A bill for an act
relating to energy; providing for and regulating single-metered utility service in
residential buildings; amending Minnesota Statutes 2022, sections 216B.022;
504B.285, subdivision 4; Minnesota Statutes 2023 Supplement, section 216B.172,
subdivisions 1, 2; proposing coding for new law in Minnesota Statutes, chapters
216B; 504B; repealing Minnesota Statutes 2022, section 504B.215.

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

Section 1.

new text begin [216B.021] ELECTION BY LANDLORDS OF SINGLE-METERED
RESIDENTIAL BUILDINGS TO BE SUBJECT TO COMMISSION AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section to section 216B.024, the
following terms have the meanings given.
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new text begin (b) "Directly meter" means a device, installed by a utility in one or more units in a
multifamily residential building, that:
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new text begin (1) is owned, read, and maintained by a utility;
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new text begin (2) measures electricity or natural gas consumption in a tenant's dwelling unit; and
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new text begin (3) constitutes the basis for a utility to directly bill a tenant.
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new text begin (c) "Landlord" has the meaning given in section 504B.216, subdivision 1.
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new text begin (d) "Single-metered residential building" has the meaning given in section 504B.216,
subdivision 1.
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new text begin (e) "Submeter" means a meter in a single-metered residential building that is owned by
a landlord and installed by the landlord or by a third party at the landlord's request, and that
measures electricity or natural gas consumption solely within an individual dwelling unit
in the building.
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new text begin (f) "Submetering" means installing or using a submeter and charging or billing the tenant
for utility service separately from rent.
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new text begin (g) "Tenant" means a person who is occupying a dwelling unit in a residential building
under a lease or contract, whether oral or written, and all other regular occupants of the
tenant's dwelling unit.
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new text begin (h) "Third-party billing agent" means a person or entity other than the property owner
that handles utility billing and collections, submeter readings, and any other utility
management services at a single-metered residential building.
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new text begin (i) "Utility" means a public utility, a municipal utility, or a cooperative electric
association.
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new text begin (j) "Utility service" means electricity or natural gas.
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new text begin Subd. 2. new text end

new text begin Election. new text end

new text begin (a) Notwithstanding section 216B.02, subdivision 4, a landlord of a
single-metered residential building may elect to become subject to the commission's authority,
as provided in this section to section 216B.024.
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new text begin (b) A landlord who does not elect to become subject to the commission's authority is
prohibited from submetering.
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new text begin Subd. 3. new text end

new text begin Registration; fee. new text end

new text begin (a) A landlord who elects to be subject to the commission's
authority must register with the commission by submitting registration on a form developed
by the commission. The registration form must contain:
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new text begin (1) the name of the landlord and, if any, the property manager and third-party billing
agent;
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new text begin (2) the physical address of the landlord, which must not be a post office box, and the
landlord's telephone number and email address;
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new text begin (3) the residential building or buildings owned or operated by the landlord that are
submetered or that the landlord intends to submeter, including the number of units in each
building; and
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new text begin (4) any other information the commission deems necessary.
new text end

new text begin (b) A landlord who elects to be regulated by the commission must pay an initial
registration fee and an annual registration fee thereafter. The initial and annual fees must
be established by the commission and must be sufficient to cover the commission's costs
to implement this section to section 216B.024. Failure to pay the fee results in temporary
suspension or permanent termination, as determined by the commission, of the landlord's
right to bill tenants for utility service measured through a submeter.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
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Sec. 2.

Minnesota Statutes 2022, section 216B.022, is amended to read:


216B.022 SUBMETERINGnew text begin IN SINGLE-METERED RESIDENTIAL BUILDINGSnew text end .

new text begin Subdivision 1. new text end

new text begin Conditions of submetering. new text end

deleted text begin Nothing in this chapter grants the commission
or a public utility the authority to limit the availability of
deleted text end new text begin (a) new text end Submetering deleted text begin to a building
occupant when the building is served by a public utility's master meter which measures the
total electric energy delivered to the building
deleted text end new text begin a single-metered residential building is
prohibited except as provided in this section
new text end .

new text begin (b) A landlord of a single-metered residential building who elects to be subject to the
commission's authority must request that a utility directly meter each unit in the building if
the utility offers the option. Once the individual meters are installed by the utility, the
landlord is prohibited from submetering or from including any utility charges in rent.
new text end

new text begin (c) A landlord is prohibited from removing a directly metered tenant from the tenant's
existing utility account or requesting that a utility remove the tenant from the tenant's existing
utility account.
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new text begin (d) Submeters must be read at the end of each month and cover the period from the first
to the last day of the month.
new text end

new text begin (e) Submeters must be installed, replaced, or repaired only by a licensed and qualified
professional.
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new text begin (f) A landlord that installs submeters must comply with all state and national standards
for electric and gas meters, including, as applicable:
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new text begin (1) section 216B.09;
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new text begin (2) Minnesota Rules, part 7826.1000;
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new text begin (3) American National Standards Institute, Code for Electricity Metering; and
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new text begin (4) any metering standards established by the commission.
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new text begin (g) A landlord who installs submeters must file with the commission a document that
identifies the number of submeters installed and certifies that the submeters comply with
paragraph (f).
new text end

new text begin (h) Upon a finding by the commission that a landl