1.1.................... moves to amend H.F. No. 2375 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2012, section 216B.241, is amended by adding a
1.4subdivision to read:
1.5    Subd. 5d. On-bill loan repayment programs. (a) For the purposes of this
1.6subdivision:
1.7(1) "utility" means a public utility, municipal utility, or cooperative electric
1.8association that provides electric or natural gas service to retail customers; and
1.9(2) "on-bill loan repayment program" means a program in which a utility collects
1.10on a customer's bill repayment of a loan to the customer by an eligible lender to finance
1.11the customer's investment in eligible energy conservation or renewable energy projects,
1.12and remits loan repayments to the lender.
1.13(b) A utility may include as part of its conservation improvement plan an on-bill
1.14loan repayment program to enable a customer to finance eligible projects with installment
1.15loans originated by an eligible lender. An eligible project is one that is either an energy
1.16conservation improvement, or a project that uses an eligible renewable energy source as
1.17that term is defined in section 216B.2411, subdivision 2, paragraph (b), but does not
1.18include mixed municipal solid waste or refuse-derived fuel from mixed municipal solid
1.19waste. An eligible renewable energy source also includes solar thermal technology that
1.20collects the sun's radiant energy and transfers it to a storage medium for distribution as
1.21energy to heat or cool air or water, and meets the requirements of section 216C.25. To be
1.22an eligible lender, a lender must:
1.23(1) have a federal or state charter and be eligible for federal deposit insurance; or
1.24(2) be a government entity, including an entity established under chapter 469, that
1.25has authority to provide financial assistance for energy efficiency and renewable energy
1.26projects.
2.1The commissioner must allow a utility broad discretion in designing and implementing an
2.2on-bill loan repayment program, provided that the program complies with this subdivision.
2.3(c) A utility may establish an on-bill loan repayment program for all customer
2.4classes or for a specific customer class.
2.5(d) A public utility that implements an on-bill repayment program under this
2.6subdivision must enter into a contract with one or more eligible lenders that complies
2.7with the requirements of this subdivision and contains provisions addressing capital
2.8commitments, loan origination, transfer of loans to the public utility for on-bill loan
2.9repayment, and acceptance of loans returned due to delinquency or default.
2.10(e) A public utility's contract with a lender must require the lender to comply with all
2.11applicable federal and state laws, rules, and regulations related to lending practices and
2.12consumer protection, and to conform to reasonable and prudent lending standards.
2.13(f) A public utility's contract with a lender may provide:
2.14(1) for the public utility to purchase loans from the lender with a condition that the
2.15lender must purchase back loans in delinquency or default; or
2.16(2) for the lender to retain ownership of loans with the public utility servicing the
2.17loans through on-bill repayment as long as payments are current.
2.18The risk of default must remain with the lender. The lender shall not have recourse against
2.19the public utility except in the event of negligence or breach of contract by the utility.
2.20(g) If a public utility customer makes a partial payment on a utility bill that includes
2.21a loan installment, the partial payment must be credited first to the amount owed for
2.22utility service, including taxes and fees. A public utility may not suspend or terminate
2.23a customer's utility service for delinquency or default on a loan that is being serviced
2.24through the public utility's on-bill loan repayment program.
2.25(h) An outstanding balance on a loan being repaid under this subdivision is a financial
2.26obligation only of the customer who is signatory to the loan, and not to any subsequent
2.27customer occupying the property associated with the loan. If the utility purchases loans
2.28from the lender as authorized under paragraph (f), clause (1), the utility must return to the
2.29lender a loan not repaid when a customer borrower no longer occupies the property.
2.30(i) Costs incurred by a public utility under this subdivision are recoverable as
2.31provided in section 216B.16, subdivision 6b, paragraph (c), of reasonable incremental
2.32costs for billing system modifications necessary to implement and operate an on-bill loan
2.33repayment program and for ongoing costs to operate the program. Approved costs may be
2.34counted toward a utility's conservation spending requirements under subdivisions 1a and
2.351b. Energy savings from energy conservation improvements resulting from this section
2.36may be counted toward satisfying a utility's energy-savings goals under subdivision 1c.
3.1(j) This subdivision does not require a utility to terminate or modify an existing
3.2financing program and does not prohibit a utility from establishing an on-bill financing
3.3program in which the utility provides the financing capital.
3.4(k) A municipal utility or cooperative electric association that implements an
3.5on-bill loan repayment program shall design the program to address the issues identified
3.6in paragraphs (d) through (h) as determined by the governing board of the utility or
3.7association.

3.8    Sec. 2. Minnesota Statutes 2012, section 216B.2422, subdivision 2, is amended to read:
3.9    Subd. 2. Resource plan filing and approval. A utility shall file a resource plan
3.10with the commission periodically in accordance with rules adopted by the commission.
3.11The commission shall approve, reject, or modify the plan of a public utility, as defined
3.12in section 216B.02, subdivision 4, consistent with the public interest. In the resource
3.13plan proceedings of all other utilities, the commission's order shall be advisory and the
3.14order's findings and conclusions shall constitute prima facie evidence which may be
3.15rebutted by substantial evidence in all other proceedings. With respect to utilities other
3.16than those defined in section 216B.02, subdivision 4, the commission shall consider the
3.17filing requirements and decisions in any comparable proceedings in another jurisdiction.
3.18As a part of its resource plan filing, a utility shall include the least cost plan for meeting
3.1950 and 75 percent of all new and refurbished capacity needs through a combination of
3.20conservation and renewable energy resources.

3.21    Sec. 3. Minnesota Statutes 2012, section 216B.2422, is amended by adding a
3.22subdivision to read:
3.23    Subd. 2c. Long-range emission reduction planning. Each utility required to file
3.24a resource plan under this section shall include in the filing a narrative identifying and
3.25describing the costs, opportunities, and technical barriers to the utility continuing to make
3.26progress on its system toward achieving the state greenhouse gas emission reduction goals
3.27established in section 216H.02, subdivision 1, and the technologies, alternatives, and steps
3.28the utility is considering to address those opportunities and barriers."
3.29Amend the title accordingly