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5.2. ERMUSR 09-08-2015 4 Elk River ---1 Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: September 8, 2015 5.2 SUBJECT: Minnesota Municipal Utilities Association 2015 Annual Summer Conference -Update DISCUSSION: The Minnesota Municipal Utilities Association(MMUA) Summer Conference was held in Pequot Lakes,MN. An MMUA board meeting was held prior to the conference and a business meeting of the membership was held in conjunction with the conference. Some of the conference highlights and important topics included: • A 1.5%MMUA dues revenue increase and modified dues structure was approved. These changes result in a 0.37%dues increase for ERMU which will be $27,285 for 2016. • I was elected 2015-16 MMUA board president. • ERMU Lead Water Operator Mike Langer was recognized with the MMUA Rising Star Award. • American Public Power Association(APPA)President Sue Kelly spoke about the recent APPA strategic plan and the future of public power. She discussed the importance of competitive pay, succession planning, communication of the public power brand, regulations, and grid security. The APPA strategic plan executive summary is attached. • Environmental Protection Agency Clean Power Plan Final Rule Update: Minnesota's reduction requirements decreased significantly and North Dakota's increased significantly; No credit for early adoption. • MMUA's Solar-DG Task Force presented an update on the deliverables for education, model ordinance/interconnection, demonstration projects, and rates. • POWERED BY Page 1 of 2 NATURE Reliable Public' Power Provider P O W E R E D T O S E R V E 104 • Update on preparation for the 2016 APPA Lineworkers Rodeo. • Federal and State legislative updates. Attached is the 2015 MMUA Legislative Report. • The board approved exploration of a leadership development and soft skills training program. I am participating in a board committee to develop a scope and business plan for this program. ATTACHMENTS: • American Public Power Association Strategic Plan 2016-2018: Power with Purpose— Executive Summary—June 26, 2015 • Minnesota Municipal Utilities Association 2015 Legislative Report • POWERED BY Page 2 of 2 NATURE Reliable Public Power Provider P O W E R E D T O S E R V E 105 American i Power Association st t mc plan POWER WITH PURPOSE Executive Summary I June 26, 2015 Ar0American Public Power Association SEVENTY-FIVE YEARS 106 0 Dear Valued Members of the American Public Power Association: T his year, the American Public Power Association(APPA)is celebrating its 75th an- niversary.We are proud of APPAs strong record of advocacy and member service. APPA members are community-owned, not-for-profit utilities, not controlled by remote shareholders or corporate interests.APPA members provide safe, reliable, affordable electricity,with appropriate environmental stewardship, to their communities,be they towns of fewer than 100 customers or cities of close to one and a half million customers.We have dedicated leaders and employees,with a passion to do what is best for their communities. This is a great foundation to build on for the future. But we must work to keep this advantage to benefit our customers,especially in the face of the changes our industry is experiencing. For this reason,APPA in late 2014 undertook a strategic planning process. Following is the strategic plan resulting from that effort. The APPA Board of Directors, the Executive Committee, and a combined Board/staff Strate- gic Planning Steering Committee(comprising Paula DiFonzo, Doug Hunter, and Ron Davis of the Board and Joy Ditto, Mike Hyland, and Jeff Haas of the staff,with Sue Kelly serving in an advisory capacity)provided invaluable input into the plan as it was developed over the last six months. Other APPA members,fellow trade association representatives,key interested parties (including government officials), and APPA staff provided feedback and ideas via meetings, interviews and surveys.We also scrutinized a detailed member survey that APPA conducted in 2013. Finally,we had the benefit of the expertise of a strategic planning consultant,Julie Ryan of Aether Advisors,who helped guide us through this process. The information we gathered reaffirmed that APPA is a strong organization,with able and dedi- cated employees and a full array of advocacy, education, and information services and programs. APPA is well known and well respected both inside and outside the Beltway. At the same time, the electric utility industry is changing,due primarily to four factors: 1)evolv- ing customer preferences; 2)new technologies; 3) increased government regulation; and 4)utili- ty workforce issues.While the first three of these factors are external to our industry, the fourth is a change on the inside.The electric utility industry has the highest percentage of baby boomers of almost any industry in the U.S. economy, and public power's workforce is no exception. 2 American Public Power Association 107 While we should not panic or overreact to these coming changes,we cannot be lulled into in- action either.We must acknowledge that change is coming to our industry, and take measured steps to deal with it. To help its members negotiate these changes,APPA has developed six strategic initiatives fo- cused on external issues.These initiatives are delineated in the enclosed plan.We also developed internal initiatives to ensure that APPA continues to provide the best value to our members. None of the initiatives in the plan are completely new for APPA,but the strategic plan will help us to prioritize our activities and communicate them to our members and interested parties such as other trade associations,policy makers, and the media. The strategic plan sets forth an ambitious agenda. In the second half of 2015,APPA staff will develop the programs, tactics, and metrics to implement these strategic priorities—our strate- gic"roadmap."We have limited resources and many challenges facing us. But we are excited and energized and we look forward to delivering on these initiatives for our members. Our members are the reason APPA's employees come to work every day.We in the leadership of the Association and on the staff believe in public power's dedication to its customers. Public power utilities have real opportunities before us if we can be true to our roots and ideals,while focusing our minds and services on the changes we are already seeing.Together,we can move public power forward. Sincerely, .?25)..te Paula DiFonzo,APPA Board Chair Sue Kelly,APPA President and CEO Power with Purpose 3 108 POWER WITH PURPOSE Strategic Plan 2016-201r ( NORTH r 1 Purpose © °'° APPA partners with its I Vision members to promote public power, helping community-owned i Shaping the future of public utilities deliver superior services II power to drive a new era of through joint advocacy,education, i community-owned electric and collaboration. service. lirkmriuma r \ External Initiatives / J \ Raising Awareness of Public Power Security/Cyber and Physical Preparedness Partner with members to expand the value Help members develop an"all-hazards"approach to security, and knowledge of public power utilities in their communities. disaster preparation,and response. Public Power Forward Continue Research and Development Help members deal with new technologies and trends that Enhance,expand,and leverage electric utility R&D and are reshaping relationships between utilities and customers innovation projects and facilitate public power's role as a driver of new technology. Increased Federal Regulation Protect and advance member interests in the face of increase Workforce Planning in energy policies and regulations that affect all areas of utility Help members meet workforce challenges—attract and retain operations. diverse new talent,train new employees,conduct succession planning,and transfer knowledge from departing employees. Internal Initiatives Membership Engagement Human Resources Involve all membership segments and work to Focus on developing APPA's greatest strength,its staff understand and improve the value proposition for and use cross-departmental teams to address different size classes of members multi-faceted industry issues. Financial Strength Examine APPA's dues schedule in the light of potential for declining utility sales and revenues due to economic forces,environmental regulations,increased energy efficiency,and distributed generation. AhI�r� Power American / Public P Association SEVENTY-FIVE YEARS 109 Executive Summary • 0 n its 75th anniversary,a the Aerican Public utive Committee, Board,other APPA members, staff, Power Association(APPA)celebmrates the suc- and external interested parties, including government cess of public power in over 2,000 communi- officials.The APPA Executive Committee provided ties nationwide, it is appropriate look to the future.The leadership through a Steering Committee,and APPA rate of change in our society is increasing,bringing new Board members were invited to provide direction and technological and societal shifts. Electricity is a critical guidance during the process. Finally,we benefitted from service that fueled our country's economic expansion in the expertise of strategic planning consultant Julie Ryan the twentieth century and will continue to underpin our of Aether Advisors. success and growth while enabling our society to harness After assessing the landscape of the electric utili- new technologies in the 21st century. Public power util- ty industry and evaluating the strengths, challenges, ities will face both new challenges and new opportuni- opportunities,and threats facing APPA,we reviewed ties.APPA wants to deploy its resources most effectively and reworked our mission statement,which we have to help public power utilities address the challenges and renamed our purpose statement, and also developed a take advantage of the opportunities. vision statement.These two statements—one delineat- The strategic plan focuses on the current and future ing what we do on a day-to-day basis for our members needs of APPAs members and public power utilities in and the other describing what we aspire to do into the general,to help the association prioritize our resources future—are below: and efforts. During this process,APPA has examined the industry landscape, to understand key issues and to • APPA Purpose Statement consider the opportunities and challenges ahead.We APPA partners with its members to promote public power, have also conducted a critical review of the Association's helping community-owned utilities deliver superior services capabilities to understand its strengths,constraints and through joint advocacy, education,and collaboration. areas for possible growth.We have gathered input from our members to develop strategic initiatives to address • APPA Vision Statement key industry issues and to help APPA deliver on its stra- Shaping the future of public power to drive a new era of tegic plan. community-owned electric service. The strategic plan was named Power with Purpose be- We then identified six strategic initiatives—key cause the APPA members and staff involved in develop- industry issues—to address immediate challenges and ing the plan believe that this title reflects the attitude of opportunities. our members and of the staff—our members bring a First,by communicating the value of public power, strong purpose to the delivery of electric power to their APPA will help our members tell the public power story customers and APPA brings the same purpose to the in their communities,and explain why being served by advocacy,education,communications, and programs we a public power utility gives them an advantage.We will provide on behalf of our members. also provide turnkey resources that can be adapted and Power with Purpose reflects the insights of APPAs used to deliver these messages.We will help our mem- members, staff,key interested parties,and policy bers develop relationships with elected officials to better makers.The plan was developed using feedback from influence public policies that impact them. the 2013 member survey and 2015 staff survey,as well Second,we will help our members address the as interviews with member representatives and inter- technological and regulatory changes that promise to ested parties who work closely with APPA.This plan is re-shape their relationships with their customers.We are the culmination of six months of work and more than labeling this effort"Public Power Forward." Under this 30 meetings/workshops/interviews with APPAs Exec- initiative,we will also advocate at the federal level to lim- Power with Purpose 5 110 it proposed legislative and regulatory changes that are engagement and partnerships with interested parties, best handled at the state and local levels. In addition,we including other public power groups. will provide education and training on relevant issues After the initiatives discussed above were approved by and new technologies.We will develop tools to help our APPA's Board in March, they were evaluated by APPA's members integrate distributed resources,energy effi- Executive Committee and senior staff by reviewing their ciency,and demand response into their businesses and potential risks and costs so that we could understand the operations. implications of proceeding with each.We then discussed Third,APPA will increase our advocacy efforts to potential mitigation measures that could be applied to eliminate or minimize the adverse impacts of increased each initiative to address the identified risks. federal regulation.We will emphasize public power's po- None of these activities are completely new to APPA, sitions on priority issues such as the EPA's 111(d)Clean but Power with Purpose helps us to prioritize these Power Plan regulation on existing power plants, tax ex- initiatives and communicate them to our members and empt financing, and grid security.We will also build on interested parties. It also gives our employees a clear our existing efforts to tap into the political strengths of roadmap to follow.The plan is a three-year one, and public power mayors,city council members, and elected will be evaluated by APPA's Board on an annual basis to and appointed board members, to advocate for public discuss necessary"course corrections"based on any un- power in Washington, D.C. foreseen factors.At the end of the three years, the plan Fourth,we will continue to help our members develop will be evaluated more closely to ascertain the relevancy an"all-hazards"approach to disaster preparation and for the three years beyond,and the potential need to response.We will demonstrate public power's commit- develop a new plan at that point. ment to reliability and security to relevant government In the second half of 2015,APPA staff will develop authorities,while minimizing regulatory overreach in the programs, tactics, and metrics to implement these this area. strategic initiatives.We will develop milestones relat- Fifth,APPA will focus on research and development. ed to each initiative, some of which are longer term in We will continue to use our Demonstration of Energy nature.We will also incorporate the strategic planning and Efficiency Developments (DEED)program to help activities into the association-wide goals of APPA as well public power be at the forefront of electricity innovation. as into the individual goals and performance of each And sixth,APPA will help our members meet the APPA employee.We will consult with our Executive workforce challenges facing our industry.We will pro- Committee and Board as we develop these tactics and vide data and reports to help our members educate processes. their governing bodies on the need to pay competitive Power with Purpose is an ambitious undertaking. It salaries.We will also disseminate best practices to sup- will not be easy—APPA and public power utilities have port our members'recruiting and succession planning limited resources and lots of challenges. But we at APPA efforts and to help train new employees. Finally,APPA are energized and looking forward to the next phase of will work to make public power jobs more attractive to a this effort. diverse workforce. APPA s members and staff truly believe in the benefits So that we can better help our members in the areas of public power,and in the creativity and dedication that detailed above,we will strengthen our internal resources will be brought to bear to advance these beliefs.We in —our staff, Internet technology, and finances.We will public power have real opportunities before us if we stay also improve efficiencies and plan for leadership succes- true to our roots and ideals,while adapting our mindsets sion in the association. Finally,we will enhance member and services to the changes our industry will no doubt see.Together,we can move public power forward. 6 American Public Power Association 111 Public erican Power Association 2451 Crystal Drive Suite 1000 Arlington,Virginia 22202-4804 202.467.2900 www.PublicPower.org 112 121/1/11.f► IVIIVIWt Minnesota Municipal Utilities Association r ti Q^ r. h 00 I J i . g , r-L. 5 a Y. L. Minnesota State Capitol renovation: Summer 2015 2015 legislative Report 113 DMDMI1J Minnesota Municipal Utilities Association MMUA's Mission: To unify, support, and serve as a common voice for municipal utilities. 114 CONTENTS Session Summary 1 New Laws 3 Employment, Economic Development, Jobs, and Energy Budget Omnibus 3 Environment,Natural Resources, and Agriculture Budget Omnibus 5 Legacy Bill 8 Capital Investment Bill 9 Professional Engineers Licensing Requirements 9 Water Meters as Energy Conservation Devices 10 Electronic Filing of Rulemaking Documents 10 Responsible Contractors Changes 10 Transportation Budget Omnibus 11 State Government Budget Omnibus 12 Unsuccessful Legislation: Electric 13 Large Hydropower May Satisfy RES 13 Rate Recovery for Electric Vehicle Promotion 13 Legislative Approval of 111(d) State Implmentation Plan 13 Monticello Nuclear Power Unit Construction Allowed 14 CON Exemptions for Natural Gas Facilities Selling Power Out of State 14 LEC Energy Futures Framework Funding 14 LEC Assessment Change 14 Low Income Weatherization Programs Authority Transfer 15 Remove Restrictions on Importing Power 15 CHP Exemptions from Emissions Regulation 15 House Jobs/Energy Budget and Policy Omnibus Bill 15 County Siting Authority and Solar Surety Bonds 17 Utility Railroad Crossing Fees 17 Municipal Power Agencies Open Meeting Law 18 115 All Renewable Future Repeal 18 RES Achievement Delayed for Increased Rates 18 Energy Storage Systems Eligible for CIP 18 Lab Accelerator Program 19 Renewable Energy Standard Increase (40%by 2030) 19 Nuclear Moratorium Lifted 19 Made in MN Solar Required for Camp Ripley Project 20 Supply-Side Savings in CIP 20 Regular Session Jobs/Energy Budget Bill 20 Greenhouse Gas Emission Goal Modification 21 Removing Hydrogren as an Energy Source 21 CON Decisions Made at Public Meetings 21 Senate Energy Policy Omnibus#1 22 Conservation to Count Towards RES 22 Solar Siting Requirements 22 Conservation Improvement Program Increase 23 Co-op Rate Recovery for Property Taxes 23 Building Code Flexibility 23 Cost-Effectiveness of Conservation Programs 24 State Energy Authority 24 Electric Vehicle Promotion Program 24 Property Rights Ombudsman 24 Certificate of Need Modifications 24 Senate Energy Policy Omnibus#2 25 Senate Environment, Economic Development, and Agriculture Budget Bill 25 C-BED Expiration 26 Unsuccessful Legislation: Water and Environmental Regulations 27 Rural Municipal Water Treatment Facility Renovation Loan Program 27 Rural Municipal Water Treatment Renovation Funding in LGA 27 Permitting Efficincies Requirements Modified 27 Prohibiting Regulation of Wood-Burning Stoves 27 116 Reinvest in Minnesota Appropriation 28 Natural Gas and Water Services Separate Metering 28 Independent Peer Review of Water Quality Standards 28 Wastewater Infrastructure Bonding Appropriation 28 Regular Session Environment and Agriculture Budget Bill 29 Mora Sales Tax Exemption for Wastewater Treatment FAcility 29 Legislative Oversight of State Agency Rulemaking 30 Unsuccessful Legislation: Gas and Propane 31 Natural Gas and Water Services Separate Metering 31 Proposed Pipelines Land Purchases 31 Propane Accessibility Improvements 31 Pipeline Oil and Rail Transport of Hazardous Materials 32 Propane Prepurchase Program Modifications 32 Utility Railroad Crossing Fees 32 Supply-Side Savings Counted in CIP 32 Conservation Improvement Program Increase 33 Unsuccessful Legislation: Taxes and City Governance 34 Telecommunications Equipment Tax Exemption 34 Eminent Domain Limitations Outside City Limits 34 Fiscal Disparities Contributions for Municipalities Limited 34 Rural Municipal Water Treatment Renovation Funding in LGA 34 Cities and Counties Written Procedures Establishment 35 Administrative Procedures Act Modifications 35 Public Agency Purchase Price Limitation 35 Wind and Solar Production Taxes not Subject to Levy Limits 35 Eminent Domain Easement Discharge 35 Local Government Refundable Sales Tax for Construction Materials 36 LGA Infrastructure Capital Project Grant Program 36 Mora Sales Tax Exemption for Wastewater Treatment Facility 36 Orderly Annexation and Annexation by Ordinance Limitations 37 Spending Referenda in November Elections 37 117 Marshall CHP Propert Tax Exemption/PILOT 37 North Branch Public Utilities Commission Membership 37 Renewable Energy Production and Energy Investment Income Tax Credit 37 Income Tax Credits for Energy Improvements 38 Electric Generation Property Tax Reform 38 Border to Border Broadband Income Tax Credit 38 Unsuccessful Legislation: Telecommunications 39 Telecommunications Equipment Tax Exemption 39 Border-to-Border Broadband Account Funding 39 VOIP Regulation Prohibtion 39 VOIP Competitive Market Regulation 40 Telecommunications Modifications 40 Bonding for Broadband 40 Broadband Economic Development Pilot Program 40 Border-to-Border Broadband Income Tax Credit 41 Office of Broadband Development Appropriation 41 Municipal Telecommunications Repeal 41 Report compiled by MMUA Government Relations Representative Amanda Duerr. Questions and comments welcome at aduerrAmmua.org. 118 S -4 - „ 4,4 � e.. SUi1ttARY The 2015 Legislative Session was convened on January 6, 2015. The November 2014 election had brought divided government back to Minnesota: Republicans gained control of the House of Representatives and DFL Governor Mark Dayton was re-elected to a second term. The Minnesota Senate was not up for election, so the body remained in DFL control. Looking back, "divided"is the most appropriate descriptor for 2015—with divisions not only based on party lines,but at times the Legislature v. the Governor, and rural v. metro interests. The divergences were evident in the energy policy initiatives of the two legislative bodies. The Senate Environment and Energy Committee, with the Administration's support, attempted to build on 2013's efforts by passing a policy omnibus that included an increase in the Renewable Energy Standard(RES) to 40%by 2030 and a Conservation Improvement Program(CIP) goal increase from 1.5%to 2%. However,the lack of rural senators' support for these changes kept this bill from ever being debated on the Senate floor after it passed committee. In the House,the Job Growth and Energy Affordability Committee made its focus "making energy cleaner AND more affordable." It advanced a budget and policy omnibus that included sunsetting the CIP program and establishing a taskforce to develop a successor program, allowing large hydropower to be included in the RES, and allowing the solar mandate on investor-owned utilities to be met by any form of renewable energy. Also included in the House jobs/energy bill was a provision advanced by the MN Rural Electric Association(MREA) and MMUA: net metering reform which would allow co-ops and municipal utilities to charge a fee to recover the fixed costs of providing service to distributed generation customers. To allow non-controversial energy policy items to move forward,the Senate passed a second omnibus bill off the floor. The House did not take action on this bill, firmly maintaining that energy policy would be debated in the budget bill—and the Senate's budget omnibus contained only a handful of energy policy items. (All of these House and Senate omnibus bills are described in detail in the "Unsuccessful Legislation"section of this report.) Environmental regulation was also a major focus of the 2015 Legislature. Several initiatives reining in the Minnesota Pollution Control Agency on water quality standards were passed off the floors of the House and Senate (to the dismay of many metro-DFL senators) in environment/agriculture budget omnibus bills. These issues, along with others, came to a head in the end-of-session negotiations. With a forecasted$2.1 billion state budget surplus, the Governor, House, and Senate all had different budget priorities. The House GOP had advanced a package of business and individual income tax cuts. The Governor prioritized all-day pre-Kindergarten funding. The Senate wanted to raise 119 revenues to fund transportation. These differences proved insurmountable, when after weeks of closed-door negotiations, Senate Majority Leader Tom Bakk and Speaker of the House Kurt Daudt emerged with an overall budget agreement to which the Governor objected. Dayton threatened a veto if his terms were not met on the education bill. The Legislature proceeded with the agreement despite objections,making a mad rush to finish passing a state budget by the constitutionally-mandated adjournment time (midnight May 18). Shortly thereafter,the Governor made good on his promise on the education veto,making a Special Session inevitable. With environmental advocates pushing the Governor to veto the Legislature's environment/agriculture bill, and criticism of the jobs/energy bill passed in the last minutes of the Regular Session,two more vetoes (and the budgets of several more state agencies)were added to the Special Session agenda. Speaker Daudt and Governor Dayton spent the next several weeks re-negotiating the three budget bills, a bonding bill, and a Legacy bill. Finally, an agreement was reached and all four caucus leaders signed off on the framework of a Special Session,which was called for June 12. There were only modest changes made to the vetoed jobs/energy and environment/agriculture bills. The net metering reforms supported by MREA and MMUA, along with a few provisions helpful to municipal wastewater facilities survived to be part of the final deal. (The final bills are described in detail in the "New Laws"section.) However, despite"the deal,"the 2015 Special Session had its share of drama. _Prior to signing the agreement, DFL Senate Majority Leader Bakk warned that he was unsure that he had the support of his caucus to pass the environment/agriculture bill,which still contained many of the environmental provisions that metro-DFLers found objectionable. His warning proved to be true as it took three votes, including an attempt to break the deal, for the bill to pass. Finally, in the early morning hours of June 13, the 2015 Legislature finished its work. Divided government and competing priorities brought a lot in terms of activity and debate this session, but little in terms of results. For 2016,the stage is set with neither legislative body nor the Governor seeing their top priority passed into law,many strained relationships, and a State Capitol that is inaccessible due to construction. 120 NEW LAWS This section provides a summary of new laws passed in the 2015 Regular Session and 2015 Special Session that impact MMUA members. Italicized text notes when a provision was originally included in another bill. A(*) signifies the bill number that was the vehicle for the new law's passage. OMNIBUS EMPLOYMENT,ECONOMIC DEVELOPMENT,JOBS,AND ENERGY BILL 2015 First Special Session Laws Chapter 1 *HF 3 Rep. Pat Garofalo (R-Farmington) SF 2 Sen. David Tomassoni (DFL-Chisholm) This bill includes the biennial budget appropriations (FY 2016-17) for the following state agencies: Department of Employment and Economic Development(DEED), Department of Labor and Industry(DOLL), Department of Commerce, Housing Finance Agency, Explore MN Tourism, Bureau of Mediation Services,Workers' Compensation Court of Appeals, and Public Utilities Commission. Several policy items related to these areas of the state budget are also included. Appropriations of interest to MMUA: • $250,000/year to DEED for the Office of Broadband Development • $10,588,000 for the Border-to-Border Broadband Fund • $525,000/year in increased funding for additional staff at the Public Utilities Commission • $5 million/year for the Department of Commerce for the propane prepurchase program (Similar appropriation found in HF 550-Baker/SF 925-Koenen) • $150,000/year for grants to low-income weatherization service providers for the installation of renewable energy equipment • $424,000 in FY 2016 and$430,000 in FY 2017 for the costs associated with competitive rates for energy-intensive,trade-exposed electric utility customers (recovered through assessments on eligible utilities: Minnesota Power and Otter Tail Power) • $92,000 in FY 2016 to study the potential cost savings and program efficiencies that may result from transferring certain functions and staff from the Division of Energy Resources to the Public Utilities Commission. The study must be submitted by January 1, 2016 to the legislative committees with jurisdiction over energy policy and state government operations. (Similar provisions found in HF 2033-Newberger/SF 2073-Osmek) Policy provisions of interest to MMUA: Disaster Relief. State disaster relief may be used for the non-federal matching share of cooperative electric association projects. (Municipal utilities already qualify.) (HF 484-Urdahl/SF 599-Newman) 121 State Implementation Plan Review. The Department of Commerce and the Minnesota Pollution Control Agency shall jointly submit the state's 111(d)implementation plan to the legislative energy committees for review and comment by March 15, 2016. Natural Gas Extension Projects. Investor-owned gas utilities may petition the Public Utilities Commission for a rate rider to recover the revenue deficiency from a natural gas extension project. Revenue deficiency is defined as the difference between project costs and projected revenues expected from the customers receiving the natural gas as a result of the project. The PUC shall approve a rider if it determines that a project is designed to extend natural gas service to an unserved or inadequately served area and the costs are reasonable and prudently incurred. The PUC must not approve a rider that allows a utility to recover more than 33 percent of the costs of a natural gas extension project. By January 15, 2017 and every three years thereafter, the PUC must report to the Legislature the number of utilities and projects proposed and approved under this section, the total cost of each project, the rate impacts of cost recovery, and an assessment of the effectiveness of the cost recovery mechanism in realizing increased natural gas service. (HF 1522-0'Neill/SF1263-Skoe) Net Metering Reform. The statutes governing the purchasing of net energy from qualifying facilities under 40 kW by municipal utilities and co-ops (Minnesota Statutes 2014, section 216B.164, subdivision 3) are modified. Cooperative electric associations and municipal utilities may charge an additional fee to recover the fixed costs not already paid for by the customer through the customer's existing billing arrangement. Any additional charge by the utility must be reasonable and appropriate for that class of customer based on the most recent cost of service study. The cost of service study must be made available for review by a customer of the utility by request. A customer with a qualifying facility or net metered facility with a capacity under 40 kW that is interconnected to a cooperative electric association or municipal utility may elect to be compensated for the customer's net input into the utility system in the form of a kilowatt-hour credit on the customer's energy bill carried forward and applied to subsequent energy bills. Any kilowatt-hour credits carried forward by the customer cancel at the end of the calendar year with no additional compensation. (Similar provision included in HF 655-Fabian/SF 808-Koenen) EITE. Investor-owned utilities with 50,000-200,000 retail customers (Minnesota Power and Otter Tail Power) are granted the ability to propose energy-intensive, trade-exposed(EITE) customers with`BITE rate"options,which could include fixed-rate, market-based, and rates to encourage clean energy technology. EITE customers include: • Iron mining extracting and processing facilities • Paper mills, wood product manufacturers, or sawmills • Steel mills • Retail customers whose peak demand is at least 10,000 kW,whose combined annual load factor is over 80%, and whose electric costs are at least 10%of overall production costs 122 Upon finding a net benefit to the utility or the state, the Public Utilities Commission shall approve an EITE rate schedule and any corresponding EITE rate. The PUC shall make this determination within 90 days of the utility's filing. Following approval of an EITE rate schedule,the utility shall create a separate account to track the difference between rates that would have been collected and the EITE rate schedule. In the next rate case or through an EITE cost recovery rate rider, the PUC shall allow the utility to collect any costs, including reduced revenues. The costs shall not be recovered from EITE customers or low-income residential ratepayers. When filing for an EITE rate schedule, a utility must deposit$10,000 into a low-income affordability program. The PUC may assess reasonable costs on the utility proposing the EITE rate schedule, not to exceed$854,000 per biennium. (Similar provisions included in HF 1782-Anzelc/SF 1312- Tomassoni) Multiyear Rate Plan (based on e21 Initiative). The statutes allowing for multiyear rate plans for investor-owned utilities are modified. A five year time period(increased from three years) is now allowed. When proposing a multiyear rate plan, a utility must list all planned investments for the rate plan period. The PUC may require performance measures and incentives as part of the plan. The PUC may allow the utility to adjust its capital costs or other costs during the plan period. The utility may propose recovery of its forecast base, operations and maintenance costs,tariffs to expand products and services, and costs of operating nuclear facilities. The utility may request to be allowed to implement interim rates in the first two years of the plan period. A utility under a multiyear rate plan must identify investments needed to modernize its transmission and distribution systems under the state's Transmission and Distribution Plan. The utility can recover these costs. A utility under a multiyear rate plan must perform a distribution study to identify interconnection points for small distributed generation and identify upgrades needed to support distributed generation. The utility can recover these costs. (Both HF 1315- Garofalo and SF 1735-Marty, which were not companion bills, contained provisions on multiyear,performance-based rate plans) Effective date: July 1, 2015 OMNIBUS ENVIRONMENT,NATURAL RESOURCES,AND AGRICULTURE BILL 2015 First Special Session Laws Chapter 4 HF 4 Rep. Denny McNamara(R-Hastings) *SF 5 Sen. David Tomassoni (DFL-Chisholm) This bill includes the biennial budget appropriations (FY 2016-17) for the Department of Natural Resources, Department of Agriculture, Minnesota Pollution Control Agency (MPCA), Board of 123 Water and Soil Resources (BWSR),Metropolitan Council, and Zoological Board. Several policy provisions related to these agencies are also included. Appropriations of interest to MMUA: • $250,000/year to the MPCA for: o A municipal liaison to assist municipalities in implementing and participating in water quality standards rulemaking and navigating the NPDES/SDS permitting process o Economic analysis of the water quality standards rulemaking process o Development of statewide economic analyses and templates to reduce the amount of information and time required for municipalities to apply for variances from water quality standards o Coordinating with the Public Facilities Authority to identify and advocate for the resources needed for municipalities to achieve permit requirements • $200,000 for the MPCA for a grant to the Red River Basin Commission for development of a strategic plan for the Red River of the North. The plan must include consistency in water quality goals and objectives and pollution reduction allocations for both point and nonpoint sources and for individual watersheds. The MPCA must work with the North Dakota Department of Health, the United States EPA, and wastewater treatment plants in the Red River Basin to achieve phosphorus reductions needed to protect the Red River and Lake Winnipeg. • $100,000 for BWSR for a grant to the Red River Basin Commission • $3,423,000/year to BWSR for natural resources block grants to local governments Policy provisions of interest to MMUA: Utility Crossing Application Fee Exemption. Utilities are exempted from the application fee to cross public lands or public waters, so long as the line/cable/conduit is under 100 kilovolts. (HF 572-Hackbarth/SF 975-Skoe) Deferred Penalties for Self-Reporting. If a regulated entity identifies a violation and notifies the MPCA within two days of its discovery and the entity has not been cited for noncompliance within the past two years,penalties are deferred for 60 days. The MPCA must contact the entity within seven business days of the reporting to discuss the violation. The MPCA and the entity will develop a plan and timeframe to return the entity to compliance. The entity must submit the plan within seven days and return to compliance within 60 days unless another timeline was developed. There are circumstances where the MPCA may still bring civil or criminal penalties for self- reported violations: if the violation had the potential to cause serious harm to human health or the environment, if the violation is a specific term of an order, decree, agreement, or schedule of compliance, if the violation resulted in economic benefit that gives the entity an advantage over business competitors, or if the violation is found through a monitoring or sampling prescribed in statute, permit, regulation, decree, or agreement. 124 Peer Review. The MPCA is required to provide public notice and take public comment when external peer review of water quality standards is convened. Written or oral comments shall be accepted. The names of the peer reviewers must be included in the statement of need and reasonableness for the water quality standard. If an external peer review is not convened on a water quality standard by the MPCA,the statement of need and reasonableness must state the reason why not. By December 15 of each year,the MPCA must post on its website: the water quality standards development work in progress or completed in the year,the lead scientist for each effort, and opportunities for public input. NPDES/SDS Annual Report. The MPCA must provide an annual report on the agency's activities in the previous calendar year to implement standards and requirements on NPDES/SDS permits held by municipalities. The report must be posted on the MPCA website by January 15 each year and include: • A summary of permits issued or reissued, including any changes to effluent limits due to water quality standards adopted or revised during the previous permit • A summary of the innovative approaches used by the agency and municipalities to develop and achieve permit requirements in a cost effective manner • A summary of standard development and water quality rulemaking activities, including economic analyses • A summary of standard development and rulemaking activities anticipated for the next three years, including economic analyses • A process and timeline for municipalities to provide input to the agency • A list of permitting initiatives anticipated in the next year that may impact municipalities and the MPCA's plan for involving municipalities in the process Cost Analysis of Water Quality Standards. The MPCA is directed to contract with a non-state entity to perform a cost analysis of recently adopted and proposed water quality standards and rules. $500,000 is appropriated for the study. The analysis must include a representative sampling of at least 15 cities and provide an estimate of the cost impact to the average residential and commercial connections in the community. The sampling must be diverse based on geography, watersheds,population,wastewater facility types and operators, stormwater system types, and other factors. The analysis must consider: • The estimated capital and maintenance costs of meeting current standards • The estimated capital and operating costs likely incurred to upgrade wastewater and stormwater systems to meet recently adopted,proposed, or anticipated water quality standards • An estimate of the incremental improvement in subsequent water quality (HF 616-Fabian/SF 689-Eken included a variation of this cost analyses) 125 Wild Rice Water Quality Standards. Until the MPCA completes rulemaking for new sulfate standards to protect wild rice and develops criteria for identifying wild rice waters,the application of Minnesota's wild rice water quality standard is limited. When issuing,modifying or renewing NPDES/SDS permits, the MPCA shall not require permittees to spend money on sulfate treatment technologies or sulfate mitigation,but sulfate minimization plans may be required. The MPCA shall not list waters containing wild rice as impaired. Rulemaking is required to be completed by January 2018, after which permits can be reopened to include limits reflecting the new sulfate standards. (HF 1000-Melin/SF 1007-Tomassoni included similar provisions) Effective date: July 1, 2015 LEGACY BILL 2015 First Special Session Laws Chapter 2 HF 5 Rep. Dean Urdahl(R-Grove City) *SF 1 Sen. Dick Cohen(DFL-St. Paul) This bill includes appropriations from the Outdoor Heritage Fund, Clean Water Fund, Parks and Trails Fund, and Arts and Cultural Heritage Fund (which are generated by the 3/8 cents sales tax authorized in the 2008 Legacy Amendment). Appropriations out of the Clean Water Fund of interest to MMUA include: Public Facilities Authority: • $9 million/year for the Point Source Implementation Grant Program • $250,000/year for the Small Communities Wastewater Treatment Grant Program Pollution Control Agency: • $8,350,000/year for statewide assessments of surface water quality and trends • $9,795,000/year for watershed restoration protection strategies, including total maximum daily load(TMDL) studies and implementation plans • $275,000/year for stormwater research • $1,150,000/year for TMDL research and database development • $900,000/year for national pollutant discharge elimination system wastewater and stormwater TMDL implementation efforts • $3,623,000/year for enhancing county level subsurface sewage treatment systems • $275,000/year for stormwater best practices evaluation Board of Water and Soil Resources: • $4,875,000/year for grants to local units of government organized for water management in a watershed or subwatershed. Eligible uses for the grants include riparian buffers,rain gardens, stormwater capture, enforcement, and shore stabilization. • $2.5 million/year for grants to local units of government for compliance with riparian buffer requirements • $4,875,000/year for restoration or preservation of riparian buffers • $750,000/year for community partner grants to local units of government for: 126 o Structural or vegetative management practices that reduce stormwater runoff or enhance water quality o Installation of proven and effective water retention practices • $2.1 million/year for assistance to local governments transitioning from local water management to a watershed Department of Health • $1.9 million/year for protection of drinking water sources • $113,000/year for cost-share assistance to public and private well owners for up to 50% of the cost of sealing unused wells (Clean Water Fund appropriations were included in HF 1781- Torkelson/SF 1754-Scalze) Effective date: June 14, 2015 CAPITAL INVESTMENT BILL 2015 First Special Session Laws Chapter 5 *HF 2 Rep. Paul Torkelson(R-Hanska) SF 4 Sen. LeRoy Stumpf(DFL-Plummer) The Capital Investment Bill passed in the 2015 Special Session provided $373.4 million in bonding for capital improvement projects throughout the state. Appropriations of interest to MMUA include: • $10 million for Public Facilities Authority's Wastewater Infrastructure Fund Program, which provides grants to local government units for the predesign, design, and construction of wastewater treatment facilities • $4.7 million for the"Reinvest in Minnesota"Conservation Reserve Enhancement Program • After a$9 million non-state match is committed towards the project,the state will issue $19 million in appropriation bonds for the Lewis and Clark Regional Water System Effective date: June 14, 2015 PROFESSIONAL ENGINEERS LICENSING REQUIREMENTS 2015 Session Laws Chapter 18 HF 288 Rep. Marion O'Neill(R-Maple Lake) *SF 417 Sen. Kevin Dahle (DFL-Northfield) This new law clarifies licensing requirements for professional engineers, by noting that a professional engineering license satisfies any requirements by the state or political subdivisions to perform the actions under the professional engineering license. A licensed professional engineer shall only be required to obtain a license, certification, or other form of approval for a skill or service if the state or political subdivision has made an affirmative written determination in statute, rule, or ordinance that such an additional license or certification is needed to safeguard 127 life,health,property, or promote public welfare. However, the state and political subdivisions are not precluded from including additional requirements when soliciting public contracts for engineering services. These provisions do not apply to practice areas where licenses or certifications were required prior to August 1, 2015. Effective date: August 1, 2015 WATER METERS AS ENERGY CONSERVATION DEVICES 2015 Session Laws Chapter 22 *HF 1358 Rep. Tim O'Driscoll (R-Sartell) SF 1439 Sen. Kevin Dahle (DFL-Northfield) Water metering devices that increase efficiency or accuracy of water measurement and reduce energy use are added to the definition of an"energy conservation measure" in the Uniform Municipal Contracting Law. Effective date: August 1, 2015 ELECTRONIC FILING OF RULEMAKING DOCUMENTS 2015 Session Laws Chapter 63 *HF 1725 Rep. Drew Christensen(R-Burnsville) SF 1630 Sen. Melissa Wiklund(DFL-Bloomington) The electronic filing of documents related to state agency rulemaking is allowed under this new law. After an agency notifies the Chief Administrative Law Judge (ALJ)that it has adopted a rule, the Chief ALJ shall file four paper copies or an electronic copy with the Secretary of State. The Secretary of State shall forward one copy of each rule filed to the agency,the Revisor of Statutes, and the Governor. If the rule is approved,the Chief All shall file four paper copies or an electronic copy with the Secretary of State,to be forwarded to the same parties. An agency or any party to a contested case hearing may file all documents with the Office of Administrative Hearings by any reliable manner of electronic transmission. Effective date: January 1, 2016 RESPONSIBLE CONTRACTOR CHANGES 2015 Session Laws Chapter 64 *HF 1257 Rep.Nick Zerwas (R-Elk River) SF 1121 Sen. Tom Saxhaug(DFL-Grand Rapids) For purposes of"responsible contractor"statutes, the definition of a contractor is amended by stating that a motor carrier is included and design professionals and material suppliers are not. A motor carrier is defined as a business or person providing transportation of materials, equipment, or supplies for a project. A design professional is defined as a person or business licensed to perform or practice architecture,professional engineering, land surveying, 128 landscaping, geoscience, or with the title of certified interior designer. A material supplier is defined as a person or business that supplies materials, equipment, or supplies to a contractor or subcontractor on a project,but does not include a person or business that delivers and deposits into place mineral aggregate that is incorporated into the work under the contract. Current statute states that a responsible contractor is needed for publicly owned or financed projects with estimated contracts over$50,000. The new law clarifies that tax increment financing must be excluded in determining whether the construction contract exceeds $50,000. The minimum requirements for a responsible contractor are clarified. The contractor must be in compliance with the Department of Revenue and the Department of Employment and Economic Development registration requirements if it has employees. A responsible contractor must not be debarred by a political subdivision that has the authority to debar a contractor. All subcontractors and motor carriers must sign a notarized statement that they meet criteria. Non-compliance of contractors for non-payment is clarified. A contractor can be found non- complaint for repeatedly failing to pay statutorily-required wages or penalties for separate projects over$25,000 only if it involves two or more separate and distinct occurrences of underpayment during the three-year period. A prime contractor, subcontractor, or motor carrier that fails to verify compliance with any of the required criteria or makes a false statement under oath shall be ineligible for the contract. Prior to the execution of the contract,the prime contractor must get signed verification of compliance from all first-tier subcontractors. A prime contractor shall annually obtain signed verification of all motor carriers with which it will have a contractual relationship. A motor carrier must immediately notify the prime contractor if it no longer meets criteria, and it becomes ineligible to work on a project. A contracting authority may still establish additional factors for defining contractor responsibility. Effective date: July 1, 2015 Project solicitations must note that any prime contractor, subcontractor, or motor carrier that does not meet the minimum criteria of a responsible contractor is not eligible for contract award. (This provision is effective for solicitation documents issued on or after January 1, 2015.) TRANSPORTATION BUDGET OMNIBUS BILL 2015 Session Laws Chapter 75 *SF 1647 Rep. Tim Kelly(R-Wing) Sen. Scott Dibble (DFL-Minneapolis) This bill includes the biennial budget appropriations (FY 2016-17) for the Depaituient of Transportation, Metropolitan Council, and Department of Public Safety. It also includes one policy provision of interest to MMUA: 129 Utility company vehicles are added to Minnesota's "move over"law, which already includes freeway service patrol vehicles, construction vehicles, and road maintenance vehicles. When approaching and before passing a utility company vehicle that is parked or stopped with lights flashing on a street or highway with two lanes in the same direction, a driver shall move their vehicle to the lane furthest away from the parked or stopped vehicle (if possible to safely do so). When approaching a utility company vehicle parked or stopped on a street or highway with more than two lanes in the same direction, a driver shall move their vehicle to leave a full lane vacant between their vehicle and the utility vehicle (if possible to safely do so). Effective date: July 1, 2015 STATE GOVERNMENT BUDGET OMNIBUS BILL 2015 Session Laws Chapter 77 HF 495 Rep. Sarah Anderson(R-Plymouth) *SF 888 Sen. Tom Saxhaug(DFL-Grand Rapids) This bill includes the biennial budget appropriations (FY 2016-17) for the State Legislature, Governor, constitutional offices, and numerous small state agencies and boards. It includes two items of interest to MMUA: • $6 million/year for state payments to the Public Employees Retirement Association • The financing provisions available for the Guaranteed Energy-Savings Program are modified and expanded under this new law. The authority for the Department of Administration to enter into a project financing the implementation of utility-cost savings measures is expanded from only allowing lease purchasing. Project financing now means any type of financing, including but not limited to lease, lease purchase, installment agreements, or bonds purchased by a non-state entity that obligate the stat to make regular payments to satisfy the costs of the utility cost-savings measure. The terms of the project financing shall not exceed 25 years from the date of final installation. Effective date: July 1, 2015 130 ELECTRIC This section provides a summary of bills concerning electric utilities that were introduced,but not passed into law, in the 2015 Session. Italicized text notes when a provision was included in another bill. LARGE HYDROPOWER MAY SATISFY RES HF 95 Rep. Jim Newberger(R-Becker) SF 69 Sen. Michele Benson(R-Ham Lake) To allow hydroelectric power over 100 MW to satisfy the Renewable Energy Standard and remove hydroelectricity from the definition of total retail sales from a federal agency. STATUS: This language was included in HF 843,the House jobs/energy omnibus bill,but was not included in future jobs/energy bills passed by the full Legislature. SF 69 did not receive a hearing in the Senate. RATE RECOVERY FOR ELECTRIC VEHICLE PROMOTION, HF 105 Rep. Pat Garofalo (R-Farmington) SF 1317 Sen. David Osmek(R-Mound) To allow the Public Utilities Commission to approve rate recovery for investor-owned utilities for advertisements promoting electric vehicles, electric water heaters, and heat pumps that replace propane or fuel oil. STATUS: SF 1317 did not receive a hearing in the Senate. HF 105 was passed by the House Job Growth and Energy Affordability Committee. Its language was included in the House jobs/energy omnibus bill(HF 843)but not included in future jobs/energy bills passed by the full Legislature. LEGISLATIVE APPROVAL OF 111(D) STATE IMPLEMENTATION PLAN HF 333 Rep. Jim Newberger(R-Becker) SF 231 Sen. Dave Brown(R-Becker) To require legislative approval of MPCA's 111(d) state implementation plan. STATUS: This language was included in HF 843, the House jobs/energy omnibus bill, but not included in future jobs/energy bills passed by the full Legislature. SF 231 did not receive a hearing in the Senate. 131 MONTICELLO NUCLEAR POWER UNIT CONSTRUCTION ALLOWED HF 338 Rep. Marion O'Neill (R-Maple Lake) SF 536 Sen. Bruce Anderson(R-Buffalo) To allow the construction of a new nuclear-powered electric generating unit in Monticello. STATUS: SF 536 received an informational hearing in the Senate Environment and Energy Committee,but no official action was taken. HF 338 did not receive a hearing in the House. CON EXEMPTIONS FOR NATURAL GAS FACILITIES SELLING POWER OUT OF STATE HF 341 Rep. Chris Swedzinski (R-Ghent) SF 237 Sen. Julie Rosen(R-Vernon Center) To exempt natural gas-powered electric generation facilities that do not sell output to wholesale or retail customers in Minnesota from the requirement to obtain a certificate of need. STATUS: This bill received hearings in both the House and Senate,but ultimately was not included in either body's energy omnibus bills. LEC ENERGY FUTURES FRAMEWORK FUNDING IN LCCMR BILL HF 390 Rep. Paul Torkelson(R-Hanska) SF 698 Sen. Kari Dziedzic (DFL-Minneapolis) To provide the Legislative Energy Commission with a$1 million appropriation for data collection and analysis to develop strategies to increase energy efficiency and the use of clean energy in Minnesota. This funding would come from the environmental trust fund, and was recommended by the Legislative-Citizen Commission on Minnesota Resources. Numerous other appropriations related to habitat, forestry,water quality, and parks and trails were included in this bill. STATUS: The funding for the LEC was removed before the LCCMR bill was passed into law (2015 Session Laws, Chapter 76). LEC ASSESSMENT CHANGE HF 492 Rep. Jim Newberger(R-Becker) SF 726 Sen. Dave Brown(R-Becker) To modify the assessment formula for the Legislative Energy Commission and collect 34 percent from companies that manufacture renewable energy technologies. The assessment percentage from utilities would be decreased from 50 to 33 percent. STATUS: This language was initially included in the draft House jobs/energy omnibus bill,but was removed before the bill's passage out of committee. SF 726 did not receive a hearing in the Senate. 132 LOW INCOME WEATHERIZATION PROGRAMS AUTHORITY TRANSFER HF 544 Rep. Tony Albright(R-Prior Lake) No Senate companion To transfer the responsibility of administering low income home energy assistance and weatherization programs from the Department of Commerce to the Department of Human Services. STATUS: The bill was heard in the House Commerce and Regulatory Reform Committee and re-referred to the House Job Growth and Energy Affordability Committee. No further action was taken. REMOVE RESTRICTIONS ON IMPORTING POWER HF 639 Rep. Jim Newberger(R-Becker) SF 725 Sen. Dave Brown(R-Becker) To remove the restriction(in the Next Generation Energy Act)that prohibits Minnesota's importation of energy or entering into long-term power purchase agreements with large energy facilities that would contribute to statewide CO2 emissions. (Minnesota is currently appealing a District Court ruling supporting North Dakota's claim this provision violates the interstate commerce clause.) STATUS: HF 639 passed through committee and currently sits on the House General Register. SF 725 did not receive a hearing in the Senate. CHP EXEMPTIONS FROM EMISSIONS REGULATIONS HF 813 Rep. Bob Loonan(R-Shakopee) SF 1357 Sen. Scott Dibble(DFL-Minneapolis) To repeal the existing law requiring cogeneration and combined heat and power(CHP) facilities with capacities greater than 50 MW to offset their CO2 emissions. Currently, all CO2-emitting electric generating facilities built after 2006 that are greater than 50 MW must offset emissions, except gas-fired plants"designed to provide peaking and intermediate, emergency back up or contingency services." STATUS: HF 813 received a hearing in the House Job Growth and Energy Affordability Committee. This language was included in HF 843, the House jobs/energy omnibus bill,but was not included in future jobs/energy bills passed by the full Legislature. SF 1357 did not receive a hearing in the Senate. HOUSE JOBS/ENERGY BUDGET AND POLICY OMNIBUS BILL HF 843 Rep. Pat Garofalo (R-Farmington) No Senate Companion This bill included budget appropriations for many state agencies, including DEED, DOLI, and the Department of Commerce. Numerous policy provisions related to jobs, economic 133 development, and energy were also included. Policy provisions of interest to MMUA included: • To sunset the Conservation Improvement Program(CIP) effective December 31, 2016 and establish a task force of stakeholders to develop a replacement conservation program • To allow hydroelectric facilities over 100 MW put into place after January 1, 2015 to count towards meeting the Renewable Energy Standard(RES) • To allow the 1.5%solar standard in place for investor-owned utilities to be met by any more affordable form of clean energy • To repeal the"value of solar"tariff • To allow municipal utilities and co-ops to charge an additional fee to net-metering customers to cover the fixed costs of distributed generation (Similar provisions were passed in Special Session Chapter 1) • To allow all utilities to compensate net-metering customers at their avoided cost rate • To allow municipal utility and co-op customers to choose to be compensated for their net inputs by retail rate bill credits, which may accumulate month-to-month but expire at year's end (Similar provisions were passed in Special Session Chapter 1) • To repeal the nuclear moratorium • To require Legislative approval of the MPCA's 111(d) state implementation plan, and to modify the state's greenhouse gas reduction goals to coincide with this plan • To allow investor-owned utilities to propose multi-year,performance based rate plans (Similar provisions were passed in Special Session Chapter 1) • To allow investor-owned natural gas utilities to file for rate recovery for natural gas extension projects (Similar provisions were passed in Special Session Chapter 1) • To allow investor-owned utilities to offer competitive rate schedules for energy-intensive, trade-exposed customers (Similar provisions were passed in Special Session Chapter 1) • To study the potential of transferring some duties from the Division of Energy Resources to the Public Utilities Commission (Similar provisions were passed in Special Session Chapter 1) • To request all utilities to submit a report to the Legislature on statutes and regulations that lead to increased rates but no ratepayer benefit • To study the costs/benefits of creating a Public Power Authority for generation and transmission • To modify the siting for large solar energy generating systems: requiring a 400-foot setback from residential property, requiring the environmental review to consider the effects of the system on agricultural drainage systems,having the PUC analyze the impact of the system on airports, highways, and local comprehensive plans, and requiring local government approval before permits are issued • To change Xcel's Renewable Development Fund to the Energy Fund within the state budget. The use of these funds would expand to include statewide rebates for solar/geothermal/wind/energy storage, solar incentives,rebates for electric, compressed, natural gas and propane vehicles, and various studies. In addition to Xcel's contributions, this fund would receive a$7m General Fund Appropriation. 134 • To repeal existing law requiring new cogeneration and combined heat and power plants over 50 MW to offset their CO2 emissions Appropriation items of interest to MMUA included: • $250,000/year for the Broadband Development Office within the Department of Employment and Economic Development • $8 million for the Border-to-Border Broadband Infrastructure Grant Program • $2 million from the Minnesota Investment Fund for the Annandale broadband development project. STATUS: HF 843 was the subject of significant controversy and debate throughout the committee process and on the House floor. After its passage,the bill was lined up with the jobs and energy provisions of SF 2101, the Senate's environment, economic development, and agriculture budget bill. A conference committee was unable come to consensus with the vast differences between the House and Senate bills. House and Senate leadership negotiated a new jobs/energy bill(HF 1437), which was passed in the last minutes of the 2015 Session and was later vetoed by the Governor. COUNTY SITING AUTHORITY AND SOLAR SURETY BONDS HF 891 Rep. Jim Newberger(R-Becker) SF 1096 Sen. Michelle Benson(R-Ham Lake) To provide county authority,upon resolution and notice to the Public Utilities Commission,to site large energy facilities. The PUC would establish general permit standards for counties' use, and the PUC and Department of Commerce would provide technical assistance to the county. Large energy facilities that are solar energy generating systems would be required to maintain surety bonds in the amount to cover the disassembly and removal of the system and land reclamation. A county or the PUC could not approve an application for a certificate of need unless the surety bond requirements were met. STATUS: This legislation did not receive a hearing in the House or Senate. UTILITY RAILROAD CROSSING FEES HF 963 Rep. Rod Hamilton(R-Mountain Lake) SF 877 Sen. Dan Sparks (DFL-Austin) To establish a standard$750 crossing fee for utilities crossing railroad right-of-way. STATUS: SF 877 passed out of committee to the Senate floor. HF 963 did not receive a hearing in the House. *This legislation is also noted in the Gas/Propane section. 135 MUNICIPAL POWER AGENCIES OPEN MEETING LAW HF 1117 Rep. David Bly(DFL-Northfield) SF 978 Sen. Kevin Dahle (DFL-Northfield) To require municipal power agencies to comply with the Data Practices Act and Open Meeting Law. STATUS: MMUA strongly opposed this legislation. SF 978 was scheduled for a hearing in the Senate Judiciary Committee,but was subsequently removed from the agenda. HF 1117 did not receive a hearing in the House. ALL RENEWABLE FUTURE REPEAL HF 1133 Rep. Jim Newberger(R-Becker) SF 1759 Sen. Michelle Benson(R-Ham Lake) To repeal a provision of law requiring the state's planning for a transition to an all-renewable energy future in Minnesota. STATUS: HF 1133 received a hearing in the House Government Operations Committee and was re-referred to the House Job Growth and Energy Affordability Committee. SF 1759 did not receive a hearing in the Senate. RES ACHIEVEMENT DELAYED FOR INCREASED RATES HF 1210 Rep. Jim Newberger(R-Becker) SF 1758 Sen. Michelle Benson(R-Ham Lake) To delay the achievement of the Renewable Energy Standard by three years for utilities reporting a rate increase of over two percent. STATUS: This provision was included in the House jobs/energy omnibus (HF 843),but was not included in future jobs/energy bills passed by the full Legislature. ENERGY STORAGE SYSTEMS ELIGIBLE FOR CIP HF 1320 Rep. Marion O'Neill (R-Maple Lake) SF 1178 Sen. John Hoffman(DFL-Champlin) To expand CIP eligibility for the use of energy storage systems and establish a Made in Minnesota energy storage systems rebate program. STATUS: SF 1178 was moved without recommendation out of the Senate Environment and Energy Committee,but was never heard in the committee to which it was referred(Senate Environment, Economic Development, and Agriculture Budget Division). HF 919 was never heard in the House. 136 LAB ACCELERATOR PROGRAM HF 1378 Rep. Eric Lucero (R-Dayton) SF 984 Sen. Scott Dibble (DFL-Minneapolis) To provide a$400,000 appropriation to a Minnesota-based non-profit with energy expertise to establish and operate an energy technology business accelerator. The non-profit would provide a $100,000 match. The accelerator would identify, research,test, and evaluate innovative energy technologies, systems, and platforms that could be the basis for new programs or program improvements. The non-profit would consult with utilities, the DER, and national institutions when selecting technologies to be evaluated. (This legislation was drafted by the Center for Energy and the Environment) STATUS: Variations of this proposal were included in both the Senate environment, economic development and agriculture budget(SF 2101) and House jobs and energy omnibus (HF 843). However, the provisions were not included in future jobs/energy bills passed by the full Legislature. RENEWABLE ENERGY STANDARD INCREASE(40% BY 2030) HF 1395 Rep. Joe Schomacker(R-Luverne) SF 1077 Sen. Kevin Dahle (DFL-Northfield) To increase the Renewable Energy Standard from 25%by 2025 to 40%by 2030. STATUS: SF 1077 received an informational hearing in the Senate Environment and Energy Committee. The"40 by 30"provision was included in the Senate's first energy policy omnibus (SF 1431), which was never debated on the Senate floor. HF 1395 did not receive a hearing in the House,but"40 by 30"was discussed in relation to the DER policy bill(HF 1678),which included the provision but did not advance out of committee. NUCLEAR MORATORIUM LIFTED HF 1400 Rep. Eric Lucero (R-Dayton) SF 306 Sen. Mary Kiffmeyer(R-Big Lake) SF 95 Sen. Dave Osmek(R-Mound) No House Companion To repeal the moratorium on the construction of new nuclear-powered generation. STATUS: SF 306 received an informational hearing in the Senate Environment and Energy Committee,but no official action was taken on the bill. HF 1400 received a hearing in the House Job Growth and Energy Affordability Committee and was included in the House's jobs/energy omnibus bill (HF 843),but was not included in future jobs/energy bills passed by the full Legislature. 137 MADE IN MN SOLAR REQUIRED FOR CAMP RIPLEY PROJECT HF 1420 Rep. Jason Metsa(DFL-Virginia) SF 1415 Sen. David Tomassoni (DFL-Chisholm) To require the solar installation project at Camp Ripley to use only solar voltaic modules that meet several criteria, including: "Made in MN"requirements, "Made in USA" standards, provide local economic benefits, have an expected life of 30+years, and provide certification supporting the environmental sustainability of its components. STATUS: HF 1420 was heard in the House Veterans Affairs Division and re-referred to the House Job Growth and Energy Affordability Committee. The provisions of SF 1415 were included in the Senate environment, economic development, and agriculture budget(SF 2101), but were not included in future jobs/energy bills passed by the full Legislature. SUPPLY-SIDE SAVINGS COUNTED IN CIP HF 1421 Rep. Chris Swedzinski (R-Ghent) SF 602 Sen. Michelle Benson(R-Ham Lake) To allow inclusion of supply-side savings in meeting conservation improvement goals without first meeting a 1% customer-side goal. STATUS: This bill did not receive a committee hearing in the House or Senate. *This legislation is also noted in the Gas/Propane section. REGULAR SESSION JOBS/ENERGY BUDGET BILL HF 1437 Rep. Pat Garofalo(R-Farmington) Sen. David Tomassoni (DFL-Chisholm) This was the jobs/energy budget negotiated by House and Senate leadership and passed in the last few minutes of the 2015 Regular Session. The bill included budget appropriations for many state agencies, and a few policy provisions related to jobs, economic development, and energy. Policy items of interest to MMUA: • To specify that municipal utilities and co-ops may charge a "reasonable and appropriate fee"to recover fixed costs from distributed generation customers (Similar provisions were passed in Special Session Chapter 1) • To allow investor-owned utilities to file for competitive rate schedules for energy- intensive, trade-exposed industrial customers (Similar provisions were passed in Special Session Chapter 1) • To allow investor-owned utilities to file for multiyear, performance-based rate plans (Similar provisions were passed in Special Session Chapter 1) • To allow investor-owned natural gas utilities to file for rate recovery for natural gas extension projects (Similar provisions were passed in Special Session Chapter 1) 138 • To study the potential of transferring some duties from the Division of Energy Resources to the Public Utilities Commission (Similar provisions were passed in Special Session Chapter 1) Budget items of interest to MMUA: • $250,000/year for the Broadband Development Office within the Department of Employment and Economic Development • $10.588 million for the Border-to-Border Broadband Infrastructure grant program, of which$2 million is earmarked for Annandale • An additional $1.05 million for increased staff at the Public Utilities Commission STATUS: This bill was the subject of significant controversy when debated on the floors of the Senate and House. The language had been released only minutes before the legislators voted on it, and only minutes were remaining in the 2015 Regular Session. After its passage, legislators and advocates alike urged the Governor to veto the bill, which he did. GREENHOUSE GAS EMISSION GOAL MODIFICATION HF 1505 Rep. Jim Newberger(R-Becker) No Senate companion To modify Minnesota's greenhouse gas emissions-reduction goal by removing specific levels and replace with the goal"to reduce statewide greenhouse gas emissions in an affordable manner." STATUS: This bill did not receive a hearing in the House. REMOVING HYDROGEN AS ENERGY SOURCE HF 1621 Rep. Peggy Scott(R-Andover) SF 2072 Sen. Dave Osmek(R-Mound) To repeal statutes that foster the use of hydrogen as a source of energy. STATUS: This legislation did not receive a hearing in the House or Senate. CERTIFICATE OF NEED DECISIONS MADE AT PUBLIC MEETINGS HF 1622 Rep. Jim Newberger(R-Becker) No Senate companion To require Public Utilities Commission certificate of need decisions to be made at a public meeting near the site of the proposed facility. STATUS: This bill did not receive a committee hearing in the House. 139 SENATE ENERGY POLICY OMNIBUS#1 HF 1678 Rep. Melissa Hortman(DFL-Brooklyn Park) SF 1431 Sen. John Marty(DFL-Roseville) This legislation included several provisions: • To increase the Renewable Energy Standard from 25%by 2025 to 40%by 2030 • To increase the Conservation Improvement Program goal from 1.5%to 2% for electric utilities and 1%to 2% for gas utilities • To add propane to the state's energy assurance plan • To make technical improvements to the Guaranteed Energy Savings Program • To implement changes to siting large solar energy generating systems, allowing counties or cities to site facilities up to 25 MW and providing siting authority to the Public Utilities Commission for larger projects • To exempt the repowering of large wind energy conversion systems or solar energy generating systems from the certificate of need process • To allow municipal utilities and co-ops to appeal Conservation Improvement Program cost-effectiveness decisions to the Public Utilities Commission • To allow investor-owned natural gas utilities to file for rate recovery for natural gas extension projects (Similar provisions were passed in Special Session Chapter 1) • To allow investor-owned utilities to file for multiyear, performance-based rate plans (Similar provisions were passed in Special Session Chapter 1) • To allow Minnesota Power to provide competitive rate schedules to energy-intensive, trade-exposed customers (Similar provisions were passed in Special Session Chapter 1) STATUS: SF 1431 was assembled in the Senate Environment and Energy Committee and included policy recommendations from the Division of Energy Resources and member bills. The bill passed out of committee,but was never debated on the Senate floor. HF 1678 received an informational hearing in the House Job Growth and Energy Affordability Committee,but no further action was taken. CONSERVATION TO COUNT TOWARDS RES HF 1721 Rep. Jim Newberger(R-Becker) No Senate companion To allow energy conservation measures to count toward meeting a utility's renewable energy standard. STATUS: This bill did not receive a committee hearing in the House. SOLAR SITING REQUIREMENTS HF 1745 Rep. Chris Swedzinski (R-Ghent) SF 1744 Sen. Gary Dahms(R-Redwood Falls) To modify siting requirements for large solar energy generating systems: requiring a 400-foot setback from residential property,requiring the environmental review to consider the effects of 140 the system on agricultural drainage systems, having the PUC analyze the impact of the system on airports,highways, and local comprehensive plans, and requiring local government approval before permits are issued. STATUS: HF 1745 received a hearing in the House Government Operations Committee. Its language was included in HF 843,the House jobs/energy omnibus bill,but was not included in future jobs/energy bills passed by the full Legislature. SF 1744 did not receive a hearing in the Senate. CONSERVATION IMPROVEMENT PROGRAM INCREASE HF 1870 Rep. Bob Loonan(R-Shakopee) SF 1098 Sen. Scott Dibble(DFL-Minneapolis) To increase the state's overall energy savings goal from 1.5 to 2 percent. Public utilities would be required to meet an additional 0.5 percent energy optimization goal (supply-side)within the Conservation Improvement Program and cogeneration projects would be allowed to satisfy that goal. The DER would be required to adopt a filing schedule designed to have all electric utilities achieving 1.5% annual energy savings and all CIP-reporting gas utilities achieving 1%annual energy savings by 2017. STATUS: SF 1098 received a hearing in the Senate Environment and Energy Committee and the language was included in the Senate's first energy policy omnibus bill (SF 1431), which was never debated on the Senate floor. HF 1870 did not receive a hearing in the House. *This legislation is also noted in the Gas/Propane section. CO-OP RATE RECOVERY FOR PROPERTY TAXES HF 1951 Rep. Pat Garofalo(R-Farmington) SF 1867 Sen. Jim Carlson(DFL-Eagan) To allow PUC-regulated co-ops(Dakota Electric)to file for rate recovery for property taxes, fees, and permits. STATUS: This language was included in HF 843,the House jobs/energy omnibus bill, but was not included in future jobs/energy bills passed by the full Legislature. SF 1867 did not receive a hearing in the Senate. BUILDING CODE FLEXIBILITY HF 1977 Rep. Bruce Vogel (R-Elko New Market) No Senate companion To require the Department of Labor and Industry to allow builders flexibility in the methods used to achieve the energy reduction goals of the 2012 International Energy Conservation Code. STATUS: The bill received a hearing in the House Job Growth and Energy Affordability Committee but did not move forward in omnibus legislation. 141 COST-EFFECTIVENESS OF CONSERVATION PROGRAMS HF 2007 Rep. Peggy Scott(R-Andover) SF 2063 Sen. Michelle Benson(R-Ham Lake) To amend the cost-effectiveness test for utility conservation programs to consider costs and benefits only to non-participating ratepayers. STATUS: This bill did not receive a committee hearing in the House or Senate. STATE ENERGY AUTHORITY HF 2032 Rep. Pat Garofalo (R-Farmington) No Senate companion To direct DEED to study the feasibility of establishing a State Energy Authority to construct and own generation and transmission, allocate low cost power to customers, and finance energy efficiency projects on public buildings. STATUS: This language was included in HF 843, the House jobs/energy omnibus bill,but was not included in future jobs/energy bills passed by the full Legislature. ELECTRIC VEHICLE PROMOTION PROGRAM HF 2081 Rep. Pat Garofalo (R-Farmington) SF 1948 Sen. John Marty(DFL-Roseville) To require investor-owned utilities that service first class cities (Xcel and Minnesota Power) to file an electric vehicle promotion program with the Public Utilities Commission. STATUS: This legislation received hearings in both the House and Senate. A variation of its language was included in the Senate's second energy policy omnibus bill(SF 1735). There was no House companion to this omnibus bill, so no further action was taken. PROPERTY RIGHTS OMBUDSMAN HF 2240 Rep. Chris Swedzinski (R-Ghent) SF 2062 Sen. Michelle Benson(R-Ham Lake) To require the Public Utilities Commission to provide a property rights ombudsman and assess utilities for the cost. STATUS: This bill did not receive a committee hearing in the House or Senate. CERTIFICATE OF NEED MODIFICATIONS SF 1355 Sen. Julie Rosen (R-Vernon Center) No House Companion To modify the list of facilities exempted from the certificate of need requirement to include natural gas generation and high voltage transmission lines over 200 kilovolts (if approved by a 142 RTO or ISO). Large wind energy conversion systems (LWECS) or solar powered facilities engaged in repowering project would also be exempt from the certificate of need process. Counties could,upon approved petition to the PUC, assume siting authority over LWECS of any size. STATUS: The provision of this bill pertaining to repowering wind/solar were included in both of the Senate's energy omnibus bills (SF 1431 and SF 1735). Neither bill was taken up by the House, so the provision did not become law. SENATE ENERGY POLICY OMNIBUS#2 SF 1735 Sen. John Marty(DFL-Roseville) No House Companion • To allow investor-owned utilities to file for multiyear,performance-based rate plans (Similar provisions were passed in Special Session Chapter 1) • To allow Minnesota Power and Otter Tail Power to provide energy-intensive,trade- exposed rate schedules to industrial customers (Similar provisions were passed in Special Session Chapter 1) • To allow investor-owned natural gas utilities to file for rate recovery for the cost of natural gas extension projects (Similar provisions were passed in Special Session Chapter 1) • To make technical improvements to the Guaranteed Energy Savings Program • To implement changes to siting large solar energy generating systems, allowing counties or cities to site facilities up to 25 MW and providing siting authority to the Public Utilities Commission for larger projects • To exempt the repowering of large wind energy conversion systems or solar energy generating systems from the certificate of need process • To require investor-owned utilities serving first class cities (Xcel and Minnesota Power) to file an electric vehicle promotion program with the Public Utilities Commission STATUS: This omnibus bill was largely assembled on the Senate floor, to provide a vehicle for non-controversial energy policy to move forward in the 2015 Session. After passing the Senate, it was never taken up for a vote by the House. SENATE ENVIRONMENT,ECONOMIC DEV.,AND AGRICULTURE BUDGET BILL SF 2101 Sen. David Tomassoni (DFL-Chisholm) No House Companion This bill included the budget appropriations of numerous state agencies and a few policy provisions related to the environment and energy. Policy items of interest to MMUA: • To exempt utilities from application fees for licenses to cross public land, provided the line/cable/conduit is under 100 kilovolts (Similar provisions were passed in Special Session Chapter 4) 143 • To require a cost analysis of recently-adopted or proposed water quality standards on a sampling of 15 communities to determine the impact (Similar provisions were passed in Special Session Chapter 4) • To limit the application of wild rice sulfate standards until the MPCA finishes rulemaking and identifies affected waters (Similar provisions were passed in Special Session Chapter 4) • To allow investor-owned utilities to establish competitive rate schedules for energy- intensive,trade-exposed customers, such as mines and mills (Similar provisions were passed in Special Session Chapter 1) • To require an independent peer review of proposed water quality standards if the cost to permittees would be over$50 million in the first five years Budget items of interest to MMUA: • $1.05 million/year in increased utility assessments for additional staff for the Public Utilities Commission • $17 million for the Border-to-Border Broadband Infrastructure Grant Program • $250,000/year to fund the Office of Broadband Development STATUS: The bill's passage off the Senate floor was contentious,with metro DFL senators upset over the water quality provisions. To align with the House budget bills, this bill was split into two parts: environment/agriculture and jobs/energy. The environment/agriculture portion was conferenced under bill number HF 846 and the jobs/energy portion under SF 2101. The Governor ultimately vetoed both of the final jobs/energy and environment/agriculture bills passed by the Legislature in the Regular Session. C-BED EXPIRATION SF 2165 Sen. Matt Schmit(DFL-Red Wing) No House Companion To repeal all statutes having to do with Community Based Energy Development as of January 1, 2019. STATUS: This bill did not receive a committee hearing in the Senate. 144 WATER AND ENVIRONMENTAL REGULATION This section provides a summary of bills related to water quality standards and environmental regulation that were introduced,but not passed into law, in the 2015 Session. Italicized text notes when a provision was included in another bill. RURAL MUNICIPAL WATER TREATMENT FACILITY RENOVATION LOAN PROGRAM HF 81 Rep. Duane Quam(R-Byron) SF 25 Sen. David Senjem(R-Rochester) To create a Rural Municipal Water Treatment Facility Renovation Loan Program within the Public Facilities Authority. STATUS: This bill did not receive a committee hearing in the House or Senate. RURAL MUNICIPAL WATER TREATMENT RENOVATION FUNDING IN LGA HF 163 Rep. Duane Quam(R-Byron) SF 1168 Sen. David Senjem(R-Rochester) To dedicate a portion of Local Government Aid funding for a Rural Municipal Water Treatment Renovation Loan Program. STATUS: This bill did not receive a committee hearing in the House or Senate. *This bill is also noted in the Taxes/Local Governance section. PERMITTING EFFICIENCIES REQUIREMENTS MODIFIED HF 345 Rep. Dan Fabian(R-Roseau) SF 659 Sen. Bill Ingebrigtsen(R-Alexandria) To change the state's goal from 90 days to 45 days for approving or denying environmental and resource management permit applications. STATUS: This bill did not receive a committee hearing in the House or Senate. PROHIBITING REGULATION OF WOOD-BURNING STOVES HF 483 Rep. Paul Anderson(R-Starbuck) SF 642 Sen. Bill Ingebrigtsen(R-Alexandria) To prohibit the Minnesota Pollution Control Agency from regulating wood-burning stoves. STATUS: HF 483 received a hearing in the House Environment and Natural Resources Committee, where it was laid over. SF 642 did not receive a committee hearing in the Senate. 145 REINVEST IN MINNESOTA APPROPRIATION HF 414 Rep. Rick Hansen(DFL-South St. Paul) SF 635 Sen. Bev Scalze(DFL-Little Canada) To appropriate $25 million in bond proceeds to the Reinvest in Minnesota (RIM) Conservation Reserve Enhancement Program. STATUS: The Special Session bonding bill(Chapter 5) included$4.7 million for the RIM program. NATURAL GAS AND WATER SERVICES SEPARATE METERING HF 479 Rep. Jean Wagenius (DFL-Minneapolis) SF 1725 Sen. Kari Dziedzic (DFL-Minneapolis) To modify the state building code to require natural gas and water services in newly constructed residential buildings to be metered separately. STATUS: This bill did not receive a committee hearing in the House or Senate. *This legislation is also noted in the Gas/Propane section. INDEPENDENT PEER REVIEW OF WATER QUALITY STANDARDS HF 617 Rep. Dan Fabian(R-Roseau) SF 690 Sen. Kent Eken(DFL-Twin Valley) To require the MPCA to conduct an independent peer review of water quality standards if the standard is: estimated to cost permittees over$50 million in the first five years,uses a new model/methodology, or addresses a controversial issue. STATUS: SF 690 did not receive a hearing in the Senate. HF 617 was heard in the House Environment and Natural Resources Committee and included in the House agriculture/environment omnibus bill (HF 846). The language was adopted in the HF 846 conference report and passed by both the House and Senate,but was vetoed by the Governor. WASTEWATER INFRASTRUCTURE BONDING APPROPRIATION HF 711 Rep. Dean Urdahl(R-Grove City) SF 459 Sen. Kent Eken(DFL-Twin Valley) To appropriate $30 million in bonding proceeds to the Public Facilities Authority's Wastewater Infrastructure Funding Program. STATUS: The Special Session bonding bill(Chapter 5) included$10 million for the Wastewater Infrastructure Funding Program. 146 REGULAR SESSION ENVIRONMENT AND AGRICULTURE BUDGET BILL HF 846 Rep. Denny McNamara(R-Hastings) Sen. David Tomassoni (DFL-Chisholm) This bill included the budget appropriations of several state agencies, including the Department of Natural Resources, Department of Agriculture, and Minnesota Pollution Control Agency. It also included several policy provisions of interest to MMUA: • To direct the MPCA to consult with a non-state entity to perform a cost analysis of recently adopted and proposed water quality standards on a sampling of 15 cities. The analysis would consider the costs of meeting current standards, the costs of the upgrades to meet new standards, and the incremental improvement in water quality. (Similar provisions were passed in Special Session Chapter 4) • To require MPCA to perform an independent peer review of water quality standards if the standard is: estimated to cost permittees over$50 million in the first five years,uses a new model/methodology, or addresses a controversial issue • To clarify that permittees are not subject to MPCA policies/guidelines if they were not adopted as a rule in accordance with the Administrative Procedures Act • To limit the application of wild rice waters sulfate standards. Until rulemaking is completed for new wild rice sulfate standards, permittees would not be required to spend money on sulfate treatment technologies. The MPCA could not list waters as impaired until rulemaking is complete and wild rice waters are identified. (Similar provisions were passed in Special Session Chapter 4) • To exempt utilities from the application fee to cross public lands, so long as the line/cable/conduit is under 100 kilovolts (Similar provisions were passed in Special Session Chapter 4) STATUS: Following the adjournment of the 2015 Regular Session, environmental advocacy groups strongly encouraged the Governor to veto this bill,which he did. MORA SALES TAX EXEMPTION FOR WASTEWATER TREATMENT FACILITY HF 874 Rep. Jason Rarick(R-Pine City) SF 829 Sen. Tony Lourey(DFL-Kerrick) To provide the City of Mora with a sales tax exemption for materials and supplies used in the construction of its wastewater treatment facility. If the tax was paid by a contractor, the City could submit cost records to the Department of Revenue for a refund. STATUS: HF 874 received a hearing in the House Tax Committee. SF 829 did not receive a hearing. The language was included in the House omnibus tax bill(HF 848),but the 2015 Legislative Session concluded without the passage of a tax bill. *This legislation is also noted in the Tax/Local Governance section. 147 LEGISLATIVE OVERSIGHT OF STATE AGENCY RULEMAKING HF 1261 Rep. Ron Kresha(R-Little Falls) SF 1329 Sen. Kent Eken(DFL- Twin Valley) To require review of a proposed rule by the Office of the Legislative Auditor if the rule has a perceived"substantial economic impact." If the OLA determines that the proposed rule does have a substantial economic impact, legislative approval would be required before it could go into effect. STATUS: HF 1261 received several hearings in the House and was included in the House state government budget bill (HF 1864). SF 1329 did not receive a hearing in the Senate. The language was not included in the state government budget conference committee report that was ultimately signed into law. 148 GAS AND PROPANE This section provides a summary of bills related to natural gas and propane that were introduced, but not passed into law in the 2015 Session. Italicized language notes when a provision was included in another bill. NATURAL GAS AND WATER SERVICES SEPARATE METERING HF 479 Rep. Jean Wagenius (DFL-Minneapolis) SF 1725 Sen. Kari Dziedzic (DFL-Minneapolis) To modify the state building code to require natural gas and water services in newly constructed residential buildings to be metered separately. STATUS: This bill did not receive a committee hearing in the House or Senate. *This bill is also noted in the Water section. PROPOSED PIPELINES LAND PURCHASES HF 508 Rep. David Bly(DFL-Northfield) SF 1059 Sen. Kevin Dahle (DFL-Northfield) To extend existing"Buy the Farm" laws for transmission lines to include gas pipelines. When land is proposed to be acquired for a pipeline under eminent domain, a landowner could require the pipeline owner to condemn a fee interest amount in any portion of commercially-viable land. STATUS: This bill did not receive a committee hearing in the House or Senate. PROPANE ACCESSIBILITY IMPROVEMENTS HF 550 Rep. Dave Baker(R-Willmar) SF 925 Sen. Lyle Koenen(DFL-Clara City) • To provide a$5 million/year appropriation for the Department of Commerce propane prepurchase program and require a report on its expenditures and results • To create definitions of propane,propane storage facility, and synthetic gas • To exempt natural gas utilities with fewer than 5,000 customers from rate regulation • To transfer funding from solar thermal rebates to energy weatherization programs • To exempt propane tank purchases from the sales tax STATUS: Several policy and funding provisions of HF 550 were included in the House jobs/energy omnibus bill(HF 843). In the Senate, the appropriation for the propane prepurchase program was included in SF 2101, the environment/economic development/agriculture omnibus. 149 The Special Session jobs/energy bill(Chapter 1) included the propane prepurchase program appropriation and the definitions. PIPELINE OIL AND RAIL TRANSPORT OF HAZARDOUS MATERIALS HF 602 Rep. Frank Hornstein(DFL-Minneapolis) SF 1100 Sen. Vicki Jensen(DFL-Owatonna) To modify pipeline oil and hazardous material transportation preparedness and response regulation requirements. STATUS: This bill did not receive a committee hearing in the House or Senate. PROPANE PREPURCAHSE PROGRAM MODIFICATIONS HF 903 Rep. Paul Anderson(R-Starbuck) SF 1064 Sen. Lyle Koenen(DFL-Clara City) To modify the Department of Commerce's propane prepurchase program to allow the purchase of heating fuel oil. The program would be renamed the "delivered fuels prepurchase program" and expanded to allow for prepurchase of up to 50 percent of the amount provided through energy assistance. STATUS: This bill did not receive a committee hearing in the House or Senate. UTILITY RAILROAD CROSSING FEES HF 963 Rep. Rod Hamilton(R-Mountain Lake) SF 877 Sen. Dan Sparks (DFL-Austin) To establish a standard$750 crossing fee for utilities crossing railroad right-of-way. STATUS: SF 877 passed out of committee to the Senate floor. HF 963 did not receive a hearing in the House. *This legislation is also noted in the Electric section. SUPPLY-SIDE SAVINGS COUNTED IN CIP HF 1421 Rep. Chris Swedzinski (R-Ghent) SF 602 Sen. Michelle Benson(R-Ham Lake) To allow inclusion of supply-side savings in meeting conservation improvement goals without first meeting a 1% customer-side goal. STATUS: This bill did not receive a committee hearing in the House or Senate. *This legislation is also noted in the Electric section. 150 CONSERVATION IMPROVEMENT PROGRAM INCREASE HF 1870 Rep. Bob Loonan(R-Shakopee) SF 1098 Sen. Scott Dibble (DFL-Minneapolis) To increase the state's overall energy savings goal from 1.5 to 2 percent. Public utilities would be required to meet an additional 0.5 percent energy optimization goal(supply-side)within the Conservation Improvement Program and cogeneration projects would be allowed to satisfy that goal. The DER would be required to adopt a filing schedule designed to have all electric utilities achieving 1.5%annual energy savings and all CIP-reporting gas utilities achieving 1% annual energy savings by 2017. STATUS: SF 1098 received a hearing in the Senate Environment and Energy Committee and the language was included in the Senate's first energy policy omnibus bill, which was never debated on the Senate floor. HF 1870 did not receive a hearing in the House. *This legislation is also noted in the Electric section. 151 TAXES AND CITY GOVERNANCE This section provides a summary of bills related to taxes and city governance that were introduced,but not passed into law in the 2015 Session. Italicized language notes when a provision was included in another bill. TELECOMMUNICATIONS EQUIPMENT TAX EXEMPTION HF 53 Rep. Greg Davids (R-Preston) SF 1186 Sen. Lyle Koenen(DFL-Clara City) To exempt telecommunications equipment from the sales and use tax. STATUS: Both HF 53 and SF 1186 received hearings. The language was included in the House omnibus tax bill(HF 848),but not the Senate version. The 2015 Legislative Session concluded without the passage of a tax bill. *This legislation is also noted in the Telecom section. EMINENT DOMAIN LIMITATIONS OUTSIDE CITY LIMITS HF 112 Rep. Duane Quam(R-Byron) No Senate companion To limit circumstances under which cities can exercise eminent domain outside of corporate city limits. STATUS: This bill did not receive a committee hearing in the House or Senate. FISCAL DISPARITIES CONTRIBUTIONS FOR MUNICIPALITIES LIMITED HF 135 Rep. Joyce Peppin(R-Rogers) SF 225 Sen. Warren Limmer(R-Maple Grove) To provide an alternate formula for determining area wide net tax capacity for municipalities not served by a regional wastewater service. STATUS: This bill did not receive a committee hearing in the House or Senate. RURAL MUNICIPAL WATER TREATMENT RENOVATION FUNDING IN LGA HF 163 Rep. Duane Quam(R-Byron) SF 1168 Sen. David Senjem(R-Rochester) To dedicate a portion of Local Government Aid funding for a Rural Municipal Water Treatment Renovation Loan Program. STATUS: This bill did not receive a committee hearing in the House or Senate. 152 *This legislation is also noted in the Water section. CITIES AND COUNTIES WRITTEN PROCEDURES ESTABLISHMENT HF 242 Rep. Duane Quam(R-Byron) SF 1163 Sen. David Senjem(R-Rochester) To require counties and cities to have written procedures related to adoption of ordinances and regulations,providing services, licensing requirements, and administrative operations and provide notice to the public that these procedures are available. STATUS: This bill did not receive a committee hearing in the House or Senate. ADMINISTRATIVE PROCEDURES ACT MODIFICATION HF 269 Rep. Ron Kresha(R-Little Falls) No Senate companion To modify the Administrative Procedures Act, reform rulemaking procedures, and enhance legislative oversight. STATUS: This bill did not receive a committee hearing in the House. PUBLIC AGENCY PURCHASE PRICE LIMITATION HF 463 Rep. Steve Green(R-Fosston) No Senate companion To limit the amount a state agency or political subdivision may pay to acquire real property to the county-assessed value of the property. STATUS: This bill did not receive a committee hearing in the House. WIND AND SOLAR PRODUCTION TAXES NOT SUBJECT TO LEVY LIMITS HF 408 Rep. Paul Torkelson(R-Hanska) SF 413 Sen. Lyle Koenen(DFL-Clara City) To clarify that wind generation and solar production taxes are not included in the levy aid base and are not reductions to the property tax levy limit. STATUS: SF 413 received a hearing in the Senate Tax Committee,but was not included in the omnibus tax bill. HF 408 did not receive a hearing in the House. EMINENT DOMAIN EASEMENT DISCHARGE HF 468 Rep. Tim Miller(R-Prinsburg) SF 116 Sen. Lyle Koenen(DFL-Clara City) 153 To allow property owners to challenge that a portion of an easement is not being used for the purpose for which it was taken. STATUS: This bill did not receive a committee hearing in the House or Senate. LOCAL GOVERNMENT REFUNDABLE SALES TAX FOR CONSTRUCTION MATERIALS HF 531 Rep. Chris Swedzinski (R-Ghent) SF 532 Sen. Ann Rest(DFL-New Hope) To make the sales tax on construction materials purchased for local government projects refundable. Currently, local governments must purchase materials separately from the construction contract to receive the sales tax exemption. STATUS: Both HF 531 and SF 532 received hearings. The language was included in the House omnibus tax bill(HF 848),but not the Senate version. The 2015 Legislative Session concluded without the passage of a tax bill. LGA INFRASTRUCTURE CAPITAL PROJECT GRANT PROGRAM HF 633 Rep. Linda Runbeck(R-Shoreview) SF 1279 Sen. Dave Thomspon(R-Lakeville) To establish a grant program to finance public infrastructure for cities using a portion of the Local Government Aid program. STATUS: This bill did not receive a committee hearing in the House or Senate. MORA SALES TAX EXEMPTION FOR WASTEWATER TREATMENT FACILITY HF 874 Rep. Jason Rarick(R-Pine City) SF 829 Sen. Tony Lourey(DFL-Kerrick) To provide the City of Mora with a sales tax exemption for materials and supplies used in the construction of its wastewater treatment facility. If the tax was paid by a contractor, the City could submit cost records to the Department of Revenue for a refund. STATUS: HF 874 received a hearing in the House Tax Committee. SF 829 did not receive a hearing. The language was included in the House omnibus tax bill(HF 848),but the 2015 Legislative Session concluded without the passage of a tax bill. *This legislation is also noted in the Water section. ORDERLY ANNEXATION AND ANNEXATION BY ORDINANCE LIMITATIONS HF 919 Rep. Steve Green(R-Fosston) SF 680 Sen. Lyle Koenen(DFL-Clara City) 154 To provide that property subject to an orderly annexation agreement would not be subject to an annexation by any city not party to the agreement. An annexation ordinance adopted by a non- party city would be void. STATUS: This bill did not receive a committee hearing in the House or Senate. SPENDING REFERENDA IN NOVEMBER ELECTIONS HF 922 Rep. Steve Drazkowski (R-Mazeppa) SF 1711 Sen. Mary Kiffmeyer(R-Big Lake) To require local referenda related to spending to be conducted on the first Tuesday after the first Monday in November(i.e. at a November election). Refenda items listed in this requirement include: capital levies, accepting land donations, municipal acquisition of public utility property, municipal sale of electricity outside city limits, and municipal telecommunications purchases. STATUS: HF 922 received several hearings in the House. SF 1711 did not receive a hearing in the Senate. The language was included in the House omnibus tax bill(HF 848),but the 2015 Legislative Session concluded without the passage of a tax bill. MARSHALL CHP PROPERTY TAX EXEMPTION/PILOT HF 988 Rep. Chris Swedzinski (R-Ghent) SF 1145 Sen. Gary Dahms (R-Redwood Falls) To exempt from the personal property tax a specific electric generation facility using combined heat and power and establishing a payment in lieu of taxes agreement for the facility. STATUS: This legislation did not receive a hearing in the House or Senate. NORTH BRANCH PUBLIC UTILITIES COMMISSION MEMBERSHIP HF 1080 Rep. Bob Barrett(R-Lindstrom) SF 1095 Sen. Sean Nienow(R-Cambridge) To authorize the North Branch Public Utilities Commission to increase from three to five members. STATUS: SF 1095 was voted down in the Senate State and Local Government Committee. A hearing was never held in the House. RENEWABLE ENERGY PRODUCTION AND ENERGY INVESTMENT INCOME TAX CREDIT HF 1335 Rep. Deb Kiel(R-Crookston) No Senate companion To allow renewable energy production and energy investment income tax credits for a biomass/biofuel project. STATUS: This bill did not receive a committee hearing in the House. 155 INCOME TAX CREDITS FOR ENERGY IMPROVEMENTS HF 1455 Rep. David Bly(DFL-Northfield) SF 1657 Sen. Kevin Dahle (DFL-Northfield) To provide an income tax credit to family farm businesses or small businesses in rural areas for the installation of certain energy systems, including: geothermal heat exchangers, small or farm- scale wind turbines, solar thermal arrays, or storage. The amount of the credit would be up to 30 percent of the project cost. STATUS: SF 1657 received a hearing in the Senate Tax Committee,but was not included in an omnibus bill. HF 1455 did not receive a hearing in the House. ELECTRIC GENERATION PROPERTY TAX REFORM HF 2162 Rep. Ann Lenczewski (DFL-Bloomington) SF 1636 Sen. Rod Skoe(DFL-Clearbrook) To remove electric generation machinery from the personal property tax and repeal the current exemptions utilized by electric generation(Pollution Control Exemption, Sliding Scale Exclusion, and individual facility exemptions). The tax base of an electric generation facility would be determined with a new formula based on production and capacity. The formula includes an annual inflator based on Minnesota's residential electric rate increase (as reported to the EIA). STATUS: Electric generation property tax reform was discussed extensively in the Senate Tax Committee and included in the Senate omnibus tax bill(SF 826). In the omnibus, wind and solar generation were allowed to remain on their current production tax rather than switching to the new formula. This legislation was not heard in the House. The 2015 Legislative Session concluded without the passage of a tax bill. BORDER-TO-BORDER BROADBAND INCOME TAX CREDIT HF 2373 Rep. Erik Simonson(DFL-Duluth) No Senate companion To create an income tax credit in the Border-to-Border Broadband Infrastructure Grant Program. Credits could be carried forward against taxpayer liabilities for up to 10 years. STATUS: This bill did not receive a committee hearing in the House. *This bill is also noted in the Telecom section. 156 TELECOMMUNICATIONS This section provides a summary of telecommunications bills that were introduced,but not passed into law in the 2015 Session. Italicized language notes when a provision was included in another bill. TELECOMMUNICATIONS EQUIPMENT TAX EXEMPTION HF 53 Rep. Greg Davids (R-Preston) SF 1186 Sen. Lyle Koenen(DFL-Clara City) To exempt telecommunications equipment from the sales and use tax. STATUS: Both HF 53 and SF 1186 received hearings. The language was included in the House omnibus tax bill (HF 848),but not the Senate version. The 2015 Legislative Session concluded without the passage of a tax bill. *This legislation is also noted in the Tax/City Governance section. BORDER-TO-BORDER BROADBAND ACCOUNT FUNDING HF 556 Rep. Sheldon Johnson(DFL-St. Paul) SF 439 Sen. Matt Schmit(DFL-Red Wing) To provide a$100 million appropriation for the Border-to-Border Broadband Infrastructure Grant Program. STATUS: A $10,558,000 appropriation to the Border-to-Border Broadband Infrastructure Grant Program was provided in Special Session Laws Chapter 1. BORDER-TO-BORDER BROADBAND ACCOUNT FUNDING HF 593 Rep. Ron Kresha(R-Little Falls) SF 1260 Paul Gazelka(R-Nisswa) To provide a$50 million appropriation for the Border-to-Border Broadband Infrastructure Grant Program and reserve 60 percent of the appropriation for grants to unserved communities. STATUS: A $10,558,000 appropriation to the Border-to-Border Broadband Infrastructure Grant Program was provided in Special Session Laws Chapter 1. VOIP REGULATION PROHIBITION HF 776 Rep. Tim Sanders(R-Blaine) SF 895 Sen. Dan Sparks (DFL-Austin) 157 To prohibit regulation of Voice-over- Internet Protocol(VoIP) service and internet protocol- enabled service. STATUS: Both the House and Senate files received several hearings in their respective bodies, but the legislation did not receive a floor vote or have its language included in an omnibus bill. VOIP COMPETITIVE MARKET REGULATION HF 1066 Rep. Ron Kresha(R-Little Falls) SF 895 Sen. Dan Sparks (DFL-Austin) To authorize competitive market regulation for certain local exchange carriers facing competition. A petition process for competitive market regulation would be created, outlining the process, competitive criteria, and market regulations. State regulation of any aspect of VoIP services or IP-enabled services would be prohibited. STATUS: Both the House and Senate files received several hearings in their respective bodies, but the legislation did not receive a floor vote or have its language included in an omnibus bill. TELECOMMUNICATIONS MODIFICATIONS HF 1558 Rep. Ron Kresha(R-Little Falls) SF 1862 Sen. Dan Sparks (DFL-Austin) To modify telecommunications rate case procedures, standardize consumer billing practices, require intrastate call completion, and simplify certification procedures. STATUS: This bill did not receive a committee hearing in the House or Senate. BONDING FOR BROADBAND HF 1900 Rep. Erik Simonson(DFL-Duluth) SF 1101 Sen. Matt Schmit(DFL-Red Wing) To authorize local units of government to partner or contract with private providers or cooperatives to finance, acquire, and construct broadband infrastructure. Local governments could issue general obligation bonds to fund broadband infrastructure by resolution. The state could issue general obligation bonds for broadband infrastructure. STATUS: A variation of this language was included in the Senate omnibus tax bill (SF 826). HF 1900 did not receive a hearing in the House. The 2015 Legislative Session concluded without the passage of a tax bill. BROADBAND ECONOMIC DEVELOPMENT PILOT PROGRAM HF 2123 Rep. Joe McDonald(R-Delano) SF 2006 Sen. Bruce Anderson(R-Buffalo) To appropriate$2.4 million and create an economic development pilot program within the Border-to-Border Broadband Infrastructure Grant Program to award funding to a city for a wire- 158 line broadband demonstration project. Criteria for the pilot program funding would include: matching funds from non-state sources,broadband outages of 12 hours or more in service area, a decline in businesses due to lack of adequate broadband, and an agreement that the city would own the broadband infrastructure as part of a public-private partnership. (The intended city was identified as Annandale) STATUS: This provision,with a$2 million appropriation, was included in the House jobs/energy omnibus bill(HF 843) and the final jobs/energy bill passed by the Legislature and vetoed by the Governor(HF 1437). The earmark for Annandale was opposed by the Governor, so it was not included in the Special Session jobs/energy bill(Chapter 1). BORDER-TO-BORDER BROADBAND INCOME TAX CREDIT HF 2373 Rep. Erik Simonson(DFL-Duluth) No Senate companion To create an income tax credit in the Border-to-Border Broadband Infrastructure Grant Program. Credits could be carried forward against taxpayer liabilities for up to 10 years. STATUS: This bill did not receive a committee hearing in the House. *This bill is also noted in the Tax/Local Governance section. OFFICE OF BROADBAND DEVELOPMENT APPROPRIATION SF 438 Sen. Matt Schmit(DFL-Red Wing) No House Companion To provide additional appropriations for the Office of Broadband Development: $1.9 million in FY 16 for operational support and program delivery and$1.4 million in FY 16 to perform statewide mapping and data collection. STATUS: This bill did not receive a hearing in the Senate. MUNICIPAL TELECOMMUNICATIONS REPEAL SF 1800 Sen. Matt Schmit(DFL-Red Wing) No House Companion To repeal Minnesota Statutes 237.19, which provides the right for municipalities to own and operate telephone exchange services within their borders. STATUS: This bill did not receive a hearing in the Senate. A related provision was included in the Senate tax bill (SF 826), noting that this statute did not apply to broadband activities. The 2015 Legislative Session concluded without the passage of a tax bill. 159 INDEX 2015 Regular Session House Files HF 53 34,39 HF 922 37 HF 81 27 HF 963 17,32 HF 95 13 HF 988 36 HF 105 13 HF 1000 8 HF 112 34 HF 1066 38 HF 135 34 HF 1080 37 HF 163 27,34 HF 1117 18 HF 242 35 HF 1133 18 HF 269 35 HF 1210 18 HF 288 9 HF 1257 10 HF 333 13 HF 1261 30 HF 338 14 HF 1315 5 HF 341 14 HF 1320 18 HF 345 27 HF 1335 36 HF 390 14 HF 1358 10 HF 408 35 HF 1378 19 HF 414 28 HF 1395 19 HF 463 35 HF 1400 19 HF 468 35 HF 1420 20 HF 479 28,31 HF 1421 20,32 HF 483 27 HF 1437 20 HF 484 3 HF 1455 38 HF 492 14 HF 1505 21 HF 495 12 HF 1522 4 HF 508 31 HF 1558 40 HF 531 36 HF 1621 21 HF 544 15 HF 1622 21 HF 550 3,31 HF 1678 22 HF 556 39 HF 1721 22 HF 572 6 HF 1725 10 HF 593 39 HF 1745 22 HF 602 32 HF 1781 9 HF 616 7 HF 1782 5 HF 617 28 HF 1870 23,33 HF 633 36 HF 1900 40 HF 639 15 HF 1951 23 HF 655 4 HF 1977 23 HF 711 28 HF 2007 24 HF 776 39 HF 2032 24 HF 813 15 HF 2033 3 HF 843 15 HF 2081 24 HF 846 29 HF 2123 40 HF 874 29,36 HF 2162 38 HF 891 17 HF 2240 24 HF 903 32 HF 2373 38,41 HF 919 36 160 2015 Regular Session Senate Files SF 25 27 SF 1098 23,33 SF 69 13 SF 1100 32 SF 95 19 SF 1101 40 SF 116 35 SF 1121 10 SF 225 34 SF 1145 37 SF 231 13 SF 1163 35 SF 237 14 SF 1168 27,34 SF 306 19 SF 1178 18 SF 413 35 SF 1186 34,39 SF 417 9 SF 1260 39 SF 438 41 SF 1263 4 SF 439 39 SF 1279 36 SF 459 28 SF 1312 5 SF 532 34 SF 1317 13 SF 536 14 SF 1329 30 SF 599 3 SF 1355 24 SF 602 20,32 SF 1357 15 SF 635 28 SF 1415 20 SF 642 27 SF 1431 22 SF 659 27 SF 1439 10 SF 680 36 SF 1636 38 SF 689 7 SF 1647 11 SF 690 28 SF 1657 38 SF 698 14 SF 1711 37 SF 725 15 SF 1725 28,31 SF 726 14 SF 1735 5,25 SF 808 4 SF 1744 22 SF 829 29,36 SF 1754 9 SF 877 17 SF 1759 18 SF 888 12 SF 1800 41 SF 895 39 SF 1862 40 SF 925 3,31 SF 1867 23 SF 975 6 SF 1948 24 SF 978 18 SF 2006 40 SF 984 19 SF 2062 24 SF 1059 31 SF 2063 24 SF 1007 8 SF 2072 21 SF 1064 32 SF 2073 3 SF 1077 19 SF 2101 25 SF 1095 37 SF 2165 26 SF 1096 17 161 2015 Special Session Bills HF 2 9 HF 3 3 HF 4 5 HF 5 8 SF 1 8 SF 2 3 SF 4 9 SF 5 5 162 Notes on the Capitol Renovation The Minnesota State Capitol is undergoing its first major preservation effort since its original construction back in 1905. After over 100 years of use,many elements of the building needed repair, including the roof,crumbling exterior marble and stone,antiquated mechanical,electrical,and plumbing, and insufficient public space. The three-year, $272.7 million restoration project began in the fall of 2013 and will be completed in early 2017. For the first several years of construction,the Capitol remained open to the public(with limited accessibility to many parts of the building). Following the adjournment of the 2015 Regular Session,the Capitol was closed to the public. All staff was moved out of the Capitol to various other locations on the complex or downtown St.Paul. Being an active construction site,tours are no longer being offered and rallies must occur outside the Capitol building. Legislative activity will also be impacted by the Capitol's closure. In the 2016 Session,all Senate committee hearings and floor sessions will take place in the new Senate Office Building(which is currently under construction,but is scheduled to open by 2016). House committee hearings will continue to be held in the State Office Building,leaving House floor sessions as the only activity that will occur in the Capitol building. The new and improved State Capitol will re-open in early 2017. 163 $M1MIL( ��,Iw Minnesota Municipal Utilities Association Luc Pk i 0 gym' - " y 73� (era ,s ■ ue A 141 i * � a R J 'I'I r Pi' it . , 1'2 it JAW \ I _ ,"�r/� rl,l•�.,- r Construction of the Senate Office Building...home of the 2016 Legislative Session! Minnesota Municipal Utilities Association 3025 Harbor Lane North, Suite 400 Plymouth, MN 55447 www.mmua.org 164