1.1    .................... moves to amend S. F. No. 3337, the second engrossment, as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 115.071, subdivision 1, is amended to
1.4read:
1.5    Subdivision 1. Remedies available. The provisions of sections 103F.701 to
1.6103F.761 , this chapter and chapters 114C, 115A, and 116, and sections 216H.10 to
1.7216H.15, 325E.10 to 325E.1251, and 325E.32 and all rules, standards, orders, stipulation
1.8agreements, schedules of compliance, and permits adopted or issued by the agency
1.9thereunder or under any other law now in force or hereafter enacted for the prevention,
1.10control, or abatement of pollution may be enforced by any one or any combination of
1.11the following: criminal prosecution; action to recover civil penalties; injunction; action
1.12to compel performance; or other appropriate action, in accordance with the provisions
1.13of said chapters and this section.
1.14EFFECTIVE DATE.This section is effective the day following final enactment.

1.15    Sec. 2. Minnesota Statutes 2006, section 115C.04, subdivision 3, is amended to read:
1.16    Subd. 3. Agency Cost recovery; subrogation. Reasonable and necessary expenses
1.17incurred by the agency in taking a corrective action, including costs of investigating
1.18a release, administrative and legal expenses, and reimbursement costs described in
1.19subdivision 1, paragraph (b), may be recovered in a civil action in district court brought
1.20by the attorney general board against a responsible person. The agency's certification of
1.21expenses is prima facie evidence that the expenses are reasonable and necessary. If the
1.22responsible person has petroleum tank leakage or spill insurance coverage that insures
1.23against the liability provided in this section, the agency board is subrogated to the rights
1.24of the responsible person with respect to that insurance coverage, to the extent of the
1.25expenses incurred by the agency and described in this subdivision. The agency board
1.26may request the attorney general to bring an action in district court against the insurer
2.1to enforce this subrogation right. Expenses that are recovered under this section must
2.2be deposited in the fund.

2.3    Sec. 3. Minnesota Statutes 2006, section 115C.09, subdivision 3h, is amended to read:
2.4    Subd. 3h. Reimbursement; aboveground tanks in bulk plants. (a) As used in
2.5this subdivision, "bulk plant" means an aboveground or underground tank facility with a
2.6storage capacity of more than 1,100 gallons but less than 1,000,000 gallons that is used to
2.7dispense petroleum into cargo tanks for transportation and sale at another location.
2.8    (b) Notwithstanding any other provision in this chapter and any rules adopted
2.9pursuant to this chapter, the board shall reimburse 90 percent of an applicant's cost for bulk
2.10plant upgrades or closures completed between June 1, 1998, and November 1, 2003, to
2.11comply with Minnesota Rules, chapter 7151, provided that the board determines the costs
2.12were incurred and reasonable. The reimbursement may not exceed $10,000 per bulk plant.
2.13The board may provide reimbursement under this paragraph for work completed after
2.14November 1, 2003, if the work was contracted for prior to that date and was not completed
2.15by that date as a result of an unanticipated situation, provided that an application for
2.16reimbursement under this paragraph, which may be a renewal of an application previously
2.17denied, is submitted prior to December 31, 2005.
2.18    (c) For corrective action at a bulk plant located on what is or was railroad
2.19right-of-way, the board shall reimburse 90 percent of total reimbursable costs on the first
2.20$40,000 of reimbursable costs and 100 percent of any remaining reimbursable costs when
2.21the applicant can document that more than one bulk plant was operated on the same
2.22section of right-of-way, as determined by the commissioner of commerce.

2.23    Sec. 4. Minnesota Statutes 2006, section 115C.09, is amended by adding a subdivision
2.24to read:
2.25    Subd. 3k. PVC piping at residential locations. (a) The purpose of this subdivision
2.26is to assist homeowners who have installed PVC fill piping as part of the heating oil
2.27system at their residences, not knowing that heating oil has been shown to dissolve certain
2.28types of glue used to hold PVC piping together. Replacement of the PVC piping with
2.29metal piping is intended to avoid the catastrophic release of heating oil, as well as the
2.30ensuing cleanup costs, that can occur at residences where the PVC piping fails.
2.31    (b) As used in this subdivision:
2.32    (1) "residential locations" means a storage tank and appurtenances for heating oil
2.33that are used to heat a single-family residence; and
3.1    (2) "qualified person" means someone who is registered as a contractor under section
3.2115C.11 and, as part of their trade or business, installs or repairs nonpressure piping,
3.3heating systems, air conditioning systems, or storage tank systems.
3.4    (c) Notwithstanding any other provision of this chapter or any rules adopted
3.5under this chapter, the board shall reimburse a qualified person 90 percent of the cost
3.6for replacing PVC fill piping with metal piping at residential locations between May 1,
3.72008, and September 1, 2011, provided that the board determines the costs were incurred
3.8and reasonable. The reimbursement may not exceed $250 per residential location. The
3.9maximum expenditure from the fund may not exceed $1,500,000.
3.10    (d) A heating oil vendor is not a responsible person for a heating oil spill inside a
3.11residential location if the spill was caused solely by the failure of a tank or appurtenance
3.12to a tank owned by the homeowner.

3.13    Sec. 5. Minnesota Statutes 2006, section 216B.16, subdivision 7b, is amended to read:
3.14    Subd. 7b. Transmission cost adjustment. (a) Notwithstanding any other provision
3.15of this chapter, the commission may approve a tariff mechanism for the automatic annual
3.16adjustment of charges for the Minnesota jurisdictional costs of: (i) new transmission
3.17facilities that have been separately filed and reviewed and approved by the commission
3.18under section 216B.243 or are certified as a priority project or deemed to be a priority
3.19transmission project under section 216B.2425; and (ii) charges incurred by a utility that
3.20accrue from other transmission owners' regionally planned transmission projects that have
3.21been determined by the Midwest Independent System Operator to benefit the utility, as
3.22provided for under a federally approved tariff.
3.23    (b) Upon filing by a public utility or utilities providing transmission service, the
3.24commission may approve, reject, or modify, after notice and comment, a tariff that:
3.25    (1) allows the utility to recover on a timely basis the costs net of revenues of
3.26facilities approved under section 216B.243 or certified or deemed to be certified under
3.27section 216B.2425 or exempt from the requirements of section 216B.243;
3.28    (2) allows the charges incurred by a utility that accrue from other transmission
3.29owners' regionally planned transmission projects that have been determined by the
3.30Midwest Independent System Operator to benefit the utility, as provided for under a
3.31federally approved tariff;
3.32    (3) allows a return on investment at the level approved in the utility's last general
3.33rate case, unless a different return is found to be consistent with the public interest;
4.1    (3) (4) provides a current return on construction work in progress, provided that
4.2recovery from Minnesota retail customers for the allowance for funds used during
4.3construction is not sought through any other mechanism;
4.4    (4) (5) allows for recovery of other expenses if shown to promote a least-cost project
4.5option or is otherwise in the public interest;
4.6    (5) (6) allocates project costs appropriately between wholesale and retail customers;
4.7    (6) (7) provides a mechanism for recovery above cost, if necessary to improve the
4.8overall economics of the project or projects or is otherwise in the public interest; and
4.9    (7) (8) terminates recovery once costs have been fully recovered or have otherwise
4.10been reflected in the utility's general rates.
4.11    (c) A public utility may file annual rate adjustments to be applied to customer bills
4.12paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:
4.13    (1) a description of and context for the facilities included for recovery;
4.14    (2) a schedule for implementation of applicable projects;
4.15    (3) the utility's costs for these projects;
4.16    (4) a description of the utility's efforts to ensure the lowest costs to ratepayers for
4.17the project; and
4.18    (5) calculations to establish that the rate adjustment is consistent with the terms
4.19of the tariff established in paragraph (b).
4.20    (d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in
4.21paragraph (b), the commission shall approve the annual rate adjustments provided that,
4.22after notice and comment, the costs included for recovery through the tariff were or are
4.23expected to be prudently incurred and achieve transmission system improvements at the
4.24lowest feasible and prudent cost to ratepayers.

4.25    Sec. 6. Minnesota Statutes 2006, section 216B.1645, subdivision 1, is amended to read:
4.26    Subdivision 1. Commission authority. Upon the petition of a public utility, the
4.27Public Utilities Commission shall approve or disapprove power purchase contracts,
4.28investments, or expenditures entered into or made by the utility to satisfy the wind and
4.29biomass mandates contained in sections 216B.169, 216B.2423, and 216B.2424, and
4.30to satisfy the renewable energy objectives obligations set forth in section 216B.1691,
4.31including reasonable investments and expenditures made to:
4.32    (1) transmit the electricity generated from sources developed under those sections
4.33that is ultimately used to provide service to the utility's retail customers, including
4.34studies necessary to identify new transmission facilities needed to transmit electricity to
4.35Minnesota retail customers from generating facilities constructed to satisfy the renewable
5.1energy objectives obligations, provided that the costs of the studies have not been
5.2recovered previously under existing tariffs and the utility has filed an application for a
5.3certificate of need or for certification as a priority project under section 216B.2425 for the
5.4new transmission facilities identified in the studies;
5.5    (2) provide storage facilities for renewable energy generation facilities that
5.6contribute to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or
5.7    (2) (3) develop renewable energy sources from the account required in section
5.8116C.779 .

5.9    Sec. 7. Minnesota Statutes 2006, section 216B.1645, subdivision 2, is amended to read:
5.10    Subd. 2. Cost recovery. The expenses incurred by the utility over the duration of
5.11the approved contract or useful life of the investment and expenditures made pursuant
5.12to section 116C.779 shall be recoverable from the ratepayers of the utility, to the extent
5.13they are not offset by utility revenues attributable to the contracts, investments, or
5.14expenditures. Upon petition by a public utility, the commission shall approve or approve
5.15as modified a rate schedule providing for the automatic adjustment of charges to recover
5.16the expenses or costs approved by the commission under subdivision 1, which, in the case
5.17of transmission expenditures, are limited to the portion of actual transmission costs that are
5.18directly allocable to the need to transmit power from the renewable sources of energy. The
5.19commission may not approve recovery of the costs for that portion of the power generated
5.20from sources governed by this section that the utility sells into the wholesale market.

5.21    Sec. 8. Minnesota Statutes 2007 Supplement, section 216B.1645, subdivision 2a,
5.22is amended to read:
5.23    Subd. 2a. Cost recovery for owned renewable facilities. (a) A utility may petition
5.24the commission to approve a rate schedule that provides for the automatic adjustment of
5.25charges to recover prudently incurred investments, expenses, or costs associated with
5.26facilities constructed, owned, or operated by a utility to satisfy the requirements of section
5.27216B.1691 , provided those facilities were previously approved by the commission under
5.28section 216B.2422 or 216B.243, or were determined by the commission to be reasonable
5.29and prudent under section 216B.243, subdivision 9. The commission may approve, or
5.30approve as modified, a rate schedule that:
5.31    (1) allows a utility to recover directly from customers on a timely basis the costs of
5.32qualifying renewable energy projects, including:
5.33    (i) return on investment;
5.34    (ii) depreciation;
5.35    (iii) ongoing operation and maintenance costs;
6.1    (iv) taxes; and
6.2    (v) costs of transmission and other ancillary expenses directly allocable to
6.3transmitting electricity generated from a project meeting the specifications of this
6.4paragraph;
6.5    (2) provides a current return on construction work in progress, provided that recovery
6.6of these costs from Minnesota ratepayers is not sought through any other mechanism;
6.7    (3) allows recovery of other expenses incurred that are directly related to a
6.8renewable energy project, including expenses for energy storage, provided that the
6.9utility demonstrates to the commission's satisfaction that the expenses improve project
6.10economics, ensure project implementation, or facilitate coordination with the development
6.11of transmission necessary to transport energy produced by the project to market;
6.12    (4) allocates recoverable costs appropriately between wholesale and retail customers;
6.13    (5) terminates recovery when costs have been fully recovered or have otherwise
6.14been reflected in a utility's rates.
6.15    (b) A petition filed under this subdivision must include:
6.16    (1) a description of the facilities for which costs are to be recovered;
6.17    (2) an implementation schedule for the facilities;
6.18    (3) the utility's costs for the facilities;
6.19    (4) a description of the utility's efforts to ensure that costs of the facilities are
6.20reasonable and were prudently incurred; and
6.21    (5) a description of the benefits of the project in promoting the development of
6.22renewable energy in a manner consistent with this chapter.

6.23    Sec. 9. Minnesota Statutes 2007 Supplement, section 216B.1691, subdivision 2a,
6.24is amended to read:
6.25    Subd. 2a. Eligible energy technology standard. (a) Except as provided in
6.26paragraph (b), each electric utility shall generate or procure sufficient electricity generated
6.27by an eligible energy technology to provide its retail customers in Minnesota, or the
6.28retail customers of a distribution utility to which the electric utility provides wholesale
6.29electric service, so that at least the following standard percentages of the electric utility's
6.30total retail electric sales to retail customers in Minnesota are generated by eligible energy
6.31technologies by the end of the year indicated:

6.32	(1)	2012	12 percent
6.33	(2)	2016	17 percent
6.34	(3)	2020	20 percent
6.35	(4)	2025	25 percent.

7.1    (b) An electric utility that owned a nuclear generating facility as of January 1, 2007,
7.2must meet the requirements of this paragraph rather than paragraph (a). An electric utility
7.3subject to this paragraph must generate or procure sufficient electricity generated by
7.4an eligible energy technology to provide its retail customers in Minnesota or the retail
7.5customer of a distribution utility to which the electric utility provides wholesale electric
7.6service so that at least the following percentages of the electric utility's total retail electric
7.7sales to retail customers in Minnesota are generated by eligible energy technologies by the
7.8end of the year indicated:

7.9	(1)	2010	15 percent
7.10	(2)	2012	18 percent
7.11	(3)	2016	25 percent
7.12	(4)	2020	30 percent.

7.13Of the 30 percent in 2020, at least 25 percent must be generated by wind energy conversion
7.14systems and the remaining five percent by other eligible energy technology.
7.15    (c) By the end of the year 2012, at least 0.0125 percent of the electricity required by
7.16paragraphs (a) and (b) to be generated by each electric utility must be generated by solar
7.17energy. At least 60 percent of the required solar energy electric generation by each utility
7.18must be distributed solar generated at a customer's site with customer-owned facilities.
7.19For the purposes of this paragraph, "distributed solar" means solar electric equipment that
7.20meets the requirements of section 216C.25 with a total peak generating capacity of 100
7.21kilowatts or less used for generating electricity primarily for use in a residential property
7.22or small business, as defined by section 645.445, to reduce the effective electric load
7.23for that residence or business. An electric utility that generates less than 60 percent of
7.24its required solar energy electric generation with customer-owned distributed solar must
7.25demonstrate that reasonable efforts were made to achieve sufficient customer participation
7.26in a timely manner.

7.27    Sec. 10. Minnesota Statutes 2007 Supplement, section 216B.2411, subdivision 1,
7.28is amended to read:
7.29    Subdivision 1. Generation projects. (a) Any municipality or rural electric
7.30association providing electric service and subject to section 216B.241 that is meeting the
7.31objectives under section 216B.1691 may, and each public utility may, use five percent
7.32of the total amount to be spent on energy conservation improvements under section
7.33216B.241 , on:
7.34    (1) projects in Minnesota to construct an electric generating facility that utilizes
7.35eligible renewable energy sources as defined in subdivision 2, such as methane or other
7.36combustible gases derived from the processing of plant or animal wastes, biomass fuels
8.1such as short-rotation woody or fibrous agricultural crops, or other renewable fuel, as its
8.2primary fuel source; or
8.3    (2) projects in Minnesota to install a distributed generation facility of ten megawatts
8.4or less of interconnected capacity that is fueled by natural gas, renewable fuels, or another
8.5similarly clean fuel.; or
8.6    (3) installing a qualifying solar energy project as defined in subdivision 2.
8.7    (b) For public utilities, as defined under section 216B.02, subdivision 4, projects
8.8under this section must be considered energy conservation improvements as defined in
8.9section 216B.241. For cooperative electric associations and municipal utilities, projects
8.10under this section must be considered load-management activities described in section
8.11216B.241, subdivision 1 .

8.12    Sec. 11. Minnesota Statutes 2006, section 216B.2411, subdivision 2, is amended to
8.13read:
8.14    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
8.15subdivision and section 216B.241, subdivision 1, have the meanings given them.
8.16    (b) "Eligible renewable energy sources" means fuels and technologies to generate
8.17electricity through the use of any of the resources listed in section 216B.1691, subdivision
8.181 , paragraph (a), clause (1), except that the term "biomass" has the meaning provided
8.19under paragraph (c), and "solar" must meet the definition of a qualified solar energy
8.20project under paragraph (d).
8.21    (c) "Biomass" includes:
8.22    (1) methane or other combustible gases derived from the processing of plant or
8.23animal material;
8.24    (2) alternative fuels derived from soybean and other agricultural plant oils or animal
8.25fats;
8.26    (3) combustion of barley hulls, corn, soy-based products, or other agricultural
8.27products;
8.28    (4) wood residue from the wood products industry in Minnesota or other wood
8.29products such as short-rotation woody or fibrous agricultural crops; and
8.30    (5) landfill gas, mixed municipal solid waste, and refuse-derived fuel from mixed
8.31municipal solid waste.
8.32    (d) "Qualifying solar energy project" means a qualifying solar thermal project or
8.33qualifying solar electric project.
8.34    (e) "Qualifying solar thermal project" means a flat plate or evacuated tube that meets
8.35the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant
9.1energy and transfers it to a storage medium for distribution as energy to heat or cool air or
9.2water, but does not include equipment used to heat water at a residential property (1) for
9.3domestic use if less than one-half of the energy used for that purpose is derived from the
9.4sun or (2) for use in a hot tub or swimming pool.
9.5    (f) "Qualifying solar electric project" means solar electric equipment that meets the
9.6requirements of section 216C.25 with a total peak generating capacity of 100 kilowatts
9.7or less used for generating electricity primarily for use in a residential property or small
9.8business to reduce the effective electric load for that residence or small business.
9.9    (g) "Residential property" means the principal residence used by the homeowner at
9.10the time the solar equipment is placed in service.
9.11    (h) "Small business" has the meaning given to it in section 645.445.

9.12    Sec. 12. Minnesota Statutes 2006, section 216B.2411, is amended by adding a
9.13subdivision to read:
9.14    Subd. 4. Qualifying solar energy project. (a) A utility subject to section 216B.241
9.15may include in its conservation plan programs for the installation of qualifying solar
9.16energy projects as provided in this section. Qualifying solar energy projects must
9.17meet or exceed cost-effectiveness and other guidelines to be developed by order of
9.18the commissioner. Energy savings from qualifying solar energy projects may not be
9.19counted toward the minimum energy savings goal of at least one percent for energy
9.20conservation improvements required under section 216B.241, subdivision 1c, but may, as
9.21the commissioner determines appropriate:
9.22    (1) be counted above that minimum percentage; and
9.23    (2) be considered when establishing performance incentives under section 216B.241,
9.24subdivision 2c.
9.25    (b) Qualifying solar energy projects may not be considered when establishing
9.26demand-side management targets under sections 216B.2422, 216B.243, or any other
9.27section of this chapter.

9.28    Sec. 13. Minnesota Statutes 2006, section 216B.243, is amended by adding a
9.29subdivision to read:
9.30    Subd. 9. Renewable energy standard facilities. The requirements of this section
9.31do not apply to a wind energy conversion system or a solar electric generation facility that
9.32is intended to be used to meet or exceed the obligations of section 216B.1691; provided
9.33that, after notice and comment, the commission determines that the facility is a reasonable
9.34and prudent approach to meeting a utility's obligations under that section. When making
9.35this determination, the commission may consider the size of the facility relative to a
10.1utility's total need for renewable resources and alternative approaches for supplying
10.2the renewable energy to be supplied by the proposed facility, and must consider the
10.3facility's ability to promote economic development, as required under section 216B.1691,
10.4subdivision 9, maintain electric system reliability and consider impacts on ratepayers, and
10.5other criteria as the commission may determine are relevant.
10.6EFFECTIVE DATE.This section is effective the day following final enactment.

10.7    Sec. 14. Minnesota Statutes 2006, section 216E.03, is amended by adding a subdivision
10.8to read:
10.9    Subd. 3a. Project notice. At least 120 days before filing an application with the
10.10commission, the applicant shall provide notice to each local unit of government within
10.11which a route may be proposed. The notice must describe the proposed project and the
10.12opportunity for a preapplication consultation meeting with local units of government as
10.13provided in subdivision 3b.
10.14EFFECTIVE DATE.This section is effective the day following final enactment.

10.15    Sec. 15. Minnesota Statutes 2006, section 216E.03, is amended by adding a subdivision
10.16to read:
10.17    Subd. 3b. Preapplication consultation meetings. Within 30 days of receiving a
10.18project notice, local units of government may request the applicant hold a consultation
10.19meeting with local units of government. Upon receiving notice from a local unit of
10.20government requesting a preapplication consultation meeting, the applicant shall arrange
10.21the meeting at a location chosen by the local unit of government.
10.22EFFECTIVE DATE.This section is effective the day following final enactment.

10.23    Sec. 16. Minnesota Statutes 2006, section 216E.03, subdivision 4, is amended to read:
10.24    Subd. 4. Notice of Application notice. Within 15 days after submission of an
10.25application to the commission, the applicant shall publish notice of the application in
10.26a legal newspaper of general circulation in each county in which the site or route is
10.27proposed and send a copy of the application by certified mail to any regional development
10.28commission, county, incorporated municipality, and township town in which any part
10.29of the site or route is proposed. Within the same 15 days, the applicant shall also send
10.30a notice of the submission of the application and description of the proposed project to
10.31each owner whose property is on or adjacent to any of the proposed sites for the power
10.32plant or along any of the proposed routes for the transmission line. The notice shall must
10.33identify a location where a copy of the application can be reviewed. For the purpose
11.1of giving mailed notice under this subdivision, owners shall be are those shown on the
11.2records of the county auditor or, in any county where tax statements are mailed by the
11.3county treasurer, on the records of the county treasurer; but other appropriate records may
11.4be used for this purpose. The failure to give mailed notice to a property owner, or defects
11.5in the notice, shall does not invalidate the proceedings, provided a bona fide attempt to
11.6comply with this subdivision has been made. Within the same 15 days, the applicant shall
11.7also send the same notice of the submission of the application and description of the
11.8proposed project to those persons who have requested to be placed on a list maintained by
11.9the commission for receiving notice of proposed large electric generating power plants
11.10and high voltage transmission lines.
11.11EFFECTIVE DATE.This section is effective the day following final enactment.

11.12    Sec. 17. [216F.09] WECS AGGREGATION PROGRAM.
11.13    Subdivision 1. Program established. The entity selected to provide rural wind
11.14development assistance under Laws 2007, chapter 57, article 2, section 3, subdivision 6,
11.15shall also establish a wind energy conversion system (WECS) aggregation program. The
11.16purpose of the program is to create a clearinghouse to coordinate and arrange umbrella
11.17sales arrangements for groups of individuals, farmstead property owners, farmers'
11.18cooperative associations, community-based energy project developers, school districts,
11.19and other political subdivisions to aggregate small-volume purchases, as a group, in order
11.20to place large orders for wind energy conversion systems with WECS manufacturers.
11.21    Subd. 2. Responsibilities. The entity shall:
11.22    (1) provide application procedures for participation in the program;
11.23    (2) set minimum standards for wind energy conversion systems to be considered for
11.24purchase through the program, which may include price, quality and installation standards,
11.25timely delivery schedules and arrangements, performance and reliability ratings, and any
11.26other factors considered necessary or desirable for participants;
11.27    (3) set eligibility considerations and requirements for purchasers, including
11.28availability to the applicant of land authorized for installation and use of WECS,
11.29likelihood of a permit being approved by the commission or a county under this chapter,
11.30documentation of adequate financing, and other necessary or usual financial or business
11.31practices or requirements;
11.32    (4) provide a minimal framework for soliciting or contacting manufacturers on
11.33behalf of participants; and
11.34    (5) coordinate purchase agreements between the manufacturer and participants.
12.1    Subd. 3. Report. By February 1 of 2009, and each year thereafter, the commissioner
12.2of commerce shall submit a report to the chairs and ranking minority members of the
12.3senate and house of representatives committees with primary jurisdiction over energy
12.4policy on the activities and results of the program, including the number of participants
12.5and the number of purchases made.
12.6    Subd. 4. Assessment; appropriation. Annual costs of the program, up to $100,000,
12.7must be assessed under section 216C.052, subdivision 2, paragraph (c), clause (1). The
12.8assessment is appropriated to the commissioner of commerce to be used by the director
12.9of the Office of Energy Security for a grant to the entity to carry out the purposes of
12.10this section.
12.11EFFECTIVE DATE.This section is effective the day following final enactment.

12.12    Sec. 18. [216H.07] GREENHOUSE GAS EMISSION REDUCTION
12.13ATTAINMENT; POLICY DEVELOPMENT PROCESS.
12.14    Subdivision 1. Definition. For the purpose of this section, "reductions" means the
12.15greenhouse gas emissions reductions goals specified in section 216H.02, subdivision 1.
12.16    Subd. 2. Purpose. This section is intended to create a nonexclusive, regular,
12.17mandated process for the state to develop policies to attain the greenhouse gas reduction
12.18goals specified in section 216H.02.
12.19    Subd. 3. Biennial reduction progress report. By November 1 of each
12.20even-numbered year, the commissioners of commerce and the Pollution Control Agency
12.21shall jointly report to the chairs and ranking minority members of the legislative
12.22committees with primary policy jurisdiction over energy and environmental issues the
12.23most recent and best available evidence identifying the level of reductions already
12.24achieved and the level necessary to achieve the reduction goals established in section
12.25216H.02. The report must be written in easily understood, nontechnical language.
12.26    Subd. 4. Annual legislative proposal. The commissioners of commerce and the
12.27Pollution Control Agency shall annually by November 1 provide to the chairs and ranking
12.28minority members of the legislative committees with primary policy jurisdiction over
12.29energy and environmental issues proposed legislation the commissioners determine
12.30appropriate to achieve the reductions. If the commissioners determine no legislation is
12.31appropriate, they shall report that determination to the chairs along with an explanation of
12.32the determination.
12.33EFFECTIVE DATE.This section is effective the day following final enactment.

12.34    Sec. 19. [216H.10] DEFINITIONS.
13.1    Subdivision 1. Applicability. For purposes of sections 216H.10 to 216H.15, the
13.2following terms have the meanings given.
13.3    Subd. 2. Agency. "Agency" means the Pollution Control Agency.
13.4    Subd. 3. Carbon dioxide equivalent. "Carbon dioxide equivalent" means the
13.5quantity of carbon dioxide that has the same global warming potential as a given amount
13.6of another greenhouse gas.
13.7    Subd. 4. Commissioner. "Commissioner" means the commissioner of the Pollution
13.8Control Agency.
13.9    Subd. 5. Global warming. "Global warming" means the observed and predicted
13.10increase in the temperature of the atmosphere near the earth's surface and the oceans.
13.11    Subd. 6. Global warming potential or GWP. "Global warming potential" or
13.12"GWP" means a quantitative measure of the potential of an emission of a greenhouse
13.13gas to contribute to global warming over a 100-year period expressed in terms of the
13.14equivalent emission of carbon dioxide needed to produce the same 100-year warming
13.15effect, as reported in Fourth Assessment Report: Climate Change 2007, International
13.16Panel on Climate Change.
13.17    Subd. 7. High-GWP greenhouse gas. "High-GWP greenhouse gas" means
13.18hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
13.19    Subd. 8. Mobile air conditioner. "Mobile air conditioner" means mechanical
13.20vapor compression refrigeration equipment used to cool the passenger compartment of a
13.21motor vehicle.
13.22    Subd. 9. Motor vehicle. "Motor vehicle" has the meaning given in section 168.011,
13.23subdivision 4.
13.24    Subd. 10. New motor vehicle. "New motor vehicle" has the meaning given in
13.25section 80E.03, subdivision 7.
13.26    Subd. 11. Refrigerant. "Refrigerant" means a substance used, sold for use, or
13.27designed and intended for use in a mobile air conditioner to transfer heat out of the space
13.28being cooled.
13.29EFFECTIVE DATE.This section is effective the day following final enactment.

13.30    Sec. 20. [216H.11] HIGH-GWP GREENHOUSE GAS REPORTING.
13.31    Subdivision 1. Gas manufacturers. Beginning October 1, 2008, and each year
13.32thereafter, a manufacturer of a high-GWP greenhouse gas must report to the agency the
14.1total amount of each high-GWP greenhouse gas sold to a purchaser in this state during
14.2the previous year.
14.3    Subd. 2. Purchases. Beginning October 1, 2008, and each year thereafter, a
14.4person in this state who purchases 100 metric tons or more carbon dioxide equivalent
14.5of a high-GWP greenhouse gas must report to the agency, on a form prescribed by the
14.6commissioner, the total amount of each high-GWP greenhouse gas purchased during the
14.7previous year and the purpose for which the gas was used.
14.8    Subd. 3. Acceptance of federal filing. With the approval of the commissioner, this
14.9section may be satisfied by filing with the commissioner a copy of a greenhouse gas
14.10emissions report filed with a federal agency.
14.11EFFECTIVE DATE.This section is effective the day following final enactment.

14.12    Sec. 21. [216H.12] MOBILE AIR CONDITIONER LEAKAGE RATES;
14.13DISCLOSURE.
14.14    Subdivision 1. Leakage disclosure. Beginning January 1, 2009, a manufacturer
14.15selling or offering for sale a new motor vehicle in this state containing a mobile air
14.16conditioner that uses the high-GWP greenhouse gas HFC-134a (1,1,1,2-tetrafluoroethane)
14.17as a refrigerant must, 90 days prior to the initial sale or offer for sale, report to the
14.18commissioner the leakage rate, in grams of refrigerant per year, for the type of mobile
14.19air conditioner contained in that make, model, and model year. The leakage rate must be
14.20calculated using the information provided in the most recently published version of the
14.21Society of Automotive Engineers International document J2727, "HFC-134a Mobile
14.22Air Conditioning System Emission Chart." The method by which the leakage rate is
14.23calculated, accounting for each component of the air conditioning unit, must also be
14.24reported to the commissioner.
14.25    Subd. 2. Posting. Beginning January 1, 2009, the agency and the Office of the
14.26Attorney General must post on their Web sites:
14.27    (1) the leakage rate disclosed by a manufacturer under subdivision 1 for each model
14.28and make of new motor vehicle sold or offered for sale in this state; and
14.29    (2) the following statement: "Vehicle air conditioning systems can leak refrigerants
14.30that contribute to global warming. Some leak more than others. You can use the
14.31information provided in the chart to compare information about the global warming
14.32effects of refrigerant leakage from different makes and models when making a decision to
14.33purchase a vehicle."
14.34EFFECTIVE DATE.This section is effective the day following final enactment.

15.1    Sec. 22. [216H.14] MOBILE AIR CONDITIONER REFRIGERANT;
15.2RESTRICTION.
15.3    After July 1, 2008, no person may buy or sell a refrigerant designed to be used in a
15.4mobile air conditioner in a container holding less than 15 pounds of refrigerant.
15.5EFFECTIVE DATE.This section is effective the day following final enactment.

15.6    Sec. 23. [216H.15] ENFORCEMENT.
15.7    Sections 216H.10 to 216H.14 may be enforced under sections 115.071 and 116.072.
15.8EFFECTIVE DATE.This section is effective the day following final enactment.

15.9    Sec. 24. REPORT.
15.10    By February 1, 2009, the commissioner of the Pollution Control Agency shall
15.11submit a report to the chairs and ranking minority members of the senate and house of
15.12representatives committees with primary jurisdiction over environmental policy that
15.13identifies the uses and emissions sources of hydrofluorocarbons, perfluorocarbons, and
15.14sulfur hexafluoride in this state and suggests options for reducing or eliminating those uses
15.15and emissions and the costs of implementing those options.
15.16EFFECTIVE DATE.This section is effective the day following final enactment.

15.17    Sec. 25. ENERGY CONSERVATION PILOT PROJECT; STRATEGIC TREE
15.18PLANTING.
15.19    (a) From July 1, 2008, through June 30, 2009, the Public Utilities Commission and
15.20the commissioner of commerce shall treat the strategic planting of trees and shrubs on
15.21property of a retail customer provided electric or gas service by a public utility, municipal
15.22utility, or cooperative electric association subject to Minnesota Statutes, section 216B.241,
15.23as promoting energy efficiency and eligible for direct expenditures and expense recovery
15.24under that statute as an energy conservation improvement.
15.25    (b) For purposes of this section, "strategic" refers to the placement of trees and
15.26shrubs to obtain the most advantageous impact on energy conservation for a retail
15.27customer facility, including but not limited to shelter belt protection and heat dissipation.
15.28EFFECTIVE DATE.This section is effective July 1, 2008.

15.29    Sec. 26. REPEALER.
15.30Minnesota Statutes 2006, section 115C.09, subdivision 3j, is repealed.
15.31EFFECTIVE DATE.This section is effective the day following final enactment."
15.32Delete the title and insert:
16.2relating to energy; providing for enforcement of violations of provisions
16.3pertaining to gases with high global warming potential; modifying Petrofund
16.4program; modifying cost recovery provisions for electric transmission and
16.5renewable energy facilities; requiring a certain proportion of solar-generated
16.6electricity under a utility's renewable energy standard; allowing utilities to fund
16.7certain solar energy products under the conservation improvement program;
16.8exempting certain wind and solar projects from the requirement to obtain a
16.9certificate of need; modifying and adding provisions relating to notice to and
16.10meetings with local units of government for siting large electric generating plant
16.11or high-voltage transmission line; creating a wind project aggregation program;
16.12requiring reporting of emissions or leakage of greenhouse gases with high global
16.13warming potential; prohibiting sale of certain refrigerants; requiring reports on
16.14reducing greenhouse gas emissions; initiating a pilot project allowing the Public
16.15Utilities Commission to treat strategic tree planting as an energy conservation
16.16improvement;amending Minnesota Statutes 2006, sections 115.071, subdivision
16.171; 115C.04, subdivision 3; 115C.09, subdivision 3h, by adding a subdivision;
16.18216B.16, subdivision 7b; 216B.1645, subdivisions 1, 2; 216B.2411, subdivision
16.192, by adding a subdivision; 216B.243, by adding a subdivision; 216E.03,
16.20subdivision 4, by adding subdivisions; Minnesota Statutes 2007 Supplement,
16.21sections 216B.1645, subdivision 2a; 216B.1691, subdivision 2a; 216B.2411,
16.22subdivision 1; proposing coding for new law in Minnesota Statutes, chapters
16.23216F; 216H; repealing Minnesota Statutes 2006, section 115C.09, subdivision 3j."