
| 1135 | | - | 35.19than the date of final legal maturity of the extraordinary event bonds; |
|---|
| 1136 | | - | 35.20 (4) describe the extraordinary event property that is created and that may be used to pay, |
|---|
| 1137 | | - | 35.21and secure the payment of, principal and interest on the extraordinary event bonds and other |
|---|
| 1138 | | - | 35.22financing costs authorized in the financing order; |
|---|
| 1139 | | - | 35.23 (5) authorize the utility to finance extraordinary event costs by issuing one or more series |
|---|
| 1140 | | - | 35.24of extraordinary event bonds. A utility is not required to secure a separate financing order |
|---|
| 1141 | | - | 35.25for each extraordinary event bonds issuance or for each scheduled phase to replace natural |
|---|
| 1142 | | - | 35.26gas facilities approved in the financing order; |
|---|
| 1143 | | - | 35.27 (6) include a formula-based mechanism that must be used to make expeditious periodic |
|---|
| 1144 | | - | 35.28adjustments to the extraordinary event charges authorized by the financing order that are |
|---|
| 1145 | | - | 35.29necessary to (i) correct for any overcollection or undercollection, or (ii) otherwise provide |
|---|
| 1146 | | - | 35.30for the timely payment of extraordinary event bonds, other financing costs, and other required |
|---|
| 1147 | | - | 35.31amounts and charges payable in connection with extraordinary event bonds; |
|---|
| 1148 | | - | 35Article 4 Sec. 2. |
|---|
| 1149 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 36.1 (7) specify the degree of flexibility afforded to the utility to establish the terms and |
|---|
| 1150 | | - | 36.2conditions of the extraordinary event bonds, including but not limited to repayment schedules, |
|---|
| 1151 | | - | 36.3expected interest rates, and other financing costs; |
|---|
| 1152 | | - | 36.4 (8) specify that the extraordinary event bonds must be issued, subject to market conditions |
|---|
| 1153 | | - | 36.5and the financing order's terms, as soon as feasible following the financing order's issuance; |
|---|
| 1154 | | - | 36.6 (9) require the utility, at the same time extraordinary event charges are initially collected |
|---|
| 1155 | | - | 36.7and independent of the schedule to close and decommission any natural gas facility replaced |
|---|
| 1156 | | - | 36.8as the result of an extraordinary event, if any, to remove the natural gas facility from the |
|---|
| 1157 | | - | 36.9utility's rate base and commensurately reduce the utility's base rates; |
|---|
| 1158 | | - | 36.10 (10) specify a future ratemaking process to reconcile any difference between the projected |
|---|
| 1159 | | - | 36.11pretax costs included in the amount financed by extraordinary event bonds and the final |
|---|
| 1160 | | - | 36.12actual pretax costs incurred by the utility to retire or replace the natural gas facility, if any; |
|---|
| 1161 | | - | 36.13 (11) specify information regarding extraordinary event bonds issuance and repayments, |
|---|
| 1162 | | - | 36.14financing costs, energy transaction charges, extraordinary event property, and related matters |
|---|
| 1163 | | - | 36.15that the natural gas utility is required to provide to the commission on a schedule determined |
|---|
| 1164 | | - | 36.16by the commission; |
|---|
| 1165 | | - | 36.17 (12) allow or require the creation of a utility's extraordinary event property to be |
|---|
| 1166 | | - | 36.18conditioned on, and occur simultaneously with, the sale or other transfer of the extraordinary |
|---|
| 1167 | | - | 36.19event property to an assignee and the pledge of the extraordinary event property to secure |
|---|
| 1168 | | - | 36.20the extraordinary event bonds; |
|---|
| 1169 | | - | 36.21 (13) ensure that the structuring, marketing, and pricing of extraordinary event bonds |
|---|
| 1170 | | - | 36.22result in reasonable extraordinary event charges and customer savings or rate impact |
|---|
| 1171 | | - | 36.23mitigation, consistent with market conditions and the financing order's terms; and |
|---|
| 1172 | | - | 36.24 (14) specify that a utility that finances the replacement of one or more natural gas facilities |
|---|
| 1173 | | - | 36.25after the natural gas facilities that are subject to the finance order are removed from the |
|---|
| 1174 | | - | 36.26utility's rate base is prohibited from: |
|---|
| 1175 | | - | 36.27 (i) operating the natural gas facilities; or |
|---|
| 1176 | | - | 36.28 (ii) selling the natural gas facilities to another entity to operate as natural gas facilities. |
|---|
| 1177 | | - | 36.29 (b) A financing order issued under this section may: |
|---|
| 1178 | | - | 36.30 (1) include conditions different from those requested in the application that the |
|---|
| 1179 | | - | 36.31commission determines are necessary to: |
|---|
| 1180 | | - | 36.32 (i) promote the public interest; and |
|---|
| 1181 | | - | 36Article 4 Sec. 2. |
|---|
| 1182 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 37.1 (ii) maximize the financial benefits or minimize the financial risks of the transaction to |
|---|
| 1183 | | - | 37.2customers and to directly impacted Minnesota workers and communities; and |
|---|
| 1184 | | - | 37.3 (2) select one or more underwriters for the extraordinary event bonds. |
|---|
| 1185 | | - | 37.4 Subd. 4.Duration; irrevocability; subsequent order.(a) A financing order remains |
|---|
| 1186 | | - | 37.5effective until the extraordinary event bonds issued under the financing order and all |
|---|
| 1187 | | - | 37.6financing costs related to the extraordinary event bonds have been paid in full. |
|---|
| 1188 | | - | 37.7 (b) A financing order remains effective and unabated notwithstanding the bankruptcy, |
|---|
| 1189 | | - | 37.8reorganization, or insolvency of the utility to which the financing order applies or any |
|---|
| 1190 | | - | 37.9affiliate, successor, or assignee of the utility to which the financing order applies. |
|---|
| 1191 | | - | 37.10 (c) Subject to judicial review under section 216B.52, a financing order is irrevocable |
|---|
| 1192 | | - | 37.11and is not reviewable by a future commission. The commission must not: (1) reduce, impair, |
|---|
| 1193 | | - | 37.12postpone, or terminate extraordinary event charges approved in a financing order; (2) reduce |
|---|
| 1194 | | - | 37.13or impair the extraordinary event property approved in a financing order or impair the |
|---|
| 1195 | | - | 37.14collection or recovery of extraordinary event charges and extraordinary event revenue; or |
|---|
| 1196 | | - | 37.15(3) change the customers required to pay extraordinary event charges. |
|---|
| 1197 | | - | 37.16 (d) Notwithstanding paragraph (c), the commission may, on the commission's own |
|---|
| 1198 | | - | 37.17motion or at the request of a utility or any other person, commence a proceeding and issue |
|---|
| 1199 | | - | 37.18a subsequent financing order that provides for refinancing, retiring, or refunding extraordinary |
|---|
| 1200 | | - | 37.19event bonds issued under the original financing order if: |
|---|
| 1201 | | - | 37.20 (1) the commission makes all of the findings specified in subdivision 2 with respect to |
|---|
| 1202 | | - | 37.21the subsequent financing order; and |
|---|
| 1203 | | - | 37.22 (2) the modification contained in the subsequent financing order does not in any way |
|---|
| 1204 | | - | 37.23impair the covenants and terms of the extraordinary event bonds being refinanced, retired, |
|---|
| 1205 | | - | 37.24or refunded. |
|---|
| 1206 | | - | 37.25 Subd. 5.Effect on commission jurisdiction.(a) Except as provided in paragraph (b), |
|---|
| 1207 | | - | 37.26the commission, in exercising the powers and carrying out the duties under this section, is |
|---|
| 1208 | | - | 37.27prohibited from: |
|---|
| 1209 | | - | 37.28 (1) considering extraordinary event bonds issued under this section to be debt of the |
|---|
| 1210 | | - | 37.29utility other than for income tax purposes, unless considering the extraordinary event bonds |
|---|
| 1211 | | - | 37.30to be debt is necessary to achieve consistency with prevailing utility debt rating |
|---|
| 1212 | | - | 37.31methodologies; |
|---|
| 1213 | | - | 37.32 (2) considering the extraordinary event charges paid under the financing order to be |
|---|
| 1214 | | - | 37.33revenue of the utility; |
|---|
| 1215 | | - | 37Article 4 Sec. 2. |
|---|
| 1216 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 38.1 (3) considering the extraordinary event costs or financing costs specified in the financing |
|---|
| 1217 | | - | 38.2order to be the regulated costs or assets of the utility; or |
|---|
| 1218 | | - | 38.3 (4) determining that any prudent action taken by a utility that is consistent with the |
|---|
| 1219 | | - | 38.4financing order is unjust or unreasonable. |
|---|
| 1220 | | - | 38.5 (b) Nothing in this subdivision: |
|---|
| 1221 | | - | 38.6 (1) affects the authority of the commission to apply or modify a billing mechanism |
|---|
| 1222 | | - | 38.7designed to recover extraordinary event charges; |
|---|
| 1223 | | - | 38.8 (2) prevents or precludes the commission from (i) investigating a utility's compliance |
|---|
| 1224 | | - | 38.9with the financing order's terms and conditions, and (ii) requiring compliance with the |
|---|
| 1225 | | - | 38.10financing order; or |
|---|
| 1226 | | - | 38.11 (3) prevents or precludes the commission from imposing regulatory sanctions against a |
|---|
| 1227 | | - | 38.12utility for failure to comply with (i) the financing order's terms and conditions, or (ii) the |
|---|
| 1228 | | - | 38.13requirements of this section. |
|---|
| 1229 | | - | 38.14 (c) The commission is prohibited from refusing to allow a utility to recover any costs |
|---|
| 1230 | | - | 38.15associated with the replacement of natural gas facilities solely because the utility has elected |
|---|
| 1231 | | - | 38.16to finance the natural gas facility replacement through a financing mechanism other than |
|---|
| 1232 | | - | 38.17extraordinary event bonds. |
|---|
| 1233 | | - | 38.18Sec. 3. [216B.493] POSTORDER COMMISSION DUTIES. |
|---|
| 1234 | | - | 38.19 Subdivision 1.Financing costs review.Within 120 days after the date extraordinary |
|---|
| 1235 | | - | 38.20event bonds are issued, a utility subject to a financing order must file with the commission |
|---|
| 1236 | | - | 38.21the actual initial and ongoing financing costs, the final structure and pricing of the |
|---|
| 1237 | | - | 38.22extraordinary event bonds, and the actual extraordinary event charge. The commission must |
|---|
| 1238 | | - | 38.23review the prudence of the natural gas utility's actions to determine whether the actual |
|---|
| 1239 | | - | 38.24financing costs were the lowest that could reasonably be achieved given the financing order's |
|---|
| 1240 | | - | 38.25terms and market conditions prevailing at the time of the extraordinary event bond's issuance. |
|---|
| 1241 | | - | 38.26 Subd. 2.Enforcement.If the commission determines that a utility's actions under this |
|---|
| 1242 | | - | 38.27section are not prudent or are inconsistent with the financing order, the commission may |
|---|
| 1243 | | - | 38.28apply remedies deemed appropriate for utility actions, provided that any remedy applied |
|---|
| 1244 | | - | 38.29must not directly or indirectly: (1) reduce or impair the extraordinary event property approved |
|---|
| 1245 | | - | 38.30in the financing order or impair the collection or recovery of extraordinary event charges |
|---|
| 1246 | | - | 38.31and extraordinary event revenue; (2) reduce, impair, postpone, or terminate extraordinary |
|---|
| 1247 | | - | 38.32event charges approved in the financing order until all principal, interest, and redemption |
|---|
| 1248 | | - | 38.33premium, if any, payable on the extraordinary event bonds, all financing costs, and all |
|---|
| 1249 | | - | 38Article 4 Sec. 3. |
|---|
| 1250 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 39.1amounts to be paid to an assignee or financing party under an ancillary agreement are paid |
|---|
| 1251 | | - | 39.2in full; or (3) change the customers required to pay extraordinary event charges. |
|---|
| 1252 | | - | 39.3 Sec. 4. [216B.494] USE OF OUTSIDE EXPERTS. |
|---|
| 1253 | | - | 39.4 (a) To carry out the duties under this section, the commission may: |
|---|
| 1254 | | - | 39.5 (1) contract with outside consultants and counsel experienced in securitized utility |
|---|
| 1255 | | - | 39.6customer-backed bond financing similar to extraordinary event bonds; and |
|---|
| 1256 | | - | 39.7 (2) hire and compensate additional temporary staff as needed. |
|---|
| 1257 | | - | 39.8Expenses incurred by the commission under this paragraph must be treated as financing |
|---|
| 1258 | | - | 39.9costs paid by the extraordinary event revenue. The costs incurred under clause (1) are not |
|---|
| 1259 | | - | 39.10an obligation of the state and are assigned solely to the transaction. |
|---|
| 1260 | | - | 39.11 (b) A utility presented with a written request from the commission to reimburse the |
|---|
| 1261 | | - | 39.12commission's expenses incurred under paragraph (a), accompanied by a detailed account |
|---|
| 1262 | | - | 39.13of the subject expenses, must provide the issuer of the extraordinary event bonds and the |
|---|
| 1263 | | - | 39.14indenture trustee for the extraordinary event bonds with such documentation. The indenture |
|---|
| 1264 | | - | 39.15trustee must remit full payment of the expenses to the commission on the next interest |
|---|
| 1265 | | - | 39.16payment date of the extraordinary event bonds after the payment of interest and scheduled |
|---|
| 1266 | | - | 39.17principal of the extraordinary event bonds in accordance with the payment waterfall included |
|---|
| 1267 | | - | 39.18in the indenture governing the extraordinary event bonds. |
|---|
| 1268 | | - | 39.19 (c) If a utility's application for a financing order is denied or withdrawn for any reason |
|---|
| 1269 | | - | 39.20and extraordinary event bonds are not issued, the commission's costs to retain expert |
|---|
| 1270 | | - | 39.21consultants under this section must be paid by the applicant utility and are deemed a prudent |
|---|
| 1271 | | - | 39.22deferred expense eligible for recovery in the utility's future rates. |
|---|
| 1272 | | - | 39.23Sec. 5. [216B.495] EXTRAORDINAR Y EVENT CHARGE; BILLING TREATMENT. |
|---|
| 1273 | | - | 39.24 (a) A utility that obtains a financing order and issues extraordinary event bonds must: |
|---|
| 1274 | | - | 39.25 (1) include on each customer's monthly natural gas bill: |
|---|
| 1275 | | - | 39.26 (i) a statement that a portion of the charges represents extraordinary event charges |
|---|
| 1276 | | - | 39.27approved in a financing order; |
|---|
| 1277 | | - | 39.28 (ii) the amount and rate of the extraordinary event charge as a separate line item titled |
|---|
| 1278 | | - | 39.29"extraordinary event charge"; and |
|---|
| 1279 | | - | 39Article 4 Sec. 5. |
|---|
| 1280 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 40.1 (iii) if extraordinary event property has been transferred to an assignee, a statement that |
|---|
| 1281 | | - | 40.2the assignee is the owner of the rights to extraordinary event charges and that the utility or |
|---|
| 1282 | | - | 40.3other entity, if applicable, is acting as a collection agent or servicer for the assignee; and |
|---|
| 1283 | | - | 40.4 (2) file annually with the commission: |
|---|
| 1284 | | - | 40.5 (i) a calculation that identifies the impact financing the retirement or replacement of |
|---|
| 1285 | | - | 40.6natural gas facilities has on customer rates, itemized by customer class; and |
|---|
| 1286 | | - | 40.7 (ii) evidence demonstrating that extraordinary event revenues are applied solely to pay |
|---|
| 1287 | | - | 40.8(A) principal and interest on extraordinary event bonds, and (B) other financing costs. |
|---|
| 1288 | | - | 40.9 (b) Extraordinary event charges are nonbypassable and must be paid by all existing and |
|---|
| 1289 | | - | 40.10future customers receiving service from the utility or the utility's successors or assignees |
|---|
| 1290 | | - | 40.11under commission-approved rate schedules or special contracts. |
|---|
| 1291 | | - | 40.12 (c) A utility's failure to comply with this section does not invalidate, impair, or affect |
|---|
| 1292 | | - | 40.13any financing order, extraordinary event property, extraordinary event charge, or |
|---|
| 1293 | | - | 40.14extraordinary event bonds, but does subject the utility to penalties under applicable |
|---|
| 1294 | | - | 40.15commission rules provided that any penalty applied must not directly or indirectly: (1) |
|---|
| 1295 | | - | 40.16reduce or impair the extraordinary event property approved in the financing order or impair |
|---|
| 1296 | | - | 40.17the collection or recovery of extraordinary event charges and extraordinary event revenue; |
|---|
| 1297 | | - | 40.18(2) reduce, impair, postpone, or terminate extraordinary event charges approved in the |
|---|
| 1298 | | - | 40.19financing order until all principal, interest, and redemption premium, if any, payable on the |
|---|
| 1299 | | - | 40.20extraordinary event bonds, all financing costs, and all amounts to be paid to an assignee or |
|---|
| 1300 | | - | 40.21financing party under an ancillary agreement are paid in full; or (3) change the customers |
|---|
| 1301 | | - | 40.22required to pay extraordinary event charges. |
|---|
| 1302 | | - | 40.23Sec. 6. [216B.496] EXTRAORDINAR Y EVENT PROPERTY. |
|---|
| 1303 | | - | 40.24 Subdivision 1.General.(a) Extraordinary event property is an existing present property |
|---|
| 1304 | | - | 40.25right or interest in a property right, even though the imposition and collection of extraordinary |
|---|
| 1305 | | - | 40.26event charges depend on the utility collecting extraordinary event charges and on future |
|---|
| 1306 | | - | 40.27natural gas consumption. The property right or interest exists regardless of whether the |
|---|
| 1307 | | - | 40.28revenues or proceeds arising from the extraordinary event property have been billed, have |
|---|
| 1308 | | - | 40.29accrued, or have been collected. |
|---|
| 1309 | | - | 40.30 (b) Extraordinary event property exists until all extraordinary event bonds issued under |
|---|
| 1310 | | - | 40.31a financing order are paid in full and all financing costs and other extraordinary event bonds |
|---|
| 1311 | | - | 40.32costs have been recovered in full. |
|---|
| 1312 | | - | 40Article 4 Sec. 6. |
|---|
| 1313 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 41.1 (c) All or any portion of extraordinary event property described in a financing order |
|---|
| 1314 | | - | 41.2issued to a utility may be transferred, sold, conveyed, or assigned to a successor or assignee |
|---|
| 1315 | | - | 41.3that is wholly owned, directly or indirectly, by the utility and created for the limited purpose |
|---|
| 1316 | | - | 41.4of acquiring, owning, or administering extraordinary event property or issuing extraordinary |
|---|
| 1317 | | - | 41.5event bonds authorized by the financing order. All or any portion of extraordinary event |
|---|
| 1318 | | - | 41.6property may be pledged to secure extraordinary event bonds issued under a financing order, |
|---|
| 1319 | | - | 41.7amounts payable to financing parties and to counterparties under any ancillary agreements, |
|---|
| 1320 | | - | 41.8and other financing costs. Each transfer, sale, conveyance, assignment, or pledge by a utility |
|---|
| 1321 | | - | 41.9or an affiliate of extraordinary event property is a transaction in the ordinary course of |
|---|
| 1322 | | - | 41.10business. |
|---|
| 1323 | | - | 41.11 (d) If a utility defaults on any required payment of charges arising from extraordinary |
|---|
| 1324 | | - | 41.12event property described in a financing order, a court, upon petition by an interested party |
|---|
| 1325 | | - | 41.13and without limiting any other remedies available to the petitioner, must order the |
|---|
| 1326 | | - | 41.14sequestration and payment of the revenues arising from the extraordinary event property to |
|---|
| 1327 | | - | 41.15the financing parties. |
|---|
| 1328 | | - | 41.16 (e) The interest of a transferee, purchaser, acquirer, assignee, or pledgee in extraordinary |
|---|
| 1329 | | - | 41.17event property specified in a financing order issued to a utility, and in the revenue and |
|---|
| 1330 | | - | 41.18collections arising from the property, is not subject to setoff, counterclaim, surcharge, or |
|---|
| 1331 | | - | 41.19defense by the utility or any other person, or in connection with the reorganization, |
|---|
| 1332 | | - | 41.20bankruptcy, or other insolvency of the utility or any other entity. |
|---|
| 1333 | | - | 41.21 (f) A successor to a utility, whether resulting from a reorganization, bankruptcy, or other |
|---|
| 1334 | | - | 41.22insolvency proceeding, merger or acquisition, sale, other business combination, transfer by |
|---|
| 1335 | | - | 41.23operation of law, utility restructuring, or otherwise: (1) must perform and satisfy all |
|---|
| 1336 | | - | 41.24obligations of, and has the same duties and rights under, a financing order as the utility to |
|---|
| 1337 | | - | 41.25which the financing order applies; and (2) must perform the duties and exercise the rights |
|---|
| 1338 | | - | 41.26in the same manner and to the same extent as the utility, including (i) collecting extraordinary |
|---|
| 1339 | | - | 41.27event bonds revenues, collections, payments, or proceeds, and (ii) paying a person entitled |
|---|
| 1340 | | - | 41.28to receive extraordinary event bonds revenues, collections, payments, or proceeds. |
|---|
| 1341 | | - | 41.29 Subd. 2.Security interests in extraordinary event property.(a) The creation, |
|---|
| 1342 | | - | 41.30perfection, and enforcement of any security interest in extraordinary event property to secure |
|---|
| 1343 | | - | 41.31the repayment of the principal and interest on extraordinary event bonds, amounts payable |
|---|
| 1344 | | - | 41.32under any ancillary agreement, and other financing costs are governed by this section only. |
|---|
| 1345 | | - | 41.33 (b) A security interest in extraordinary event property is created, valid, and binding |
|---|
| 1346 | | - | 41.34when: |
|---|
| 1347 | | - | 41Article 4 Sec. 6. |
|---|
| 1348 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 42.1 (1) the financing order that describes the extraordinary event property is issued; |
|---|
| 1349 | | - | 42.2 (2) a security agreement is executed and delivered; and |
|---|
| 1350 | | - | 42.3 (3) value is received for the extraordinary event bonds. |
|---|
| 1351 | | - | 42.4 (c) Once a security interest in extraordinary event property is created, the security interest |
|---|
| 1352 | | - | 42.5attaches without any physical delivery of collateral or any other act. The lien of the security |
|---|
| 1353 | | - | 42.6interest is valid, binding, and perfected against all parties having claims of any kind in tort, |
|---|
| 1354 | | - | 42.7in contract, or otherwise against the person granting the security interest, regardless of |
|---|
| 1355 | | - | 42.8whether the parties have notice of the lien, upon the filing of a financing statement with the |
|---|
| 1356 | | - | 42.9secretary of state. |
|---|
| 1357 | | - | 42.10 (d) The description or indication of extraordinary event property in a transfer or security |
|---|
| 1358 | | - | 42.11agreement and a financing statement is sufficient only if the description or indication refers |
|---|
| 1359 | | - | 42.12to this section and the financing order creating the extraordinary event property. |
|---|
| 1360 | | - | 42.13 (e) A security interest in extraordinary event property is a continuously perfected security |
|---|
| 1361 | | - | 42.14interest and has priority over any other lien, created by operation of law or otherwise, that |
|---|
| 1362 | | - | 42.15may subsequently attach to the extraordinary event property unless the person that holds |
|---|
| 1363 | | - | 42.16the security interest has agreed otherwise in writing. |
|---|
| 1364 | | - | 42.17 (f) The priority of a security interest in extraordinary event property is not affected by |
|---|
| 1365 | | - | 42.18the commingling of extraordinary event property or extraordinary event revenue with other |
|---|
| 1366 | | - | 42.19money. An assignee, bondholder, or financing party has a perfected security interest in the |
|---|
| 1367 | | - | 42.20amount of all extraordinary event property or extraordinary event revenue that is pledged |
|---|
| 1368 | | - | 42.21to pay extraordinary event bonds even if the extraordinary event property or extraordinary |
|---|
| 1369 | | - | 42.22event revenue is deposited in a cash or deposit account owned by the utility in which the |
|---|
| 1370 | | - | 42.23extraordinary event revenue is commingled with other money. Any other security interest |
|---|
| 1371 | | - | 42.24that applies to the other money does not apply to the extraordinary event revenue. |
|---|
| 1372 | | - | 42.25 (g) A subsequent commission order amending a financing order under section 216B.492, |
|---|
| 1373 | | - | 42.26subdivision 4, or the application of an adjustment mechanism authorized by a financing |
|---|
| 1374 | | - | 42.27order under section 216B.492, subdivision 3, does not affect the validity, perfection, or |
|---|
| 1375 | | - | 42.28priority of a security interest in or transfer of extraordinary event property. |
|---|
| 1376 | | - | 42.29 Subd. 3.Sales of extraordinary event property.(a) A sale, assignment, or transfer of |
|---|
| 1377 | | - | 42.30extraordinary event property is an absolute transfer and true sale of, and not a pledge of or |
|---|
| 1378 | | - | 42.31secured transaction relating to, the seller's right, title, and interest in, to, and under the |
|---|
| 1379 | | - | 42.32extraordinary event property if the documents governing the transaction expressly state that |
|---|
| 1380 | | - | 42Article 4 Sec. 6. |
|---|
| 1381 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 43.1the transaction is a sale or other absolute transfer. A transfer of an interest in extraordinary |
|---|
| 1382 | | - | 43.2event property may be created when: |
|---|
| 1383 | | - | 43.3 (1) the financing order creating and describing the extraordinary event property is |
|---|
| 1384 | | - | 43.4effective; |
|---|
| 1385 | | - | 43.5 (2) the documents evidencing the transfer of the extraordinary event property are executed |
|---|
| 1386 | | - | 43.6and delivered to the assignee; and |
|---|
| 1387 | | - | 43.7 (3) value is received. |
|---|
| 1388 | | - | 43.8 (b) The characterization of a sale, assignment, or transfer as an absolute transfer and |
|---|
| 1389 | | - | 43.9true sale, and the corresponding characterization of the property interest of the assignee, is |
|---|
| 1390 | | - | 43.10not affected or impaired by: |
|---|
| 1391 | | - | 43.11 (1) commingling extraordinary event revenue with other money; |
|---|
| 1392 | | - | 43.12 (2) the seller retaining: |
|---|
| 1393 | | - | 43.13 (i) a partial or residual interest, including an equity interest, in the extraordinary event |
|---|
| 1394 | | - | 43.14property, whether (A) direct or indirect, or (B) subordinate or otherwise; or |
|---|
| 1395 | | - | 43.15 (ii) the right to recover costs associated with taxes, franchise fees, or license fees imposed |
|---|
| 1396 | | - | 43.16on the collection of extraordinary event revenue; |
|---|
| 1397 | | - | 43.17 (3) any recourse that the extraordinary event property purchaser may have against the |
|---|
| 1398 | | - | 43.18seller; |
|---|
| 1399 | | - | 43.19 (4) any indemnification rights, obligations, or repurchase rights made or provided by |
|---|
| 1400 | | - | 43.20the extraordinary event property seller; |
|---|
| 1401 | | - | 43.21 (5) the extraordinary event property seller's obligation to collect extraordinary event |
|---|
| 1402 | | - | 43.22revenues on behalf of an assignee; |
|---|
| 1403 | | - | 43.23 (6) the treatment of the sale, assignment, or transfer for tax, financial reporting, or other |
|---|
| 1404 | | - | 43.24purposes; |
|---|
| 1405 | | - | 43.25 (7) any subsequent financing order amending a financing order under section 216B.492, |
|---|
| 1406 | | - | 43.26subdivision 4, paragraph (d); or |
|---|
| 1407 | | - | 43.27 (8) any application of an adjustment mechanism under section 216B.492, subdivision |
|---|
| 1408 | | - | 43.283, paragraph (a), clause (6). |
|---|
| 1409 | | - | 43Article 4 Sec. 6. |
|---|
| 1410 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 44.1 Sec. 7. [216B.497] EXTRAORDINAR Y EVENT BONDS. |
|---|
| 1411 | | - | 44.2 (a) A bank, trust company, savings and loan association, insurance company, executor, |
|---|
| 1412 | | - | 44.3administrator, guardian, trustee, or other fiduciary may legally invest any money within the |
|---|
| 1413 | | - | 44.4individual's or entity's control in extraordinary event bonds. |
|---|
| 1414 | | - | 44.5 (b) Extraordinary event bonds issued under a financing order are not debt of or a pledge |
|---|
| 1415 | | - | 44.6of the faith and credit or taxing power of the state, any agency of the state, or any political |
|---|
| 1416 | | - | 44.7subdivision. An extraordinary event bonds holder does not possess the ability to compel |
|---|
| 1417 | | - | 44.8taxes to be levied by the state or a political subdivision in order to pay the principal or |
|---|
| 1418 | | - | 44.9interest on extraordinary event bonds. The issuance of extraordinary event bonds does not |
|---|
| 1419 | | - | 44.10directly, indirectly, or contingently obligate the state or a political subdivision to levy any |
|---|
| 1420 | | - | 44.11tax or make any appropriation to pay principal or interest on the extraordinary event bonds. |
|---|
| 1421 | | - | 44.12 (c) The state pledges to and agrees with an extraordinary event bonds holder, assignee, |
|---|
| 1422 | | - | 44.13and financing party that the state and state agencies, including the commission, are prohibited |
|---|
| 1423 | | - | 44.14from: |
|---|
| 1424 | | - | 44.15 (1) taking or permitting an action that reduces or impairs the extraordinary event property |
|---|
| 1425 | | - | 44.16approved in the financing order or impairs the collection or recovery of extraordinary event |
|---|
| 1426 | | - | 44.17charges or extraordinary event revenue; |
|---|
| 1427 | | - | 44.18 (2) reducing, impairing, postponing, or terminating extraordinary event charges approved |
|---|
| 1428 | | - | 44.19in the financing order that are imposed, collected, and remitted for the benefit of an |
|---|
| 1429 | | - | 44.20extraordinary event bonds holder, assignee, and financing party until all principal, interest, |
|---|
| 1430 | | - | 44.21and redemption premium, if any, payable on extraordinary event bonds, all financing costs, |
|---|
| 1431 | | - | 44.22and all amounts to be paid to an assignee or financing party under an ancillary agreement |
|---|
| 1432 | | - | 44.23are paid in full; or |
|---|
| 1433 | | - | 44.24 (3) changing the customers required to pay the extraordinary event charges. |
|---|
| 1434 | | - | 44.25 (d) The commission may include a pledge in the financing order similar to the pledge |
|---|
| 1435 | | - | 44.26included in paragraph (c). |
|---|
| 1436 | | - | 44.27 (e) A person who issues extraordinary event bonds may include the pledge specified in |
|---|
| 1437 | | - | 44.28paragraphs (c) and (d) in the extraordinary event bonds, ancillary agreements, and |
|---|
| 1438 | | - | 44.29documentation related to the issuance and marketing of the extraordinary event bonds. |
|---|
| 1439 | | - | 44Article 4 Sec. 7. |
|---|
| 1440 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 45.1 Sec. 8. [216B.498] ASSIGNEE OF FINANCING PARTY NOT SUBJECT TO |
|---|
| 1441 | | - | 45.2COMMISSION REGULATION. |
|---|
| 1442 | | - | 45.3 An assignee or financing party that is not already regulated by the commission does not |
|---|
| 1443 | | - | 45.4become subject to commission regulation solely as a result of engaging in any transaction |
|---|
| 1444 | | - | 45.5authorized by or described in sections 216B.491 to 216B.499. |
|---|
| 1445 | | - | 45.6 Sec. 9. [216B.499] EFFECT ON OTHER LAWS. |
|---|
| 1446 | | - | 45.7 (a) If a provision of sections 216B.491 to 216B.499 conflicts with other law regarding |
|---|
| 1447 | | - | 45.8the attachment, assignment, perfection, effect of perfection, or priority of a security interest |
|---|
| 1448 | | - | 45.9in or transfer of extraordinary event property, sections 216B.491 to 216B.499 govern. |
|---|
| 1449 | | - | 45.10 (b) Nothing in this section precludes a utility for which the commission has initially |
|---|
| 1450 | | - | 45.11issued a financing order from applying to the commission for: |
|---|
| 1451 | | - | 45.12 (1) a subsequent financing order amending the financing order under section 216B.492, |
|---|
| 1452 | | - | 45.13subdivision 4, paragraph (d); or |
|---|
| 1453 | | - | 45.14 (2) approval to issue extraordinary event bonds to refund all or a portion of an outstanding |
|---|
| 1454 | | - | 45.15series of extraordinary event bonds. |
|---|
| 1455 | | - | 45.16Sec. 10. Minnesota Statutes 2024, section 216B.62, subdivision 3, is amended to read: |
|---|
| 1456 | | - | 45.17 Subd. 3.Assessing all public utilities.The department and commission shall quarterly, |
|---|
| 1457 | | - | 45.18at least 30 days before the start of each quarter, estimate the total of their expenditures in |
|---|
| 1458 | | - | 45.19the performance of their duties relating to public utilities under sections 216B.01 to 216B.67, |
|---|
| 1459 | | - | 45.20other than amounts chargeable to public utilities under subdivision 2, 6, 7, or 8, or 9. The |
|---|
| 1460 | | - | 45.21remainder shall be assessed by the commission and department to the several public utilities |
|---|
| 1461 | | - | 45.22in proportion to their respective gross operating revenues from retail sales of gas or electric |
|---|
| 1462 | | - | 45.23service within the state during the last calendar year. The assessment shall be paid into the |
|---|
| 1463 | | - | 45.24state treasury within 30 days after the bill has been transmitted via mail, personal delivery, |
|---|
| 1464 | | - | 45.25or electronic service to the several public utilities, which shall constitute notice of the |
|---|
| 1465 | | - | 45.26assessment and demand of payment thereof. The total amount which may be assessed to |
|---|
| 1466 | | - | 45.27the public utilities, under authority of this subdivision, shall not exceed one-sixth of one |
|---|
| 1467 | | - | 45.28percent of the total gross operating revenues of the public utilities during the calendar year |
|---|
| 1468 | | - | 45.29from retail sales of gas or electric service within the state. The assessment for the third |
|---|
| 1469 | | - | 45.30quarter of each fiscal year shall be adjusted to compensate for the amount by which actual |
|---|
| 1470 | | - | 45.31expenditures by the commission and department for the preceding fiscal year were more or |
|---|
| 1471 | | - | 45.32less than the estimated expenditures previously assessed. |
|---|
| 1472 | | - | 45Article 4 Sec. 10. |
|---|
| 1473 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 46.1 Sec. 11. Minnesota Statutes 2024, section 216B.62, is amended by adding a subdivision |
|---|
| 1474 | | - | 46.2to read: |
|---|
| 1475 | | - | 46.3 Subd. 9.Administrative costs for extraordinary event bonds.The commission and |
|---|
| 1476 | | - | 46.4the department may assess gas utilities for the actual commission and department costs of |
|---|
| 1477 | | - | 46.5administering extraordinary event bonds under sections 216B.491 to 216B.499. The money |
|---|
| 1478 | | - | 46.6received from the assessment shall be deposited into an account in the special revenue fund |
|---|
| 1479 | | - | 46.7and all funds deposited are appropriated to the commission or the department for the purposes |
|---|
| 1480 | | - | 46.8of this subdivision. The commission and department may initially assess for estimated costs |
|---|
| 1481 | | - | 46.9under sections 216B.491 to 216B.499, then must adjust subsequent assessments for actual |
|---|
| 1482 | | - | 46.10costs incurred under sections 216B.491 to 216B.499. An assessment made under this |
|---|
| 1483 | | - | 46.11subdivision is not subject to the cap on assessments provided in subdivision 3 or any other |
|---|
| 1484 | | - | 46.12law. |
|---|
| 1485 | | - | 46.13 ARTICLE 5 |
|---|
| 1486 | | - | 46.14 RENEWABLE DEVELOPMENT ACCOUNT SUNSET |
|---|
| 1487 | | - | 46.15Section 1. Minnesota Statutes 2024, section 116C.7792, is amended to read: |
|---|
| 1488 | | - | 46.16 116C.7792 SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM. |
|---|
| 1489 | | - | 46.17 Subdivision 1.Program operations.(a) The utility subject to section 116C.779 |
|---|
| 1490 | | - | 46.18216B.1641 shall operate a program to provide solar energy production incentives for solar |
|---|
| 1491 | | - | 46.19energy systems of no more than a total aggregate nameplate capacity of 40 kilowatts |
|---|
| 1492 | | - | 46.20alternating current per premise. The owner of a solar energy system installed before June |
|---|
| 1493 | | - | 46.211, 2018, is eligible to receive a production incentive under this section for any additional |
|---|
| 1494 | | - | 46.22solar energy systems constructed at the same customer location, provided that the aggregate |
|---|
| 1495 | | - | 46.23capacity of all systems at the customer location does not exceed 40 kilowatts. |
|---|
| 1496 | | - | 46.24 (b) Through 2025, the program is funded by money withheld from transfer to the |
|---|
| 1497 | | - | 46.25renewable development account under section 116C.779, subdivision 1, paragraphs (b) and |
|---|
| 1498 | | - | 46.26(e). Program funds must be placed that the utility deposits in a separate account for the |
|---|
| 1499 | | - | 46.27purpose of the solar energy production incentive program operated by the utility and not |
|---|
| 1500 | | - | 46.28for any other program or purpose. |
|---|
| 1501 | | - | 46.29 (c) Funds allocated to the solar energy production incentive program in 2019 and 2020 |
|---|
| 1502 | | - | 46.30remain available to the solar energy production incentive program. |
|---|
| 1503 | | - | 46.31 (d) The following amounts are allocated to the solar energy production incentive program: |
|---|
| 1504 | | - | 46.32 (1) $10,000,000 in 2021; |
|---|
| 1505 | | - | 46Article 5 Section 1. |
|---|
| 1506 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 47.1 (2) $10,000,000 in 2022; |
|---|
| 1507 | | - | 47.2 (3) $5,000,000 in 2023; |
|---|
| 1508 | | - | 47.3 (4) $11,250,000 in 2024; and |
|---|
| 1509 | | - | 47.4 (5) $6,250,000 in 2025; and. |
|---|
| 1510 | | - | 47.5 (6) $5,000,000 each year, beginning in 2026 through 2035. |
|---|
| 1511 | | - | 47.6 (e) Notwithstanding the Department of Commerce's November 14, 2018, decision in |
|---|
| 1512 | | - | 47.7Docket No. E002/M-13-1015 regarding operation of the utility's solar energy production |
|---|
| 1513 | | - | 47.8incentive program, half of the amounts allocated each year under paragraph (d), clauses (3), |
|---|
| 1514 | | - | 47.9(4), and (5), must be reserved for solar energy systems whose installation meets the eligibility |
|---|
| 1515 | | - | 47.10standards for the low-income program established in the November 14, 2018, decision or |
|---|
| 1516 | | - | 47.11successor decisions of the department. All other program operations of the solar energy |
|---|
| 1517 | | - | 47.12production incentive program are governed by the provisions of the November 14, 2018, |
|---|
| 1518 | | - | 47.13decision or successor decisions of the department. |
|---|
| 1519 | | - | 47.14 (f) Funds Money allocated to the solar energy production incentive program that have |
|---|
| 1520 | | - | 47.15has not been committed to a specific project at the end of a program year remain remains |
|---|
| 1521 | | - | 47.16available to the solar energy production incentive program, except that the utility's money |
|---|
| 1522 | | - | 47.17that has not been obligated to a specific project by December 31, 2025, must be refunded |
|---|
| 1523 | | - | 47.18to the utility's electric service customers in a manner and according to a schedule determined |
|---|
| 1524 | | - | 47.19by the Public Utilities Commission. |
|---|
| 1525 | | - | 47.20 (g) Any unspent amount remaining on January 1, 2028, must be transferred to the |
|---|
| 1526 | | - | 47.21renewable development account. |
|---|
| 1527 | | - | 47.22 (h) (g) A solar energy system receiving a production incentive under this section must |
|---|
| 1528 | | - | 47.23be sized to less than 120 percent of the customer's on-site annual energy consumption when |
|---|
| 1529 | | - | 47.24combined with other distributed generation resources and subscriptions provided under |
|---|
| 1530 | | - | 47.25section 216B.1641 associated with the premise. The production incentive must be paid for |
|---|
| 1531 | | - | 47.26ten years commencing with the commissioning of the system. |
|---|
| 1532 | | - | 47.27 (i) (h) The utility must file a plan to operate the program with the commissioner of |
|---|
| 1533 | | - | 47.28commerce. The utility may not operate the program until it is approved by the commissioner. |
|---|
| 1534 | | - | 47.29A change to the program to include projects up to a nameplate capacity of 40 kilowatts or |
|---|
| 1535 | | - | 47.30less does not require the utility to file a plan with the commissioner. Any plan approved by |
|---|
| 1536 | | - | 47.31the commissioner of commerce must not provide an increased incentive scale over prior |
|---|
| 1537 | | - | 47.32years unless the commissioner demonstrates that changes in the market for solar energy |
|---|
| 1538 | | - | 47.33facilities require an increase. |
|---|
| 1539 | | - | 47Article 5 Section 1. |
|---|
| 1540 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 48.1 (i) The utility must operate the program through December 31, 2025. Beginning on |
|---|
| 1541 | | - | 48.2January 1, 2026, the commissioner of commerce must operate the program under this section |
|---|
| 1542 | | - | 48.3in conformance with the orders issued by the Public Utilities Commission in Docket No. |
|---|
| 1543 | | - | 48.4E002/M-13-1015, as applicable. |
|---|
| 1544 | | - | 48.5 (j) A payment must not be made under this section to an owner of a solar energy system |
|---|
| 1545 | | - | 48.6who did not receive a payment under this section before January 1, 2027. |
|---|
| 1546 | | - | 48.7 Subd. 2.Establishment of account.(a) The solar energy production incentive account |
|---|
| 1547 | | - | 48.8is established in the special revenue fund in the state treasury. Money received from the |
|---|
| 1548 | | - | 48.9general fund must be transferred to the commissioner of commerce and credited to the |
|---|
| 1549 | | - | 48.10account. The commissioner of commerce must manage the account. |
|---|
| 1550 | | - | 48.11 (b) Money in the account may be expended only from January 1, 2026, to December |
|---|
| 1551 | | - | 48.1231, 2036. Any money remaining in the account on December 31, 2036, cancels to the general |
|---|
| 1552 | | - | 48.13fund. |
|---|
| 1553 | | - | 48.14 (c) The utility subject to this section must advise the commissioner of commerce, on a |
|---|
| 1554 | | - | 48.15schedule determined by the commissioner of commerce, regarding: |
|---|
| 1555 | | - | 48.16 (1) the total amount required to be withdrawn from the account to pay for solar energy |
|---|
| 1556 | | - | 48.17production incentives; and |
|---|
| 1557 | | - | 48.18 (2) the amount of payments to be made separately to each program participant due a |
|---|
| 1558 | | - | 48.19payment under this section. |
|---|
| 1559 | | - | 48.20 (d) Beginning in fiscal year 2027, an amount sufficient is annually appropriated from |
|---|
| 1560 | | - | 48.21the general fund to the commissioner to make the payments under paragraph (c) for projects |
|---|
| 1561 | | - | 48.22that first received payments under this section no later than December 31, 2026. |
|---|
| 1562 | | - | 48.23 Subd. 3.Expiration.This section expires April 1, 2037. |
|---|
| 1563 | | - | 48.24 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 1564 | | - | 48.25Sec. 2. Minnesota Statutes 2024, section 116J.55, subdivision 5, is amended to read: |
|---|
| 1565 | | - | 48.26 Subd. 5.Grant awards; limitations.(a) A grant awarded to an eligible community |
|---|
| 1566 | | - | 48.27under this section must not exceed $1,000,000 in any calendar year. The commissioner may |
|---|
| 1567 | | - | 48.28accept grant applications on an ongoing or rolling basis. |
|---|
| 1568 | | - | 48.29 (b) Grants funded with revenues from the renewable development account established |
|---|
| 1569 | | - | 48.30in section 116C.779 must be awarded to an eligible community located within the retail |
|---|
| 1570 | | - | 48.31electric service territory of the public utility that is subject to section 116C.779 or to an |
|---|
| 1571 | | - | 48Article 5 Sec. 2. |
|---|
| 1572 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 49.1eligible community in which an electric generating plant owned by that public utility is |
|---|
| 1573 | | - | 49.2located. |
|---|
| 1574 | | - | 49.3 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 1575 | | - | 49.4 Sec. 3. Minnesota Statutes 2024, section 216B.1645, subdivision 1, is amended to read: |
|---|
| 1576 | | - | 49.5 Subdivision 1.Commission authority.Upon the petition of a public utility, the Public |
|---|
| 1577 | | - | 49.6Utilities Commission shall approve or disapprove power purchase contracts, investments, |
|---|
| 1578 | | - | 49.7or expenditures entered into or made by the utility to satisfy the wind and biomass mandates |
|---|
| 1579 | | - | 49.8contained in sections 216B.169, 216B.2423, and 216B.2424, and to satisfy the renewable |
|---|
| 1580 | | - | 49.9energy objectives and standards set forth in section 216B.1691, including reasonable |
|---|
| 1581 | | - | 49.10investments and expenditures made to: |
|---|
| 1582 | | - | 49.11 (1) transmit the electricity generated from sources developed under those sections that |
|---|
| 1583 | | - | 49.12is ultimately used to provide service to the utility's retail customers, including studies |
|---|
| 1584 | | - | 49.13necessary to identify new transmission facilities needed to transmit electricity to Minnesota |
|---|
| 1585 | | - | 49.14retail customers from generating facilities constructed to satisfy the renewable energy |
|---|
| 1586 | | - | 49.15objectives and standards, provided that the costs of the studies have not been recovered |
|---|
| 1587 | | - | 49.16previously under existing tariffs and the utility has filed an application for a certificate of |
|---|
| 1588 | | - | 49.17need or for certification as a priority project under section 216B.2425 for the new |
|---|
| 1589 | | - | 49.18transmission facilities identified in the studies; or |
|---|
| 1590 | | - | 49.19 (2) provide storage facilities for renewable energy generation facilities that contribute |
|---|
| 1591 | | - | 49.20to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or. |
|---|
| 1592 | | - | 49.21 (3) develop renewable energy sources from the account required in section 116C.779. |
|---|
| 1593 | | - | 49.22 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 1594 | | - | 49.23Sec. 4. Minnesota Statutes 2024, section 216C.377, subdivision 3, is amended to read: |
|---|
| 1595 | | - | 49.24 Subd. 3.Establishment of account.A solar on public buildings grant program account |
|---|
| 1596 | | - | 49.25is established in the special revenue fund. Money received from the general fund and the |
|---|
| 1597 | | - | 49.26renewable development account established in section 116C.779, subdivision 1, must be |
|---|
| 1598 | | - | 49.27transferred to the commissioner of commerce and credited to the account. Earnings, including |
|---|
| 1599 | | - | 49.28interest, dividends, and any other earnings arising from the assets of the account, must be |
|---|
| 1600 | | - | 49.29credited to the account. Earnings remaining in the account at the end of a fiscal year do not |
|---|
| 1601 | | - | 49.30cancel to the general fund or renewable development account but remain in the account |
|---|
| 1602 | | - | 49.31until expended. The commissioner must manage the account. |
|---|
| 1603 | | - | 49.32 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 1604 | | - | 49Article 5 Sec. 4. |
|---|
| 1605 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 50.1 Sec. 5. Minnesota Statutes 2024, section 216C.417, is amended by adding a subdivision |
|---|
| 1606 | | - | 50.2to read: |
|---|
| 1607 | | - | 50.3 Subd. 1a.Account established; account management; appropriation.A "Made in |
|---|
| 1608 | | - | 50.4Minnesota" solar energy production incentive account is established as a separate account |
|---|
| 1609 | | - | 50.5in the special revenue fund in the state treasury. Earnings, including interest, dividends, and |
|---|
| 1610 | | - | 50.6any other earnings arising from account assets, must be credited to the account. Money |
|---|
| 1611 | | - | 50.7remaining in the account at the end of a fiscal year cancels to the general fund. The |
|---|
| 1612 | | - | 50.8commissioner of commerce must manage the account. |
|---|
| 1613 | | - | 50.9 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 1614 | | - | 50.10Sec. 6. Minnesota Statutes 2024, section 216C.417, subdivision 2, is amended to read: |
|---|
| 1615 | | - | 50.11 Subd. 2.Appropriation.(a) Unspent money remaining in the account established under |
|---|
| 1616 | | - | 50.12Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to the |
|---|
| 1617 | | - | 50.13renewable development account in the special revenue fund established under section |
|---|
| 1618 | | - | 50.14116C.779, subdivision 1. |
|---|
| 1619 | | - | 50.15 (b) (a) There is annually appropriated from the renewable development account in the |
|---|
| 1620 | | - | 50.16special revenue fund established in section 116C.779 general fund to the commissioner of |
|---|
| 1621 | | - | 50.17commerce money sufficient to make the incentive payments required under Minnesota |
|---|
| 1622 | | - | 50.18Statutes 2016, section 216C.415. Any funds money appropriated under this paragraph that |
|---|
| 1623 | | - | 50.19are is unexpended at the end of a fiscal year cancel cancels to the renewable development |
|---|
| 1624 | | - | 50.20account general fund. |
|---|
| 1625 | | - | 50.21 (c) (b) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none |
|---|
| 1626 | | - | 50.22of this appropriation may be used for administrative costs. |
|---|
| 1627 | | - | 50.23 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 1628 | | - | 50.24Sec. 7. DISPOSITION OF REMAINING FUNDS. |
|---|
| 1629 | | - | 50.25 Any money remaining in the renewable development account established under Minnesota |
|---|
| 1630 | | - | 50.26Statutes, section 116C.779, as of the effective date of this act must be remitted to the utility |
|---|
| 1631 | | - | 50.27subject to Minnesota Statutes, section 216B.1641, subdivision 1, to refund the utility's |
|---|
| 1632 | | - | 50.28electric service customers in a manner and according to a schedule determined by the Public |
|---|
| 1633 | | - | 50.29Utilities Commission. |
|---|
| 1634 | | - | 50Article 5 Sec. 7. |
|---|
| 1635 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI 51.1 Sec. 8. REVISOR INSTRUCTION. |
|---|
| 1636 | | - | 51.2 In each section of Minnesota Statutes referred to in column A, the revisor of statutes |
|---|
| 1637 | | - | 51.3must delete the reference in column B and insert the reference in column C. The references |
|---|
| 1638 | | - | 51.4in column C may be changed by the revisor of statutes to the section in Minnesota Statutes |
|---|
| 1639 | | - | 51.5in which the bill sections are compiled. |
|---|
| 1640 | | - | Column CColumn B51.6Column A |
|---|
| 1641 | | - | 216B.1641, subdivision 1116C.77951.716B.87 |
|---|
| 1642 | | - | 116C.778116C.77951.8116C.776 |
|---|
| 1643 | | - | 51.9 216B.1691, paragraph (a), |
|---|
| 1644 | | - | clause (1)116C.77951.10216B.1641 |
|---|
| 1645 | | - | 216B.1641, subdivision 1116C.77951.11216C.375 |
|---|
| 1646 | | - | 216B.1641, subdivision 1116C.77951.12216C.378 |
|---|
| 1647 | | - | 216B.1641, subdivision 1116C.77951.13216C.379 |
|---|
| 1648 | | - | 51.14 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 1649 | | - | 51.15Sec. 9. REPEALER. |
|---|
| 1650 | | - | 51.16 Minnesota Statutes 2024, sections 116C.779, subdivisions 1 and 2; 116C.7791; and |
|---|
| 1651 | | - | 51.17216C.41, are repealed. |
|---|
| 1652 | | - | 51.18 EFFECTIVE DATE.This section is effective the day following final enactment. |
|---|
| 1653 | | - | 51Article 5 Sec. 9. |
|---|
| 1654 | | - | S2393-1 1st EngrossmentSF2393 REVISOR RSI Page.Ln 1.19CLIMATE AND ENERGY FINANCE..................................................ARTICLE 1 |
|---|
| 1655 | | - | Page.Ln 4.21RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS....ARTICLE 2 |
|---|
| 1656 | | - | Page.Ln 9.14ENERGY POLICY.................................................................................ARTICLE 3 |
|---|
| 1657 | | - | Page.Ln 28.16SECURITIZATION................................................................................ARTICLE 4 |
|---|
| 1658 | | - | Page.Ln 46.13RENEWABLE DEVELOPMENT ACCOUNT SUNSET.....................ARTICLE 5 |
|---|
| 370 | + | 11.18Sec. 3. DEPARTMENT OF |
|---|
| 371 | + | 11.19ADMINISTRATION |
|---|
| 372 | + | 11.20$92,000 each year is for software and |
|---|
| 373 | + | 11.21administrative costs associated with the state |
|---|
| 374 | + | 11.22building energy conservation improvement |
|---|
| 375 | + | 11.23revolving loan program under Minnesota |
|---|
| 376 | + | 11.24Statutes, section 16B.87. |
|---|
| 377 | + | 11.25 ARTICLE 4 |
|---|
| 378 | + | 11.26 FINANCIAL INSTITUTIONS POLICY |
|---|
| 379 | + | 11.27Section 1. Minnesota Statutes 2024, section 47.60, subdivision 1, is amended to read: |
|---|
| 380 | + | 11.28 Subdivision 1.Definitions.For purposes of this section, the terms defined have the |
|---|
| 381 | + | 11.29meanings given them: |
|---|
| 382 | + | 11.30 (a) "Consumer small loan" is a loan transaction, whether recourse or nonrecourse, in |
|---|
| 383 | + | 11.31which cash is advanced to a borrower for the borrower's own personal, family, or household |
|---|
| 384 | + | 11.32purpose. A consumer small loan is a short-term, unsecured loan to be repaid in a single |
|---|
| 385 | + | 11.33installment. The cash advance of a consumer small loan is equal to or less than $350. A |
|---|
| 386 | + | 11Article 4 Section 1. |
|---|
| 387 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 12.1consumer small loan includes an indebtedness evidenced by but not limited to a promissory |
|---|
| 388 | + | 12.2note or agreement to defer the presentation of a personal check or authorized account transfer |
|---|
| 389 | + | 12.3for a fee or a charge identified under paragraph (c), including on a borrower's future potential |
|---|
| 390 | + | 12.4money source, including but not limited to future pay, salary, or pension income. |
|---|
| 391 | + | 12.5 (b) "Consumer small loan lender" is a financial institution as defined in section 47.59 |
|---|
| 392 | + | 12.6or a business entity registered with the commissioner and engaged in the business of making |
|---|
| 393 | + | 12.7consumer small loans. |
|---|
| 394 | + | 12.8 (c) "Annual percentage rate" means a measure of the cost of credit, expressed as a yearly |
|---|
| 395 | + | 12.9rate, that relates the amount and timing of value received by the consumer to the amount |
|---|
| 396 | + | 12.10and timing of payments made. The cost or credit reflected in an annual percentage rate |
|---|
| 397 | + | 12.11includes all amounts paid by a consumer or on a consumer's behalf in connection or |
|---|
| 398 | + | 12.12concurrent with a consumer small loan, including: (1) interest, finance charges, and fees; |
|---|
| 399 | + | 12.13(2) a charge for any ancillary product, membership, or service sold; (3) an amount offered |
|---|
| 400 | + | 12.14or agreed to by a borrower to obtain credit or provide compensation to use money; (4) a |
|---|
| 401 | + | 12.15voluntary or other fee charged that a borrower agrees to or pays; (5) a tip, voluntary payment, |
|---|
| 402 | + | 12.16contribution, and similar amount solicited from or paid by a borrower; or (6) a charge to |
|---|
| 403 | + | 12.17expedite an advance or other convenience charge. The annual percentage rate must be |
|---|
| 404 | + | 12.18determined in accordance with either the actuarial method or the United States Rule method. |
|---|
| 405 | + | 12.19Sec. 2. Minnesota Statutes 2024, section 47.60, subdivision 3, is amended to read: |
|---|
| 406 | + | 12.20 Subd. 3.Filing License; fees.(a) Before a business entity other than a financial institution |
|---|
| 407 | + | 12.21as defined by section 47.59 engages in the business of making consumer small loans to |
|---|
| 408 | + | 12.22Minnesota residents, the business entity shall file with the commissioner as must obtain a |
|---|
| 409 | + | 12.23consumer small loan lender license issued by the commissioner. |
|---|
| 410 | + | 12.24 (b) The filing consumer small loan lender license application must be on a form prescribed |
|---|
| 411 | + | 12.25by the commissioner together with a fee of $250 for each place of business and must contain |
|---|
| 412 | + | 12.26the following information in addition to the information required by the commissioner: |
|---|
| 413 | + | 12.27 (1) the applicant's full name, the address for the place of business, and any fictitious or |
|---|
| 414 | + | 12.28trade name used by the applicant to conduct business; |
|---|
| 415 | + | 12.29 (2) a list of the applicant's or person in control's criminal convictions, and any material |
|---|
| 416 | + | 12.30litigation the applicant has been involved in during the ten-year period preceding the |
|---|
| 417 | + | 12.31application submission; |
|---|
| 418 | + | 12.32 (3) the addresses for all of the consumer small loan lender's offices, locations, or retail |
|---|
| 419 | + | 12.33stores, if any, in Minnesota; |
|---|
| 420 | + | 12Article 4 Sec. 2. |
|---|
| 421 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 13.1 (4) a description of the consumer small loan activity the applicant seeks to provide in |
|---|
| 422 | + | 13.2Minnesota; |
|---|
| 423 | + | 13.3 (5) a schedule describing any charges the applicant proposes to charge or offer to a |
|---|
| 424 | + | 13.4consumer who resides in Minnesota, as included in the cost of credit calculation under |
|---|
| 425 | + | 13.5subdivision 1, paragraph (c); |
|---|
| 426 | + | 13.6 (1) (6) evidence that the filer applicant has available for the operation of the business at |
|---|
| 427 | + | 13.7the location specified, liquid assets of at least $50,000; and |
|---|
| 428 | + | 13.8 (2) (7) a biographical statement on the principal person responsible for the operation |
|---|
| 429 | + | 13.9and management of the business to be certified describing any individual person in control. |
|---|
| 430 | + | 13.10 (c) In addition to the information required under paragraph (b), an applicant that is a |
|---|
| 431 | + | 13.11corporation, limited liability company, partnership, or other legal entity must also provide: |
|---|
| 432 | + | 13.12 (1) the date the applicant was incorporated or formed, and the state or country of |
|---|
| 433 | + | 13.13incorporation or formation; and |
|---|
| 434 | + | 13.14 (2) if applicable, a certificate of good standing from the state or country where the |
|---|
| 435 | + | 13.15applicant is incorporated or formed. |
|---|
| 436 | + | 13.16 (d) A consumer small loan lender license issued under this section expires at 11:59 p.m. |
|---|
| 437 | + | 13.17on December 31 of the year for which the application is filed and is renewable on January |
|---|
| 438 | + | 13.181 each year after that date. |
|---|
| 439 | + | 13.19 (e) An initial consumer small loan lender license application must be accompanied by |
|---|
| 440 | + | 13.20a $500 fee. Each subsequent renewal application must be accompanied by a $250 fee. |
|---|
| 441 | + | 13.21 (f) Section 56.09 applies to a suspension or revocation of the filing is a consumer small |
|---|
| 442 | + | 13.22loan lender license under this section in the same manner as in the case of a regulated lender |
|---|
| 443 | + | 13.23license in under section 56.09. |
|---|
| 444 | + | 13.24 (g) For purposes of this subdivision,: (1) "business entity" includes one that does not |
|---|
| 445 | + | 13.25have a physical location in Minnesota that makes a consumer small loan electronically via |
|---|
| 446 | + | 13.26the Internet.; and (2) "person in control" means a member of senior management, including |
|---|
| 447 | + | 13.27an owner or officer, and a person who directly or indirectly possesses the power to direct |
|---|
| 448 | + | 13.28or cause the direction of the applicant's or consumer small loan lender's management policies |
|---|
| 449 | + | 13.29under this section, regardless of whether the person has an ownership interest in the applicant |
|---|
| 450 | + | 13.30or licensee. Control is presumed to exist if a person directly or indirectly owns, controls, or |
|---|
| 451 | + | 13.31holds with power to vote ten percent or more of the voting stock of an applicant or licensee |
|---|
| 452 | + | 13.32or of a person who owns, controls, or holds with power to vote ten percent or more of the |
|---|
| 453 | + | 13.33voting stock of an applicant or licensee. |
|---|
| 454 | + | 13Article 4 Sec. 2. |
|---|
| 455 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 14.1 Sec. 3. Minnesota Statutes 2024, section 47.60, subdivision 4, is amended to read: |
|---|
| 456 | + | 14.2 Subd. 4.Books of account; annual report; schedule of charges; disclosures.(a) A |
|---|
| 457 | + | 14.3lender filing licensed under subdivision 3 shall keep and use in the business books, accounts, |
|---|
| 458 | + | 14.4and records as will enable the commissioner to determine whether the filer is complying |
|---|
| 459 | + | 14.5with this section. |
|---|
| 460 | + | 14.6 (b) A lender filing licensed under subdivision 3 shall annually on or before March 15 |
|---|
| 461 | + | 14.7file a report to the commissioner giving the information the commissioner reasonably |
|---|
| 462 | + | 14.8requires concerning the business and operations during the preceding calendar year, including |
|---|
| 463 | + | 14.9the information required to be reported under section 47.601, subdivision 4. |
|---|
| 464 | + | 14.10 (c) A lender filing licensed under subdivision 3 shall display prominently in each place |
|---|
| 465 | + | 14.11of business a full and accurate schedule, to be approved by the commissioner, of the charges |
|---|
| 466 | + | 14.12to be made and the method of computing those charges. A lender shall furnish a copy of |
|---|
| 467 | + | 14.13the contract of loan to a person obligated on it or who may become obligated on it at any |
|---|
| 468 | + | 14.14time upon the request of that person. This is in addition to any disclosures required by the |
|---|
| 469 | + | 14.15federal Truth in Lending Act, United States Code, title 15. |
|---|
| 470 | + | 14.16 (d) A lender filing licensed under subdivision 3 shall, upon repayment of the loan in |
|---|
| 471 | + | 14.17full, mark indelibly every obligation signed by the borrower with the word "Paid" or |
|---|
| 472 | + | 14.18"Canceled" within 20 days after repayment. |
|---|
| 473 | + | 14.19 (e) A lender filing licensed under subdivision 3 shall display prominently, in each licensed |
|---|
| 474 | + | 14.20place of business, a full and accurate statement of the charges to be made for loans made |
|---|
| 475 | + | 14.21under this section. The statement of charges must be displayed in a notice, on plastic or |
|---|
| 476 | + | 14.22other durable material measuring at least 12 inches by 18 inches, headed "CONSUMER |
|---|
| 477 | + | 14.23NOTICE REQUIRED BY THE STATE OF MINNESOTA." The notice shall include, |
|---|
| 478 | + | 14.24immediately above the statement of charges, the following sentence, or a substantially |
|---|
| 479 | + | 14.25similar sentence approved by the commissioner: "These loan charges are higher than |
|---|
| 480 | + | 14.26otherwise permitted under Minnesota law. Minnesota law permits these higher charges only |
|---|
| 481 | + | 14.27because short-term small loans might otherwise not be available to consumers. If you have |
|---|
| 482 | + | 14.28another source of a loan, you may be able to benefit from a lower interest rate and other |
|---|
| 483 | + | 14.29loan charges." The notice must not contain any other statement or information, unless the |
|---|
| 484 | + | 14.30commissioner has determined that the additional statement or information is necessary to |
|---|
| 485 | + | 14.31prevent confusion or inaccuracy. The notice must be designed with a type size that is large |
|---|
| 486 | + | 14.32enough to be readily noticeable and legible. The form of the notice must be approved by |
|---|
| 487 | + | 14.33the commissioner prior to its use. |
|---|
| 488 | + | 14Article 4 Sec. 3. |
|---|
| 489 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 15.1 Sec. 4. Minnesota Statutes 2024, section 47.60, subdivision 5, is amended to read: |
|---|
| 490 | + | 15.2 Subd. 5.Complaints alleging violation.A person obligated to or having been obligated |
|---|
| 491 | + | 15.3to a consumer small loan lender filing under subdivision 3 and having that has reason to |
|---|
| 492 | + | 15.4believe that this section has been violated may file with the commissioner a written complaint |
|---|
| 493 | + | 15.5setting forth the details of the alleged violation. The commissioner, upon receipt of the |
|---|
| 494 | + | 15.6complaint, may inspect the pertinent books, records, letters, and contracts of the lender and |
|---|
| 495 | + | 15.7borrower involved. The commissioner may assess against the lender a fee covering the |
|---|
| 496 | + | 15.8necessary costs of an investigation under this section. The commissioner may maintain an |
|---|
| 497 | + | 15.9action for the recovery of the costs in a court of competent jurisdiction. |
|---|
| 498 | + | 15.10Sec. 5. Minnesota Statutes 2024, section 47.60, is amended by adding a subdivision to |
|---|
| 499 | + | 15.11read: |
|---|
| 500 | + | 15.12 Subd. 5a.Examinations.(a) The commissioner may examine the affairs, business, |
|---|
| 501 | + | 15.13office, and records of a licensee and of other persons subject to examination under this |
|---|
| 502 | + | 15.14section. Examinations under this section may occur as often as is considered necessary. The |
|---|
| 503 | + | 15.15commissioner may accept examination reports prepared by a state or federal agency that |
|---|
| 504 | + | 15.16has comparable supervisory powers and examination procedures. |
|---|
| 505 | + | 15.17 (b) The commissioner may assess a fee to cover the costs necessary to conduct an |
|---|
| 506 | + | 15.18examination under this subdivision, as required under section 46.131. The fee is payable to |
|---|
| 507 | + | 15.19the commissioner upon the commissioner's request for payment. The commissioner may |
|---|
| 508 | + | 15.20maintain an action to recover costs under this subdivision in any court of competent |
|---|
| 509 | + | 15.21jurisdiction. |
|---|
| 510 | + | 15.22 (c) The commissioner may disclose information not otherwise subject to disclosure |
|---|
| 511 | + | 15.23under section 46.07 to representatives of state or federal agencies pursuant to agreements |
|---|
| 512 | + | 15.24or relationships with other government officials or federal and state regulatory agencies and |
|---|
| 513 | + | 15.25regulatory associations in order to: (1) improve efficiencies and reduce regulatory burden |
|---|
| 514 | + | 15.26by standardizing methods or procedures; and (2) share resources, records, or related |
|---|
| 515 | + | 15.27information obtained under this section. |
|---|
| 516 | + | 15.28Sec. 6. Minnesota Statutes 2024, section 47.60, subdivision 8, is amended to read: |
|---|
| 517 | + | 15.29 Subd. 8.No evasion.(a) A person must not engage in any device, subterfuge, or pretense |
|---|
| 518 | + | 15.30to evade the requirements of this section, including but not limited to: |
|---|
| 519 | + | 15.31 (1) making loans disguised as a personal property sale and leaseback transaction; |
|---|
| 520 | + | 15Article 4 Sec. 6. |
|---|
| 521 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 16.1 (2) representing that an advance is a not a loan because the advance (i) is nonrecourse, |
|---|
| 522 | + | 16.2(ii) is repaid with assigned wages or other present or future income, or (iii) may be not |
|---|
| 523 | + | 16.3subject to certain collection methods, credit reporting, or repayment demands; |
|---|
| 524 | + | 16.4 (2) (3) disguising loan proceeds as a cash rebate for the pretextual installment sale of |
|---|
| 525 | + | 16.5goods or services; or |
|---|
| 526 | + | 16.6 (3) (4) making, offering, assisting, or arranging for a debtor to obtain a loan with a greater |
|---|
| 527 | + | 16.7rate or amount of interest, consideration, charge, or payment than is permitted by this section |
|---|
| 528 | + | 16.8through any method, including mail, telephone, Internet, or any electronic means, regardless |
|---|
| 529 | + | 16.9of whether a person has a physical location in Minnesota. |
|---|
| 530 | + | 16.10 (b) A person is a consumer small loan lender subject to the requirements of this section |
|---|
| 531 | + | 16.11notwithstanding the fact that a person purports to act as an agent or service provider, or acts |
|---|
| 532 | + | 16.12in another capacity for another person that is not subject to this section, if a person: |
|---|
| 533 | + | 16.13 (1) directly or indirectly holds, acquires, or maintains the predominant economic interest, |
|---|
| 534 | + | 16.14risk, or reward in a loan or lending business; or |
|---|
| 535 | + | 16.15 (2) both: (i) markets, solicits, brokers, arranges, or facilitates a loan; and (ii) holds or |
|---|
| 536 | + | 16.16holds the right, requirement, or first right of refusal to acquire loans, receivables, or other |
|---|
| 537 | + | 16.17direct or interest in a loan. |
|---|
| 538 | + | 16.18 (c) A person is a consumer small loan lender subject to the requirements of this section |
|---|
| 539 | + | 16.19if the totality of the circumstances indicate that a person is a lender and the transaction is |
|---|
| 540 | + | 16.20structured to evade the requirements of this section. Circumstances that weigh in favor of |
|---|
| 541 | + | 16.21a person being a lender in a transaction include but are not limited to instances where a |
|---|
| 542 | + | 16.22person: |
|---|
| 543 | + | 16.23 (1) indemnifies, insures, or protects a person not subject to this section from any costs |
|---|
| 544 | + | 16.24or risks related to a loan; |
|---|
| 545 | + | 16.25 (2) predominantly designs, controls, or operates lending activity; |
|---|
| 546 | + | 16.26 (3) holds the trademark or intellectual property rights in the brand, underwriting system, |
|---|
| 547 | + | 16.27or other core aspects of a lending business; or |
|---|
| 548 | + | 16.28 (4) purports to act as an agent or service provider, or acts in another capacity, for a person |
|---|
| 549 | + | 16.29not subject to this section while acting directly as a lender in one or more states. |
|---|
| 550 | + | 16.30Sec. 7. Minnesota Statutes 2024, section 47.601, subdivision 1, is amended to read: |
|---|
| 551 | + | 16.31 Subdivision 1.Definitions.(a) For the purposes of this section, the terms defined in this |
|---|
| 552 | + | 16.32subdivision have the meanings given. |
|---|
| 553 | + | 16Article 4 Sec. 7. |
|---|
| 554 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 17.1 (b) "Annual percentage rate" has the meaning given in section 47.60, subdivision 1. |
|---|
| 555 | + | 17.2 (c) "Borrower" means an individual who obtains a consumer short-term loan primarily |
|---|
| 556 | + | 17.3for personal, family, or household purposes. |
|---|
| 557 | + | 17.4 (d) "Commissioner" means the commissioner of commerce. |
|---|
| 558 | + | 17.5 (e) "Consumer short-term loan" means a loan to a borrower, whether recourse or |
|---|
| 559 | + | 17.6nonrecourse, including on a borrower's future potential money source, including but not |
|---|
| 560 | + | 17.7limited to future pay, salary, or pension income, which has a principal amount, or an advance |
|---|
| 561 | + | 17.8on a credit limit, of $1,300 or less and requires a minimum payment within 60 days of loan |
|---|
| 562 | + | 17.9origination or credit advance of more than 25 percent of the principal balance or credit |
|---|
| 563 | + | 17.10advance. For the purposes of this section, each new advance of money to a borrower under |
|---|
| 564 | + | 17.11a consumer short-term loan agreement constitutes a new consumer short-term loan. A |
|---|
| 565 | + | 17.12"consumer short-term loan" does not include any transaction made under chapter 325J or |
|---|
| 566 | + | 17.13a loan made by a consumer short-term lender where, in the event of default on the loan, the |
|---|
| 567 | + | 17.14sole recourse for recovery of the amount owed, other than a lawsuit for damages for the |
|---|
| 568 | + | 17.15debt, is to proceed against physical goods pledged by the borrower as collateral for the loan. |
|---|
| 569 | + | 17.16 (f) "Consumer short-term lender" means an individual or entity engaged in the business |
|---|
| 570 | + | 17.17of making or arranging consumer short-term loans, other than a state or federally chartered |
|---|
| 571 | + | 17.18bank, savings bank, or credit union. For the purposes of this paragraph, arranging consumer |
|---|
| 572 | + | 17.19short-term loans includes but is not limited to any substantial involvement in facilitating, |
|---|
| 573 | + | 17.20marketing, lead-generating, underwriting, servicing, or collecting consumer short-term |
|---|
| 574 | + | 17.21loans. |
|---|
| 575 | + | 17.22Sec. 8. Minnesota Statutes 2024, section 47.601, subdivision 5a, is amended to read: |
|---|
| 576 | + | 17.23 Subd. 5a.No evasion.(a) A person must not engage in any device, subterfuge, or pretense |
|---|
| 577 | + | 17.24to evade the requirements of this section, including but not limited to: |
|---|
| 578 | + | 17.25 (1) making loans disguised as a personal property sale and leaseback transaction; |
|---|
| 579 | + | 17.26 (2) representing that an advance is not a loan because the advance (i) is nonrecourse, |
|---|
| 580 | + | 17.27(ii) is repaid with assigned wages or other present or future income, or (iii) may be not |
|---|
| 581 | + | 17.28subject to certain collection methods, credit reporting, or repayment demands; |
|---|
| 582 | + | 17.29 (2) (3) disguising loan proceeds as a cash rebate for the pretextual installment sale of |
|---|
| 583 | + | 17.30goods or services; or |
|---|
| 584 | + | 17.31 (3) (4) making, offering, assisting, or arranging for a debtor to obtain a loan with a greater |
|---|
| 585 | + | 17.32rate or amount of interest, consideration, charge, or payment than is permitted by this section |
|---|
| 586 | + | 17Article 4 Sec. 8. |
|---|
| 587 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 18.1through any method, including mail, telephone, Internet, or any electronic means, regardless |
|---|
| 588 | + | 18.2of whether a person has a physical location in Minnesota. |
|---|
| 589 | + | 18.3 (b) A person is a consumer short-term loan lender subject to the requirements of this |
|---|
| 590 | + | 18.4section notwithstanding the fact that a person purports to act as an agent or service provider, |
|---|
| 591 | + | 18.5or acts in another capacity for another person that is not subject to this section, if a person: |
|---|
| 592 | + | 18.6 (1) directly or indirectly holds, acquires, or maintains the predominant economic interest, |
|---|
| 593 | + | 18.7risk, or reward in a loan or lending business; or |
|---|
| 594 | + | 18.8 (2) both: (i) markets, solicits, brokers, arranges, or facilitates a loan; and (ii) holds or |
|---|
| 595 | + | 18.9holds the right, requirement, or first right of refusal to acquire loans, receivables, or other |
|---|
| 596 | + | 18.10direct or interest in a loan. |
|---|
| 597 | + | 18.11 (c) A person is a consumer short-term loan lender subject to the requirements of this |
|---|
| 598 | + | 18.12section if the totality of the circumstances indicate that a person is a lender and the transaction |
|---|
| 599 | + | 18.13is structured to evade the requirements of this section. Circumstances that weigh in favor |
|---|
| 600 | + | 18.14of a person being a lender in a transaction include but are not limited to instances where a |
|---|
| 601 | + | 18.15person: |
|---|
| 602 | + | 18.16 (1) indemnifies, insures, or protects a person not subject to this section from any costs |
|---|
| 603 | + | 18.17or risks related to a loan; |
|---|
| 604 | + | 18.18 (2) predominantly designs, controls, or operates lending activity; |
|---|
| 605 | + | 18.19 (3) holds the trademark or intellectual property rights in the brand, underwriting system, |
|---|
| 606 | + | 18.20or other core aspects of a lending business; or |
|---|
| 607 | + | 18.21 (4) purports to act as an agent or service provider, or acts in another capacity, for a person |
|---|
| 608 | + | 18.22not subject to this section while acting directly as a lender in one or more states. |
|---|
| 609 | + | 18.23Sec. 9. Minnesota Statutes 2024, section 47.601, subdivision 7, is amended to read: |
|---|
| 610 | + | 18.24 Subd. 7.Attorney general Enforcement.The commissioner of commerce must enforce |
|---|
| 611 | + | 18.25this section under section 45.027 and the attorney general shall must enforce this section |
|---|
| 612 | + | 18.26under section 8.31. |
|---|
| 613 | + | 18Article 4 Sec. 9. |
|---|
| 614 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 19.1 Sec. 10. Minnesota Statutes 2024, section 80A.58, is amended to read: |
|---|
| 615 | + | 19.2 80A.58 SECTION 403; INVESTMENT ADVISER REGISTRATION |
|---|
| 616 | + | 19.3REQUIREMENT AND EXEMPTIONS. |
|---|
| 617 | + | 19.4 (a) Registration requirement. It is unlawful for a person to transact business in this |
|---|
| 618 | + | 19.5state as an investment adviser or investment adviser representative unless the person is |
|---|
| 619 | + | 19.6registered under this chapter or is exempt from registration under subsection (b). |
|---|
| 620 | + | 19.7 (b) Exemptions from registration. The following persons are exempt from the |
|---|
| 621 | + | 19.8registration requirement of subsection (a): |
|---|
| 622 | + | 19.9 (1) any person whose only clients in this state are: |
|---|
| 623 | + | 19.10 (A) federal covered investment advisers, investment advisers registered under this |
|---|
| 624 | + | 19.11chapter, or broker-dealers registered under this chapter; |
|---|
| 625 | + | 19.12 (B) bona fide preexisting clients whose principal places of residence are not in this state |
|---|
| 626 | + | 19.13if the investment adviser is registered under the securities act of the state in which the clients |
|---|
| 627 | + | 19.14maintain principal places of residence; or |
|---|
| 628 | + | 19.15 (C) any other client exempted by rule adopted or order issued under this chapter; |
|---|
| 629 | + | 19.16 (2) a person without a place of business in this state if the person has had, during the |
|---|
| 630 | + | 19.17preceding 12 months, not more than five clients that are resident in this state in addition to |
|---|
| 631 | + | 19.18those specified under paragraph (1); |
|---|
| 632 | + | 19.19 (3) A private fund advisor adviser, subject to the additional requirements of subsection |
|---|
| 633 | + | 19.20(c), if the private fund adviser satisfies each of the following conditions: |
|---|
| 634 | + | 19.21 (i) neither the private fund adviser nor any of its advisory affiliates are subject to a |
|---|
| 635 | + | 19.22disqualification as described in Rule 262 of SEC Regulation A, Code of Federal Regulations, |
|---|
| 636 | + | 19.23title 17, section 230.262; |
|---|
| 637 | + | 19.24 (ii) the private fund adviser files with the state each report and amendment thereto that |
|---|
| 638 | + | 19.25an exempt reporting adviser is required to file with the Securities and Exchange Commission |
|---|
| 639 | + | 19.26pursuant to SEC Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4; or |
|---|
| 640 | + | 19.27and |
|---|
| 641 | + | 19.28 (iii) the private fund adviser pays the fees under section 80A.65, subdivision 2b; or |
|---|
| 642 | + | 19.29 (4) any other person exempted by rule adopted or order issued under this chapter. |
|---|
| 643 | + | 19.30 (c) Additional requirements for private fund advisers to certain 3(c)(1) funds. In |
|---|
| 644 | + | 19.31order to qualify for the exemption described in subsection (b)(3), a private fund adviser |
|---|
| 645 | + | 19Article 4 Sec. 10. |
|---|
| 646 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 20.1who advises at least one 3(c)(1) fund that is not a venture capital fund shall, in addition to |
|---|
| 647 | + | 20.2satisfying each of the conditions specified in subsection (b)(3), comply with the following |
|---|
| 648 | + | 20.3requirements: |
|---|
| 649 | + | 20.4 (1) The private fund adviser shall advise only those 3(c)(1) funds, other than venture |
|---|
| 650 | + | 20.5capital funds, whose outstanding securities, other than short-term paper, are beneficially |
|---|
| 651 | + | 20.6owned entirely by persons who, after deducting the value of the primary residence from the |
|---|
| 652 | + | 20.7person's net worth, would each meet the definition of a qualified client in SEC Rule 205-3, |
|---|
| 653 | + | 20.8Code of Federal Regulations, title 17, section 275.205-3, at the time the securities are |
|---|
| 654 | + | 20.9purchased from the issuer; |
|---|
| 655 | + | 20.10 (2) At the time of purchase, the private fund adviser shall disclose the following in |
|---|
| 656 | + | 20.11writing to each beneficial owner of a 3(c)(1) fund that is not a venture capital fund: |
|---|
| 657 | + | 20.12 (i) all services, if any, to be provided to individual beneficial owners; |
|---|
| 658 | + | 20.13 (ii) all duties, if any, the investment adviser owes to the beneficial owners; and |
|---|
| 659 | + | 20.14 (iii) any other material information affecting the rights or responsibilities of the beneficial |
|---|
| 660 | + | 20.15owners; and |
|---|
| 661 | + | 20.16 (3) The private fund adviser shall obtain on an annual basis audited financial statements |
|---|
| 662 | + | 20.17of each 3(c)(1) fund that is not a venture capital fund and shall deliver a copy of such audited |
|---|
| 663 | + | 20.18financial statements to each beneficial owner of the fund. |
|---|
| 664 | + | 20.19 (d) Federal covered investment advisers. If a private fund adviser is registered with |
|---|
| 665 | + | 20.20the Securities and Exchange Commission, the adviser shall not be eligible for the private |
|---|
| 666 | + | 20.21fund adviser exemption under paragraph (b), clause (3), and shall comply with the state |
|---|
| 667 | + | 20.22notice filing requirements applicable to federal covered investment advisers in section |
|---|
| 668 | + | 20.2380A.58. |
|---|
| 669 | + | 20.24 (e) Investment adviser representatives. A person is exempt from the registration |
|---|
| 670 | + | 20.25requirements of section 80A.58, paragraph (a), if he or she is employed by or associated |
|---|
| 671 | + | 20.26with an investment adviser that is exempt from registration in this state pursuant to the |
|---|
| 672 | + | 20.27private fund adviser exemption under paragraph (b), clause (3), and does not otherwise |
|---|
| 673 | + | 20.28engage in activities that would require registration as an investment adviser representative. |
|---|
| 674 | + | 20.29 (f) Electronic filings. The report filings described in subsection (b)(3)(ii) shall be made |
|---|
| 675 | + | 20.30electronically through the IARD. A report shall be deemed filed when the report and the |
|---|
| 676 | + | 20.31fee required by sections 80A.60 and 80A.65 are filed and accepted by the IARD on the |
|---|
| 677 | + | 20.32state's behalf. |
|---|
| 678 | + | 20Article 4 Sec. 10. |
|---|
| 679 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 21.1 (g) Transition. An investment adviser who becomes ineligible for the exemption provided |
|---|
| 680 | + | 21.2by this section must comply with all applicable laws and rules requiring registration or |
|---|
| 681 | + | 21.3notice filing within 90 days from the date of the investment adviser's eligibility for this |
|---|
| 682 | + | 21.4exemption ceases. |
|---|
| 683 | + | 21.5 (h) Grandfathering for investment advisers to 3(c)(1) funds with nonqualified |
|---|
| 684 | + | 21.6clients. An investment adviser to a 3(c)(1) fund (other than a venture capital fund) that has |
|---|
| 685 | + | 21.7one or more beneficial owners who are not qualified clients as described in paragraph (c), |
|---|
| 686 | + | 21.8clause (1), is eligible for the exemption contained in paragraph (b), clause (3), if the following |
|---|
| 687 | + | 21.9conditions are satisfied: |
|---|
| 688 | + | 21.10 (1) the subject fund existed prior to August 1, 2013; |
|---|
| 689 | + | 21.11 (2) as of August 1, 2013, the subject fund ceases to accept beneficial owners who are |
|---|
| 690 | + | 21.12not qualified clients, as described in paragraph (c), clause (1); |
|---|
| 691 | + | 21.13 (3) the investment adviser discloses in writing the information described in paragraph |
|---|
| 692 | + | 21.14(c), clause (2), to all beneficial owners of the fund; and |
|---|
| 693 | + | 21.15 (4) as of August 1, 2013, the investment adviser delivers audited financial statements |
|---|
| 694 | + | 21.16as required by paragraph (c), clause (3). |
|---|
| 695 | + | 21.17 (i) Limits on employment or association. It is unlawful for an investment adviser, |
|---|
| 696 | + | 21.18directly or indirectly, to employ or associate with an individual to engage in an activity |
|---|
| 697 | + | 21.19related to investment advice in this state if the registration of the individual is suspended |
|---|
| 698 | + | 21.20or revoked or the individual is barred from employment or association with an investment |
|---|
| 699 | + | 21.21adviser, federal covered investment adviser, or broker-dealer by an order under this chapter, |
|---|
| 700 | + | 21.22the Securities and Exchange Commission, or a self-regulatory organization, unless the |
|---|
| 701 | + | 21.23investment adviser did not know, and in the exercise of reasonable care could not have |
|---|
| 702 | + | 21.24known, of the suspension, revocation, or bar. Upon request from the investment adviser and |
|---|
| 703 | + | 21.25for good cause, the administrator, by order, may waive, in whole or in part, the application |
|---|
| 704 | + | 21.26of the prohibitions of this subsection to the investment adviser. |
|---|
| 705 | + | 21.27Sec. 11. Minnesota Statutes 2024, section 80A.65, subdivision 2, is amended to read: |
|---|
| 706 | + | 21.28 Subd. 2.Registration application and renewal filing fee.Every applicant for an initial |
|---|
| 707 | + | 21.29or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, $65 in |
|---|
| 708 | + | 21.30the case of an agent, $100 in the case of an investment adviser, and $50 in the case of an |
|---|
| 709 | + | 21.31investment adviser representative. When an application is denied or withdrawn, the filing |
|---|
| 710 | + | 21.32fee shall be retained. A registered agent who has terminated employment with one |
|---|
| 711 | + | 21.33broker-dealer shall, before beginning employment with another broker-dealer, pay a transfer |
|---|
| 712 | + | 21Article 4 Sec. 11. |
|---|
| 713 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 22.1fee of $25 $65. A registered investment adviser representative who has terminated |
|---|
| 714 | + | 22.2employment with one investment adviser must, before beginning employment with another |
|---|
| 715 | + | 22.3investment adviser, pay a $50 transfer fee. |
|---|
| 716 | + | 22.4 Sec. 12. Minnesota Statutes 2024, section 80A.65, is amended by adding a subdivision to |
|---|
| 717 | + | 22.5read: |
|---|
| 718 | + | 22.6 Subd. 2b.Private fund adviser filings.A private fund adviser must pay a $100 filing |
|---|
| 719 | + | 22.7fee when filing an initial or renewal notice required under section 80A.58. |
|---|
| 720 | + | 22.8 Sec. 13. EFFECTIVE DATE; TRANSITION PROVISION. |
|---|
| 721 | + | 22.9 The amendments to Minnesota Statutes, section 47.60, in this article are effective August |
|---|
| 722 | + | 22.101, 2025. An entity that filed and was approved under Minnesota Statutes, section 47.60, |
|---|
| 723 | + | 22.11before August 1, 2025, must file a renewal application that complies with Minnesota Statutes, |
|---|
| 724 | + | 22.12section 47.60, as amended by this article, between November 1, 2025, and December 31, |
|---|
| 725 | + | 22.132025, for activity occurring on or after January 1, 2026. |
|---|
| 726 | + | 22.14 ARTICLE 5 |
|---|
| 727 | + | 22.15 MINNESOTA PREMIUM SECURITY PLAN |
|---|
| 728 | + | 22.16Section 1. Minnesota Statutes 2024, section 62E.21, is amended by adding a subdivision |
|---|
| 729 | + | 22.17to read: |
|---|
| 730 | + | 22.18 Subd. 2a.Assessment."Assessment" means the amount an eligible carrier under the |
|---|
| 731 | + | 22.19plan must pay to the association for operational costs, administrative costs, and reinsurance |
|---|
| 732 | + | 22.20payments relating to initiating and operating the plan. |
|---|
| 733 | + | 22.21Sec. 2. Minnesota Statutes 2024, section 62E.23, subdivision 1, is amended to read: |
|---|
| 734 | + | 22.22 Subdivision 1.Administration of plan.(a) The association is Minnesota's reinsurance |
|---|
| 735 | + | 22.23entity to administer the state-based reinsurance program referred to as the Minnesota premium |
|---|
| 736 | + | 22.24security plan. |
|---|
| 737 | + | 22.25 (b) The association may apply for any available federal funding for the plan. All funds |
|---|
| 738 | + | 22.26received by or appropriated to the association shall be deposited in the premium security |
|---|
| 739 | + | 22.27plan account in section 62E.25, subdivision 1. The association shall notify the chairs and |
|---|
| 740 | + | 22.28ranking minority members of the legislative committees with jurisdiction over health and |
|---|
| 741 | + | 22.29human services and insurance within ten days of receiving any federal funds. |
|---|
| 742 | + | 22Article 5 Sec. 2. |
|---|
| 743 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 23.1 (c) The association must collect or access data from an eligible health carrier that are |
|---|
| 744 | + | 23.2necessary to determine reinsurance payments, according to the data requirements under |
|---|
| 745 | + | 23.3subdivision 5, paragraph (c). |
|---|
| 746 | + | 23.4 (d) The board must not use any funds allocated to the plan for staff retreats, promotional |
|---|
| 747 | + | 23.5giveaways, excessive executive compensation, or promotion of federal or state legislative |
|---|
| 748 | + | 23.6or regulatory changes. |
|---|
| 749 | + | 23.7 (e) For each applicable benefit year, the association must notify eligible health carriers |
|---|
| 750 | + | 23.8of reinsurance payments to be made for the applicable benefit year no later than June 30 of |
|---|
| 751 | + | 23.9the year following the applicable benefit year. |
|---|
| 752 | + | 23.10 (f) On a quarterly basis during the applicable benefit year, the association must provide |
|---|
| 753 | + | 23.11each eligible health carrier with the calculation of total reinsurance payment requests. |
|---|
| 754 | + | 23.12 (g) By August 15 of the year following the applicable benefit year, the association must |
|---|
| 755 | + | 23.13disburse all applicable reinsurance payments to an eligible health carrier. |
|---|
| 756 | + | 23.14 (h) The association must collect assessments from eligible carriers to pay for the |
|---|
| 757 | + | 23.15Minnesota premium security plan no later than June 30 of the year following the applicable |
|---|
| 758 | + | 23.16benefit year. The association must use the assessments collected under this paragraph to |
|---|
| 759 | + | 23.17pay the operational costs, administrative costs, and reinsurance payments of the plan not |
|---|
| 760 | + | 23.18covered by federal funding for the plan. By March 1 each year, the association must provide |
|---|
| 761 | + | 23.19each member with an estimate of the member's assessment for the upcoming applicable |
|---|
| 762 | + | 23.20benefit year. The association must notify each member of the member's assessment for the |
|---|
| 763 | + | 23.21applicable benefit year not later than June 30 of the year following the applicable benefit |
|---|
| 764 | + | 23.22year. |
|---|
| 765 | + | 23.23Sec. 3. Minnesota Statutes 2024, section 62E.23, subdivision 2, is amended to read: |
|---|
| 766 | + | 23.24 Subd. 2.Payment parameters.(a) The board must design and adjust the payment |
|---|
| 767 | + | 23.25parameters to ensure the payment parameters: |
|---|
| 768 | + | 23.26 (1) will stabilize or reduce premium rates in the individual market; |
|---|
| 769 | + | 23.27 (2) will increase participation in the individual market; |
|---|
| 770 | + | 23.28 (3) will improve access to health care providers and services for those in the individual |
|---|
| 771 | + | 23.29market; |
|---|
| 772 | + | 23.30 (4) mitigate the impact high-risk individuals have on premium rates in the individual |
|---|
| 773 | + | 23.31market; |
|---|
| 774 | + | 23.32 (5) take into account any federal funding available for the plan; and |
|---|
| 775 | + | 23Article 5 Sec. 3. |
|---|
| 776 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 24.1 (6) take into account assessments imposed on eligible carriers; and |
|---|
| 777 | + | 24.2 (6) (7) take into account the total amount available to fund the plan. |
|---|
| 778 | + | 24.3 (b) The attachment point for the plan is the threshold amount for claims costs incurred |
|---|
| 779 | + | 24.4by an eligible health carrier for an enrolled individual's covered benefits in a benefit year, |
|---|
| 780 | + | 24.5beyond which the claims costs for benefits are eligible for reinsurance payments. The |
|---|
| 781 | + | 24.6attachment point shall be set by the board at $50,000 or more, but not exceeding the |
|---|
| 782 | + | 24.7reinsurance cap. |
|---|
| 783 | + | 24.8 (c) The coinsurance rate for the plan is the rate at which the association will reimburse |
|---|
| 784 | + | 24.9an eligible health carrier for claims incurred for an enrolled individual's covered benefits |
|---|
| 785 | + | 24.10in a benefit year above the attachment point and below the reinsurance cap. The coinsurance |
|---|
| 786 | + | 24.11rate shall be set by the board at a rate between 50 and 80 percent. |
|---|
| 787 | + | 24.12 (d) The reinsurance cap is the threshold amount for claims costs incurred by an eligible |
|---|
| 788 | + | 24.13health carrier for an enrolled individual's covered benefits, after which the claims costs for |
|---|
| 789 | + | 24.14benefits are no longer eligible for reinsurance payments. The reinsurance cap shall be set |
|---|
| 790 | + | 24.15by the board at $250,000 or less. |
|---|
| 791 | + | 24.16 (e) The board may adjust the payment parameters to the extent necessary to secure |
|---|
| 792 | + | 24.17federal approval of the state innovation waiver request in Laws 2017, chapter 13, article 1, |
|---|
| 793 | + | 24.18section 8. |
|---|
| 794 | + | 24.19Sec. 4. Minnesota Statutes 2024, section 62E.23, subdivision 3, is amended to read: |
|---|
| 795 | + | 24.20 Subd. 3.Operation.(a) The board shall propose to the commissioner the payment |
|---|
| 796 | + | 24.21parameters for the next benefit year by January 15 of the year before the applicable benefit |
|---|
| 797 | + | 24.22year. The commissioner shall approve or reject the payment parameters no later than 14 |
|---|
| 798 | + | 24.23days following the board's proposal. If the commissioner fails to approve or reject the |
|---|
| 799 | + | 24.24payment parameters within 14 days following the board's proposal, the proposed payment |
|---|
| 800 | + | 24.25parameters are final and effective. |
|---|
| 801 | + | 24.26 (b) If the amount in the premium security plan account in section 62E.25, subdivision |
|---|
| 802 | + | 24.271, is not anticipated to be adequate to fully fund the approved payment parameters as of |
|---|
| 803 | + | 24.28July 1 of the year before the applicable benefit year, the board, in consultation with the |
|---|
| 804 | + | 24.29commissioner and the commissioner of management and budget, shall propose payment |
|---|
| 805 | + | 24.30parameters within the available appropriations or assess members to obtain the necessary |
|---|
| 806 | + | 24.31funding. The commissioner must permit an eligible health carrier to revise an applicable |
|---|
| 807 | + | 24.32rate filing based on the final payment parameters for the next benefit year. |
|---|
| 808 | + | 24Article 5 Sec. 4. |
|---|
| 809 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 25.1 (c) Notwithstanding paragraph (a), the payment parameters for benefit years 2023 through |
|---|
| 810 | + | 25.22027 are: |
|---|
| 811 | + | 25.3 (1) an attachment point of $50,000; |
|---|
| 812 | + | 25.4 (2) a coinsurance rate of 80 percent; and |
|---|
| 813 | + | 25.5 (3) a reinsurance cap of $250,000. |
|---|
| 814 | + | 25.6 Sec. 5. Minnesota Statutes 2024, section 62E.24, subdivision 1, is amended to read: |
|---|
| 815 | + | 25.7 Subdivision 1.Accounting.The board must keep an accounting for each benefit year |
|---|
| 816 | + | 25.8of all: |
|---|
| 817 | + | 25.9 (1) funds appropriated for reinsurance payments and administrative and operational |
|---|
| 818 | + | 25.10expenses; |
|---|
| 819 | + | 25.11 (2) requests for reinsurance payments received from eligible health carriers; |
|---|
| 820 | + | 25.12 (3) assessments collected from eligible carriers; |
|---|
| 821 | + | 25.13 (3) (4) reinsurance payments made to eligible health carriers; and |
|---|
| 822 | + | 25.14 (4) (5) administrative and operational expenses incurred for the plan. |
|---|
| 823 | + | 25.15Sec. 6. Minnesota Statutes 2024, section 62E.24, subdivision 2, is amended to read: |
|---|
| 824 | + | 25.16 Subd. 2.Reports.(a) The board must submit to the commissioner and to the chairs and |
|---|
| 825 | + | 25.17ranking minority members of the legislative committees with jurisdiction over commerce |
|---|
| 826 | + | 25.18and health and make available to the public quarterly reports on plan operations and an |
|---|
| 827 | + | 25.19annual report summarizing the plan operations for each benefit year. All reports must be |
|---|
| 828 | + | 25.20made public by posting the report on the Minnesota Comprehensive Health Association |
|---|
| 829 | + | 25.21website. The annual summary must be made available by November 1 of the year following |
|---|
| 830 | + | 25.22the applicable benefit year or 60 calendar days following the final disbursement of |
|---|
| 831 | + | 25.23reinsurance payments for the applicable benefit year, whichever is later. |
|---|
| 832 | + | 25.24 (b) The reports must include information about: |
|---|
| 833 | + | 25.25 (1) the reinsurance parameters used; |
|---|
| 834 | + | 25.26 (2) the metal levels affected; |
|---|
| 835 | + | 25.27 (3) the number of claims payments estimated and submitted for payment per products |
|---|
| 836 | + | 25.28offered on-exchange and off-exchange and per eligible health carrier; |
|---|
| 837 | + | 25.29 (4) the estimated reinsurance payments by plan type based on carrier-submitted templates; |
|---|
| 838 | + | 25Article 5 Sec. 6. |
|---|
| 839 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 26.1 (5) funds appropriated for reinsurance payments and administrative and operational |
|---|
| 840 | + | 26.2expenses for each year, including the federal and state contributions received, investment |
|---|
| 841 | + | 26.3income, assessments collected from eligible carriers, and any other revenue or funds received; |
|---|
| 842 | + | 26.4 (6) the total amount of reinsurance payments made to each eligible health carrier; and |
|---|
| 843 | + | 26.5 (7) administrative and operational expenses incurred for the plan, including the total |
|---|
| 844 | + | 26.6amount incurred and as a percentage of the plan's operational budget. |
|---|
| 845 | + | 26.7 Sec. 7. Minnesota Statutes 2024, section 62E.25, subdivision 1, is amended to read: |
|---|
| 846 | + | 26.8 Subdivision 1.Premium security plan account.The premium security plan account is |
|---|
| 847 | + | 26.9created in the special revenue fund of the state treasury. Funds in the account are appropriated |
|---|
| 848 | + | 26.10annually may include annual appropriations made to the commissioner of commerce for |
|---|
| 849 | + | 26.11grants to the Minnesota Comprehensive Health Association for the operational and |
|---|
| 850 | + | 26.12administrative costs and reinsurance payments relating to the start-up and operation of the |
|---|
| 851 | + | 26.13Minnesota premium security plan, as well as money received from assessments made under |
|---|
| 852 | + | 26.14section 62E.23. Notwithstanding section 11A.20, all investment income and all investment |
|---|
| 853 | + | 26.15losses attributable to the investment of the premium security plan account shall be credited |
|---|
| 854 | + | 26.16to the premium security plan account. |
|---|
| 855 | + | 26.17Sec. 8. Minnesota Statutes 2024, section 62E.25, is amended by adding a subdivision to |
|---|
| 856 | + | 26.18read: |
|---|
| 857 | + | 26.19 Subd. 4.Assessments.(a) The association must deposit assessments collected from |
|---|
| 858 | + | 26.20eligible carriers into the security plan account under subdivision 1 to pay for operational |
|---|
| 859 | + | 26.21costs, administrative costs, and reinsurance payments relating to initiating and operating |
|---|
| 860 | + | 26.22the plan. |
|---|
| 861 | + | 26.23 (b) The association must pay for operational costs, administrative costs, and reinsurance |
|---|
| 862 | + | 26.24payments relating to initiating and operating the plan using available money in the security |
|---|
| 863 | + | 26.25plan account, subject to the following order of the deposited money's source: |
|---|
| 864 | + | 26.26 (1) federal funding received for the plan; and |
|---|
| 865 | + | 26.27 (2) assessments from eligible carriers. |
|---|
| 866 | + | 26.28Sec. 9. [62E.26] STATE INNOVATION WAIVER. |
|---|
| 867 | + | 26.29 Subdivision 1.Waiver application submission.The commissioner of commerce must |
|---|
| 868 | + | 26.30apply to the United States Secretary of Health and Human Services and the United States |
|---|
| 869 | + | 26.31Secretary of the Treasury under United States Code, title 42, section 18052, for a state |
|---|
| 870 | + | 26Article 5 Sec. 9. |
|---|
| 871 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 27.1innovation waiver to extend the Minnesota premium security plan for benefit years beginning |
|---|
| 872 | + | 27.2January 1, 2028, and future years to maximize federal funding. The waiver application must |
|---|
| 873 | + | 27.3clearly state that operation of the Minnesota premium security plan is contingent on approval |
|---|
| 874 | + | 27.4of the waiver request and receipt of federal funding for the basic health program in an |
|---|
| 875 | + | 27.5amount that is no less than the amount that the basic health program otherwise would have |
|---|
| 876 | + | 27.6received absent the waiver. |
|---|
| 877 | + | 27.7 Subd. 2.Consultation.When developing the waiver application under this section, the |
|---|
| 878 | + | 27.8commissioner must consult with the commissioner of human services, the commissioner |
|---|
| 879 | + | 27.9of health, and the director of MNsure. |
|---|
| 880 | + | 27.10 Subd. 3.Notification.The commissioner must notify the chairs and ranking minority |
|---|
| 881 | + | 27.11members of the legislative committees with jurisdiction over health and human services |
|---|
| 882 | + | 27.12and insurance, and the board of directors of the Minnesota Comprehensive Health |
|---|
| 883 | + | 27.13Association, regarding (1) the commissioner's intent to submit a waiver application, and |
|---|
| 884 | + | 27.14(2) federal action taken with respect to the waiver request. |
|---|
| 885 | + | 27.15 Subd. 4.Waiver denial; plan implementation prohibition.If the state innovation |
|---|
| 886 | + | 27.16waiver request submitted under subdivision 1 is not approved or if the federal funding for |
|---|
| 887 | + | 27.17the basic health program is less than the amount that the basic health program otherwise |
|---|
| 888 | + | 27.18would have received absent the waiver, the association is prohibited from administering the |
|---|
| 889 | + | 27.19plan and providing reinsurance payments to eligible health carriers. |
|---|
| 890 | + | 27.20 ARTICLE 6 |
|---|
| 891 | + | 27.21 ENERGY POLICY |
|---|
| 892 | + | 27.22Section 1. Minnesota Statutes 2024, section 116C.7792, is amended to read: |
|---|
| 893 | + | 27.23 116C.7792 SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM. |
|---|
| 894 | + | 27.24 (a) The utility subject to section 116C.779 shall operate a program to provide solar |
|---|
| 895 | + | 27.25energy production incentives for solar energy systems of no more than a total aggregate |
|---|
| 896 | + | 27.26nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar |
|---|
| 897 | + | 27.27energy system installed before June 1, 2018, is eligible to receive a production incentive |
|---|
| 898 | + | 27.28under this section for any additional solar energy systems constructed at the same customer |
|---|
| 899 | + | 27.29location, provided that the aggregate capacity of all systems at the customer location does |
|---|
| 900 | + | 27.30not exceed 40 kilowatts. |
|---|
| 901 | + | 27.31 (b) The program is funded by money withheld from transfer to the renewable development |
|---|
| 902 | + | 27.32account under section 116C.779, subdivision 1, paragraphs (b) and (e). Program funds must |
|---|
| 903 | + | 27Article 6 Section 1. |
|---|
| 904 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 28.1be placed in a separate account for the purpose of the solar energy production incentive |
|---|
| 905 | + | 28.2program operated by the utility and not for any other program or purpose. |
|---|
| 906 | + | 28.3 (c) Funds allocated to the solar energy production incentive program in 2019 and 2020 |
|---|
| 907 | + | 28.4remain available to the solar energy production incentive program. |
|---|
| 908 | + | 28.5 (d) The following amounts are allocated to the solar energy production incentive program: |
|---|
| 909 | + | 28.6 (1) $10,000,000 in 2021; |
|---|
| 910 | + | 28.7 (2) $10,000,000 in 2022; |
|---|
| 911 | + | 28.8 (3) $5,000,000 in 2023; |
|---|
| 912 | + | 28.9 (4) $11,250,000 in 2024; |
|---|
| 913 | + | 28.10 (5) $6,250,000 in 2025; and |
|---|
| 914 | + | 28.11 (6) $5,000,000 each year, beginning in 2026 through 2035. |
|---|
| 915 | + | 28.12 (e) Notwithstanding the Department of Commerce's November 14, 2018, decision in |
|---|
| 916 | + | 28.13Docket No. E002/M-13-1015 regarding operation of the utility's solar energy production |
|---|
| 917 | + | 28.14incentive program, half of the amounts allocated each year under paragraph (d), clauses (3), |
|---|
| 918 | + | 28.15(4), and (5), and (6), must be reserved for solar energy systems whose installation meets |
|---|
| 919 | + | 28.16the eligibility standards for the low-income program established in the November 14, 2018, |
|---|
| 920 | + | 28.17decision or successor decisions of the department. All other program operations of the solar |
|---|
| 921 | + | 28.18energy production incentive program are governed by the provisions of the November 14, |
|---|
| 922 | + | 28.192018, decision or successor decisions of the department. |
|---|
| 923 | + | 28.20 (f) Funds allocated to the solar energy production incentive program that have not been |
|---|
| 924 | + | 28.21committed to a specific project at the end of a program year remain available to the solar |
|---|
| 925 | + | 28.22energy production incentive program. |
|---|
| 926 | + | 28.23 (g) Any unspent amount remaining on January 1, 2028 2038, must be transferred to the |
|---|
| 927 | + | 28.24renewable development account. |
|---|
| 928 | + | 28.25 (h) A solar energy system receiving a production incentive under this section must be |
|---|
| 929 | + | 28.26sized to less than 120 percent of the customer's on-site annual energy consumption when |
|---|
| 930 | + | 28.27combined with other distributed generation resources and subscriptions provided under |
|---|
| 931 | + | 28.28section 216B.1641 associated with the premise. The production incentive must be paid for |
|---|
| 932 | + | 28.29ten years commencing with the commissioning of the system. |
|---|
| 933 | + | 28.30 (i) The utility must file a plan to operate the program with the commissioner of commerce. |
|---|
| 934 | + | 28.31The utility may not operate the program until it is approved by the commissioner. A change |
|---|
| 935 | + | 28.32to the program to include projects up to a nameplate capacity of 40 kilowatts or less does |
|---|
| 936 | + | 28Article 6 Section 1. |
|---|
| 937 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 29.1not require the utility to file a plan with the commissioner. Any plan approved by the |
|---|
| 938 | + | 29.2commissioner of commerce must not provide an increased incentive scale over prior years |
|---|
| 939 | + | 29.3unless the commissioner demonstrates that changes in the market for solar energy facilities |
|---|
| 940 | + | 29.4require an increase. |
|---|
| 941 | + | 29.5 Sec. 2. Minnesota Statutes 2024, section 216C.09, is amended to read: |
|---|
| 942 | + | 29.6 216C.09 COMMISSIONER DUTIES. |
|---|
| 943 | + | 29.7 (a) The commissioner shall: |
|---|
| 944 | + | 29.8 (1) manage the department as the central repository within the state government for the |
|---|
| 945 | + | 29.9collection of data on energy; |
|---|
| 946 | + | 29.10 (2) prepare and adopt an emergency allocation plan specifying actions to be taken in the |
|---|
| 947 | + | 29.11event of an impending serious shortage of energy, or a threat to public health, safety, or |
|---|
| 948 | + | 29.12welfare; |
|---|
| 949 | + | 29.13 (3) undertake a continuing assessment of trends in the consumption of all forms of energy |
|---|
| 950 | + | 29.14and analyze the social, economic, and environmental consequences of these trends; |
|---|
| 951 | + | 29.15 (4) carry out energy conservation and efficiency measures as specified by the legislature |
|---|
| 952 | + | 29.16and recommend to the governor and the legislature additional energy policies and energy |
|---|
| 953 | + | 29.17conservation measures and efficiency programming as required to meet the objectives of |
|---|
| 954 | + | 29.18this chapter; |
|---|
| 955 | + | 29.19 (5) collect and analyze data relating to present and future demands and resources for all |
|---|
| 956 | + | 29.20sources of energy; |
|---|
| 957 | + | 29.21 (6) evaluate policies governing the establishment of rates and prices for energy as related |
|---|
| 958 | + | 29.22to energy conservation and energy efficiency, and other goals and policies of this chapter, |
|---|
| 959 | + | 29.23and make recommendations for changes in energy pricing policies and rate schedules; |
|---|
| 960 | + | 29.24 (7) study the impact and relationship of the state energy policies to international, national, |
|---|
| 961 | + | 29.25and regional energy policies; |
|---|
| 962 | + | 29.26 (8) design and implement a state program for the energy conservation of energy and |
|---|
| 963 | + | 29.27efficiency; this the program shall must include but is not be limited to, general commercial, |
|---|
| 964 | + | 29.28industrial, and residential, and transportation areas; such the program shall must also provide |
|---|
| 965 | + | 29.29for the evaluation of energy systems as they relate to lighting, heating, refrigeration, air |
|---|
| 966 | + | 29.30conditioning, building design and operation, and appliance manufacturing and operation; |
|---|
| 967 | + | 29Article 6 Sec. 2. |
|---|
| 968 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 30.1 (9) inform and educate the public about the sources and uses of energy and the ways in |
|---|
| 969 | + | 30.2which persons Minnesotans can transition to a clean energy future, conserve energy, and |
|---|
| 970 | + | 30.3save money; |
|---|
| 971 | + | 30.4 (10) dispense funds made available for the purpose of research studies and projects of |
|---|
| 972 | + | 30.5professional and civic orientation, which are related to either energy conservation, resource |
|---|
| 973 | + | 30.6recovery, or the development of alternative energy technologies which conserve |
|---|
| 974 | + | 30.7nonrenewable energy resources while creating minimum environmental impact; |
|---|
| 975 | + | 30.8 (11) charge other governmental departments and agencies involved in energy-related |
|---|
| 976 | + | 30.9activities with specific information gathering goals and require that those goals be met; |
|---|
| 977 | + | 30.10 (12) design a comprehensive program for the development of indigenous energy |
|---|
| 978 | + | 30.11resources. The program shall include, but not be limited to, providing technical, |
|---|
| 979 | + | 30.12informational, educational, and financial services and materials to persons, businesses, |
|---|
| 980 | + | 30.13municipalities, and organizations involved in the development of primary and emerging |
|---|
| 981 | + | 30.14energy sources, including but not limited to solar, wind, hydropower, peat, fiber fuels, |
|---|
| 982 | + | 30.15biomass, and other alternative energy resources. The program shall be evaluated by the |
|---|
| 983 | + | 30.16alternative energy technical activity; and |
|---|
| 984 | + | 30.17 (13) dispense loans, grants, or other financial aid resources from money received from |
|---|
| 985 | + | 30.18litigation or a settlement of alleged violations of federal petroleum-pricing regulations made |
|---|
| 986 | + | 30.19available to the department for that purpose. |
|---|
| 987 | + | 30.20 (b) Further, the commissioner may participate fully in hearings before the Public Utilities |
|---|
| 988 | + | 30.21Commission on matters pertaining to rate design, cost allocation, efficient resource utilization, |
|---|
| 989 | + | 30.22utility conservation investments, small power production, cogeneration, and other rate issues. |
|---|
| 990 | + | 30.23The commissioner shall support the policies stated in section 216C.05 and shall prepare |
|---|
| 991 | + | 30.24and defend testimony proposed to encourage energy conservation improvements as defined |
|---|
| 992 | + | 30.25in section 216B.241. |
|---|
| 993 | + | 30.26Sec. 3. Minnesota Statutes 2024, section 216C.10, is amended to read: |
|---|
| 994 | + | 30.27 216C.10 COMMISSIONER POWERS. |
|---|
| 995 | + | 30.28 (a) The commissioner may: |
|---|
| 996 | + | 30.29 (1) adopt rules under chapter 14 as necessary to carry out the purposes of this chapter; |
|---|
| 997 | + | 30.30 (2) make all contracts under this chapter and do all things necessary to cooperate with |
|---|
| 998 | + | 30.31the United States government, and to qualify for, accept, and disburse any grant intended |
|---|
| 999 | + | 30.32to administer this chapter; |
|---|
| 1000 | + | 30Article 6 Sec. 3. |
|---|
| 1001 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 31.1 (3) provide on-site technical assistance to units of local government in order to enhance |
|---|
| 1002 | + | 31.2local capabilities for dealing with energy problems to provide energy-related financial |
|---|
| 1003 | + | 31.3resources, planning, outreach, and engagement; |
|---|
| 1004 | + | 31.4 (4) administer for the state, energy programs under federal law, regulations, or guidelines, |
|---|
| 1005 | + | 31.5and coordinate the programs and activities with other state agencies, units of local |
|---|
| 1006 | + | 31.6government, and educational institutions; |
|---|
| 1007 | + | 31.7 (5) develop a state energy investment plan with yearly energy conservation and alternative |
|---|
| 1008 | + | 31.8energy development goals, investment targets, and marketing strategies; |
|---|
| 1009 | + | 31.9 (6) perform market analysis studies relating to conservation, alternative and renewable |
|---|
| 1010 | + | 31.10energy resources, and energy recovery; |
|---|
| 1011 | + | 31.11 (7) assist with the preparation of proposals for innovative conservation, renewable, |
|---|
| 1012 | + | 31.12alternative, or energy recovery projects; |
|---|
| 1013 | + | 31.13 (8) manage and disburse funds made available for the purpose of research studies or |
|---|
| 1014 | + | 31.14demonstration projects related to energy conservation or other activities deemed appropriate |
|---|
| 1015 | + | 31.15by the commissioner; |
|---|
| 1016 | + | 31.16 (9) intervene in certificate of need proceedings before the Public Utilities Commission; |
|---|
| 1017 | + | 31.17 (10) collect fees from recipients of loans, grants, or other financial aid from money |
|---|
| 1018 | + | 31.18received from litigation or settlement of alleged violations of federal petroleum-pricing |
|---|
| 1019 | + | 31.19regulations, which fees must be used to pay the department's costs in administering those |
|---|
| 1020 | + | 31.20financial aids; and |
|---|
| 1021 | + | 31.21 (11) collect fees from proposers and operators of conservation and other energy-related |
|---|
| 1022 | + | 31.22programs that are reviewed, evaluated, or approved by the department, other than proposers |
|---|
| 1023 | + | 31.23that are political subdivisions or community or nonprofit organizations, to cover the |
|---|
| 1024 | + | 31.24department's cost in making the reviewal, evaluation, or approval and in developing additional |
|---|
| 1025 | + | 31.25programs for others to operate. |
|---|
| 1026 | + | 31.26 (b) Notwithstanding any other law, the commissioner is designated the state agent to |
|---|
| 1027 | + | 31.27apply for, receive, and accept federal or other funds made available to the state for the |
|---|
| 1028 | + | 31.28purposes of this chapter. |
|---|
| 1029 | + | 31.29Sec. 4. Minnesota Statutes 2024, section 216C.11, is amended to read: |
|---|
| 1030 | + | 31.30 216C.11 ENERGY CONSERVATION INFORMATION CENTER. |
|---|
| 1031 | + | 31.31 (a) The commissioner shall must establish an Energy Information Center in the |
|---|
| 1032 | + | 31.32department's offices in St. Paul department. The information center shall must maintain a |
|---|
| 1033 | + | 31Article 6 Sec. 4. |
|---|
| 1034 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 32.1toll-free telephone information service and disseminate printed materials on energy |
|---|
| 1035 | + | 32.2conservation topics, including but not limited to, availability of loans and other public and |
|---|
| 1036 | + | 32.3private financing methods for energy conservation physical improvements, the techniques |
|---|
| 1037 | + | 32.4and materials used to conserve energy in buildings, including retrofitting or upgrading |
|---|
| 1038 | + | 32.5insulation and installing weatherstripping, the projected prices and availability of different |
|---|
| 1039 | + | 32.6sources of energy, and alternative sources of energy physical, virtual, and mobile information |
|---|
| 1040 | + | 32.7service that collects, analyzes, and disseminates energy resources, data, technical assistance |
|---|
| 1041 | + | 32.8and expertise, financial assistance, connections, and information on a variety of energy |
|---|
| 1042 | + | 32.9topics relevant to Minnesota consumers, businesses, Tribal and local governments, and |
|---|
| 1043 | + | 32.10community organizations. The information center must be accessible and responsive to |
|---|
| 1044 | + | 32.11public inquiries, and must conduct proactive outreach. |
|---|
| 1045 | + | 32.12 The Energy Information Center shall serve as the official Minnesota Alcohol Fuels |
|---|
| 1046 | + | 32.13Information Center and shall disseminate information, printed, by the toll-free telephone |
|---|
| 1047 | + | 32.14information service, or otherwise on the applicability and technology of alcohol fuels. |
|---|
| 1048 | + | 32.15 The information center shall include information on the potential hazards of energy |
|---|
| 1049 | + | 32.16conservation techniques and improvements in the printed materials disseminated. The |
|---|
| 1050 | + | 32.17commissioner shall not be liable for damages arising from the installation or operation of |
|---|
| 1051 | + | 32.18equipment or materials recommended by the information center. |
|---|
| 1052 | + | 32.19 (b) The information center shall must use the information collected under section |
|---|
| 1053 | + | 32.20216C.02, subdivision 1, to maintain a central source of information on energy conservation, |
|---|
| 1054 | + | 32.21energy efficiency, and other energy-related programs, including both programs required by |
|---|
| 1055 | + | 32.22law or rule and programs developed and carried on voluntarily. |
|---|
| 1056 | + | 32.23Sec. 5. Minnesota Statutes 2024, section 216C.12, is amended to read: |
|---|
| 1057 | + | 32.24 216C.12 ENERGY CONSERVATION PUBLICITY LITERACY. |
|---|
| 1058 | + | 32.25 (a) The commissioner, in consultation with other affected agencies or departments shall, |
|---|
| 1059 | + | 32.26must develop informational materials, pamphlets and radio and television messages and |
|---|
| 1060 | + | 32.27messaging on energy conservation and housing energy efficiency programs available in |
|---|
| 1061 | + | 32.28Minnesota, renewable energy resources, and energy supply and demand. The printed materials |
|---|
| 1062 | + | 32.29shall include information on available tax credits for residential energy conservation |
|---|
| 1063 | + | 32.30measures, residential retrofitting loan and grant programs, and data on the economics of |
|---|
| 1064 | + | 32.31energy conservation and renewable resource measures. Copies of printed materials shall be |
|---|
| 1065 | + | 32.32distributed to members of the appropriate standing committees of the legislature. The |
|---|
| 1066 | + | 32.33commissioner must use modern and current outreach strategies and media to distribute the |
|---|
| 1067 | + | 32.34informational materials and messaging to the widest possible audience. |
|---|
| 1068 | + | 32Article 6 Sec. 5. |
|---|
| 1069 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 33.1 (b) The informational materials must promote energy literacy for individuals and |
|---|
| 1070 | + | 33.2communities to help individuals and communities make informed decisions on topics ranging |
|---|
| 1071 | + | 33.3from smart energy use at home and consumer choices to national and international energy |
|---|
| 1072 | + | 33.4policy. The informational materials must include but are not limited to information on energy |
|---|
| 1073 | + | 33.5sources, energy generation, energy use, energy conservation strategies, the energy workforce |
|---|
| 1074 | + | 33.6sector, and state and federal energy-related programs administered by the department. |
|---|
| 1075 | + | 33.7 Sec. 6. Minnesota Statutes 2024, section 216C.391, subdivision 1, is amended to read: |
|---|
| 1076 | + | 33.8 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have |
|---|
| 1077 | + | 33.9the meanings given. |
|---|
| 1078 | + | 33.10 (b) "Competitive funds" means federal funds awarded to selected applicants based on |
|---|
| 1079 | + | 33.11the grantor's evaluation of the strength of an application measured against all other |
|---|
| 1080 | + | 33.12applications. |
|---|
| 1081 | + | 33.13 (c) "Disadvantaged community" has the meaning given by the federal agency disbursing |
|---|
| 1082 | + | 33.14federal funds. |
|---|
| 1083 | + | 33.15 (d) "Eligible entity" means an entity located in Minnesota that is eligible to receive |
|---|
| 1084 | + | 33.16federal funds, tax credits, loans, or an entity that has at least one Minnesota-based partner, |
|---|
| 1085 | + | 33.17as determined by the grantor of the federal funds, tax credits, or loans. |
|---|
| 1086 | + | 33.18 (e) "Federal funds" means federal formula or competitive funds available for award to |
|---|
| 1087 | + | 33.19applicants for energy projects under the Infrastructure Investment and Jobs Act, Public Law |
|---|
| 1088 | + | 33.20117-58, or the Inflation Reduction Act of 2022, Public Law 117-169. |
|---|
| 1089 | + | 33.21 (f) "Formula funds" means federal funds awarded to all eligible applicants on a |
|---|
| 1090 | + | 33.22noncompetitive basis. |
|---|
| 1091 | + | 33.23 (g) "Loans" means federal loans from loan funds authorized or funded in the Inflation |
|---|
| 1092 | + | 33.24Reduction Act of 2022, Public Law 117-169. |
|---|
| 1093 | + | 33.25 (h) "Match" means the amount of state nonfederal money a successful grantee in |
|---|
| 1094 | + | 33.26Minnesota is required to contribute to a project as a condition of receiving federal funds. |
|---|
| 1095 | + | 33.27 (i) "Political subdivision" has the meaning given in section 331A.01, subdivision 3. |
|---|
| 1096 | + | 33.28 (j) "Project" means the activities proposed to be undertaken by an eligible entity awarded |
|---|
| 1097 | + | 33.29federal funds and are located in Minnesota or will directly benefit Minnesotans. |
|---|
| 1098 | + | 33.30 (k) "Tax credits" means federal tax credits authorized in the Inflation Reduction Act of |
|---|
| 1099 | + | 33.312022, Public Law 117-169. |
|---|
| 1100 | + | 33Article 6 Sec. 6. |
|---|
| 1101 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 34.1 (l) "Tribal government" has the meaning given in section 116J.64, subdivision 4. |
|---|
| 1102 | + | 34.2 Sec. 7. Minnesota Statutes 2024, section 216C.391, subdivision 3, is amended to read: |
|---|
| 1103 | + | 34.3 Subd. 3.Grant awards; eligible entities; priorities.(a) Grants may be awarded under |
|---|
| 1104 | + | 34.4this section to eligible entities in accordance with the following order of priorities: |
|---|
| 1105 | + | 34.5 (1) federal formula funds directed to the state that require a match; |
|---|
| 1106 | + | 34.6 (2) federal funds directed to a political subdivision or a Tribal government that require |
|---|
| 1107 | + | 34.7a match; |
|---|
| 1108 | + | 34.8 (3) federal funds directed to an institution of higher education, a consumer-owned utility, |
|---|
| 1109 | + | 34.9a business, or a nonprofit organization that require a match; |
|---|
| 1110 | + | 34.10 (4) federal funds directed to investor-owned utilities that require a match; |
|---|
| 1111 | + | 34.11 (5) federal funds directed to an eligible entity not included in clauses (1) to (4) that |
|---|
| 1112 | + | 34.12require a match; and |
|---|
| 1113 | + | 34.13 (6) all other grant opportunities directed to eligible entities that do not require a match |
|---|
| 1114 | + | 34.14but for which the commissioner determines that a grant made under this section is likely to |
|---|
| 1115 | + | 34.15enhance the likelihood of an applicant receiving federal funds, or to increase the potential |
|---|
| 1116 | + | 34.16amount of federal funds received. |
|---|
| 1117 | + | 34.17 (b) By November 15, 2023, the commissioner must develop and publicly post, and report |
|---|
| 1118 | + | 34.18to the chairs and ranking minority members of the legislative committees with jurisdiction |
|---|
| 1119 | + | 34.19over energy finance, the federal energy grant funds that are eligible for state matching funds |
|---|
| 1120 | + | 34.20under this section. |
|---|
| 1121 | + | 34.21 (c) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 5, paragraph (b), |
|---|
| 1122 | + | 34.22a grant made under this section may exceed five years. |
|---|
| 1123 | + | 34.23 ARTICLE 7 |
|---|
| 1124 | + | 34.24 WEIGHTS & MEASURES POLICY |
|---|
| 1125 | + | 34.25Section 1. [239.90] RETAIL ELECTRIC VEHICLE SUPPLY EQUIPMENT. |
|---|
| 1126 | + | 34.26 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have |
|---|
| 1127 | + | 34.27the meanings given. |
|---|
| 1128 | + | 34.28 (b) "Electric vehicle supply equipment" or "EVSE" means a conductor, including an |
|---|
| 1129 | + | 34.29ungrounded, grounded, and equipment grounding conductor, electric vehicle connector, |
|---|
| 1130 | + | 34.30attachment plug, and other fitting, device, power outlet, or apparatus installed specifically |
|---|
| 1131 | + | 34Article 7 Section 1. |
|---|
| 1132 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 35.1to measure, deliver, and compute the price of electrical energy delivered to an electric |
|---|
| 1133 | + | 35.2vehicle. |
|---|
| 1134 | + | 35.3 (c) "Electricity sold as vehicle fuel" means electrical energy transferred to or stored |
|---|
| 1135 | + | 35.4onboard an electric vehicle primarily to propel the electric vehicle. |
|---|
| 1136 | + | 35.5 (d) "Fixed service" means a service that continuously provides the nominal power that |
|---|
| 1137 | + | 35.6is possible with the equipment as installed. |
|---|
| 1138 | + | 35.7 (e) "Nominal power" means the intended, named, or stated, as opposed to the actual, |
|---|
| 1139 | + | 35.8rate of electrical energy transfer. |
|---|
| 1140 | + | 35.9 (f) "Variable service" means a service that may be controlled, resulting in periods of |
|---|
| 1141 | + | 35.10reduced or interrupted transfer of electrical energy. |
|---|
| 1142 | + | 35.11 Subd. 2.Inspection; fees.The director must inspect a retail EVSE annually or as often |
|---|
| 1143 | + | 35.12as is possible given budgetary and staffing limitations. The director must charge an EVSE |
|---|
| 1144 | + | 35.13owner a $100 fee to inspect and test each EVSE charging port. |
|---|
| 1145 | + | 35.14 Subd. 3.EVSE program account; appropriation.An EVSE program account is created |
|---|
| 1146 | + | 35.15in the special revenue fund of the state treasury. The commissioner must credit to the account |
|---|
| 1147 | + | 35.16fees collected from inspections under this section and appropriations and transfers made to |
|---|
| 1148 | + | 35.17the account. Earnings, including interest, dividends, and any other earnings arising from |
|---|
| 1149 | + | 35.18assets of the account, must be credited to the account. Money in the account is appropriated |
|---|
| 1150 | + | 35.19to the commissioner to pay for operations of the EVSE program. |
|---|
| 1151 | + | 35.20 Subd. 4.Method of sale.(a) Electrical energy kept, offered, or exposed for sale and |
|---|
| 1152 | + | 35.21sold at retail as a vehicle fuel must be expressed in kilowatt-hour units. |
|---|
| 1153 | + | 35.22 (b) In addition to the price per kilowatt-hour for the quantity of electrical energy sold, |
|---|
| 1154 | + | 35.23a fee may be assessed for other services. A fee assessed for another service may be a fixed |
|---|
| 1155 | + | 35.24fee or may be based on time measurement. |
|---|
| 1156 | + | 35.25 Subd. 5.Labeling.(a) A computing EVSE must display the unit price in whole cents |
|---|
| 1157 | + | 35.26or tenths of one cent, based on the price per kilowatt-hour. If the electrical energy is unlimited |
|---|
| 1158 | + | 35.27or free of charge, the computing EVSE must clearly indicate that the electrical energy is |
|---|
| 1159 | + | 35.28unlimited or free of charge in lieu of the unit price. |
|---|
| 1160 | + | 35.29 (b) For a fixed service application, the following information must be conspicuously |
|---|
| 1161 | + | 35.30displayed or posted on the face of the device: |
|---|
| 1162 | + | 35.31 (1) the level of electric vehicle service, expressed as the nominal power transfer; and |
|---|
| 1163 | + | 35.32 (2) the type of electrical energy transfer. |
|---|
| 1164 | + | 35Article 7 Section 1. |
|---|
| 1165 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 36.1 (c) If a fee is assessed for other services in direct connection with fueling the vehicle, |
|---|
| 1166 | + | 36.2including but not limited to a fee based on time measurement or a fixed fee, the additional |
|---|
| 1167 | + | 36.3fee must be displayed. |
|---|
| 1168 | + | 36.4 (d) An EVSE must be labeled in a manner that complies with Federal Trade |
|---|
| 1169 | + | 36.5Commissioner labeling requirements for alternative fuels and alternative fueled vehicles, |
|---|
| 1170 | + | 36.6Code of Federal Regulations, title 16, part 309. |
|---|
| 1171 | + | 36.7 (e) An EVSE must be listed and labeled in a manner that complies with the National |
|---|
| 1172 | + | 36.8Electric Code NFPA 70, Article 625, Electric Vehicle Charging Systems. |
|---|
| 1173 | + | 36.9 Subd. 6.Advertising; sign prices.(a) When a sign or device is used to advertise the |
|---|
| 1174 | + | 36.10price of electricity to fuel a vehicle, the price for electrical energy must be expressed in |
|---|
| 1175 | + | 36.11price per kilowatt-hour, in whole cents or tenths of one cent. If the electrical energy is |
|---|
| 1176 | + | 36.12unlimited or free of charge, advertising or sign must clearly indicate that the electrical energy |
|---|
| 1177 | + | 36.13is unlimited or free of charge in lieu of the unit price. |
|---|
| 1178 | + | 36.14 (b) If more than one electrical energy unit price may apply over the duration of a single |
|---|
| 1179 | + | 36.15transaction or sale to the general public, the terms and conditions that determine each unit |
|---|
| 1180 | + | 36.16price and the times each unit price apply must be clearly displayed. |
|---|
| 1181 | + | 36.17 (c) For a fixed service application, the following information must be conspicuously |
|---|
| 1182 | + | 36.18displayed or posted: |
|---|
| 1183 | + | 36.19 (1) the level of electric vehicle service, expressed as the nominal power transfer; and |
|---|
| 1184 | + | 36.20 (2) the type of electrical energy transfer. |
|---|
| 1185 | + | 36.21 (d) For a variable service application, the following information must be conspicuously |
|---|
| 1186 | + | 36.22displayed or posted: |
|---|
| 1187 | + | 36.23 (1) the type of delivery; |
|---|
| 1188 | + | 36.24 (2) the minimum and maximum power transfer that may occur during a transaction, |
|---|
| 1189 | + | 36.25including whether service may be reduced to zero; |
|---|
| 1190 | + | 36.26 (3) the conditions under which a variation in electrical energy transfer occurs; and |
|---|
| 1191 | + | 36.27 (4) the type of electrical energy transfer. |
|---|
| 1192 | + | 36.28 (e) If a fee is assessed for other services in direct connection with the fueling of the |
|---|
| 1193 | + | 36.29vehicle, including but not limited to a fee based on time measurement or a fixed fee, the |
|---|
| 1194 | + | 36.30additional fee must be included on all street signs or other advertising. |
|---|
| 1195 | + | 36Article 7 Section 1. |
|---|
| 1196 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 37.1 Subd. 7.Administrative rulemaking.For purposes of this section, the commissioner |
|---|
| 1197 | + | 37.2may use the expedited rulemaking process under section 14.389 to adopt administrative |
|---|
| 1198 | + | 37.3rules that incorporate the 2025 version of NIST Handbook 44 into Minnesota Rules, chapter |
|---|
| 1199 | + | 37.47601. |
|---|
| 1200 | + | 37.5 ARTICLE 8 |
|---|
| 1201 | + | 37.6 CANNABIS POLICY |
|---|
| 1202 | + | 37.7 Section 1. Minnesota Statutes 2024, section 342.17, is amended to read: |
|---|
| 1203 | + | 37.8 342.17 SOCIAL EQUITY APPLICANTS. |
|---|
| 1204 | + | 37.9 (a) An applicant qualifies as a social equity applicant if the applicant: |
|---|
| 1205 | + | 37.10 (1) was convicted of, received a stay of adjudication under chapter 609 for, or was |
|---|
| 1206 | + | 37.11adjudicated delinquent under chapter 260B of an offense involving the possession or sale |
|---|
| 1207 | + | 37.12of cannabis or marijuana prior to May 1, 2023; |
|---|
| 1208 | + | 37.13 (2) had a parent, guardian, child, spouse, or dependent who was convicted of an offense |
|---|
| 1209 | + | 37.14involving the possession or sale of cannabis or marijuana prior to May 1, 2023; |
|---|
| 1210 | + | 37.15 (3) was a dependent of an individual who was convicted of an offense involving the |
|---|
| 1211 | + | 37.16possession or sale of cannabis or marijuana prior to May 1, 2023; |
|---|
| 1212 | + | 37.17 (4) is a military veteran, including a service-disabled veteran, current or former member |
|---|
| 1213 | + | 37.18of the national guard; |
|---|
| 1214 | + | 37.19 (5) is a military veteran or current or former member of the national guard who lost |
|---|
| 1215 | + | 37.20honorable status due to an offense involving the possession or sale of cannabis or marijuana; |
|---|
| 1216 | + | 37.21 (6) has been a resident for the last five years of one or more subareas, such as census |
|---|
| 1217 | + | 37.22tracts or neighborhoods: |
|---|
| 1218 | + | 37.23 (i) that experienced a disproportionately large amount of cannabis enforcement as |
|---|
| 1219 | + | 37.24determined by the study conducted by the office pursuant to section 342.04, paragraph (b), |
|---|
| 1220 | + | 37.25or another report based on federal or state data on arrests or convictions; |
|---|
| 1221 | + | 37.26 (ii) where the poverty rate was 20 percent or more; |
|---|
| 1222 | + | 37.27 (iii) where the median family income did not exceed 80 percent of the statewide median |
|---|
| 1223 | + | 37.28family income or, if in a metropolitan area, did not exceed the greater of 80 percent of the |
|---|
| 1224 | + | 37.29statewide median family income or 80 percent of the median family income for that |
|---|
| 1225 | + | 37.30metropolitan area; |
|---|
| 1226 | + | 37Article 8 Section 1. |
|---|
| 1227 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 38.1 (iv) where at least 20 percent of the households receive assistance through the |
|---|
| 1228 | + | 38.2Supplemental Nutrition Assistance Program; or |
|---|
| 1229 | + | 38.3 (v) where the population has a high level of vulnerability according to the Centers for |
|---|
| 1230 | + | 38.4Disease Control and Prevention and Agency for Toxic Substances and Disease Registry |
|---|
| 1231 | + | 38.5(CDC/ATSDR) Social Vulnerability Index; or |
|---|
| 1232 | + | 38.6 (7) has participated in the business operation of a farm for at least three years and |
|---|
| 1233 | + | 38.7currently provides the majority of the day-to-day physical labor and management of a farm |
|---|
| 1234 | + | 38.8that had gross farm sales of at least $5,000 but not more than $100,000 in the previous year. |
|---|
| 1235 | + | 38.9 (b) The qualifications described in paragraph (a) apply to each individual applicant or, |
|---|
| 1236 | + | 38.10in the case of a business entity, apply to at least 65 percent of the controlling ownership of |
|---|
| 1237 | + | 38.11the business entity. |
|---|
| 1238 | + | 38.12Sec. 2. Minnesota Statutes 2024, section 342.37, is amended by adding a subdivision to |
|---|
| 1239 | + | 38.13read: |
|---|
| 1240 | + | 38.14 Subd. 2a.Cannabis testing facility licenses.(a) Pending an applicant's accreditation |
|---|
| 1241 | + | 38.15by a laboratory accrediting organization approved by the office, the office may issue or |
|---|
| 1242 | + | 38.16renew a cannabis testing facility license for an applicant that is a person, cooperative, or |
|---|
| 1243 | + | 38.17business if the applicant: |
|---|
| 1244 | + | 38.18 (1) submits documentation to the office demonstrating that the applicant has a signed |
|---|
| 1245 | + | 38.19contract with a laboratory accreditation organization approved by the office, has scheduled |
|---|
| 1246 | + | 38.20an audit, and is making progress toward accreditation by a laboratory accrediting organization |
|---|
| 1247 | + | 38.21approved by the office according to the standards of the most recent edition of ISO/IEC |
|---|
| 1248 | + | 38.2217025: General Requirements for the Competence of Testing and Calibration Laboratories; |
|---|
| 1249 | + | 38.23 (2) passes a final site inspection conducted by the office; and |
|---|
| 1250 | + | 38.24 (3) meets all other licensing requirements according to chapter 342 and Minnesota Rules. |
|---|
| 1251 | + | 38.25 (b) After receiving a license under this section, a license holder may operate a cannabis |
|---|
| 1252 | + | 38.26testing facility up to one year with pending accreditation status. |
|---|
| 1253 | + | 38.27 (c) If, after one year, a license holder continues to have pending accreditation status, the |
|---|
| 1254 | + | 38.28license holder may apply for a onetime extension to continue operations for up to six months. |
|---|
| 1255 | + | 38.29The office may grant an extension under this paragraph to a license holder if the license |
|---|
| 1256 | + | 38.30holder: |
|---|
| 1257 | + | 38.31 (1) passes a follow-up site inspection conducted by the office; |
|---|
| 1258 | + | 38Article 8 Sec. 2. |
|---|
| 1259 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM 39.1 (2) submits an initial audit report from a laboratory accrediting organization approved |
|---|
| 1260 | + | 39.2by the office; and |
|---|
| 1261 | + | 39.3 (3) submits any additional information requested by the office. |
|---|
| 1262 | + | 39.4 (d) The office may revoke a cannabis testing facility license held by a license holder |
|---|
| 1263 | + | 39.5with pending accreditation status if the office determines or has reason to believe that the |
|---|
| 1264 | + | 39.6license holder: |
|---|
| 1265 | + | 39.7 (1) is not making progress toward accreditation; or |
|---|
| 1266 | + | 39.8 (2) has violated a cannabis testing requirement, an ownership requirement, or an |
|---|
| 1267 | + | 39.9operational requirement in chapter 342 or Minnesota Rules. |
|---|
| 1268 | + | 39.10 (e) The office must not issue or renew a cannabis testing facility license under this |
|---|
| 1269 | + | 39.11subdivision for a license holder if the license holder's accreditation has been suspended or |
|---|
| 1270 | + | 39.12revoked by a laboratory accrediting organization. |
|---|
| 1271 | + | 39.13Sec. 3. Minnesota Statutes 2024, section 342.37, is amended by adding a subdivision to |
|---|
| 1272 | + | 39.14read: |
|---|
| 1273 | + | 39.15 Subd. 2b.Loss of accreditation.(a) A license holder must report loss of accreditation |
|---|
| 1274 | + | 39.16to the office within 24 hours of receiving notice of the loss of accreditation. |
|---|
| 1275 | + | 39.17 (b) The office must immediately revoke a license holder's license upon receiving notice |
|---|
| 1276 | + | 39.18that the license holder has lost accreditation. |
|---|
| 1277 | + | 39Article 8 Sec. 3. |
|---|
| 1278 | + | 25-04463 as introduced02/27/25 REVISOR RSI/BM Page.Ln 1.17COMMERCE FINANCE.......................................................................ARTICLE 1 |
|---|
| 1279 | + | Page.Ln 7.10CLIMATE AND ENERGY FINANCE..................................................ARTICLE 2 |
|---|
| 1280 | + | Page.Ln 10.2RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS....ARTICLE 3 |
|---|
| 1281 | + | Page.Ln 11.25FINANCIAL INSTITUTIONS POLICY...............................................ARTICLE 4 |
|---|
| 1282 | + | Page.Ln 22.14MINNESOTA PREMIUM SECURITY PLAN.....................................ARTICLE 5 |
|---|
| 1283 | + | Page.Ln 27.20ENERGY POLICY.................................................................................ARTICLE 6 |
|---|
| 1284 | + | Page.Ln 34.23WEIGHTS & MEASURES POLICY....................................................ARTICLE 7 |
|---|
| 1285 | + | Page.Ln 37.5CANNABIS POLICY............................................................................ARTICLE 8 |
|---|