1.1.................... moves to amend S.F. No. 550 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 116C.779, subdivision 2, is amended to
1.4read:
1.5    Subd. 2. Renewable energy production incentive. (a) Until January 1, 2018 2021,
1.6up to $10,900,000 annually must be allocated from available funds in the account to
1.7fund renewable energy production incentives. $9,400,000 of this annual amount is for
1.8incentives for up to 200 megawatts of electricity generated by wind energy conversion
1.9systems that are eligible for the incentives under section 216C.41 or Laws 2005, chapter
1.1040.
1.11(b) The balance of this amount, up to $1,500,000 annually, may be used for
1.12production incentives for on-farm biogas recovery facilities and hydroelectric facilities
1.13that are eligible for the incentive under section 216C.41 or for production incentives for
1.14other renewables, to be provided in the same manner as under section 216C.41.
1.15(c) Any funds allocated to incentive payments for wind energy conversion systems
1.16under paragraph (a) that are not expended for that purpose must be allocated to incentive
1.17payments under paragraph (b) if necessary to fully pay eligible claims for incentive
1.18payments to qualified on-farm biogas recovery facilities and hydroelectric facilities.
1.19(d) If funds allocated in calendar year 2010 under paragraphs (b) and (c) are
1.20insufficient to fully pay eligible claims for incentive payments to qualified on-farm biogas
1.21recovery facilities and hydroelectric facilities, up to $500,000 of additional funds in the
1.22renewable development account must be allocated to make up the insufficiency.
1.23(e) Any portion of the $10,900,000 not expended in any calendar year for the
1.24incentive is available for other spending purposes under this section. This subdivision
1.25does not create an obligation to contribute funds to the account.
1.26(b) (f) The Department of Commerce shall determine eligibility of projects under
1.27section 216C.41 for the purposes of this subdivision. At least quarterly, the Department of
2.1Commerce shall notify the public utility of the name and address of each eligible project
2.2owner and the amount due to each project under section 216C.41. The public utility shall
2.3make payments within 15 working days after receipt of notification of payments due.

2.4    Sec. 2. Minnesota Statutes 2008, section 116C.779, is amended by adding a subdivision
2.5to read:
2.6    Subd. 3. Initiative for Renewable Energy and the Environment (a) Beginning
2.7July 1, 2011, and each July 1 thereafter, $5,000,000 must be allocated from the renewable
2.8development account to fund a grant to the Board of Regents of the University of
2.9Minnesota for the Initiative for Renewable Energy and the Environment for the purposes
2.10described in paragraph (b). The Initiative for Renewable Energy and the Environment
2.11must set aside at least 15 percent of the funds received annually under the grant for
2.12qualified projects conducted at a rural campus or experiment station. Any set-aside funds
2.13not awarded to a rural campus or experiment station at the end of the fiscal year revert
2.14back to the Initiative for Renewable Energy and the Environment for its exclusive use.
2.15This subdivision does not create an obligation to contribute funds to the account.
2.16(b) Activities funded under this grant may include, but are not limited to:
2.17(1) environmentally sound production of energy from a renewable energy source,
2.18including biomass;
2.19(2) environmentally sound production of hydrogen from biomass and any other
2.20renewable energy source for energy storage and energy utilization;
2.21(3) development of energy conservation and efficient energy utilization technologies;
2.22(4) energy storage technologies; and
2.23(5) analysis of policy options to facilitate adoption of technologies that use or
2.24produce low-carbon renewable energy.
2.25(c) For the purposes of this subdivision:
2.26(1) "biomass" means plant and animal material, agricultural and forest residues,
2.27mixed municipal solid waste, and sludge from wastewater treatment; and
2.28(2) "renewable energy source" means hydro, wind, solar, biomass, and geothermal
2.29energy, and microorganisms used as an energy source.

2.30    Sec. 3. Minnesota Statutes 2008, section 117.189, is amended to read:
2.31117.189 PUBLIC SERVICE CORPORATION EXCEPTIONS.
2.32Sections 117.031; 117.036; 117.055, subdivision 2, paragraph (b); 117.186; 117.187;
2.33117.188 ; and 117.52, subdivisions 1a and 4, do not apply to public service corporations.
2.34For purposes of an award of appraisal fees under section 117.085, the fees awarded may
2.35not exceed $500 $1,500 for all types of property.

3.1    Sec. 4. Minnesota Statutes 2008, section 216B.16, subdivision 6c, is amended to read:
3.2    Subd. 6c. Incentive plan for energy conservation improvement. (a) The
3.3commission may order public utilities to develop and submit for commission approval
3.4incentive plans that describe the method of recovery and accounting for utility
3.5conservation expenditures and savings. In developing the incentive plans the commission
3.6shall ensure the effective involvement of interested parties.
3.7(b) In approving incentive plans, the commission shall consider:
3.8(1) whether the plan is likely to increase utility investment in cost-effective energy
3.9conservation;
3.10(2) whether the plan is compatible with the interest of utility ratepayers and other
3.11interested parties;
3.12(3) whether the plan links the incentive to the utility's performance in achieving
3.13cost-effective conservation; and
3.14(4) whether the plan is in conflict with other provisions of this chapter.
3.15(c) The commission may set rates to encourage the vigorous and effective
3.16implementation of utility conservation programs. The commission may:
3.17(1) increase or decrease any otherwise allowed rate of return on net investment based
3.18upon the utility's skill, efforts, and success in conserving energy;
3.19(2) share between ratepayers and utilities the net savings resulting from energy
3.20conservation programs to the extent justified by the utility's skill, efforts, and success in
3.21conserving energy; and
3.22(3) compensate the utility for earnings lost as a result of its conservation programs
3.23adopt any mechanism that satisfies the criteria of this subdivision.
3.24(d) In its review under section 216B.241, subdivision 2c, the commission shall
3.25provide an incentive that makes effective implementation of cost-effective conservation
3.26the most profitable resource choice for public utilities.

3.27    Sec. 5. Minnesota Statutes 2008, section 216B.16, is amended by adding a subdivision
3.28to read:
3.29    Subd. 7d. University Avenue light rail transit utility zone cost adjustment. (a)
3.30"University Avenue light rail transit utility zone" or "utility zone" means an area extending
3.31no more than one-half mile on either side of the route for the planned light rail transit
3.32system connecting the cities of Minneapolis and St. Paul along University Avenue.
3.33(b) A public utility that provides retail electric service within the utility zone,
3.34and which is required to replace, relocate, construct, or install facilities because of the
3.35mass transit system, may apply to the commission for approval of new facilities in the
4.1utility zone. Facilities proposed under this subdivision are not limited to those facilities
4.2that actually replace dislocated facilities and may include any transmission facilities,
4.3distribution facilities, generation facilities, advanced technology-assisted efficiency
4.4devices, and energy storage facilities within the utility zone. Upon approval under
4.5paragraph (c), the utility may construct and install the facilities.
4.6(c) The commission may approve the construction and installation of facilities in a
4.7mass transit utility zone proposed by a utility under paragraph (b) upon a finding:
4.8(1) that the facilities:
4.9(i) are necessary to provide electric service;
4.10(ii) assist future development of renewable energy, conservation, electric vehicles, or
4.11advanced technology-assisted efficiency programs and devices; or
4.12(iii) are exploratory, experimental, or research facilities to advance the use of
4.13renewable energy, conservation, electric vehicles, or advanced technology-assisted
4.14efficiency programs and devices;
4.15(2) that the utility has engaged in a cooperative process with affected local and state
4.16government agencies in the design, planning, or construction of the utility zone project
4.17and changes to utility facilities;
4.18(3) that the utility and local units of government have made reasonable efforts to seek
4.19federal, state, or private funds that may be available to mass transit and energy projects;
4.20(4) that the utility has made reasonable efforts to minimize the costs and maximize
4.21the value to customers of the facilities;
4.22(5) that the utility has a plan to offer a comprehensive array of programs for
4.23residential, commercial, and industrial customers located within the mass transit zone;
4.24(6) that the utility direct existing and planned solar energy programs to develop solar
4.25energy along the mass transit utility zone; and
4.26(7) that the utility has made reasonable efforts to apply for federal funds to develop
4.27technology-assisted efficiency programs and devices within the mass transit utility zone.
4.28(d) Notwithstanding any other provision of this chapter, the commission may approve
4.29a tariff mechanism for automatic adjustment of charges for new, replaced, or relocated
4.30facilities installed under this subdivision in a manner consistent with this subdivision and
4.31the standards and procedures contained in subdivision 7b, except that no approval under
4.32section 216B.243 or certification under section 216B.2425 is required unless otherwise
4.33required by law. This section does not authorize a city-requested facilities surcharge.
4.34(e) For the purpose of this subdivision, "technology-assisted efficiency programs and
4.35devices" includes, but is not limited to, infrastructure that integrates digital information and
4.36controls technology to improve the reliability, security, and efficiency of the electric grid.

5.1    Sec. 6. [216B.1613] STANDARDIZED C-BED CONTRACT.
5.2(a) Within 60 days of the effective date of this section, the commission shall initiate
5.3a proceeding to standardize all contract provisions, except those establishing the power
5.4purchase price, for two classes of C-BED projects:
5.5(1) projects with a nameplate capacity of five megawatts or less; and
5.6(2) projects with a nameplate capacity of greater than five megawatts.
5.7    (b) The proceeding shall provide for participation by the public and stakeholders.
5.8The commission shall issue an order containing standardized contract language for each
5.9class of C-BED project identified in this section no later than 90 days after the opening of
5.10the proceeding. The standardized contract form must be similar in all material respects to
5.11the standard contract form previously filed with the commission under section 216B.2423,
5.12subdivision 3, including any revisions to that contract on file with the commission as of
5.13the effective date of this section. Any applicable C-BED contract signed after the date of
5.14the commission's order whose provisions are not identical to the standardized contract
5.15contained in the commission's order is invalid.
5.16EFFECTIVE DATE.This section is effective the day following final enactment.

5.17    Sec. 7. [216B.1614] SMALL RENEWABLE PROJECTS PURCHASE.
5.18Between the effective date of this section and December 31, 2010, electric utilities,
5.19as defined in section 216B.1691, subdivision 1, paragraph (b), must purchase or contract to
5.20purchase energy from a sufficient number of renewable energy projects with a nameplate
5.21capacity of five megawatts or less so as to total at least 200 megawatts in the aggregate.
5.22Such projects must be constructed or under construction by December 31, 2010, and must
5.23meet the eligibility requirements for a renewable energy incentive under the American
5.24Recovery and Reinvestment Act of 2009, the federal Rural Energy for America Program,
5.25or other renewable energy incentive program. Before December 31, 2010, an electric
5.26utility must undertake such projects in approximate proportion to its share of the total
5.27amount of electrical energy sold within this state. This requirement does not prevent an
5.28electric utility from developing or acquiring electrical energy from other sources either
5.29within or outside the state regardless of whether such sources use renewable energy.

5.30    Sec. 8. Minnesota Statutes 2008, section 216B.1645, subdivision 2a, is amended to
5.31read:
5.32    Subd. 2a. Cost recovery for utility's renewable facilities. (a) A utility may petition
5.33the commission to approve a rate schedule that provides for the automatic adjustment of
5.34charges to recover prudently incurred investments, expenses, or costs associated with
5.35facilities constructed, owned, or operated by a utility to satisfy the requirements of section
6.1216B.1691 , provided those facilities were previously approved by the commission under
6.2section 216B.2422 or 216B.243, or were determined by the commission to be reasonable
6.3and prudent under section 216B.243, subdivision 9. For a facility not subject to review
6.4by the commission under section 216B.2422 or 216B.243, a utility shall first petition
6.5the commission to determine the utility's eligibility to apply for cost recovery for the
6.6facility under this section. The commission may approve, or approve as modified, a
6.7rate schedule that:
6.8    (1) allows a utility to recover directly from customers on a timely basis the costs of
6.9qualifying renewable energy projects, including:
6.10    (i) return on investment;
6.11    (ii) depreciation;
6.12    (iii) ongoing operation and maintenance costs;
6.13    (iv) taxes; and
6.14    (v) costs of transmission and other ancillary expenses directly allocable to
6.15transmitting electricity generated from a project meeting the specifications of this
6.16paragraph;
6.17    (2) provides a current return on construction work in progress, provided that recovery
6.18of these costs from Minnesota ratepayers is not sought through any other mechanism;
6.19    (3) allows recovery of other expenses incurred that are directly related to a
6.20renewable energy project, including expenses for energy storage, provided that the
6.21utility demonstrates to the commission's satisfaction that the expenses improve project
6.22economics, ensure project implementation, advance research and understanding of how
6.23storage devices may improve renewable energy projects, or facilitate coordination with
6.24the development of transmission necessary to transport energy produced by the project
6.25to market;
6.26    (4) allocates recoverable costs appropriately between wholesale and retail customers;
6.27    (5) terminates recovery when costs have been fully recovered or have otherwise
6.28been reflected in a utility's rates.
6.29    (b) A petition filed under this subdivision must include:
6.30    (1) a description of the facilities for which costs are to be recovered;
6.31    (2) an implementation schedule for the facilities;
6.32    (3) the utility's costs for the facilities;
6.33    (4) a description of the utility's efforts to ensure that costs of the facilities are
6.34reasonable and were prudently incurred; and
6.35    (5) a description of the benefits of the project in promoting the development of
6.36renewable energy in a manner consistent with this chapter.

7.1    Sec. 9. Minnesota Statutes 2008, section 216B.169, subdivision 2, is amended to read:
7.2    Subd. 2. Renewable and high-efficiency energy rate options. (a) Each A
7.3utility shall may offer its customers, and shall advertise the offer at least annually,
7.4one or more options that allow a customer to determine that a certain amount of the
7.5electricity generated or purchased on behalf of the customer is renewable energy or energy
7.6generated by high-efficiency, low-emissions, distributed generation such as fuel cells and
7.7microturbines fueled by a renewable fuel.
7.8(b) Each public utility shall file an implementation plan within 90 days of July 1,
7.92001, to implement paragraph (a).
7.10(c) (b) Rates charged to customers must be calculated using the utility's cost of
7.11acquiring the energy for the customer and must:
7.12(1) reflect the difference between the cost of generating or purchasing the
7.13additional renewable energy and the cost of generating or purchasing the same amount
7.14of nonrenewable energy and the cost that would otherwise be attributed to the customer
7.15for the same amount of energy based on the utility's mix of renewable and nonrenewable
7.16energy sources; and
7.17(2) be distributed on a per kilowatt-hour basis among all customers who choose to
7.18participate in the program.
7.19(d) Implementation of these rate options may reflect a reasonable amount of
7.20lead time necessary to arrange acquisition of the energy. The utility may acquire the
7.21energy demanded by customers, in whole or in part, through procuring or generating the
7.22renewable energy directly, or through the purchase of credits from a provider that has
7.23received certification of eligible power supply pursuant to subdivision 3. If a utility is not
7.24able to arrange an adequate supply of renewable or high-efficiency energy to meet its
7.25customers' demand under this section, the utility must file a report with the commission
7.26detailing its efforts and reasons for its failure.
7.27EFFECTIVE DATE.This section is effective the day following final enactment.

7.28    Sec. 10. Minnesota Statutes 2008, section 216B.1691, subdivision 2a, is amended to
7.29read:
7.30    Subd. 2a. Eligible energy technology standard. (a) Except as provided in
7.31paragraph (b), each electric utility shall generate or procure sufficient electricity generated
7.32by an eligible energy technology to provide its retail customers in Minnesota, or the
7.33retail customers of a distribution utility to which the electric utility provides wholesale
7.34electric service, so that at least the following standard percentages of the electric utility's
8.1total retail electric sales to retail customers in Minnesota are generated by eligible energy
8.2technologies by the end of the year indicated:

8.3	(1)	2012	12 percent
8.4	(2)	2016	17 percent
8.5	(3)	2020	20 percent
8.6	(4)	2025	25 percent.

8.7    (b) An electric utility that owned a nuclear generating facility as of January 1, 2007,
8.8must meet the requirements of this paragraph rather than paragraph (a). An electric utility
8.9subject to this paragraph must generate or procure sufficient electricity generated by
8.10an eligible energy technology to provide its retail customers in Minnesota or the retail
8.11customer of a distribution utility to which the electric utility provides wholesale electric
8.12service so that at least the following percentages of the electric utility's total retail electric
8.13sales to retail customers in Minnesota are generated by eligible energy technologies by the
8.14end of the year indicated:

8.15	(1)	2010	15 percent
8.16	(2)	2012	18 percent
8.17	(3)	2016	25 percent
8.18	(4)	2020	30 percent.

8.19Of the 30 percent in 2020, at least 25 percent must be generated by wind or solar
8.20energy conversion systems and the remaining five percent by other eligible energy
8.21technology.

8.22    Sec. 11. Minnesota Statutes 2008, section 216B.23, is amended by adding a subdivision
8.23to read:
8.24    Subd. 1a. Authority to issue refund. (a) On determining that a public utility has
8.25charged a rate in violation of this chapter, a commission rule, or a commission order, the
8.26commission, after conducting a proceeding, may require the public utility to refund to its
8.27customers, in a manner approved by the commission, any revenues the commission finds
8.28were collected as a result of the unlawful conduct. Any refund authorized by this section
8.29is permitted in addition to any remedies authorized by section 216B.16 or any other law
8.30governing rates. Exercising authority under this section does not preclude the commission
8.31from pursuing penalties under sections 216B.57 to 216B.61 for the same conduct.
8.32(b) This section must not be construed as allowing:
8.33(1) retroactive ratemaking;
8.34(2) refunds based on claims that prior or current approved rates have been unjust,
8.35unreasonable, unreasonably preferential, discriminatory, insufficient, inequitable, or
8.36inconsistent in application to a class of customers; or
9.1(3) refunds based on claims that approved rates have not encouraged energy
9.2conservation or renewable energy use, or have not furthered the goals of section 216B.164,
9.3216B.241, or 216C.05.
9.4    (c) A refund under this subdivision does not apply to revenues collected more than
9.5six years before the date of the notice of the commission proceeding required under this
9.6subdivision.

9.7    Sec. 12. Minnesota Statutes 2008, section 216B.241, subdivision 1c, is amended to
9.8read:
9.9    Subd. 1c. Energy-saving goals. (a) The commissioner shall establish energy-saving
9.10goals for energy conservation improvement expenditures and shall evaluate an energy
9.11conservation improvement program on how well it meets the goals set.
9.12    (b) Each individual utility and association shall have an annual energy-savings
9.13goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
9.14commissioner under paragraph (d). The savings goals must be calculated based on the
9.15most recent three-year weather normalized average. A utility or association may elect to
9.16carry forward energy savings in excess of 1.5 percent for a year to the succeeding three
9.17calendar years, provided that a particular energy savings can apply only to one year's goal.
9.18    (c) The commissioner must adopt a filing schedule that is designed to have all
9.19utilities and associations operating under an energy-savings plan by calendar year 2010.
9.20    (d) In its energy conservation improvement plan filing, a utility or association may
9.21request the commissioner to adjust its annual energy-savings percentage goal based on
9.22its historical conservation investment experience, customer class makeup, load growth,
9.23a conservation potential study, or other factors the commissioner determines warrants
9.24an adjustment. The commissioner may not approve a plan that provides for an annual
9.25energy-savings goal of less than one percent of gross annual retail energy sales from
9.26energy conservation improvements.
9.27A utility or association may include in its energy conservation plan energy savings
9.28from electric utility infrastructure projects approved by the commission under section
9.29216B.1636 or waste heat recovery converted into electricity projects that may count as
9.30energy savings in addition to the minimum energy-savings goal of at least one percent for
9.31energy conservation improvements. Electric utility infrastructure projects must result in
9.32increased energy efficiency greater than that which would have occurred through normal
9.33maintenance activity.
10.1    (e) An energy-savings goal is not satisfied by attaining the revenue expenditure
10.2requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
10.3energy-savings goal established in this subdivision.
10.4    (f) An association or utility is not required to make energy conservation investments
10.5to attain the energy-savings goals of this subdivision that are not cost-effective even
10.6if the investment is necessary to attain the energy-savings goals. For the purpose of
10.7this paragraph, in determining cost-effectiveness, the commissioner shall consider the
10.8costs and benefits to ratepayers, the utility, participants, and society. In addition, the
10.9commissioner shall consider the rate at which an association or municipal utility is
10.10increasing its energy savings and its expenditures on energy conservation.
10.11    (g) On an annual basis, the commissioner shall produce and make publicly available
10.12a report on the annual energy savings and estimated carbon dioxide reductions achieved
10.13by the energy conservation improvement programs for the two most recent years for
10.14which data is available. The commissioner shall report on program performance both in
10.15the aggregate and for each entity filing an energy conservation improvement plan for
10.16approval or review by the commissioner.
10.17    (h) By January 15, 2010, the commissioner shall report to the legislature whether
10.18the spending requirements under subdivisions 1a and 1b are necessary to achieve the
10.19energy-savings goals established in this subdivision.
10.20EFFECTIVE DATE.This section is effective the day following final enactment.

10.21    Sec. 13. Minnesota Statutes 2008, section 216B.241, is amended by adding a
10.22subdivision to read:
10.23    Subd. 2d. Renewable residential heating. (a) Up to five percent of a utility's
10.24conservation spending obligation under subdivision 1a or any amount expended in order
10.25to satisfy a utility's energy-savings goal under subdivision 1c may be used for a project
10.26located in this state that provides rebates to homeowners who install the following types of
10.27projects to heat the homeowner's primary residence:
10.28(1) a solar thermal project, as defined in section 216B.2411, subdivision 2, paragraph
10.29(e);
10.30(2) a geothermal project;
10.31(3) a heating unit that burns exclusively either biodiesel, shelled corn, or wood chips
10.32or wood pellets, provided that the heating unit is listed by Underwriters Laboratories.
10.33    (b) A rebate awarded under this subdivision must not exceed the lesser of 25 percent
10.34of the purchase and installation costs of the project or $500.
10.35EFFECTIVE DATE.This section is effective the day following final enactment.

11.1    Sec. 14. Minnesota Statutes 2008, section 216B.241, is amended by adding a
11.2subdivision to read:
11.3    Subd. 5b. Biomethane purchases. (a) A natural gas utility may include in its
11.4conservation plan purchases of biomethane, and may use up to five percent of the total
11.5amount to be spent on energy conservation improvements under this section for that
11.6purpose. The cost-effectiveness of biomethane purchases may be determined by a
11.7different standard than for other energy conservation improvements under this section if
11.8the commissioner determines that doing so is in the public interest in order to encourage
11.9biomethane purchases. Energy savings from purchasing biomethane may not be counted
11.10toward the minimum energy-savings goal of at least one percent for energy conservation
11.11improvements required under subdivision 1c, but may, if the conservation plan is approved:
11.12(1) be counted toward energy savings above that minimum percentage; and
11.13(2) be considered when establishing performance incentives under subdivision 2c.
11.14(b) For the purposes of this subdivision, "biomethane" means biogas produced
11.15through anaerobic digestion of biomass, gasification of biomass, or other effective
11.16conversion processes, that is cleaned and purified into biomethane that meets natural gas
11.17utility quality specifications for use in a natural gas utility distribution system.
11.18EFFECTIVE DATE.This section is effective the day following final enactment.

11.19    Sec. 15. Minnesota Statutes 2008, section 216B.241, subdivision 9, is amended to read:
11.20    Subd. 9. Building performance standards; Sustainable Building 2030. (a) The
11.21purpose of this subdivision is to establish cost-effective energy-efficiency performance
11.22standards for new and substantially reconstructed commercial, industrial, and institutional
11.23buildings that can significantly reduce carbon dioxide emissions by lowering energy use in
11.24new and substantially reconstructed buildings. For the purposes of this subdivision, the
11.25establishment of these standards may be referred to as Sustainable Building 2030.
11.26    (b) The commissioner shall contract with the Center for Sustainable Building
11.27Research at the University of Minnesota to coordinate development and implementation
11.28of energy-efficiency performance standards, strategic planning, research, data analysis,
11.29technology transfer, training, and other activities related to the purpose of Sustainable
11.30Building 2030. The commissioner and the Center for Sustainable Building Research
11.31shall, in consultation with utilities, builders, developers, building operators, and experts
11.32in building design and technology, develop a Sustainable Building 2030 implementation
11.33plan that must address, at a minimum, the following issues:
11.34    (1) training architects to incorporate the performance standards in building design;
12.1    (2) incorporating the performance standards in utility conservation improvement
12.2programs; and
12.3    (3) developing procedures for ongoing monitoring of energy use in buildings that
12.4have adopted the performance standards.
12.5The plan must be submitted to the chairs and ranking minority members of the senate and
12.6house of representatives committees with primary jurisdiction over energy policy by
12.7July 1, 2009.
12.8    (c) Sustainable Building 2030 energy-efficiency performance standards must be firm,
12.9quantitative measures of total building energy use and associated carbon dioxide emissions
12.10per square foot for different building types and uses, that allow for accurate determinations
12.11of a building's conformance with a performance standard. The energy-efficiency
12.12performance standards must be updated every three or five years to incorporate all
12.13cost-effective measures. The performance standards must reflect the reductions in carbon
12.14dioxide emissions per square foot resulting from actions taken by utilities to comply
12.15with the renewable energy standards in section 216B.1691. The performance standards
12.16should be designed to achieve reductions equivalent to the following reduction schedule,
12.17measured against energy consumption by an average building in each applicable building
12.18sector in 2003: (1) 60 percent in 2010; (2) 70 percent in 2015; (3) 80 percent in 2020;
12.19and (4) 90 percent in 2025. A performance standard must not be established or increased
12.20absent a conclusive engineering analysis that it is cost-effective based upon established
12.21practices used in evaluating utility conservation improvement programs.
12.22    (d) The annual amount of the contract with the Center for Sustainable Building
12.23Research is up to $500,000. The Center for Sustainable Building Research shall expend
12.24no more than $150,000 of this amount each year on administration, coordination, and
12.25oversight activities related to Sustainable Building 2030. The balance of contract funds
12.26must be spent on substantive programmatic activities allowed under this subdivision
12.27that may be conducted by the Center for Sustainable Building Research and for
12.28subcontracts with not-for-profit energy organizations, architecture and engineering firms,
12.29and other qualified entities to undertake technical projects and activities in support of
12.30Sustainable Building 2030. The primary work to be accomplished each year by qualified
12.31technical experts under subcontracts is the development and thorough justification of
12.32recommendations for specific energy-efficiency performance standards. Additional work
12.33may include:
12.34    (1) research, development, and demonstration of new energy-efficiency technologies
12.35and techniques suitable for commercial, industrial, and institutional buildings;
13.1    (2) analysis and evaluation of practices in building design, construction,
13.2commissioning and operations, and analysis and evaluation of energy use in the
13.3commercial, industrial, and institutional sectors;
13.4    (3) analysis and evaluation of the effectiveness and cost-effectiveness of Sustainable
13.5Building 2030 performance standards, conservation improvement programs, and building
13.6energy codes;
13.7    (4) development and delivery of training programs for architects, engineers,
13.8commissioning agents, technicians, contractors, equipment suppliers, developers, and
13.9others in the building industries; and
13.10    (5) analyze and evaluate the effect of building operations on energy use.
13.11    (e) The commissioner shall require utilities to develop and implement conservation
13.12improvement programs that are expressly designed to achieve energy efficiency goals
13.13consistent with the Sustainable Building 2030 performance standards. These programs
13.14must include offerings of design assistance and modeling, financial incentives, and the
13.15verification of the proper installation of energy-efficient design components in new and
13.16substantially reconstructed buildings. A utility's design assistance program must consider
13.17the strategic planting of trees and shrubs around buildings as an energy conservation
13.18strategy for the designed project. A utility making an expenditure under its conservation
13.19improvement program that results in a building meeting the Sustainable Building 2030
13.20performance standards may claim the energy savings toward its energy-savings goal
13.21established in subdivision 1c.
13.22    (f) The commissioner shall report to the legislature every three years, beginning
13.23January 15, 2010, on the cost-effectiveness and progress of implementing the Sustainable
13.24Building 2030 performance standards and shall make recommendations on the need to
13.25continue the program as described in this section.
13.26EFFECTIVE DATE.This section is effective the day following final enactment.

13.27    Sec. 16. Minnesota Statutes 2008, section 216B.2411, subdivision 1, is amended to
13.28read:
13.29    Subdivision 1. Generation projects. (a) Any municipality or rural electric
13.30association providing electric service and subject to section 216B.241 may, and each
13.31public utility may, use five percent of the total amount to be spent on energy conservation
13.32improvements under section 216B.241, on:
13.33    (1) projects in Minnesota to construct an electric generating facility that utilizes
13.34eligible renewable energy sources as defined in subdivision 2, such as methane or other
13.35combustible gases derived from the processing of plant or animal wastes, biomass fuels
14.1such as short-rotation woody or fibrous agricultural crops, or other renewable fuel, as
14.2its primary fuel source;
14.3    (2) projects in Minnesota to install a distributed generation facility of ten megawatts
14.4or less of interconnected capacity that is fueled by natural gas, renewable fuels, or another
14.5similarly clean fuel; or
14.6    (3) projects in Minnesota to install a qualifying solar energy project as defined in
14.7subdivision 2.
14.8    (b) A utility that offers a program to customers to promote installing qualifying solar
14.9energy projects may request authority from the commissioner to exceed the five percent
14.10limit in paragraph (a) to meet customer demand for installation of qualifying solar energy
14.11projects. In considering this request, the commissioner shall consider customer interest in
14.12qualifying solar energy and the impact on other customers.
14.13For public utilities, as defined under section 216B.02, subdivision 4, (c) For a utility
14.14subject to this section, projects under this section must be considered energy conservation
14.15improvements as defined in section 216B.241. For cooperative electric associations and
14.16municipal utilities, projects under this section must be considered load-management
14.17activities described in section 216B.241, subdivision 1.

14.18    Sec. 17. Minnesota Statutes 2008, section 216B.2411, subdivision 2, is amended to
14.19read:
14.20    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
14.21subdivision and section 216B.241, subdivision 1, have the meanings given them.
14.22    (b) "Eligible renewable energy sources" means fuels and technologies to generate
14.23electricity through the use of any of the resources listed in section 216B.1691, subdivision
14.241 , paragraph (a), except that the incineration of wastewater sludge is not an eligible
14.25renewable energy source, "biomass" has the meaning provided under paragraph (c), and
14.26"solar" must be from a qualified solar energy project as defined in paragraph (d).
14.27    (c) "Biomass" includes:
14.28    (1) methane or other combustible gases derived from the processing of plant or
14.29animal material;
14.30    (2) alternative fuels derived from soybean and other agricultural plant oils or animal
14.31fats;
14.32    (3) combustion of barley hulls, corn, soy-based products, or other agricultural
14.33products;
14.34    (4) wood residue from the wood products industry in Minnesota or other wood
14.35products such as short-rotation woody or fibrous agricultural crops;
15.1    (5) landfill gas;
15.2(6) the predominantly organic components of wastewater effluent, sludge, or related
15.3byproducts from publicly owned treatment works; and
15.4(7) mixed municipal solid waste, and refuse-derived fuel from mixed municipal
15.5solid waste.
15.6    (d) "Qualifying solar energy project" means a qualifying solar thermal project or
15.7qualifying solar electric project.
15.8    (e) "Qualifying solar thermal project" means a flat plate or evacuated tube that meets
15.9the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant
15.10energy and transfers it to a storage medium for distribution as energy to heat or cool air or
15.11water, but does not include equipment used to heat water at a residential property (1) for
15.12domestic use if less than one-half of the energy used for that purpose is derived from the
15.13sun or (2) for use in a hot tub or swimming pool.
15.14    (f) "Qualifying solar electric project" means:
15.15(1) solar electric equipment that: (i) meets the requirements of section 216C.25
15.16with a total; (ii) has a peak generating capacity of 100 kilowatts or less; and (iii) is
15.17used for generating to generate electricity primarily for use in a residential property or
15.18small business to reduce the effective electric load for that residence or small business,
15.19commercial, or publicly owned building or facility; and
15.20(2) if applicable, equipment that is used to store the electricity generated by a
15.21qualified solar electric project under clause (1) and that is located proximate to the
15.22building or facility using the electricity.
15.23    (g) "Residential property building" means the principal residence of a homeowner at
15.24the time the solar equipment is placed in service.
15.25    (h) "Small business" has the meaning given to it in section 645.445.
15.26EFFECTIVE DATE.This section is effective the day following final enactment.

15.27    Sec. 18. Minnesota Statutes 2008, section 216B.2424, subdivision 5a, is amended to
15.28read:
15.29    Subd. 5a. Reduction of biomass mandate. (a) Notwithstanding subdivision 5, the
15.30biomass electric energy mandate must be reduced from 125 megawatts to 110 megawatts.
15.31(b) The Public Utilities Commission shall approve a request pending before the
15.32commission as of May 15, 2003, for amendments to and assignment of a power purchase
15.33agreement with the owner of a facility that uses short-rotation, woody crops as its primary
15.34fuel previously approved to satisfy a portion of the biomass mandate if the owner of
15.35the project agrees to reduce the size of its project from 50 megawatts to 35 megawatts,
16.1while maintaining an average price for energy in nominal dollars measured over the term
16.2of the power purchase agreement at or below $104 per megawatt-hour, exclusive of any
16.3price adjustments that may take effect subsequent to commission approval of the power
16.4purchase agreement, as amended. The commission shall also approve, as necessary, any
16.5subsequent assignment or sale of the power purchase agreement or ownership of the
16.6project to an entity owned or controlled, directly or indirectly, by two municipal utilities
16.7located north of Constitutional Route No. 8, as described in section 161.114, which
16.8currently own electric and steam generation facilities using coal as a fuel and which
16.9propose to retrofit their existing municipal electrical generating facilities to utilize biomass
16.10fuels in order to perform the power purchase agreement.
16.11(c) If the power purchase agreement described in paragraph (b) is assigned to an
16.12entity that is, or becomes, owned or controlled, directly or indirectly, by two municipal
16.13entities as described in paragraph (b), and the power purchase agreement meets the
16.14price requirements of paragraph (b), the commission shall approve any amendments to
16.15the power purchase agreement necessary to reflect the changes in project location and
16.16ownership and any other amendments made necessary by those changes. The commission
16.17shall also specifically find that:
16.18(1) the power purchase agreement complies with and fully satisfies the provisions of
16.19this section to the full extent of its 35-megawatt capacity;
16.20(2) all costs incurred by the public utility and all amounts to be paid by the public
16.21utility to the project owner under the terms of the power purchase agreement are fully
16.22recoverable pursuant to section 216B.1645;
16.23(3) subject to prudency review by the commission, the public utility may recover
16.24from its Minnesota retail customers the Minnesota jurisdictional portion of the amounts
16.25that may be incurred and paid by the public utility during the full term of the power
16.26purchase agreement; and
16.27(4) if the purchase power agreement meets the requirements of this subdivision,
16.28it is reasonable and in the public interest.
16.29(d) The commission shall specifically approve recovery by the public utility of
16.30any and all Minnesota jurisdictional costs incurred by the public utility to improve,
16.31construct, install, or upgrade transmission, distribution, or other electrical facilities owned
16.32by the public utility or other persons in order to permit interconnection of the retrofitted
16.33biomass-fueled generating facilities or to obtain transmission service for the energy
16.34provided by the facilities to the public utility pursuant to section 216B.1645, and shall
16.35disapprove any provision in the power purchase agreement that requires the developer
16.36or owner of the project to pay the jurisdictional costs or that permit the public utility to
17.1terminate the power purchase agreement as a result of the existence of those costs or the
17.2public utility's obligation to pay any or all of those costs.
17.3(e) Upon request by the project owner, the public utility shall agree to amend the
17.4power purchase agreement described in paragraph (b) and approved by the commission
17.5as required by paragraph (c). The amendment must be negotiated and executed within
17.645 days of the effective date of this section and must apply to prices paid after January
17.71, 2009. The average price for energy in nominal dollars measured over the term of the
17.8power purchase agreement must not exceed $104 per megawatt hour by more than five
17.9percent. The public utility shall request approval of the amendment by the commission
17.10within 30 days of execution of the amended power purchase agreement. The amendment
17.11is not effective until approval by the commission. The commission shall act on the
17.12amendment within 90 days of submission of the request by the public utility. Upon
17.13approval of the amended power purchase agreement, the commission shall allow the
17.14public utility to recover the costs of the amended power purchase agreement, as provided
17.15in section 216B.1645.
17.16EFFECTIVE DATE.This section is effective the day following final enactment.

17.17    Sec. 19. Minnesota Statutes 2008, section 216B.2425, subdivision 3, is amended to
17.18read:
17.19    Subd. 3. Commission approval; order. (a) By June 1 of each even-numbered
17.20year, the commission shall adopt a state transmission project list and shall certify, certify
17.21as modified, or deny certification of the projects proposed under subdivision 2. The
17.22commission may only certify a project that is a high-voltage transmission line as defined
17.23in section 216B.2421, subdivision 2, that the commission finds is:
17.24(1) necessary to maintain or enhance the reliability of electric service to Minnesota
17.25consumers;
17.26(2) needed, applying the criteria in section 216B.243, subdivision 3; and
17.27(3) in the public interest, taking into account electric energy system needs and
17.28economic, environmental, and social interests affected by the project.
17.29(b) In its order adopting a statewide transmission project list, the commission shall
17.30summarize the present and future inadequacies of the transmission system identified in
17.31the utilities' transmission project reports, plans to address those inadequacies, and any
17.32barriers that may prevent those inadequacies from being addressed. Within ten days of
17.33issuing the order, the commission shall send a copy of the order to the chairs and ranking
17.34minority members of the senate and house of representatives committees with primary
17.35jurisdiction over energy policy.

18.1    Sec. 20. Minnesota Statutes 2008, section 216B.243, subdivision 8, is amended to read:
18.2    Subd. 8. Exemptions. This section does not apply to:
18.3(1) cogeneration or small power production facilities as defined in the Federal Power
18.4Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
18.5paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
18.6than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
18.7any case where the commission has determined after being advised by the attorney general
18.8that its application has been preempted by federal law;
18.9(2) a high-voltage transmission line proposed primarily to distribute electricity to
18.10serve the demand of a single customer at a single location, unless the applicant opts to
18.11request that the commission determine need under this section or section 216B.2425;
18.12(3) the upgrade to a higher voltage of an existing transmission line that serves
18.13the demand of a single customer that primarily uses existing rights-of-way, unless the
18.14applicant opts to request that the commission determine need under this section or section
18.15216B.2425 ;
18.16(4) a high-voltage transmission line of one mile or less required to connect a new or
18.17upgraded substation to an existing, new, or upgraded high-voltage transmission line;
18.18(5) conversion of the fuel source of an existing electric generating plant to using
18.19natural gas;
18.20(6) the modification of an existing electric generating plant to increase efficiency,
18.21as long as the capacity of the plant is not increased more than ten percent or more than
18.22100 megawatts, whichever is greater; or
18.23(7) a large energy facility that:
18.24(i) generates electricity from wind energy conversion systems,;
18.25(ii) will serve retail customers in Minnesota,; and
18.26(iii) meets any of the following conditions:
18.27(A) is specifically intended to be used to meet the renewable energy objective under
18.28section 216B.1691 or;
18.29(B) addresses a resource need identified in a current commission-approved or
18.30commission-reviewed resource plan under section 216B.2422, and (iv); or
18.31(C) derives at least ten percent of the total nameplate capacity of the proposed project
18.32from one or more C-BED projects, as defined under section 216B.1612, subdivision 2,
18.33paragraph (f) .

18.34    Sec. 21. Minnesota Statutes 2008, section 216B.243, subdivision 9, is amended to read:
19.1    Subd. 9. Renewable energy standard facilities. The requirements of this section
19.2do not apply to a wind energy conversion system or a solar electric generation facility that
19.3is intended to be used to meet or exceed the obligations of section 216B.1691; provided
19.4that, after notice and comment, the commission determines that the facility is a reasonable
19.5and prudent approach to meeting a utility's obligations under that section. When making
19.6this determination, the commission may consider:
19.7(1) the size of the facility relative to a utility's total need for renewable resources and;
19.8(2) alternative approaches for supplying the renewable energy to be supplied by
19.9the proposed facility, and must consider;
19.10(3) the facility's ability to promote economic development, as required under section
19.11216B.1691 , subdivision 9, maintain;
19.12(4) maintenance of electric system reliability and consider;
19.13(5) impacts on ratepayers, ; and
19.14(6) other criteria as that the commission may determine determines are relevant.

19.15    Sec. 22. Minnesota Statutes 2008, section 216C.052, subdivision 2, is amended to read:
19.16    Subd. 2. Administrative issues. (a) The commissioner may select the administrator.
19.17The administrator must have at least five years of experience working as a power systems
19.18engineer planner or transmission planner, or in a position dealing with power system
19.19reliability issues, and may not have been a party or a participant in a commission energy
19.20proceeding for at least one year prior to selection by the commissioner. The commissioner
19.21shall oversee and direct the work of the administrator, annually review the expenses of the
19.22administrator, and annually approve the budget of the administrator. The administrator
19.23may hire staff and may contract for technical expertise in performing duties when existing
19.24state resources are required for other state responsibilities or when special expertise is
19.25required. The salary of the administrator is governed by section 15A.0815, subdivision 2.
19.26    (b) Costs relating to a specific proceeding, analysis, or project are not general
19.27administrative costs. For purposes of this section, "energy utility" means public utilities,
19.28generation and transmission cooperative electric associations, and municipal power
19.29agencies providing natural gas or electric service in the state.
19.30    (c) The Department of Commerce shall pay:
19.31    (1) the general administrative costs of the administrator, not to exceed $1,000,000
19.32in a fiscal year, and shall assess energy utilities for those administrative costs. These
19.33costs must be consistent with the budget approved by the commissioner under paragraph
19.34(a). The department shall apportion the costs among all energy utilities in proportion to
19.35their respective gross operating revenues from sales of gas or electric service within
20.1the state during the last calendar year, and shall then render a bill to each utility on a
20.2regular basis; and
20.3    (2) costs relating to a specific proceeding analysis or project and shall render a bill to
20.4the specific energy utility or utilities participating in the proceeding, analysis, or project
20.5directly, either at the conclusion of a particular proceeding, analysis, or project, or from
20.6time to time during the course of the proceeding, analysis, or project.
20.7    (d) For purposes of administrative efficiency, the department shall assess energy
20.8utilities and issue bills in accordance with the billing and assessment procedures provided
20.9in section 216B.62, to the extent that these procedures do not conflict with this subdivision.
20.10The amount of the bills rendered by the department under paragraph (c) must be paid by
20.11the energy utility into an account in the special revenue fund in the state treasury within
20.1230 days from the date of billing and is appropriated to the department for the purposes
20.13provided in this section. The commission shall approve or approve as modified a rate
20.14schedule providing for the automatic adjustment of charges to recover amounts paid by
20.15utilities under this section. All amounts assessed under this section are in addition to
20.16amounts appropriated to the commission and the department by other law.

20.17    Sec. 23. [216C.055] KEY ROLE OF SOLAR AND BIOMASS RESOURCES IN
20.18PRODUCING THERMAL ENERGY.
20.19The legislature recognizes that the use of solar energy and the combustion of grasses,
20.20agricultural wastes, trees, and other vegetation to produce thermal energy for heating
20.21commercial, industrial, and residential buildings and for industrial process can play a
20.22significant role in helping Minnesota meet its future energy needs and its greenhouse gas
20.23emissions reduction goals. The annual legislative proposals required to be submitted by
20.24the commissioners of commerce and the Pollution Control Agency under section 216H.07,
20.25subdivision 4, must include proposals regarding the use of the renewable energy sources
20.26described in this section if the commissioners determine that such policies are appropriate
20.27to achieve the state's greenhouse gas emissions reduction goals. No legal claim against
20.28any person is allowed under this section. The combustion of municipal solid waste or
20.29refuse-derived fuel to produce thermal energy is not addressed under this section. For
20.30purposes of this section, removal of woody biomass from publicly owned forests must be
20.31consistent with the principles of sustainable forest management.

20.32    Sec. 24. Minnesota Statutes 2008, section 216C.41, subdivision 5a, is amended to read:
20.33    Subd. 5a. Renewable development account. The Department of Commerce
20.34shall authorize payment of the renewable energy production incentive to wind energy
20.35conversion systems for 200 megawatts of nameplate capacity and that are eligible under
21.1this section or Laws 2005, chapter 40, to on-farm biogas recovery facilities, and to
21.2hydroelectric facilities. Payment of the incentive shall be made from the renewable energy
21.3development account as provided under section 116C.779, subdivision 2.

21.4    Sec. 25. Minnesota Statutes 2008, section 216F.01, subdivision 2, is amended to read:
21.5    Subd. 2. Large wind energy conversion system or LWECS. "Large wind energy
21.6conversion system" or "LWECS" means any combination of WECS with a combined
21.7nameplate capacity of 5,000 greater than 25,000 kilowatts or more.
21.8EFFECTIVE DATE.This section is effective the day following final enactment.

21.9    Sec. 26. Minnesota Statutes 2008, section 216F.01, subdivision 3, is amended to read:
21.10    Subd. 3. Small wind energy conversion system or SWECS. "Small wind energy
21.11conversion system" or "SWECS" means any combination of WECS with a combined
21.12nameplate capacity of less than 5,000 or equal to 25,000 kilowatts.
21.13EFFECTIVE DATE.This section is effective the day following final enactment.

21.14    Sec. 27. Minnesota Statutes 2008, section 216F.012, is amended to read:
21.15216F.012 SIZE ELECTION.
21.16    (a) A wind energy conversion system of less than 25 megawatts of nameplate
21.17capacity as determined under section 216F.011 is a small wind energy conversion system
21.18if, by July 1, 2009, the owner so elects in writing and submits a completed application for
21.19zoning approval and the written election to the county or counties in which the project is
21.20proposed to be located. The owner must notify the Public Utilities Commission of the
21.21election at the time the owner submits the election to the county.
21.22    (b) Notwithstanding paragraph (a), A wind energy conversion system with a
21.23nameplate capacity exceeding five megawatts that is proposed to be located wholly or
21.24partially within a wind access buffer adjacent to state lands that are part of the outdoor
21.25recreation system, as enumerated in section 86A.05, is a large wind energy conversion
21.26system. The Department of Natural Resources shall negotiate in good faith with a system
21.27owner regarding siting and may support the system owner in seeking a variance from the
21.28system setback requirements if it determines that a variance is in the public interest.
21.29    (c) (b) The Public Utilities Commission shall issue an annual report to the chairs
21.30and ranking minority members of the house of representatives and senate committees
21.31with primary jurisdiction over energy policy and natural resource policy regarding any
21.32variances applied for and not granted for systems subject to paragraph (b).
21.33EFFECTIVE DATE.This section is effective July 1, 2009.

22.1    Sec. 28. Minnesota Statutes 2008, section 216F.02, is amended to read:
22.2216F.02 EXEMPTIONS.
22.3(a) The requirements of chapter 216E do not apply to the siting of LWECS a WECS
22.4with a combined nameplate greater than 5,000 kilowatts that applies to the commission for
22.5a site permit, except for sections 216E.01; 216E.03, subdivision 7; 216E.08; 216E.11;
22.6216E.12 ; 216E.14; 216E.15; 216E.17; and 216E.18, subdivision 3, which do apply.
22.7(b) Any person may construct an SWECS with a combined nameplate capacity less
22.8than or equal to 5,000 kilowatts without complying with chapter 216E or this chapter.
22.9(c) Nothing in this chapter shall preclude precludes a local governmental unit from
22.10establishing requirements for the siting and construction of SWECS.
22.11EFFECTIVE DATE.This section is effective the day following final enactment.

22.12    Sec. 29. Minnesota Statutes 2008, section 216F.08, is amended to read:
22.13216F.08 PERMIT AUTHORITY; ASSUMPTION BY COUNTIES.
22.14    (a) A county board may, by resolution and upon written notice to the Public Utilities
22.15Commission, assume responsibility for processing applications for permits required under
22.16this chapter for LWECS with a combined nameplate capacity of less than 25,000 kilowatts
22.17SWECS. The responsibility for permit application processing, if assumed by a county,
22.18may be delegated by the county board to an appropriate county officer or employee.
22.19Processing by A county shall be done process applications in accordance with procedures
22.20and processes established under chapter 394.
22.21    (b) A county board that exercises its option under paragraph (a) may issue, deny,
22.22modify, impose conditions upon, or revoke permits pursuant to this section. The action of
22.23the a county board about with respect to a permit application is final, subject to appeal as
22.24provided in section 394.27.
22.25    (c) The commission shall, by order, establish general permit standards, including
22.26appropriate property line set-backs, governing site permits for LWECS under this section
22.27and SWECS. The order must consider existing and historic commission standards for
22.28wind permits issued by the commission. The general permit standards shall may apply
22.29to permits issued by counties and must apply to permits issued by the commission for
22.30LWECS with a combined nameplate capacity of less than 25,000 kilowatts and SWECS.
22.31The general permit standards must establish a setback for a SWECS from a road or
22.32property line equal to 1.1 times the maximum tip height of a rotor blade measured from
22.33ground level when the blade is in a vertical position. Counties are encouraged to consider
22.34an identical setback standard in permits they issue. The commission or a county may grant
22.35a variance from a general permit standard if the variance is found to be in the public
23.1interest. Permit standards established by a county under this section supersede general
23.2permit standards established by the commission.
23.3    (d) Upon request by a county, the commission and the commissioner of commerce
23.4shall provide technical assistance to a county with respect to the processing of LWECS
23.5SWECS site permit applications.
23.6EFFECTIVE DATE.This section is effective the day following final enactment.

23.7    Sec. 30. MOUNTAIN IRON ECONOMIC DEVELOPMENT AUTHORITY;
23.8WIND ENERGY PROJECT.
23.9(a) The Mountain Iron Economic Development Authority may form or become a
23.10member of a limited liability company organized under Minnesota Statutes, chapter 322B,
23.11for the purpose of developing a community-based energy development project pursuant
23.12to Minnesota Statutes, section 216B.1612. A limited liability company formed or joined
23.13under this section is subject to the open meeting requirements established in Minnesota
23.14Statutes, chapter 13D. A project authorized by this section may not sell, transmit, or
23.15distribute the electrical energy at retail or provide for end use of the electricity to an
23.16off-site facility of the economic development corporation or the limited liability company.
23.17Nothing in this section modifies the exclusive service territories or exclusive right to serve
23.18as provided in Minnesota Statutes, sections 216B.37 to 216B.43.
23.19(b) The authority may acquire a leasehold interest in property outside its corporate
23.20boundaries for the purpose of developing a community-based energy development project
23.21as provided in Minnesota Statutes, section 216B.1612.
23.22EFFECTIVE DATE.This section is effective the day after the city of Mountain
23.23Iron and its chief clerical officer comply with Minnesota Statutes, section 645.021,
23.24subdivisions 2 and 3.

23.25    Sec. 31. SOLAR CITIES REPORT.
23.26The cities of Minneapolis and St. Paul, designated as solar cities under the federal
23.27Department of Energy's Solar America Initiative, shall, by October 1, 2009, and October
23.281, 2010, submit a report to the cochairs of the Legislative Energy Committee containing
23.29strategies to accelerate the rate of solar thermal and solar electric energy installations
23.30in all building types throughout the state. The report must, at a minimum, address the
23.31following issues:
23.32(1) identify legal, administrative, financial, and operational barriers to increasing the
23.33installation of solar energy, and measures to overcome them;
24.1(2) identify financial and regulatory mechanisms that stimulate the development of
24.2solar energy;
24.3(3) identify ways to link solar energy development with energy conservation and
24.4energy efficiency strategies and programs;
24.5(4) how efforts and initiatives undertaken by St. Paul and Minneapolis can be
24.6integrated with activities undertaken in other parts of the state; and
24.7(5) how projected trends in solar technologies and the costs of solar generation can
24.8be integrated into the state's strategy to advance adoption of solar energy.
24.9In preparing these reports, the cities may confer with any person whose experience
24.10and expertise will assist in preparing the reports, including utilities, businesses providing
24.11solar energy installation services, nonprofit organizations promoting solar energy, and
24.12others.

24.13    Sec. 32. NATURAL GAS UTILITIES; INTERIM ENERGY SAVINGS PLAN.
24.14(a) The commissioner of commerce may approve an energy conservation
24.15improvement plan under Minnesota Statutes, section 216B.241, subdivision 1c, paragraph
24.16(d), that:
24.17(1) is submitted to the commissioner in calendar year 2009 by a utility that provides
24.18natural gas service at retail;
24.19(2) governs the conservation improvements to be undertaken by the utility over the
24.20next three-year time period; and
24.21(3) is accompanied by a study that specifies how the utility may:
24.22(i) average savings of at least 0.75 percent over the three years following submission
24.23of the plan;
24.24(ii) meet and exceed the minimum energy savings goal of one percent of gross
24.25annual retail sales within five years of submission of the plan; and
24.26(iii) achieve average annual savings of at least one percent over the nine years
24.27following submission of the plan.
24.28(b) The plan must include projections of the total amount spent by the utility to
24.29achieve energy savings each year and the cost per unit of energy saved.
24.30(c) Nothing in this section precludes the commissioner from requiring additional
24.31energy conservation improvement activities and programs beyond those proposed by a
24.32utility in its proposed plan so long as those additional activities and programs meet the
24.33requirements of Minnesota Statutes, section 216B.241. The commissioner shall require
24.34all reasonable actions by a utility that will increase the likelihood of the utility's meeting
24.35and exceeding the minimum one percent energy savings goal and the 1.5 percent goal
24.36as soon as reasonably feasible.

25.1    Sec. 33. CLEAN ENERGY RESOURCE TEAMS; APPROPRIATION.
25.2The utility subject to Minnesota Statutes, section 116C.779, shall transfer $563,000
25.3in fiscal year 2010 and $563,000 in fiscal year 2011 from the renewable development
25.4account established in Minnesota Statutes, section 116C.779, to the Department of
25.5Commerce on a schedule to be determined by the commissioner of commerce. The funds
25.6must be deposited in the special revenue fund and are appropriated to the commissioner
25.7for the purposes of this section.
25.8$563,000 in fiscal year 2010 and $563,000 in fiscal year 2011 are for continued
25.9funding of community energy technical assistance and outreach on renewable energy and
25.10energy efficiency, as described in Minnesota Statutes, section 216C.385. Of this amount,
25.11$113,000 each year is for technical assistance in the metropolitan area.

25.12    Sec. 34. REPEALER.
25.13Laws 2007, chapter 3, section 3, is repealed."
25.14Delete the title and insert:
25.16relating to energy; modifying or adding provisions relating to renewable energy
25.17production incentives and initiatives, C-BED contracts, renewable energy
25.18purchases, certain appraisal fees, energy conservation, utility costs and refunds,
25.19renewable and high-efficiency energy rate options, solar energy, utility energy
25.20savings, renewable residential heating, biomethane purchases, Sustainable
25.21Building 2030, power purchase agreements, power transmission, certificate
25.22of need exemptions, energy facilities, renewable development account, the
25.23reliability administrator, wind energy conversion systems, and Mountain Iron
25.24Economic Development Authority; requiring legislative reports and proposals;
25.25appropriating money;amending Minnesota Statutes 2008, sections 116C.779,
25.26subdivision 2, by adding a subdivision; 117.189; 216B.16, subdivision 6c,
25.27by adding a subdivision; 216B.1645, subdivision 2a; 216B.169, subdivision
25.282; 216B.1691, subdivision 2a; 216B.23, by adding a subdivision; 216B.241,
25.29subdivisions 1c, 9, by adding subdivisions; 216B.2411, subdivisions 1, 2;
25.30216B.2424, subdivision 5a; 216B.2425, subdivision 3; 216B.243, subdivisions
25.318, 9; 216C.052, subdivision 2; 216C.41, subdivision 5a; 216F.01, subdivisions
25.322, 3; 216F.012; 216F.02; 216F.08; proposing coding for new law in Minnesota
25.33Statutes, chapters 216B; 216C; repealing Laws 2007, chapter 3, section 3."