Amendment sch2442a15

sch2442a15 sch2442a15

1.1Senator Mathews moved to amend H.F. No. 2442, the unofficial engrossment, as
1.2follows (...):
1.3Page 9, delete article 3 and insert:

1.4"ARTICLE 3
1.5ENERGY POLICY

1.6    Section 1. Minnesota Statutes 2024, section 116C.7792, is amended to read:
1.7116C.7792 SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM.
1.8(a) The utility subject to section 116C.779 shall operate a program to provide solar
1.9energy production incentives for solar energy systems of no more than a total aggregate
1.10nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar
1.11energy system installed before June 1, 2018, is eligible to receive a production incentive
1.12under this section for any additional solar energy systems constructed at the same customer
1.13location, provided that the aggregate capacity of all systems at the customer location does
1.14not exceed 40 kilowatts.
1.15(b) The program is funded by money withheld from transfer to the renewable development
1.16account under section 116C.779, subdivision 1, paragraphs (b) and (e). Program funds must
1.17be placed in a separate account for the purpose of the solar energy production incentive
1.18program operated by the utility and not for any other program or purpose.
1.19(c) Funds allocated to the solar energy production incentive program in 2019 and 2020
1.20remain available to the solar energy production incentive program.
1.21(d) The following amounts are allocated to the solar energy production incentive program:
1.22(1) $10,000,000 in 2021;
1.23(2) $10,000,000 in 2022;
1.24(3) $5,000,000 in 2023;
1.25(4) $11,250,000 in 2024;
1.26(5) $6,250,000 in 2025; and
1.27(6) $5,000,000 each year, beginning in 2026 through 2035.
1.28(e) Notwithstanding the Department of Commerce's November 14, 2018, decision in
1.29Docket No. E002/M-13-1015 regarding operation of the utility's solar energy production
1.30incentive program, half of the amounts allocated each year under paragraph (d), clauses (3),
1.31(4), and (5), and (6), must be reserved for solar energy systems whose installation meets
2.1the eligibility standards for the low-income program established in the November 14, 2018,
2.2decision or successor decisions of the department. All other program operations of the solar
2.3energy production incentive program are governed by the provisions of the November 14,
2.42018, decision or successor decisions of the department.
2.5(f) Funds allocated to the solar energy production incentive program that have not been
2.6committed to a specific project at the end of a program year remain available to the solar
2.7energy production incentive program.
2.8    (g) Any unspent amount remaining on January 1, 2028 2038, must be transferred to the
2.9renewable development account.
2.10    (h) A solar energy system receiving a production incentive under this section must be
2.11sized to less than 120 percent of the customer's on-site annual energy consumption when
2.12combined with other distributed generation resources and subscriptions provided under
2.13section 216B.1641 associated with the premise. The production incentive must be paid for
2.14ten years commencing with the commissioning of the system.
2.15    (i) The utility must file a plan to operate the program with the commissioner of commerce.
2.16The utility may not operate the program until it is approved by the commissioner. A change
2.17to the program to include projects up to a nameplate capacity of 40 kilowatts or less does
2.18not require the utility to file a plan with the commissioner. Any plan approved by the
2.19commissioner of commerce must not provide an increased incentive scale over prior years
2.20unless the commissioner demonstrates that changes in the market for solar energy facilities
2.21require an increase.

2.22    Sec. 2. Minnesota Statutes 2024, section 216B.16, is amended by adding a subdivision to
2.23read:
2.24    Subd. 1b. Definitions. For the purposes of this section, "low-income" means a household:
2.25(1) who is approved as qualified for energy assistance from the low-income home energy
2.26assistance program;
2.27(2) whose household income is 50 percent or less of the state median income; or
2.28(3) who meets another qualification established by the commission.

2.29    Sec. 3. Minnesota Statutes 2024, section 216B.16, subdivision 14, is amended to read:
2.30    Subd. 14. Low-income electric rate discount. A public utility shall fund an affordability
2.31program for low-income customers at a base annual funding level of $8,000,000. The annual
3.1funding level shall increase in the calendar years subsequent to each commission approval
3.2of a rate increase for the public utility's residential customers by the same percentage as the
3.3approved residential rate increase. Costs for the program shall be included in the utility's
3.4base rate. For the purposes of this subdivision, "low-income" describes a customer who is
3.5receiving assistance from the federal low-income home energy assistance program. The
3.6affordability program must be designed to target participating customers with the lowest
3.7incomes and highest energy costs in order to lower the percentage of income they devote
3.8to energy bills, increase their payments, lower utility service disconnections, and decrease
3.9costs associated with collection activities on their accounts. For low-income customers who
3.10are 62 years of age or older or disabled, the program must include a $15 discount in each
3.11billing period. For the purposes of this subdivision, "public utility" includes only those
3.12public utilities with more than 200,000 residential electric service customers. The commission
3.13may issue orders necessary to implement, administer, and recover the costs of the program
3.14on a timely basis.

3.15    Sec. 4. Minnesota Statutes 2024, section 216B.16, subdivision 15, is amended to read:
3.16    Subd. 15. Low-income affordability programs. (a) The commission must consider
3.17ability to pay as a factor in setting utility rates and may establish affordability programs for
3.18low-income residential ratepayers in order to ensure affordable, reliable, and continuous
3.19service to low-income utility customers. A public utility serving low-income residential
3.20ratepayers who use natural gas for heating must file an affordability program with the
3.21commission. For purposes of this subdivision, "low-income residential ratepayers" means
3.22ratepayers who receive energy assistance from the low-income home energy assistance
3.23program (LIHEAP).
3.24    (b) Any affordability program the commission orders a utility to implement must:
3.25    (1) lower the percentage of income that participating low-income households devote to
3.26energy bills;
3.27    (2) increase participating customer payments over time by increasing the frequency of
3.28payments;
3.29    (3) decrease or eliminate participating customer arrears;
3.30    (4) lower the utility costs associated with customer account collection activities; and
3.31    (5) coordinate the program with other available low-income bill payment assistance and
3.32conservation resources.
4.1    (c) In ordering affordability programs, the commission may require public utilities to
4.2file program evaluations that measure the effect of the affordability program on:
4.3    (1) the percentage of income that participating households devote to energy bills;
4.4    (2) service disconnections; and
4.5    (3) frequency of customer payments, utility collection costs, arrearages, and bad debt.
4.6    (d) The commission must issue orders necessary to implement, administer, and evaluate
4.7affordability programs, and to allow a utility to recover program costs, including
4.8administrative costs, on a timely basis. The commission may not allow a utility to recover
4.9administrative costs, excluding start-up costs, in excess of five percent of total program
4.10costs, or program evaluation costs in excess of two percent of total program costs. The
4.11commission must permit deferred accounting, with carrying costs, for recovery of program
4.12costs incurred during the period between general rate cases.
4.13    (e) Public utilities may use information collected or created for the purpose of
4.14administering energy assistance to administer affordability programs.

4.15    Sec. 5. Minnesota Statutes 2024, section 216B.164, subdivision 2a, is amended to read:
4.16    Subd. 2a. Definitions. (a) For the purposes of this section, the following terms have the
4.17meanings given them.
4.18(b) "Aggregated meter" means a meter located on the premises of a customer's owned
4.19or leased property that is contiguous with property containing the customer's designated
4.20meter.
4.21(c) "Capacity" means the number of megawatts alternating current (AC) at the point of
4.22interconnection between a distributed generation facility and a utility's electric system that
4.23a qualifying facility is capable of producing.
4.24(d) "Cogeneration" means a combined process whereby electrical and useful thermal
4.25energy are produced simultaneously.
4.26(e) "Contiguous property" means property owned or leased by the customer sharing a
4.27common border, without regard to interruptions in contiguity caused by easements, public
4.28thoroughfares, transportation rights-of-way, or utility rights-of-way.
4.29(f) "Customer" means the person who is named on the utility electric bill for the premises.
4.30(g) "Designated meter" means a meter that is physically attached to the customer's facility
4.31that the customer-generator designates as the first meter to which net metered credits are
5.1to be applied as the primary meter for billing purposes when the customer is serviced by
5.2more than one meter.
5.3(h) "Distributed generation" means a facility that:
5.4(1) has a capacity of ten megawatts or less;
5.5(2) is interconnected with a utility's distribution system, over which the commission has
5.6jurisdiction; and
5.7(3) generates electricity from natural gas, renewable fuel, or a similarly clean fuel, and
5.8may include waste heat, cogeneration, or fuel cell technology.
5.9(i) "High-efficiency distributed generation" means a distributed energy facility that has
5.10a minimum efficiency of 40 percent, as calculated under section 272.0211, subdivision 1.
5.11(j) "Net metered facility" means an electric generation facility constructed for the purpose
5.12of offsetting energy use through the use of renewable energy or high-efficiency distributed
5.13generation sources.
5.14(k) "Renewable energy" has the meaning given in section 216B.2411, subdivision 2.
5.15(l) "Standby charge" means a charge imposed by an electric utility upon a distributed
5.16generation facility for the recovery of costs for the provision of standby services, as provided
5.17for in a utility's tariffs approved by the commission, necessary to make electricity service
5.18available to the distributed generation facility.

5.19    Sec. 6. Minnesota Statutes 2024, section 216B.164, subdivision 3, is amended to read:
5.20    Subd. 3. Purchases; small facilities. (a) This paragraph applies to cooperative electric
5.21associations and municipal utilities. For a qualifying facility having less than 40-kilowatt
5.22capacity, the customer shall be billed for the net energy supplied by the utility according to
5.23the applicable rate schedule for sales to that class of customer. A cooperative electric
5.24association or municipal utility may charge an additional fee to recover the fixed costs not
5.25already paid for by the customer through the customer's existing billing arrangement. Any
5.26additional charge by the utility must be reasonable and appropriate for that class of customer
5.27based on the most recent cost of service study. The cost of service study must be made
5.28available for review by a customer of the utility upon request. In the case of net input into
5.29the utility system by a qualifying facility having less than 40-kilowatt capacity, compensation
5.30to the customer shall be at a per kilowatt-hour rate determined under paragraph (c), (d), or
5.31(f).
6.1(b) This paragraph applies to public utilities. For a qualifying facility having less than
6.21,000-kilowatt capacity, the customer shall be billed for the net energy supplied by the
6.3utility according to the applicable rate schedule for sales to that class of customer. In the
6.4case of net input into the utility system by a qualifying facility having: (1) more than
6.540-kilowatt but less than 1,000-kilowatt capacity, compensation to the customer shall be at
6.6a per kilowatt-hour rate determined under paragraph (c); or (2) less than 40-kilowatt capacity,
6.7compensation to the customer shall be at a per-kilowatt rate determined under paragraph
6.8(c) or (d).
6.9(c) In setting rates, the commission shall consider the fixed distribution costs to the
6.10utility not otherwise accounted for in the basic monthly charge and shall ensure that the
6.11costs charged to the qualifying facility are not discriminatory in relation to the costs charged
6.12to other customers of the utility. The commission shall set the rates for net input into the
6.13utility system based on avoided costs as defined in the Code of Federal Regulations, title
6.1418, section 292.101, paragraph (b)(6), the factors listed in Code of Federal Regulations,
6.15title 18, section 292.304, and all other relevant factors.
6.16(d) Notwithstanding any provision in this chapter to the contrary, a qualifying facility
6.17having that is interconnected to a public utility and has less than 40-kilowatt capacity may
6.18elect that the compensation for net input by the qualifying facility into the utility system
6.19shall be is at the average retail utility energy rate. "Average retail utility energy rate" is
6.20defined as the average of the retail energy rates, exclusive of special rates based on income,
6.21age, or energy conservation, according to the applicable rate schedule of the utility for sales
6.22to that class of customer.
6.23(e) If the qualifying facility or net metered facility is interconnected with a nongenerating
6.24utility which has a sole source contract with a municipal power agency or a generation and
6.25transmission utility, the nongenerating utility may elect to treat its purchase of any net input
6.26under this subdivision as being made on behalf of its supplier and shall be reimbursed by
6.27its supplier for any additional costs incurred in making the purchase. Qualifying facilities
6.28or net metered facilities having less than 1,000-kilowatt capacity if interconnected to a
6.29public utility, or less than 40-kilowatt capacity if interconnected to a cooperative electric
6.30association or municipal utility may, at the customer's option, elect to be governed by the
6.31provisions of subdivision 4.
6.32    (f) A customer with a qualifying facility or net metered facility having a capacity below
6.3340 kilowatts that is interconnected to a cooperative electric association or a municipal utility
6.34may elect to be compensated for the customer's net input into the utility system in the form
6.35of a kilowatt-hour credit on the customer's energy bill carried forward and applied to
7.1subsequent energy bills. Any kilowatt-hour credits carried forward by the customer cancel
7.2at the end of the calendar year with no additional compensation. A customer must be
7.3compensated for a canceled credit at the per kilowatt-hour rate determined under paragraph
7.4(c).
7.5(g) This section applies only to qualifying facilities that begin operation after June 30,
7.62025. Qualifying facilities that began operation before that date are subject to section
7.7216B.164.
7.8EFFECTIVE DATE.This section is effective July 1, 2025.

7.9    Sec. 7. Minnesota Statutes 2024, section 216B.1641, is amended by adding a subdivision
7.10to read:
7.11    Subd. 15. Sunset. This section expires July 31, 2028.

7.12    Sec. 8. Minnesota Statutes 2024, section 216B.1691, subdivision 1, is amended to read:
7.13    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
7.14the meaning meanings given them.
7.15(b) "Carbon-free" means a technology that generates electricity without emitting carbon
7.16dioxide. Carbon-free includes a technology that, as of the effective date of this act and
7.17thereafter, is used by a utility to generate electricity for retail sale in Minnesota by combusting
7.18wood chips derived from:
7.19(1) limbs, branches, and other by-products of timber harvesting operations conducted
7.20to obtain wood for nonenergy purposes; or
7.21(2) discarded wood products.
7.22    (c) Unless otherwise specified in law, "eligible energy technology" means an energy
7.23technology that generates electricity from the following renewable energy sources:
7.24(1) solar;
7.25(2) wind;
7.26(3) hydroelectric with a capacity of: (i) less than 100 megawatts; or (ii) 100 megawatts
7.27or more, provided that the facility is in operation as of February 8, 2023;
7.28(4) hydrogen generated from the resources listed in this paragraph; or
7.29(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester
7.30system; the predominantly organic components of wastewater effluent, sludge, or related
8.1by-products from publicly owned treatment works, but not including incineration of
8.2wastewater sludge to produce electricity; and, except as provided in subdivision 1a, an
8.3energy recovery facility used to capture the heat value of mixed municipal solid waste or
8.4refuse-derived fuel from mixed municipal solid waste as a primary fuel.
8.5    (d) "Electric utility" means: (1) a public utility providing electric service; (2) a generation
8.6and transmission cooperative electric association; (3) a municipal power agency; (4) a power
8.7district; or (5) a cooperative electric association or municipal utility providing electric service
8.8that is not a member of an entity in clauses (2) to (4).
8.9(e) "Environmental justice area" means an area in Minnesota that, based on the most
8.10recent data published by the United States Census Bureau, meets one or more of the following
8.11criteria:
8.12(1) 40 percent or more of the area's total population is nonwhite;
8.13(2) 35 percent or more of households in the area have an income that is at or below 200
8.14percent of the federal poverty level;
8.15(3) 40 percent or more of the area's residents over the age of five have limited English
8.16proficiency; or
8.17(4) the area is located within Indian country, as defined in United State Code, title 18,
8.18section 1151.
8.19    (f) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year by
8.20an electric utility to retail customers of the electric utility or to a distribution utility for
8.21distribution to the retail customers of the distribution utility.
8.22EFFECTIVE DATE.This section is effective the day following final enactment.

8.23    Sec. 9. Minnesota Statutes 2024, section 216B.1691, subdivision 2g, is amended to read:
8.24    Subd. 2g. Carbon-free standard. (a) In addition to the requirements under subdivisions
8.252a and 2f, each electric utility must generate or procure sufficient electricity generated from
8.26a carbon-free energy technology to provide the electric utility's retail customers in Minnesota,
8.27or the retail customers of a distribution utility to which the electric utility provides wholesale
8.28electric service, so that the electric utility generates or procures an amount of electricity
8.29from carbon-free energy technologies that is equivalent to at least the following standard
8.30percentages of the electric utility's total retail electric sales to retail customers in Minnesota
8.31by the end of the year indicated:
9.1
9.2
(1)
2030
80 percent for public utilities; 60 percent for
other electric utilities
9.3
(2)
2035
90 percent for all electric utilities
9.4
(3)
2040
100 percent for all electric utilities.
9.5(b) For purposes of this section, electricity generated from a carbon-free technology
9.6includes electricity generated by a peaking facility that uses only biodiesel fuel, as defined
9.7in section 239.77, subdivision 1, paragraph (b), for the first 400 hours each year in which
9.8the peaking facility uses only biodiesel fuel.
9.9EFFECTIVE DATE.This section is effective the day following final enactment.

9.10    Sec. 10. Minnesota Statutes 2024, section 216B.2402, subdivision 16, is amended to read:
9.11    Subd. 16. Low-income household. "Low-income household" means a household whose
9.12household income:
9.13(1) is 80 percent or less of the area median household income for the geographic area
9.14in which the low-income household is located, as calculated by the United States Department
9.15of Housing and Urban Development a body of the state or federal government; or
9.16(2) meets the income eligibility standards, as determined by the commissioner, required
9.17for a household to receive financial assistance from a federal, state, municipal, or utility
9.18program administered or approved by the department.

9.19    Sec. 11. Minnesota Statutes 2024, section 216B.2421, subdivision 2, is amended to read:
9.20    Subd. 2. Large energy facility. "Large energy facility" means:
9.21(1) any electric power generating plant or combination of plants at a single site with a
9.22combined capacity of 50,000 kilowatts or more and transmission lines directly associated
9.23with the plant that are necessary to interconnect the plant to the transmission system;
9.24(2) any high-voltage transmission line with a capacity of 300 kilovolts or more and
9.25greater than one mile in length in Minnesota;
9.26(3) any high-voltage transmission line with a capacity of 100 kilovolts or more with
9.27more than ten miles of its length in Minnesota;
9.28(4) any pipeline greater than six inches in diameter and having more than 50 miles of
9.29its length in Minnesota used for the transportation of coal, crude petroleum or petroleum
9.30fuels or oil, or their derivatives;
10.1(5) any pipeline for transporting natural or synthetic gas at pressures in excess of 200
10.2pounds per square inch with more than 50 miles of its length in Minnesota;
10.3(6) any facility designed for or capable of storing on a single site more than 100,000
10.41,000,000 gallons of liquefied natural gas or synthetic gas;
10.5(7) any underground gas storage facility requiring a permit pursuant to section 103I.681;
10.6(8) any nuclear fuel processing or nuclear waste storage or disposal facility; and
10.7(9) any facility intended to convert any material into any other combustible fuel and
10.8having the capacity to process in excess of 75 tons of the material per hour.

10.9    Sec. 12. Minnesota Statutes 2024, section 216C.09, is amended to read:
10.10216C.09 COMMISSIONER DUTIES.
10.11    (a) The commissioner shall:
10.12    (1) manage the department as the central repository within the state government for the
10.13collection of data on energy;
10.14    (2) prepare and adopt an emergency allocation plan specifying actions to be taken in the
10.15event of an impending serious shortage of energy, or a threat to public health, safety, or
10.16welfare;
10.17    (3) undertake a continuing assessment of trends in the consumption of all forms of energy
10.18and analyze the social, economic, and environmental consequences of these trends;
10.19    (4) carry out energy conservation and efficiency measures as specified by the legislature
10.20and recommend to the governor and the legislature additional energy policies and energy
10.21conservation measures and efficiency programming as required to meet the objectives of
10.22this chapter;
10.23    (5) collect and analyze data relating to present and future demands and resources for all
10.24sources of energy;
10.25    (6) evaluate policies governing the establishment of rates and prices for energy as related
10.26to energy conservation and energy efficiency, and other goals and policies of this chapter,
10.27and make recommendations for changes in energy pricing policies and rate schedules;
10.28    (7) study the impact and relationship of the state energy policies to international, national,
10.29and regional energy policies;
10.30    (8) design and implement a state program for the energy conservation of energy and
10.31efficiency; this the program shall must include but is not be limited to, general commercial,
11.1industrial, and residential, and transportation areas; such the program shall must also provide
11.2for the evaluation of energy systems as they relate to lighting, heating, refrigeration, air
11.3conditioning, building design and operation, and appliance manufacturing and operation;
11.4    (9) inform and educate the public about the sources and uses of energy and the ways in
11.5which persons Minnesotans can transition to a clean energy future, conserve energy, and
11.6save money;
11.7    (10) dispense funds made available for the purpose of research studies and projects of
11.8professional and civic orientation, which are related to either energy conservation, resource
11.9recovery, or the development of alternative energy technologies which conserve
11.10nonrenewable energy resources while creating minimum environmental impact;
11.11    (11) charge other governmental departments and agencies involved in energy-related
11.12activities with specific information gathering goals and require that those goals be met;
11.13    (12) design a comprehensive program for the development of indigenous energy
11.14resources. The program shall include, but not be limited to, providing technical,
11.15informational, educational, and financial services and materials to persons, businesses,
11.16municipalities, and organizations involved in the development of primary and emerging
11.17energy sources, including but not limited to solar, wind, hydropower, peat, fiber fuels,
11.18biomass, and other alternative energy resources. The program shall be evaluated by the
11.19alternative energy technical activity; and
11.20    (13) dispense loans, grants, or other financial aid resources from money received from
11.21litigation or a settlement of alleged violations of federal petroleum-pricing regulations made
11.22available to the department for that purpose.
11.23    (b) Further, the commissioner may participate fully in hearings before the Public Utilities
11.24Commission on matters pertaining to rate design, cost allocation, efficient resource utilization,
11.25utility conservation investments, small power production, cogeneration, and other rate issues.
11.26The commissioner shall support the policies stated in section 216C.05 and shall prepare
11.27and defend testimony proposed to encourage energy conservation improvements as defined
11.28in section 216B.241.

11.29    Sec. 13. Minnesota Statutes 2024, section 216C.10, is amended to read:
11.30216C.10 COMMISSIONER POWERS.
11.31(a) The commissioner may:
11.32(1) adopt rules under chapter 14 as necessary to carry out the purposes of this chapter;
12.1(2) make all contracts under this chapter and do all things necessary to cooperate with
12.2the United States government, and to qualify for, accept, and disburse any grant intended
12.3to administer this chapter;
12.4(3) provide on-site technical assistance to units of local government in order to enhance
12.5local capabilities for dealing with energy problems to provide energy-related financial
12.6resources, planning, outreach, and engagement;
12.7(4) administer for the state, energy programs under federal law, regulations, or guidelines,
12.8and coordinate the programs and activities with other state agencies, units of local
12.9government, and educational institutions;
12.10(5) develop a state energy investment plan with yearly energy conservation and alternative
12.11energy development goals, investment targets, and marketing strategies;
12.12(6) perform market analysis studies relating to conservation, alternative and renewable
12.13energy resources, and energy recovery;
12.14(7) assist with the preparation of proposals for innovative conservation, renewable,
12.15alternative, or energy recovery projects;
12.16(8) manage and disburse funds made available for the purpose of research studies or
12.17demonstration projects related to energy conservation or other activities deemed appropriate
12.18by the commissioner;
12.19(9) intervene in certificate of need proceedings before the Public Utilities Commission;
12.20(10) collect fees from recipients of loans, grants, or other financial aid from money
12.21received from litigation or settlement of alleged violations of federal petroleum-pricing
12.22regulations, which fees must be used to pay the department's costs in administering those
12.23financial aids; and
12.24(11) collect fees from proposers and operators of conservation and other energy-related
12.25programs that are reviewed, evaluated, or approved by the department, other than proposers
12.26that are political subdivisions or community or nonprofit organizations, to cover the
12.27department's cost in making the reviewal, evaluation, or approval and in developing additional
12.28programs for others to operate.
12.29(b) Notwithstanding any other law, the commissioner is designated the state agent to
12.30apply for, receive, and accept federal or other funds made available to the state for the
12.31purposes of this chapter.

13.1    Sec. 14. Minnesota Statutes 2024, section 216C.11, is amended to read:
13.2216C.11 ENERGY CONSERVATION INFORMATION CENTER.
13.3(a) The commissioner shall must establish an Energy Information Center in the
13.4department's offices in St. Paul department. The information center shall must maintain a
13.5toll-free telephone information service and disseminate printed materials on energy
13.6conservation topics, including but not limited to, availability of loans and other public and
13.7private financing methods for energy conservation physical improvements, the techniques
13.8and materials used to conserve energy in buildings, including retrofitting or upgrading
13.9insulation and installing weatherstripping, the projected prices and availability of different
13.10sources of energy, and alternative sources of energy physical, virtual, and mobile information
13.11service that collects, analyzes, and disseminates energy resources, data, technical assistance
13.12and expertise, financial assistance, connections, and information on a variety of energy
13.13topics relevant to Minnesota consumers, businesses, Tribal and local governments, and
13.14community organizations. The information center must be accessible and responsive to
13.15public inquiries and must conduct proactive outreach.
13.16The Energy Information Center shall serve as the official Minnesota Alcohol Fuels
13.17Information Center and shall disseminate information, printed, by the toll-free telephone
13.18information service, or otherwise on the applicability and technology of alcohol fuels.
13.19The information center shall include information on the potential hazards of energy
13.20conservation techniques and improvements in the printed materials disseminated. The
13.21commissioner shall not be liable for damages arising from the installation or operation of
13.22equipment or materials recommended by the information center.
13.23(b) The information center shall must use the information collected under section
13.24216C.02, subdivision 1, to maintain a central source of information on energy conservation,
13.25energy efficiency, and other energy-related programs, including both programs required by
13.26law or rule and programs developed and carried on voluntarily.

13.27    Sec. 15. Minnesota Statutes 2024, section 216C.12, is amended to read:
13.28216C.12 ENERGY CONSERVATION PUBLICITY LITERACY.
13.29(a) The commissioner, in consultation with other affected agencies or departments shall,
13.30must develop informational materials, pamphlets and radio and television messages and
13.31messaging on energy conservation and housing energy efficiency programs available in
13.32Minnesota, renewable energy resources, and energy supply and demand. The printed materials
13.33shall include information on available tax credits for residential energy conservation
14.1measures, residential retrofitting loan and grant programs, and data on the economics of
14.2energy conservation and renewable resource measures. Copies of printed materials shall be
14.3distributed to members of the appropriate standing committees of the legislature. The
14.4commissioner must use modern and current outreach strategies and media to distribute the
14.5informational materials and messaging to the widest possible audience.
14.6(b) The informational materials must promote energy literacy for individuals and
14.7communities to help individuals and communities make informed decisions on topics ranging
14.8from smart energy use at home and consumer choices to national and international energy
14.9policy. The informational materials must include but are not limited to information on energy
14.10sources, energy generation, energy use, energy conservation strategies, the energy workforce
14.11sector, and state and federal energy-related programs administered by the department.

14.12    Sec. 16. Minnesota Statutes 2024, section 216C.391, subdivision 1, is amended to read:
14.13    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
14.14the meanings given.
14.15(b) "Competitive funds" means federal funds awarded to selected applicants based on
14.16the grantor's evaluation of the strength of an application measured against all other
14.17applications.
14.18(c) "Disadvantaged community" has the meaning given by the federal agency disbursing
14.19federal funds.
14.20(d) "Eligible entity" means an entity located in Minnesota that is eligible to receive
14.21federal funds, tax credits, loans, or an entity that has at least one Minnesota-based partner,
14.22as determined by the grantor of the federal funds, tax credits, or loans.
14.23(e) "Federal funds" means federal formula or competitive funds available for award to
14.24applicants for energy projects under the Infrastructure Investment and Jobs Act, Public Law
14.25117-58, or the Inflation Reduction Act of 2022, Public Law 117-169.
14.26(f) "Formula funds" means federal funds awarded to all eligible applicants on a
14.27noncompetitive basis.
14.28(g) "Loans" means federal loans from loan funds authorized or funded in the Inflation
14.29Reduction Act of 2022, Public Law 117-169.
14.30(h) "Match" means the amount of state nonfederal money a successful grantee in
14.31Minnesota is required to contribute to a project as a condition of receiving federal funds.
14.32(i) "Political subdivision" has the meaning given in section 331A.01, subdivision 3.
15.1(j) "Project" means the activities proposed to be undertaken by an eligible entity awarded
15.2federal funds and are located in Minnesota or will directly benefit Minnesotans.
15.3(k) "Tax credits" means federal tax credits authorized in the Inflation Reduction Act of
15.42022, Public Law 117-169.
15.5(l) "Tribal government" has the meaning given in section 116J.64, subdivision 4.

15.6    Sec. 17. Minnesota Statutes 2024, section 216C.391, subdivision 3, is amended to read:
15.7    Subd. 3. Grant awards; eligible entities; priorities. (a) Grants may be awarded under
15.8this section to eligible entities in accordance with the following order of priorities:
15.9(1) federal formula funds directed to the state that require a match;
15.10(2) federal funds directed to a political subdivision or a Tribal government that require
15.11a match;
15.12(3) federal funds directed to an institution of higher education, a consumer-owned utility,
15.13a business, or a nonprofit organization that require a match;
15.14(4) federal funds directed to investor-owned utilities that require a match;
15.15(5) federal funds directed to an eligible entity not included in clauses (1) to (4) that
15.16require a match; and
15.17(6) all other grant opportunities directed to eligible entities that do not require a match
15.18but for which the commissioner determines that a grant made under this section is likely to
15.19enhance the likelihood of an applicant receiving federal funds, or to increase the potential
15.20amount of federal funds received.
15.21(b) By November 15, 2023, the commissioner must develop and publicly post, and report
15.22to the chairs and ranking minority members of the legislative committees with jurisdiction
15.23over energy finance, the federal energy grant funds that are eligible for state matching funds
15.24under this section.
15.25(c) Notwithstanding section 16B.98, subdivision 5, paragraph (b), a grant made under
15.26this section may exceed five years.

15.27    Sec. 18. Minnesota Statutes 2024, section 216C.47, subdivision 1, is amended to read:
15.28    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
15.29the meanings given.
16.1(b) "Eligible applicant" means a county, city, town, Tribal government, or the
16.2Metropolitan Council.
16.3(c) "Geothermal energy system" means a system that heats and cools one or more
16.4buildings by using the constant temperature of the earth as both a heat source and heat sink,
16.5and a heat exchanger consisting of an underground closed loop system of piping containing
16.6a liquid to absorb and relinquish heat within the earth. Geothermal energy system includes:
16.7(1) a bored geothermal heat exchanger, as defined in section 103I.005;
16.8(2) a groundwater thermal exchange device, as defined in section 103I.005; and
16.9(3) a submerged closed loop heat exchanger, as defined in section 103I.005.
16.10(d) "Tribal government" means the elected government of a federally recognized Indian
16.11Tribe located in Minnesota.
16.12EFFECTIVE DATE.This section is effective the day following final enactment."
16.13Amend the title accordingly
16.14The motion prevailed. #did not prevail. So the amendment was #not adopted.