Minnesota SF 4534: Fuel-switching improvements expenditures made to low-income households application to the low-income conservation spending requirement for municipal utilities and cooperative electric associations

Bill Text

1.1 A bill for an act​
1.2 relating to energy; allowing expenditures on fuel-switching improvements made​
1.3 to low-income households to apply to the low-income conservation spending​
1.4 requirement for municipal utilities and cooperative electric associations; amending​
1.5 Minnesota Statutes 2024, section 216B.2403, subdivision 5.​
1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.7 Section 1. Minnesota Statutes 2024, section 216B.2403, subdivision 5, is amended to read:​
1.8 Subd. 5.Energy conservation programs for low-income households.(a) A​
1.9 consumer-owned utility subject to this section must provide energy conservation programs​
1.10 to low-income households. The commissioner must evaluate a consumer-owned utility's​
1.11 plans under this section by considering the consumer-owned utility's historic spending on​
1.12 energy conservation programs directed to low-income households, the rate of customer​
1.13 participation in and the energy savings resulting from those programs, and the number of​
1.14 low-income persons residing in the consumer-owned utility's service territory. A municipal​
1.15 utility that furnishes natural gas service must spend at least 0.2 percent of the municipal​
1.16 utility's most recent three-year average gross operating revenue from residential customers​
1.17 in Minnesota on energy conservation programs for low-income households. Except as​
1.18 provided in paragraph (j), a consumer-owned utility that furnishes electric service must​
1.19 spend at least 0.2 percent of the consumer-owned utility's gross operating revenue from​
1.20 residential customers in Minnesota on energy conservation programs for low-income​
1.21 households. The requirement under this paragraph applies to each generation and transmission​
1.22 cooperative association's aggregate gross operating revenue from the sale of electricity to​
1.23 residential customers in Minnesota by all of the association's member distribution​
1.24 cooperatives.​
1​Section 1.​
26-06561 as introduced​02/03/26 REVISOR RSI/MG​
SENATE​
STATE OF MINNESOTA​
S.F. No. 4534​NINETY-FOURTH SESSION​
(SENATE AUTHORS: MATHEWS)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​6751​03/17/2026​
Referred to Energy, Utilities, Environment, and Climate​

2.1 (b) To meet all or part of the spending requirements of paragraph (a), a consumer-owned​
2.2 utility may contribute money to the energy and conservation account established in section​
2.3 216B.241, subdivision 2a. An energy conservation optimization plan must state the amount​
2.4 of contributions the consumer-owned utility plans to make to the energy and conservation​
2.5 account. Contributions to the account must be used for energy conservation programs serving​
2.6 low-income households, including renters, located in the service area of the consumer-owned​
2.7 utility making the contribution. Contributions must be remitted to the commissioner by​
2.8 February 1 each year.​
2.9 (c) The commissioner must establish energy conservation programs for low-income​
2.10 households funded through contributions to the energy and conservation account under​
2.11 paragraph (b). When establishing energy conservation programs for low-income households,​
2.12 the commissioner must consult political subdivisions, utilities, and nonprofit and community​
2.13 organizations, including organizations providing energy and weatherization assistance to​
2.14 low-income households. The commissioner must record and report expenditures and energy​
2.15 savings achieved as a result of energy conservation programs for low-income households​
2.16 funded through the energy and conservation account in the report required under section​
2.17 216B.241, subdivision 1c, paragraph (f). The commissioner may contract with a political​
2.18 subdivision, nonprofit or community organization, public utility, municipality, or​
2.19 consumer-owned utility to implement low-income programs funded through the energy and​
2.20 conservation account.​
2.21 (d) A consumer-owned utility may petition the commissioner to modify the required​
2.22 spending under this subdivision if the consumer-owned utility and the commissioner were​
2.23 unable to expend the amount required for three consecutive years.​
2.24 (e) The commissioner must develop and establish guidelines for determining the eligibility​
2.25 of multifamily buildings to participate in energy conservation programs provided to​
2.26 low-income households. Notwithstanding the definition of low-income household in section​
2.27 216B.2402, a consumer-owned utility or association may apply the most recent guidelines​
2.28 published by the department for purposes of determining the eligibility of multifamily​
2.29 buildings to participate in low-income programs. The commissioner must convene a​
2.30 stakeholder group to review and update these guidelines by August 1, 2021, and at least​
2.31 once every five years thereafter. The stakeholder group must inc