Bill Text: MN HF1433 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Utility report filing, weatherization programs, and public utility commission assessment technical changes made and provisions modified; obsolete and redundant language removed; and reporting requirements provided.
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2011-04-11 - Introduction and first reading, referred to Environment, Energy and Natural Resources Policy and Finance [HF1433 Detail]
Download: Minnesota-2011-HF1433-Introduced.html
1.2relating to energy; making technical changes and modifying provisions related
1.3to utility report filings, weatherization programs, and public utility commission
1.4assessments; removing obsolete and redundant language; providing for certain
1.5reporting requirements;amending Minnesota Statutes 2010, sections 16E.15,
1.6subdivision 2; 216B.241, subdivision 2; 216C.264; 216E.18, subdivision 3.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 16E.15, subdivision 2, is amended to read:
1.9 Subd. 2. Software sale fund. (a) Except as provided inparagraphs paragraph (b)
1.10and (c), proceeds of the sale or licensing of software products or services by the chief
1.11information officer must be credited to the enterprise technology revolving fund. If a state
1.12agency other than the Office of Enterprise Technology has contributed to the development
1.13of software sold or licensed under this section, the chief information officer may reimburse
1.14the agency by discounting computer services provided to that agency.
1.15(b) Proceeds of the sale or licensing of software products or services developed by
1.16the Pollution Control Agency, or custom developed by a vendor for the agency, must be
1.17credited to the environmental fund.
1.18(c) Proceeds of the sale or licensing of software products or services developed by
1.19the Department of Education, or custom developed by a vendor for the agency, to support
1.20the achieved savings assessment program, must be appropriated to the commissioner of
1.21education and credited to the weatherization program to support weatherization activities.
1.22 Sec. 2. Minnesota Statutes 2010, section 216B.241, subdivision 2, is amended to read:
1.23 Subd. 2. Programs. (a) The commissioner may require public utilities to make
1.24investments and expenditures in energy conservation improvements, explicitly setting
2.1forth the interest rates, prices, and terms under which the improvements must be offered to
2.2the customers. The required programs must cover no more than a three-year period. Public
2.3utilities shall file conservation improvement plans by June 1, on a schedule determined by
2.4order of the commissioner, but at least every three years. Plans received by a public utility
2.5by June 1 must be approved or approved as modified by the commissioner by December
2.61 of that same year. The commissioner shall evaluate the program on the basis of
2.7cost-effectiveness and the reliability of technologies employed. The commissioner's order
2.8must provide to the extent practicable for a free choice, by consumers participating in the
2.9program, of the device, method, material, or project constituting the energy conservation
2.10improvement and for a free choice of the seller, installer, or contractor of the energy
2.11conservation improvement, provided that the device, method, material, or project seller,
2.12installer, or contractor is duly licensed, certified, approved, or qualified, including under
2.13the residential conservation services program, where applicable.
2.14 (b) The commissioner may require a utility to make an energy conservation
2.15improvement investment or expenditure whenever the commissioner finds that the
2.16improvement will result in energy savings at a total cost to the utility less than the cost
2.17to the utility to produce or purchase an equivalent amount of new supply of energy. The
2.18commissioner shall nevertheless ensure that every public utility operate one or more
2.19programs under periodic review by the department.
2.20 (c) Each public utility subject to subdivision 1a may spend and invest annually up to
2.21ten percent of the total amount required to be spent and invested on energy conservation
2.22improvements under this section by the utility on research and development projects
2.23that meet the definition of energy conservation improvement in subdivision 1 and that
2.24are funded directly by the public utility.
2.25 (d) A public utility may not spend for or invest in energy conservation improvements
2.26that directly benefit a large energy facility or a large electric customer facility for which
2.27the commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b).
2.28The commissioner shall consider and may require a utility to undertake a program
2.29suggested by an outside source, including a political subdivision, a nonprofit corporation,
2.30or community organization.
2.31 (e) A utility, a political subdivision, or a nonprofit or community organization
2.32that has suggested a program, the attorney general acting on behalf of consumers and
2.33small business interests, or a utility customer that has suggested a program and is not
2.34represented by the attorney general under section8.33 may petition the commission to
2.35modify or revoke a department decision under this section, and the commission may do
2.36so if it determines that the program is not cost-effective, does not adequately address the
3.1residential conservation improvement needs of low-income persons, has a long-range
3.2negative effect on one or more classes of customers, or is otherwise not in the public
3.3interest. The commission shall reject a petition that, on its face, fails to make a reasonable
3.4argument that a program is not in the public interest.
3.5 (f) The commissioner may order a public utility to include, with the filing of the
3.6utility'sproposed conservation improvement plan under paragraph (a) annual status
3.7report, the results of an independent audit of all or a selection of the utility's conservation
3.8improvement programs and expenditures performed by the department or an auditor
3.9with experience in the provision of energy conservation and energy efficiency services
3.10approved by the commissioner and chosen by the utility. The audit must specify the
3.11energy savings or increased efficiency in the use of energy within the service territory of
3.12the utility that is the result of the spending and investments. The audit must evaluate the
3.13cost-effectiveness of the utility's conservation programs.
3.14 Sec. 3. Minnesota Statutes 2010, section 216C.264, is amended to read:
3.15216C.264 COORDINATING RESIDENTIAL WEATHERIZATION
3.16PROGRAMS.
3.17 Subdivision 1. Agency designation. The department is the state agency to apply
3.18for, receive, and disburse money made available to the state by federal law for the purpose
3.19of weatherizing the residences of low-income persons. The commissioner must coordinate
3.20available federal money with state money appropriated for this purpose.
3.21 Subd. 2. Grants. The commissioner must make grants of federal and state money
3.22to community action agencies and other public or private nonprofit agencies for the
3.23purpose of weatherizing the residences of low-income persons.Grant applications must
3.24be submitted in accordance with rules promulgated by the commissioner.
3.25 Subd. 3. Benefits of weatherization. In the case of any grant made to an owner of a
3.26rental dwelling unit for weatherization, the commissioner must require that (1) the benefits
3.27of weatherization assistance in connection with the dwelling unit accrue primarily to the
3.28low-income family that resides in the unit; (2) the rents on the dwelling unit will not be
3.29raised because of any increase in value due solely to the weatherization assistance; and (3)
3.30no undue or excessive enhancement will occur to the value of the dwelling unit.
3.31Subd. 4. Rules. The commissioner must promulgate rules that describe procedures
3.32for the administration of grants, data to be reported by grant recipients, and compliance
3.33with relevant federal regulations. The commissioner must require that a rental unit
3.34weatherized under this section be rented to a household meeting the income limits of
3.35the program for 24 of the 36 months after weatherization is complete. In applying this
4.1restriction to multiunit buildings weatherized under this section, the commissioner must
4.2require that occupancy continue to reflect the proportion of eligible households in the
4.3building at the time of weatherization.
4.4 Subd. 5. Grant allocation. The commissioner must distribute supplementary
4.5state grants in a manner consistent with the goal of producing the maximum number of
4.6weatherized units. Supplementary state grants are provided primarily for the payment of
4.7additional labor costs for the federal weatherization program, and as an incentive for the
4.8increased production of weatherized units.
4.9Criteria for the allocation of state grants to local agencies include existing local
4.10agency production levels, emergency needs, and the potential for maintaining or increasing
4.11acceptable levels of production in the area.
4.12An eligible local agency may receive advance funding for 90 days' production, but
4.13thereafter must receive grants solely on the basis of program criteria.
4.14 Subd. 6. Eligibility criteria. To the extent allowed by federal regulations, the
4.15commissioner must ensure that the same income eligibility criteria apply to both the
4.16weatherization program and the energy assistance program.
4.17 Sec. 4. Minnesota Statutes 2010, section 216E.18, subdivision 3, is amended to read:
4.18 Subd. 3. Funding; assessment. The commission shall finance its baseline studies,
4.19general environmental studies, development of criteria, inventory preparation, monitoring
4.20of conditions placed on site and route permits, and all other work, other than specific site
4.21and route designation, from an assessment made quarterly, at least 30 days before the start
4.22of each quarter, by the commission against all utilities with annual retail kilowatt-hour
4.23sales greater than 4,000,000 kilowatt-hours in the previous calendar year.
4.24Each share shall be determined as follows: (1) the ratio that the annual retail
4.25kilowatt-hour sales in the state of each utility bears to the annual total retail kilowatt-hour
4.26sales in the state of all these utilities, multiplied by 0.667, plus (2) the ratio that the annual
4.27gross revenue from retail kilowatt-hour sales in the state of each utility bears to the annual
4.28total gross revenues from retail kilowatt-hour sales in the state of all these utilities,
4.29multiplied by 0.333, as determined by the commission. The assessment shall be credited
4.30to the special revenue fund and shall be paid to the state treasury within 30 days after
4.31receipt of the bill, which shall constitute notice of said assessment and demand of payment
4.32thereof. The total amount which may be assessed to the several utilities under authority
4.33of this subdivision shall not exceed the sum of the annual budget of the commission
4.34for carrying out the purposes of this subdivision. The assessment for thesecond third
4.35quarter of each fiscal year shall be adjusted to compensate for the amount by which actual
5.1expenditures by the commission for the preceding fiscal year were more or less than the
5.2estimated expenditures previously assessed.
1.3to utility report filings, weatherization programs, and public utility commission
1.4assessments; removing obsolete and redundant language; providing for certain
1.5reporting requirements;amending Minnesota Statutes 2010, sections 16E.15,
1.6subdivision 2; 216B.241, subdivision 2; 216C.264; 216E.18, subdivision 3.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 16E.15, subdivision 2, is amended to read:
1.9 Subd. 2. Software sale fund. (a) Except as provided in
1.10
1.11information officer must be credited to the enterprise technology revolving fund. If a state
1.12agency other than the Office of Enterprise Technology has contributed to the development
1.13of software sold or licensed under this section, the chief information officer may reimburse
1.14the agency by discounting computer services provided to that agency.
1.15(b) Proceeds of the sale or licensing of software products or services developed by
1.16the Pollution Control Agency, or custom developed by a vendor for the agency, must be
1.17credited to the environmental fund.
1.18
1.19
1.20
1.21
1.22 Sec. 2. Minnesota Statutes 2010, section 216B.241, subdivision 2, is amended to read:
1.23 Subd. 2. Programs. (a) The commissioner may require public utilities to make
1.24investments and expenditures in energy conservation improvements, explicitly setting
2.1forth the interest rates, prices, and terms under which the improvements must be offered to
2.2the customers. The required programs must cover no more than a three-year period. Public
2.3utilities shall file conservation improvement plans by June 1, on a schedule determined by
2.4order of the commissioner, but at least every three years. Plans received by a public utility
2.5by June 1 must be approved or approved as modified by the commissioner by December
2.61 of that same year. The commissioner shall evaluate the program on the basis of
2.7cost-effectiveness and the reliability of technologies employed. The commissioner's order
2.8must provide to the extent practicable for a free choice, by consumers participating in the
2.9program, of the device, method, material, or project constituting the energy conservation
2.10improvement and for a free choice of the seller, installer, or contractor of the energy
2.11conservation improvement, provided that the device, method, material, or project seller,
2.12installer, or contractor is duly licensed, certified, approved, or qualified, including under
2.13the residential conservation services program, where applicable.
2.14 (b) The commissioner may require a utility to make an energy conservation
2.15improvement investment or expenditure whenever the commissioner finds that the
2.16improvement will result in energy savings at a total cost to the utility less than the cost
2.17to the utility to produce or purchase an equivalent amount of new supply of energy. The
2.18commissioner shall nevertheless ensure that every public utility operate one or more
2.19programs under periodic review by the department.
2.20 (c) Each public utility subject to subdivision 1a may spend and invest annually up to
2.21ten percent of the total amount required to be spent and invested on energy conservation
2.22improvements under this section by the utility on research and development projects
2.23that meet the definition of energy conservation improvement in subdivision 1 and that
2.24are funded directly by the public utility.
2.25 (d) A public utility may not spend for or invest in energy conservation improvements
2.26that directly benefit a large energy facility or a large electric customer facility for which
2.27the commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b).
2.28The commissioner shall consider and may require a utility to undertake a program
2.29suggested by an outside source, including a political subdivision, a nonprofit corporation,
2.30or community organization.
2.31 (e) A utility, a political subdivision, or a nonprofit or community organization
2.32that has suggested a program, the attorney general acting on behalf of consumers and
2.33small business interests, or a utility customer that has suggested a program and is not
2.34represented by the attorney general under section
2.35modify or revoke a department decision under this section, and the commission may do
2.36so if it determines that the program is not cost-effective, does not adequately address the
3.1residential conservation improvement needs of low-income persons, has a long-range
3.2negative effect on one or more classes of customers, or is otherwise not in the public
3.3interest. The commission shall reject a petition that, on its face, fails to make a reasonable
3.4argument that a program is not in the public interest.
3.5 (f) The commissioner may order a public utility to include, with the filing of the
3.6utility's
3.7report, the results of an independent audit of all or a selection of the utility's conservation
3.8improvement programs and expenditures performed by the department or an auditor
3.9with experience in the provision of energy conservation and energy efficiency services
3.10approved by the commissioner and chosen by the utility. The audit must specify the
3.11energy savings or increased efficiency in the use of energy within the service territory of
3.12the utility that is the result of the spending and investments. The audit must evaluate the
3.13cost-effectiveness of the utility's conservation programs.
3.14 Sec. 3. Minnesota Statutes 2010, section 216C.264, is amended to read:
3.15216C.264 COORDINATING RESIDENTIAL WEATHERIZATION
3.16PROGRAMS.
3.17 Subdivision 1. Agency designation. The department is the state agency to apply
3.18for, receive, and disburse money made available to the state by federal law for the purpose
3.19of weatherizing the residences of low-income persons. The commissioner must coordinate
3.20available federal money with state money appropriated for this purpose.
3.21 Subd. 2. Grants. The commissioner must make grants of federal and state money
3.22to community action agencies and other public or private nonprofit agencies for the
3.23purpose of weatherizing the residences of low-income persons.
3.24
3.25 Subd. 3. Benefits of weatherization. In the case of any grant made to an owner of a
3.26rental dwelling unit for weatherization, the commissioner must require that (1) the benefits
3.27of weatherization assistance in connection with the dwelling unit accrue primarily to the
3.28low-income family that resides in the unit; (2) the rents on the dwelling unit will not be
3.29raised because of any increase in value due solely to the weatherization assistance; and (3)
3.30no undue or excessive enhancement will occur to the value of the dwelling unit.
3.31
3.32
3.33
3.34
3.35
4.1
4.2
4.3
4.4 Subd. 5. Grant allocation. The commissioner must distribute supplementary
4.5state grants in a manner consistent with the goal of producing the maximum number of
4.6weatherized units. Supplementary state grants are provided primarily for the payment of
4.7additional labor costs for the federal weatherization program, and as an incentive for the
4.8increased production of weatherized units.
4.9Criteria for the allocation of state grants to local agencies include existing local
4.10agency production levels, emergency needs, and the potential for maintaining or increasing
4.11acceptable levels of production in the area.
4.12An eligible local agency may receive advance funding for 90 days' production, but
4.13thereafter must receive grants solely on the basis of program criteria.
4.14 Subd. 6. Eligibility criteria. To the extent allowed by federal regulations, the
4.15commissioner must ensure that the same income eligibility criteria apply to both the
4.16weatherization program and the energy assistance program.
4.17 Sec. 4. Minnesota Statutes 2010, section 216E.18, subdivision 3, is amended to read:
4.18 Subd. 3. Funding; assessment. The commission shall finance its baseline studies,
4.19general environmental studies, development of criteria, inventory preparation, monitoring
4.20of conditions placed on site and route permits, and all other work, other than specific site
4.21and route designation, from an assessment made quarterly, at least 30 days before the start
4.22of each quarter, by the commission against all utilities with annual retail kilowatt-hour
4.23sales greater than 4,000,000 kilowatt-hours in the previous calendar year.
4.24Each share shall be determined as follows: (1) the ratio that the annual retail
4.25kilowatt-hour sales in the state of each utility bears to the annual total retail kilowatt-hour
4.26sales in the state of all these utilities, multiplied by 0.667, plus (2) the ratio that the annual
4.27gross revenue from retail kilowatt-hour sales in the state of each utility bears to the annual
4.28total gross revenues from retail kilowatt-hour sales in the state of all these utilities,
4.29multiplied by 0.333, as determined by the commission. The assessment shall be credited
4.30to the special revenue fund and shall be paid to the state treasury within 30 days after
4.31receipt of the bill, which shall constitute notice of said assessment and demand of payment
4.32thereof. The total amount which may be assessed to the several utilities under authority
4.33of this subdivision shall not exceed the sum of the annual budget of the commission
4.34for carrying out the purposes of this subdivision. The assessment for the
4.35quarter of each fiscal year shall be adjusted to compensate for the amount by which actual
5.1expenditures by the commission for the preceding fiscal year were more or less than the
5.2estimated expenditures previously assessed.
