Sending a proposal out for consultation means that the Government is asking for input from, among others, other public authorities and organisations. It does not mean that the proposal has been adopted, and the proposal may be changed.
After the consultation, the proposal must be submitted to the Norwegian Parliament (Stortinget) for the law to be changed. If the Norwegian Parliament adopts the amendment, your residence permit may be extended subject to the same requirements and in the same way as before.
UDI does not know if or when the proposal will be adopted.
You can read the Government's press release on their website (external website).