Bill Text: MN HF1193 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Municipalities and electric cooperative associations regulations amended with respect to energy conservation programs.
Spectrum: Slight Partisan Bill (Republican 10-4)
Status: (Introduced - Dead) 2012-02-22 - Author added Vogel [HF1193 Detail]
Download: Minnesota-2011-HF1193-Introduced.html
1.2relating to energy; amending regulations for municipalities and electric
1.3cooperative associations with respect to energy conservation programs;amending
1.4Minnesota Statutes 2010, section 216B.241, subdivisions 1b, 1c.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 216B.241, subdivision 1b, is amended to
1.7read:
1.8 Subd. 1b. Conservation improvement by cooperative association or
1.9municipality. (a) This subdivision applies to:
1.10 (1) a cooperative electric association that provides retail service to its members;
1.11 (2) a municipality that provides electric service to retail customers; and
1.12 (3) a municipality with more than 1,000,000,000 cubic feet in annual throughput
1.13sales to natural gas to retail customers.
1.14 (b) Each cooperative electric association and municipality subject to this subdivision
1.15shall spend and invest for energy conservation improvements under this subdivision
1.16the following amounts:
1.17 (1) for a municipality, 0.5 percent of its gross operating revenues from the sale of
1.18gas and 1.5 percent of its gross operating revenues from the sale of electricity, excluding
1.19gross operating revenues from electric and gas service provided in the state to large
1.20electric customer facilities; and
1.21 (2) for a cooperative electric association, 1.5 percent of its gross operating revenues
1.22from service provided in the state, excluding gross operating revenues from service
1.23provided in the state to large electric customer facilities indirectly through a distribution
1.24cooperative electric association.
2.1 (c) Each municipality and cooperative electric association subject to this subdivision:
2.2(1) shall make a good-faith effort to meet an annual energy-savings goal equivalent
2.3to 1.5 percent gross annual retail energy sales, although no municipality or cooperative
2.4association is required to spend more than the proportion of gross operating revenues cited
2.5in paragraph (b) to achieve the energy-savings goal;
2.6(2) may, if it experiences zero or negative growth in gross retail energy sales, be
2.7deemed to satisfy the energy-savings goal if it achieves savings equal to 0.75 percent of
2.8gross retail energy sales;
2.9(3) shall calculate the energy-savings goal based on weather-normalized average
2.10gross retail energy sales during the three most recent calendar years;
2.11(4) may elect to carry forward energy-savings in excess of 1.5 percent to apply to the
2.12energy-savings goal in subsequent years;
2.13(5) may use a particular energy savings only for one year's goal;
2.14(6) may apply towards its energy-savings goal energy saved from electric utility
2.15infrastructure projects as defined in section 216B.1636, provided that the projects result
2.16in increased efficiency greater than that which would have occurred through normal
2.17maintenance activity; and
2.18(7) may apply toward its energy-savings goal five kilowatt-hours per dollar spent,
2.19including labor and administrative costs, to educate customers about energy conservation
2.20and to educate and train utility employees, contractors, and others to perform energy
2.21audits, install conservation measures, and conduct other activities directly related to
2.22conservation investments.
2.23(d) Each municipality and cooperative electric association subject to this subdivision
2.24shall identify and implement energy conservation improvement spending and investments
2.25that are appropriate for the municipality or association, except that a municipality
2.26or association may not spend or invest for energy conservation improvements that
2.27directly benefit a large energy facility or a large electric customer facility for which
2.28the commissioner has issued an exemption under subdivision 1a, paragraph (b). A
2.29municipality or cooperative electric association whose annual gross retail energy sales
2.30increase by ten percent or more over the previous year as the result of the addition of a
2.31single new customer or increased demand from a singe existing customer may petition
2.32the commissioner to exclude those incremental sales from its energy-savings goal. If the
2.33commissioner approves the exclusion, the municipality or cooperative electric association
2.34may petition the commissioner annually to extend the exclusion, even if the incremental
2.35sales added by the customer no longer increase gross retail energy sales by ten percent
2.36or more over the previous year. The commissioner must approve the extension if the
3.1commissioner determines that the petition contains sufficient evidence to demonstrate
3.2that the customer whose sales are sought to be excluded continues to make reasonable
3.3efforts to identify, evaluate, and implement energy conservation improvements at the
3.4customer's facility.
3.5(e) A municipality and cooperative electric association subject to this subdivision
3.6is not required to make energy conservation investments to attain the energy-savings
3.7goal of this subdivision that are not cost-effective even if the investment is necessary
3.8to attain the energy-savings goal. For the purpose of this paragraph, in determining
3.9cost-effectiveness, the commissioner shall consider the costs and benefits to ratepayers,
3.10the cooperative electric association or municipality, participants, and society. In addition,
3.11the commissioner shall consider the rate at which a cooperative electric association or
3.12municipality is increasing its energy savings and its expenditures on energy conservation.
3.13(d) (f) Each municipality and cooperative electric association subject to this
3.14subdivision may spend and invest annually up to ten percent of the total amount required
3.15to be spent and invested on energy conservation improvements under this subdivision
3.16on research and development projects that meet the definition of energy conservation
3.17improvement in subdivision 1 and that are funded directly by the municipality or
3.18cooperative electric association.
3.19(e) (g) Load-management activities may be used to meet 50 percent of the
3.20conservation investment and spending requirements of this subdivision. The amount
3.21of energy a utility shifts from peak daily demand by implementing load-management
3.22activities may count for up to 50 percent of the energy-savings goal of a municipality or
3.23cooperative electric association.
3.24(f) (h) A generation and transmission cooperative electric association that provides
3.25energy services to cooperative electric associations that provide electric service at retail to
3.26consumers may invest in energy conservation improvements on behalf of the associations
3.27it serves and may fulfill the conservation, spending, reporting, and energy-savings goals on
3.28an aggregate basis. A municipal power agency or other not-for-profit entity that provides
3.29energy service to municipal utilities that provide electric service at retail may invest in
3.30energy conservation improvements on behalf of the municipal utilities it serves and may
3.31fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate
3.32basis, under an agreement between the municipal power agency or not-for-profit entity
3.33and each municipal utility for funding the investments.
3.34(g) (i) Each municipality or cooperative electric association shall file energy
3.35conservation improvement plans or a summary of the plans by June 1 on a schedule
3.36determined by order of the commissioner, but at least every three years. Plans or
4.1summaries received by June 1 must beapproved or approved as modified reviewed by the
4.2commissioner and the commissioner's comments must be submitted to the municipality
4.3or cooperative electric association by December 1 of the same year. The municipality or
4.4cooperative electric association shall provide an evaluation to the commissionerdetailing
4.5summarizing its energy conservation improvement spending and investments for the
4.6previous period. The evaluation must briefly describe each conservation program and must
4.7specify the energy savings or increased efficiency in the use of energy within the service
4.8territory of theutility municipality or cooperative electric association that is the result of
4.9the spending and investments. The evaluation must analyze the cost-effectiveness of the
4.10utility's municipality's or cooperative electric association's conservation programs, using a
4.11list of baseline energy and capacity savings assumptions developed in consultation with the
4.12department. The commissioner shall review each evaluation and make recommendations,
4.13where appropriate, to the municipality or cooperative electric association to increase the
4.14effectiveness of conservation improvement activities. In making recommendations, the
4.15commissioner may consider the municipality's or cooperative electric association's rate of
4.16conservation spending and energy savings, historical conservation investment experience,
4.17impact on rates of conservation spending and energy savings, customer class profile, load
4.18growth trends, conservation potential, customers' ability to pay, as well as local economic
4.19conditions, advancing technology, and other relevant factors.
4.20(h) (j) A municipality may spend up to 50 percent of its required spending under this
4.21section to refurbish an existing district heating or cooling system until July 1, 2007. From
4.22July 1, 2007, through June 30, 2011, expenditures made to refurbish a district heating or
4.23cooling system are considered to be load-management activities under paragraph(e) (g).
4.24This paragraph expires July 1, 2011.
4.25(i) (k) The commissioner shall consider and may require a utility, association, or
4.26other entity providing energy efficiency and conservation services under this section to
4.27undertake a program suggested by an outside source, including a political subdivision,
4.28nonprofit corporation, or community organization.
4.29 Sec. 2. Minnesota Statutes 2010, section 216B.241, subdivision 1c, is amended to read:
4.30 Subd. 1c. Energy-saving goals. (a) The commissioner shall establish energy-saving
4.31goals for energy conservation improvement expenditures and shall evaluate an energy
4.32conservation improvement program on how well it meets the goals set.
4.33 (b) Each individual public utilityand association shall have an annual energy-savings
4.34goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
4.35commissioner under paragraph (d). The savings goals must be calculated based on the
5.1most recent three-year weather-normalized average. A public utilityor association may
5.2elect to carry forward energy savings in excess of 1.5 percent for a year to the succeeding
5.3three calendar years, except that savings from electric utility infrastructure projects
5.4allowed under paragraph (d) may be carried forward for five years. A particular energy
5.5savings can be used only for one year's goal.
5.6 (c) The commissioner must adopt a filing schedule that is designed to have all
5.7utilities and associations operating under an energy-savings plan by calendar year 2010.
5.8 (d) In its energy conservation improvement plan filing, a public utilityor association
5.9may request the commissioner to adjust its annual energy-savings percentage goal based
5.10on its historical conservation investment experience, customer class makeup, load growth,
5.11a conservation potential study, or other factors the commissioner determines warrants
5.12an adjustment. The commissioner may not approve a plan that provides for an annual
5.13energy-savings goal of less than one percent of gross annual retail energy sales from
5.14energy conservation improvements.
5.15 A public utilityor association may include in its energy conservation plan energy
5.16savings from electric utility infrastructure projects approved by the commission under
5.17section216B.1636 or waste heat recovery converted into electricity projects that may
5.18count as energy savings in addition to the minimum energy-savings goal of at least one
5.19percent for energy conservation improvements. Electric utility infrastructure projects
5.20must result in increased energy efficiency greater than that which would have occurred
5.21through normal maintenance activity.
5.22 (e) An energy-savings goal is not satisfied by attaining the revenue expenditure
5.23requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
5.24energy-savings goal established in this subdivision.
5.25 (f)An association or A public utility is not required to make energy conservation
5.26investments to attain the energy-savings goals of this subdivision that are not cost-effective
5.27even if the investment is necessary to attain the energy-savings goals. For the purpose
5.28of this paragraph, in determining cost-effectiveness, the commissioner shall consider
5.29the costs and benefits to ratepayers, the utility, participants, and society.In addition,
5.30the commissioner shall consider the rate at which an association or municipal utility is
5.31increasing its energy savings and its expenditures on energy conservation.
5.32 (g) On an annual basis, the commissioner shall produce and make publicly available
5.33a report on the annual energy savings and estimated carbon dioxide reductions achieved
5.34by the energy conservation improvement programs for the two most recent years for
5.35which data is available. The commissioner shall report on program performance both in
6.1the aggregate and for each entity filing an energy conservation improvement plan for
6.2approval or review by the commissioner.
6.3 (h) By January 15, 2010, the commissioner shall report to the legislature whether
6.4the spending requirements under subdivisions 1a and 1b are necessary to achieve the
6.5energy-savings goals established in this subdivision.
6.6 Sec. 3. EFFECTIVE DATE.
6.7Sections 1 and 2 are effective the day following final enactment.
1.3cooperative associations with respect to energy conservation programs;amending
1.4Minnesota Statutes 2010, section 216B.241, subdivisions 1b, 1c.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 216B.241, subdivision 1b, is amended to
1.7read:
1.8 Subd. 1b. Conservation improvement by cooperative association or
1.9municipality. (a) This subdivision applies to:
1.10 (1) a cooperative electric association that provides retail service to its members;
1.11 (2) a municipality that provides electric service to retail customers; and
1.12 (3) a municipality with more than 1,000,000,000 cubic feet in annual throughput
1.13sales to natural gas to retail customers.
1.14 (b) Each cooperative electric association and municipality subject to this subdivision
1.15shall spend and invest for energy conservation improvements under this subdivision
1.16the following amounts:
1.17 (1) for a municipality, 0.5 percent of its gross operating revenues from the sale of
1.18gas and 1.5 percent of its gross operating revenues from the sale of electricity, excluding
1.19gross operating revenues from electric and gas service provided in the state to large
1.20electric customer facilities; and
1.21 (2) for a cooperative electric association, 1.5 percent of its gross operating revenues
1.22from service provided in the state, excluding gross operating revenues from service
1.23provided in the state to large electric customer facilities indirectly through a distribution
1.24cooperative electric association.
2.1 (c) Each municipality and cooperative electric association subject to this subdivision:
2.2(1) shall make a good-faith effort to meet an annual energy-savings goal equivalent
2.3to 1.5 percent gross annual retail energy sales, although no municipality or cooperative
2.4association is required to spend more than the proportion of gross operating revenues cited
2.5in paragraph (b) to achieve the energy-savings goal;
2.6(2) may, if it experiences zero or negative growth in gross retail energy sales, be
2.7deemed to satisfy the energy-savings goal if it achieves savings equal to 0.75 percent of
2.8gross retail energy sales;
2.9(3) shall calculate the energy-savings goal based on weather-normalized average
2.10gross retail energy sales during the three most recent calendar years;
2.11(4) may elect to carry forward energy-savings in excess of 1.5 percent to apply to the
2.12energy-savings goal in subsequent years;
2.13(5) may use a particular energy savings only for one year's goal;
2.14(6) may apply towards its energy-savings goal energy saved from electric utility
2.15infrastructure projects as defined in section 216B.1636, provided that the projects result
2.16in increased efficiency greater than that which would have occurred through normal
2.17maintenance activity; and
2.18(7) may apply toward its energy-savings goal five kilowatt-hours per dollar spent,
2.19including labor and administrative costs, to educate customers about energy conservation
2.20and to educate and train utility employees, contractors, and others to perform energy
2.21audits, install conservation measures, and conduct other activities directly related to
2.22conservation investments.
2.23(d) Each municipality and cooperative electric association subject to this subdivision
2.24shall identify and implement energy conservation improvement spending and investments
2.25that are appropriate for the municipality or association, except that a municipality
2.26or association may not spend or invest for energy conservation improvements that
2.27directly benefit a large energy facility or a large electric customer facility for which
2.28the commissioner has issued an exemption under subdivision 1a, paragraph (b). A
2.29municipality or cooperative electric association whose annual gross retail energy sales
2.30increase by ten percent or more over the previous year as the result of the addition of a
2.31single new customer or increased demand from a singe existing customer may petition
2.32the commissioner to exclude those incremental sales from its energy-savings goal. If the
2.33commissioner approves the exclusion, the municipality or cooperative electric association
2.34may petition the commissioner annually to extend the exclusion, even if the incremental
2.35sales added by the customer no longer increase gross retail energy sales by ten percent
2.36or more over the previous year. The commissioner must approve the extension if the
3.1commissioner determines that the petition contains sufficient evidence to demonstrate
3.2that the customer whose sales are sought to be excluded continues to make reasonable
3.3efforts to identify, evaluate, and implement energy conservation improvements at the
3.4customer's facility.
3.5(e) A municipality and cooperative electric association subject to this subdivision
3.6is not required to make energy conservation investments to attain the energy-savings
3.7goal of this subdivision that are not cost-effective even if the investment is necessary
3.8to attain the energy-savings goal. For the purpose of this paragraph, in determining
3.9cost-effectiveness, the commissioner shall consider the costs and benefits to ratepayers,
3.10the cooperative electric association or municipality, participants, and society. In addition,
3.11the commissioner shall consider the rate at which a cooperative electric association or
3.12municipality is increasing its energy savings and its expenditures on energy conservation.
3.13
3.14subdivision may spend and invest annually up to ten percent of the total amount required
3.15to be spent and invested on energy conservation improvements under this subdivision
3.16on research and development projects that meet the definition of energy conservation
3.17improvement in subdivision 1 and that are funded directly by the municipality or
3.18cooperative electric association.
3.19
3.20conservation investment and spending requirements of this subdivision. The amount
3.21of energy a utility shifts from peak daily demand by implementing load-management
3.22activities may count for up to 50 percent of the energy-savings goal of a municipality or
3.23cooperative electric association.
3.24
3.25energy services to cooperative electric associations that provide electric service at retail to
3.26consumers may invest in energy conservation improvements on behalf of the associations
3.27it serves and may fulfill the conservation, spending, reporting, and energy-savings goals on
3.28an aggregate basis. A municipal power agency or other not-for-profit entity that provides
3.29energy service to municipal utilities that provide electric service at retail may invest in
3.30energy conservation improvements on behalf of the municipal utilities it serves and may
3.31fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate
3.32basis, under an agreement between the municipal power agency or not-for-profit entity
3.33and each municipal utility for funding the investments.
3.34
3.35conservation improvement plans or a summary of the plans by June 1 on a schedule
3.36determined by order of the commissioner, but at least every three years. Plans or
4.1summaries received by June 1 must be
4.2commissioner and the commissioner's comments must be submitted to the municipality
4.3or cooperative electric association by December 1 of the same year. The municipality or
4.4cooperative electric association shall provide an evaluation to the commissioner
4.5summarizing its energy conservation improvement spending and investments for the
4.6previous period. The evaluation must briefly describe each conservation program and must
4.7specify the energy savings or increased efficiency in the use of energy within the service
4.8territory of the
4.9the spending and investments. The evaluation must analyze the cost-effectiveness of the
4.10
4.11list of baseline energy and capacity savings assumptions developed in consultation with the
4.12department. The commissioner shall review each evaluation and make recommendations,
4.13where appropriate, to the municipality or cooperative electric association to increase the
4.14effectiveness of conservation improvement activities. In making recommendations, the
4.15commissioner may consider the municipality's or cooperative electric association's rate of
4.16conservation spending and energy savings, historical conservation investment experience,
4.17impact on rates of conservation spending and energy savings, customer class profile, load
4.18growth trends, conservation potential, customers' ability to pay, as well as local economic
4.19conditions, advancing technology, and other relevant factors.
4.20
4.21section to refurbish an existing district heating or cooling system until July 1, 2007. From
4.22July 1, 2007, through June 30, 2011, expenditures made to refurbish a district heating or
4.23cooling system are considered to be load-management activities under paragraph
4.24This paragraph expires July 1, 2011.
4.25
4.26other entity providing energy efficiency and conservation services under this section to
4.27undertake a program suggested by an outside source, including a political subdivision,
4.28nonprofit corporation, or community organization.
4.29 Sec. 2. Minnesota Statutes 2010, section 216B.241, subdivision 1c, is amended to read:
4.30 Subd. 1c. Energy-saving goals. (a) The commissioner shall establish energy-saving
4.31goals for energy conservation improvement expenditures and shall evaluate an energy
4.32conservation improvement program on how well it meets the goals set.
4.33 (b) Each individual public utility
4.34goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
4.35commissioner under paragraph (d). The savings goals must be calculated based on the
5.1most recent three-year weather-normalized average. A public utility
5.2elect to carry forward energy savings in excess of 1.5 percent for a year to the succeeding
5.3three calendar years, except that savings from electric utility infrastructure projects
5.4allowed under paragraph (d) may be carried forward for five years. A particular energy
5.5savings can be used only for one year's goal.
5.6 (c) The commissioner must adopt a filing schedule that is designed to have all
5.7utilities and associations operating under an energy-savings plan by calendar year 2010.
5.8 (d) In its energy conservation improvement plan filing, a public utility
5.9may request the commissioner to adjust its annual energy-savings percentage goal based
5.10on its historical conservation investment experience, customer class makeup, load growth,
5.11a conservation potential study, or other factors the commissioner determines warrants
5.12an adjustment. The commissioner may not approve a plan that provides for an annual
5.13energy-savings goal of less than one percent of gross annual retail energy sales from
5.14energy conservation improvements.
5.15 A public utility
5.16savings from electric utility infrastructure projects approved by the commission under
5.17section
5.18count as energy savings in addition to the minimum energy-savings goal of at least one
5.19percent for energy conservation improvements. Electric utility infrastructure projects
5.20must result in increased energy efficiency greater than that which would have occurred
5.21through normal maintenance activity.
5.22 (e) An energy-savings goal is not satisfied by attaining the revenue expenditure
5.23requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
5.24energy-savings goal established in this subdivision.
5.25 (f)
5.26investments to attain the energy-savings goals of this subdivision that are not cost-effective
5.27even if the investment is necessary to attain the energy-savings goals. For the purpose
5.28of this paragraph, in determining cost-effectiveness, the commissioner shall consider
5.29the costs and benefits to ratepayers, the utility, participants, and society.
5.30
5.31
5.32 (g) On an annual basis, the commissioner shall produce and make publicly available
5.33a report on the annual energy savings and estimated carbon dioxide reductions achieved
5.34by the energy conservation improvement programs for the two most recent years for
5.35which data is available. The commissioner shall report on program performance both in
6.1the aggregate and for each entity filing an energy conservation improvement plan for
6.2approval or review by the commissioner.
6.3 (h) By January 15, 2010, the commissioner shall report to the legislature whether
6.4the spending requirements under subdivisions 1a and 1b are necessary to achieve the
6.5energy-savings goals established in this subdivision.
6.6 Sec. 3. EFFECTIVE DATE.
6.7Sections 1 and 2 are effective the day following final enactment.
