Bill Text: MN SF2049 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: On-bill repayment programs for conservation improvements; greenhouse gas reporting in integrated resource plan filings requirement
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-03-31 - Second reading [SF2049 Detail]
Download: Minnesota-2013-SF2049-Introduced.html
Bill Title: On-bill repayment programs for conservation improvements; greenhouse gas reporting in integrated resource plan filings requirement
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-03-31 - Second reading [SF2049 Detail]
Download: Minnesota-2013-SF2049-Introduced.html
1.2relating to energy; utilities; authorizing a bill for gas or electric services to
1.3include charges for certain conservation improvements; requiring a Sustainable
1.4Building 2030 incentive rate; requiring industrial energy efficiency plans to meet
1.5forecasted electric generation capacity needs;amending Minnesota Statutes 2012,
1.6sections 216B.241, by adding a subdivision; 216B.2422, subdivision 2, by adding
1.7a subdivision; proposing coding for new law in Minnesota Statutes, chapter 216B.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. [216B.1631] SUSTAINABLE BUILDING 2030 INCENTIVE RATES.
1.10(a) The commissioner may require a public utility, as part of its obligation under
1.11section 216B.241, subdivision 9, paragraph (e), to file a tariff with the commission
1.12providing special rates for commercial, industrial, and institutional customers for a
1.13building that is newly constructed or substantially reconstructed to meet the Sustainable
1.14Building 2030 energy efficiency performance standards scheduled to become effective in
1.152015 under section 216B.241, subdivision 9. The commission shall approve a Sustainable
1.16Building 2030 incentive rates tariff if the commission finds the proposal:
1.17(1) encourages energy conservation and otherwise satisfies the requirements of
1.18section 216B.03;
1.19(2) requires customers to apply for the incentive rates prior to completion of
1.20construction or reconstruction and provides evidence that the 2015 energy efficiency
1.21performance standards will be met;
1.22(3) requires the public utility to establish procedures to verify that a building meets
1.23the 2015 energy efficiency performance standards while it is charged the Sustainable
1.24Building 2030 incentive rates;
2.1(4) provides incentive rates that are discounted from the public utility's standard
2.2tariffed rates and fees;
2.3(5) limits incentive rates for a building to a term not exceeding ten consecutive years;
2.4(6) sets the incentive rates at a level sufficient to cover the public utility's incremental
2.5cost of providing service to the customer;
2.6(7) allows the public utility to seek recovery of the difference in revenue collected
2.7under the incentive rates and what would have been collected under the utility's standard
2.8tariffed rates, except that the utility may not recover the difference from residential
2.9customers; and
2.10(8) is consistent with the public interest.
2.11 (b) The commission may approve, disapprove, or modify a proposed incentive
2.12rate filed under this section. A large customer facility, as that term is defined in section
2.13216B.241, subdivision 1, that has been exempted from the investment and expenditure
2.14requirements of section 216B.241, subdivision 1a, paragraph (a), is not eligible for an
2.15incentive rate under this section.
2.16(c) A public utility may count the incremental savings associated with the energy
2.17conservation improvements incented by the rate discount under this section toward
2.18satisfying its energy-savings goals under section 216B.241, subdivision 1c.
2.19 Sec. 2. Minnesota Statutes 2012, section 216B.241, is amended by adding a
2.20subdivision to read:
2.21 Subd. 5d. On-bill loan repayment programs. (a) For the purposes of this
2.22subdivision, "utility" means a public utility, municipal utility, or cooperative electric
2.23association that provides electric or natural gas service to retail customers.
2.24(b) A utility may include as part of its conservation improvement plan an on-bill
2.25loan repayment program for a customer to finance eligible projects with installment
2.26loans originated by an eligible lender. An eligible project is one that is either an energy
2.27conservation improvement, or a project that uses an eligible renewable energy source as
2.28that term is defined in section 216B.2411, subdivision 2, paragraph (b), but does not
2.29include mixed municipal solid waste or refuse-derived fuel from mixed municipal solid
2.30waste. To be an eligible lender, a lender must have a federal or state charter and be eligible
2.31for federal deposit insurance. The commissioner must allow a utility broad discretion in
2.32the design and implementation of an on-bill loan repayment program, provided that the
2.33program complies with this subdivision.
2.34(c) A utility may establish an on-bill loan repayment program for all customer
2.35classes or for a specific customer class.
3.1(d) A utility that implements an on-bill repayment program under this section
3.2must contract with one or more eligible lenders for program capital commitments, loan
3.3origination, transfer of loans to the utility for on-bill loan repayment, and acceptance of
3.4loans returned due to delinquency or default.
3.5(e) A utility's contract with a lender must require the lender to comply with all
3.6applicable federal and state laws, rules, and regulations related to lending practices and
3.7consumer protection, and to conform to reasonable and prudent lending standards.
3.8(f) A utility's contract with a lender may provide:
3.9(1) for the utility to purchase loans from the lender with a condition that the lender
3.10must purchase back loans in delinquency or default; or
3.11(2) provide for the lender to retain ownership of loans with the utility servicing the
3.12loans through on-bill repayment as long as payments are current.
3.13The risk of default must remain with the lender. The lender shall not have recourse against
3.14the utility except in the event of negligence or breach of contract by the utility.
3.15(g) If a utility customer makes a partial payment on a utility bill that includes a loan
3.16installment, the partial payment must be credited first to the amount owed for utility
3.17service, including taxes and fees. A utility may not suspend or terminate a customer's
3.18utility service for delinquency or default on a loan that is being serviced through the
3.19utility's on-bill loan repayment program.
3.20(h) An outstanding balance is not a financial obligation of the next customer to
3.21occupy the premises associated with that utility account. The utility must return to the
3.22lender a loan not repaid when a customer borrower no longer occupies the premises.
3.23(i) The commission may approve recovery under section 216B.16, subdivision 6b,
3.24paragraph (c), of reasonable costs for billing system modifications necessary to implement
3.25and operate an on-bill loan repayment program and for ongoing costs to operate the
3.26program. Approved costs may be counted toward a utility's conservation spending
3.27requirements under subdivisions 1a and 1b. Energy savings from energy conservation
3.28improvements resulting from this section may be counted toward satisfying a utility's
3.29energy-savings goals under subdivision 1c.
3.30(j) This subdivision does not require a utility to terminate or modify an existing
3.31financing program and does not prohibit a utility from establishing an on-bill financing
3.32program in which the utility provides the financing capital.
3.33 Sec. 3. Minnesota Statutes 2012, section 216B.2422, subdivision 2, is amended to read:
3.34 Subd. 2. Resource plan filing and approval. (a) A utility shall file a resource plan
3.35with the commission periodically in accordance with rules adopted by the commission.
4.1The commission shall approve, reject, or modify the plan of a public utility, as defined in
4.2section216B.02, subdivision 4 , consistent with the public interest. In the resource plan
4.3proceedings of all other utilities, the commission's order shall be advisory and the order's
4.4findings and conclusions shall constitute prima facie evidence which may be rebutted
4.5by substantial evidence in all other proceedings. With respect to utilities other than
4.6those defined in section216B.02, subdivision 4 , the commission shall consider the filing
4.7requirements and decisions in any comparable proceedings in another jurisdiction.
4.8(b) As a part of its resource plan filing, a utility shall include:
4.9(1) the least cost plan for meeting 50 and 75 percent of all new and refurbished
4.10capacity needs through a combination of conservation and renewable energy resources.; and
4.11(2) an analysis of the cost and technical barriers to the utility continuing to make
4.12progress on its system toward achieving the state greenhouse gas emission reduction goals
4.13established in section 216H.02, subdivision 1, and the technologies, alternatives, and steps
4.14the utility is considering to address those barriers.
4.15 Sec. 4. Minnesota Statutes 2012, section 216B.2422, is amended by adding a
4.16subdivision to read:
4.17 Subd. 2c. Resource acquisition; combined heat and power. (a) A utility that has a
4.18forecasted need for capacity greater than 25 megawatts within five years from the date of
4.19approval or acceptance of its most recent resource plan under subdivision 2 must:
4.20(1) notify the industrial customers of the utility, or of the distribution utility to which
4.21the utility provides wholesale electric service, that the utility is interested in industrial
4.22combined heat and power projects of greater than 60 percent total system efficiency;
4.23(2) evaluate proposals submitted by industrial customers along with supply
4.24alternatives being considered by the utility to meet the forecasted need; and
4.25(3) acquire the least cost resource or combination of resources available to the utility.
4.26(b) The utility must demonstrate compliance with this subdivision in its next filing
4.27under this section or in its next filing under section 216B.243, whichever comes first. A
4.28utility may elect to satisfy this subdivision by filing and receiving commission approval
4.29of a standard offer tariff to acquire industrial combined heat and power installations of
4.30greater than 60 percent total system efficiency.
1.3include charges for certain conservation improvements; requiring a Sustainable
1.4Building 2030 incentive rate; requiring industrial energy efficiency plans to meet
1.5forecasted electric generation capacity needs;amending Minnesota Statutes 2012,
1.6sections 216B.241, by adding a subdivision; 216B.2422, subdivision 2, by adding
1.7a subdivision; proposing coding for new law in Minnesota Statutes, chapter 216B.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. [216B.1631] SUSTAINABLE BUILDING 2030 INCENTIVE RATES.
1.10(a) The commissioner may require a public utility, as part of its obligation under
1.11section 216B.241, subdivision 9, paragraph (e), to file a tariff with the commission
1.12providing special rates for commercial, industrial, and institutional customers for a
1.13building that is newly constructed or substantially reconstructed to meet the Sustainable
1.14Building 2030 energy efficiency performance standards scheduled to become effective in
1.152015 under section 216B.241, subdivision 9. The commission shall approve a Sustainable
1.16Building 2030 incentive rates tariff if the commission finds the proposal:
1.17(1) encourages energy conservation and otherwise satisfies the requirements of
1.18section 216B.03;
1.19(2) requires customers to apply for the incentive rates prior to completion of
1.20construction or reconstruction and provides evidence that the 2015 energy efficiency
1.21performance standards will be met;
1.22(3) requires the public utility to establish procedures to verify that a building meets
1.23the 2015 energy efficiency performance standards while it is charged the Sustainable
1.24Building 2030 incentive rates;
2.1(4) provides incentive rates that are discounted from the public utility's standard
2.2tariffed rates and fees;
2.3(5) limits incentive rates for a building to a term not exceeding ten consecutive years;
2.4(6) sets the incentive rates at a level sufficient to cover the public utility's incremental
2.5cost of providing service to the customer;
2.6(7) allows the public utility to seek recovery of the difference in revenue collected
2.7under the incentive rates and what would have been collected under the utility's standard
2.8tariffed rates, except that the utility may not recover the difference from residential
2.9customers; and
2.10(8) is consistent with the public interest.
2.11 (b) The commission may approve, disapprove, or modify a proposed incentive
2.12rate filed under this section. A large customer facility, as that term is defined in section
2.13216B.241, subdivision 1, that has been exempted from the investment and expenditure
2.14requirements of section 216B.241, subdivision 1a, paragraph (a), is not eligible for an
2.15incentive rate under this section.
2.16(c) A public utility may count the incremental savings associated with the energy
2.17conservation improvements incented by the rate discount under this section toward
2.18satisfying its energy-savings goals under section 216B.241, subdivision 1c.
2.19 Sec. 2. Minnesota Statutes 2012, section 216B.241, is amended by adding a
2.20subdivision to read:
2.21 Subd. 5d. On-bill loan repayment programs. (a) For the purposes of this
2.22subdivision, "utility" means a public utility, municipal utility, or cooperative electric
2.23association that provides electric or natural gas service to retail customers.
2.24(b) A utility may include as part of its conservation improvement plan an on-bill
2.25loan repayment program for a customer to finance eligible projects with installment
2.26loans originated by an eligible lender. An eligible project is one that is either an energy
2.27conservation improvement, or a project that uses an eligible renewable energy source as
2.28that term is defined in section 216B.2411, subdivision 2, paragraph (b), but does not
2.29include mixed municipal solid waste or refuse-derived fuel from mixed municipal solid
2.30waste. To be an eligible lender, a lender must have a federal or state charter and be eligible
2.31for federal deposit insurance. The commissioner must allow a utility broad discretion in
2.32the design and implementation of an on-bill loan repayment program, provided that the
2.33program complies with this subdivision.
2.34(c) A utility may establish an on-bill loan repayment program for all customer
2.35classes or for a specific customer class.
3.1(d) A utility that implements an on-bill repayment program under this section
3.2must contract with one or more eligible lenders for program capital commitments, loan
3.3origination, transfer of loans to the utility for on-bill loan repayment, and acceptance of
3.4loans returned due to delinquency or default.
3.5(e) A utility's contract with a lender must require the lender to comply with all
3.6applicable federal and state laws, rules, and regulations related to lending practices and
3.7consumer protection, and to conform to reasonable and prudent lending standards.
3.8(f) A utility's contract with a lender may provide:
3.9(1) for the utility to purchase loans from the lender with a condition that the lender
3.10must purchase back loans in delinquency or default; or
3.11(2) provide for the lender to retain ownership of loans with the utility servicing the
3.12loans through on-bill repayment as long as payments are current.
3.13The risk of default must remain with the lender. The lender shall not have recourse against
3.14the utility except in the event of negligence or breach of contract by the utility.
3.15(g) If a utility customer makes a partial payment on a utility bill that includes a loan
3.16installment, the partial payment must be credited first to the amount owed for utility
3.17service, including taxes and fees. A utility may not suspend or terminate a customer's
3.18utility service for delinquency or default on a loan that is being serviced through the
3.19utility's on-bill loan repayment program.
3.20(h) An outstanding balance is not a financial obligation of the next customer to
3.21occupy the premises associated with that utility account. The utility must return to the
3.22lender a loan not repaid when a customer borrower no longer occupies the premises.
3.23(i) The commission may approve recovery under section 216B.16, subdivision 6b,
3.24paragraph (c), of reasonable costs for billing system modifications necessary to implement
3.25and operate an on-bill loan repayment program and for ongoing costs to operate the
3.26program. Approved costs may be counted toward a utility's conservation spending
3.27requirements under subdivisions 1a and 1b. Energy savings from energy conservation
3.28improvements resulting from this section may be counted toward satisfying a utility's
3.29energy-savings goals under subdivision 1c.
3.30(j) This subdivision does not require a utility to terminate or modify an existing
3.31financing program and does not prohibit a utility from establishing an on-bill financing
3.32program in which the utility provides the financing capital.
3.33 Sec. 3. Minnesota Statutes 2012, section 216B.2422, subdivision 2, is amended to read:
3.34 Subd. 2. Resource plan filing and approval. (a) A utility shall file a resource plan
3.35with the commission periodically in accordance with rules adopted by the commission.
4.1The commission shall approve, reject, or modify the plan of a public utility, as defined in
4.2section
4.3proceedings of all other utilities, the commission's order shall be advisory and the order's
4.4findings and conclusions shall constitute prima facie evidence which may be rebutted
4.5by substantial evidence in all other proceedings. With respect to utilities other than
4.6those defined in section
4.7requirements and decisions in any comparable proceedings in another jurisdiction.
4.8(b) As a part of its resource plan filing, a utility shall include:
4.9(1) the least cost plan for meeting 50 and 75 percent of all new and refurbished
4.10capacity needs through a combination of conservation and renewable energy resources
4.11(2) an analysis of the cost and technical barriers to the utility continuing to make
4.12progress on its system toward achieving the state greenhouse gas emission reduction goals
4.13established in section 216H.02, subdivision 1, and the technologies, alternatives, and steps
4.14the utility is considering to address those barriers.
4.15 Sec. 4. Minnesota Statutes 2012, section 216B.2422, is amended by adding a
4.16subdivision to read:
4.17 Subd. 2c. Resource acquisition; combined heat and power. (a) A utility that has a
4.18forecasted need for capacity greater than 25 megawatts within five years from the date of
4.19approval or acceptance of its most recent resource plan under subdivision 2 must:
4.20(1) notify the industrial customers of the utility, or of the distribution utility to which
4.21the utility provides wholesale electric service, that the utility is interested in industrial
4.22combined heat and power projects of greater than 60 percent total system efficiency;
4.23(2) evaluate proposals submitted by industrial customers along with supply
4.24alternatives being considered by the utility to meet the forecasted need; and
4.25(3) acquire the least cost resource or combination of resources available to the utility.
4.26(b) The utility must demonstrate compliance with this subdivision in its next filing
4.27under this section or in its next filing under section 216B.243, whichever comes first. A
4.28utility may elect to satisfy this subdivision by filing and receiving commission approval
4.29of a standard offer tariff to acquire industrial combined heat and power installations of
4.30greater than 60 percent total system efficiency.
