Energy Conservation and Optimization Act of 2020 - Summary

• Increases Minnesota's statewide energy savings goal from 1.5% to 2.5% of annual retail energy sales, achieved through conservation improvements, rate design, energy codes, and other efficiency measures.

• Raises public utilities' annual energy savings goals from 1.5% to 1.75% for electric service and maintains 1% for natural gas service, with a minimum 1% requirement from direct energy conservation improvements.

• Establishes new programs for efficient fuel-switching improvements (replacing propane/fuel oil with electric heat pumps or natural gas with electric technologies) and load management, allowing utilities to count these toward energy savings goals if they meet cost-effectiveness and emissions reduction criteria.

• Creates an "Energy and Conservation Account" funded by utility contributions to support low-income energy conservation programs, with separate "Healthy AIR" account for asbestos removal in weatherization assistance.

• Allows public utilities to invest up to $6 million (for large utilities) or $3 million (for smaller utilities) in innovative clean technologies over three consecutive years, with automatic rate adjustment provisions for cost recovery.