6.2a ERMUSR 09-14-2021 - Laserfiche WebLink

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Although the peacetime emergency which had required all the special sessions was repealed by both legislative action in the Omnibus State Government Finance Bill, and by Executive Order of the Governor effective July 1, 2021, a second special session is anticipated to be called in September in order to finalize the expenditure of federal COVID-19 aid to front line workers. A special committee was appointed during the First Special Session to make recommendations on how to divvy up the one-time money. The exemption of intermittent generators operating fewer than 500 hours per year from the mandate of air quality modeling remains a key issue for MMUA. Also on the Government Relations plate are implementing the changes to CIP via ECO, and pay equity issues as they apply to line workers. Kent and Bill also plan on making a few member visits this fall, and have already begun attending events and fundraisers for legislators that serve on relevant committees or who have a history of supporting municipal utilities. The weekly Friday Government Relations Committee calls, and the printing of The Capitol Letter are on hiatus until the 2022 Legislative Session convenes which is slated for noon on January 31, 2022, or until something occurs that requires a special call or publication. Section 2: 2021 Session Laws A. 2021 Regular Session The following bill from the 2021 Regular Session is of interest to municipal utilities and was signed into law by the Governor: - Chapter 29 - The Energy Conservation and Optimization (ECO) Act of 2021 HF 164 Rep. Stephenson SF 227 Sen. Rarick The ECO Act of 2021 contains numerous provisions affecting municipal utilities, including: o Article 2, section 2 – increases the State’s energy savings goal from 1.5% to 2.5% of annual retail energy sales of electricity and natural gas. Note: While not a part of CIP, this section is often incorrectly cited as an increased burden for COUs. o Article 2, section 3 – provides important definitions, including subd. 10, clause 3 which excludes from “Gross Annual Retail Energy Sales” the amount of electric sales associated with a utility’s program, rate, or tariff for electric vehicle charging based on a methodology and assumptions developed by the Department of Commerce with stakeholders no later than December 31, 2021. This exemption expires December 31, 2032. o Article 2, section 4, subd. 2 – maintains COUs’ savings goal of 1.5% of gross annual retail energy sales but changes how it can be met (IOUs 4 110