Thermal energy networks designation as public improvements and waterworks

A bill for an act

relating to local government; designating thermal energy networks as public

improvements and waterworks; amending Minnesota Statutes 2024, sections

429.021, subdivision 1; 444.075, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 429.021, subdivision 1, is amended to read:

Subdivision 1.

Improvements authorized.

The council of a municipality shall have

power to make the following improvements:

(1) To acquire, open, and widen any street, and to improve the same by constructing,

reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking

strips of any material, or by grading, graveling, oiling, or otherwise improving the same,

including the beautification thereof and including storm sewers or other street drainage and

connections from sewer, water, or similar mains to curb lines.

(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and sanitary

sewers and systems, including outlets, holding areas and ponds, treatment plants, pumps,

lift stations, service connections, and other appurtenances of a sewer system, within and

without the corporate limits.

(3) To construct, reconstruct, extend, and maintain steam heating mains.

(4) To install, replace, extend, and maintain street lights and street lighting systems and

special lighting systems.

(5) To acquire, improve, construct, reconstruct, extend, and maintain water works systems,

including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks,

treatment plants, and other appurtenances of a water works system, within and without the

corporate limits.

(6) To acquire, improve and equip parks, open space areas, playgrounds, and recreational

facilities within or without the corporate limits.

(7) To plant trees on streets and provide for their trimming, care, and removal.

(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private

property and to fill the same.

(9) To construct, reconstruct, extend, and maintain dikes and other flood control works.

(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.

(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and

promote a pedestrian skyway system. Such improvement may be made upon a petition

pursuant to section
429.031, subdivision 3
.

(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote

underground pedestrian concourses.

(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote public

malls, plazas or courtyards.

(14) To construct, reconstruct, extend, and maintain district heating systems.

(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire protection

systems in existing buildings, but only upon a petition pursuant to section
429.031,

subdivision 3
.

(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway

sound barriers.

(17) To improve, construct, reconstruct, extend, and maintain gas and electric distribution

facilities owned by a municipal gas or electric utility.

(18) To purchase, install, and maintain signs, posts, and other markers for addressing

related to the operation of enhanced 911 telephone service.

(19) To improve, construct, extend, and maintain facilities for Internet access and other

communications purposes, provided that the municipality must:

(i) not discriminate in favor of the municipality's own communications facilities by

granting the municipality more favorable or less burdensome terms and conditions than a

nonmunicipal service provider with respect to: (A) access and use of public rights-of-way;

(B) access and use of municipally owned or controlled conduit, towers, and utility poles;

and (C) permitting fees charged to access municipally owned and managed facilities;

(ii) maintain separation between the municipality's role as a regulator over firms that

offer services in competition with the services offered by the municipality over the

municipality's communications service facilities, and the municipality's role as a competitive

provider of services over the municipality's communications service facilities; and

(iii) not share inside information between employees or contractors responsible for

executing the municipality's role as a regulator over firms that offer communications services

in competition with the communication services offered by the municipality, and employees

or contractors responsible for executing the municipality's role as a competitive

communications services provider.

(20) To assess affected property owners for all or a portion of the costs agreed to with

an electric utility, telecommunications carrier, or cable system operator to bury or alter a

new or existing distribution system within the public right-of-way that exceeds the utility's

design and construction standards, or those set by law, tariff, or franchise, but only upon

petition under section
429.031, subdivision 3
.

(21) To assess affected property owners for repayment of voluntary energy improvement

financings under section
216C.436, subdivision 7
, or
216C.437, subdivision 28
.

(22) To construct, reconstruct, alter, extend, operate, maintain, and promote energy

improvement projects in existing buildings, provided that:

(i) a petition for the improvement is made by a property owner under section
429.031
,

subdivision 3;

(ii) the municipality funds and administers the energy improvement project;

(iii) project funds are only used for the installation of improvements to heating,

ventilation, and air conditioning equipment and building envelope and for the installation

of renewable energy systems;

(iv) each property owner petitioning for the improvement receives notice that free or

low-cost energy improvements may be available under federal, state, or utility programs;

(v) for energy improvement projects on residential property, only residential property

having five or more units may obtain financing for projects under this clause; and

(vi) prior to financing an energy improvement project or imposing an assessment for a

project, written notice is provided to the mortgage lender of any mortgage encumbering or

otherwise secured by the property proposed to be improved.

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(23) To construct, reconstruct, extend, and maintain thermal energy networks as defined

in section 216B.2427, subdivision 1, paragraph (s).

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Sec. 2.

Minnesota Statutes 2024, section 444.075, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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(a)
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The definitions in this subdivision apply
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in
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to
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this section.

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(a)
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(b)
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"Municipality" means a home rule charter or statutory city or a town.

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(b)
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(c)
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"Governing body" means the town board with respect to towns.

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(c)
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(d)
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"Waterworks" means waterworks systems, including mains, valves, hydrants,

service connections, wells, pumps, reservoirs, tanks, treatment plants,
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thermal energy

networks as defined in section 216B.2427, subdivision 1, paragraph (s),
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and other

appurtenances of a waterworks system.

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(d)
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(e)
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"Sanitary sewer" means sanitary sewer systems, including sewage treatment

works, disposal systems, and other facilities for disposing of sewage, industrial waste, or

other wastes.

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(e)
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(f)
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"Storm sewer" means storm sewer systems, including mains, holding areas and

ponds, and other appurtenances and related facilities for the collection and disposal of

stormwater.

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(f)
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(g)
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"Facilities" means and includes waterworks, sanitary sewer and storm sewer

systems, or any portion or portions thereof.