HF 899

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/30/2023 08:40pm

A bill for an act
relating to energy; modifying electric utility renewable energy standard obligations;
exempting certain wind projects from certificate of need proceedings; including
low-voltage transmission lines in the definition of "solar energy generating system"
for siting purposes; modifying Public Utility Commission authority to issue site
permits for electric generation facilities; amending Minnesota Statutes 2022,
sections 216B.1691, subdivisions 1, 2a, 2b, 2d, 2e, 2f, 3, 4, 5, 7, 9, 10, by adding
subdivisions; 216B.2422, subdivision 3; 216B.243, subdivision 8; 216E.01,
subdivision 9a; 216E.03, subdivisions 5, 10, 11; 216E.04, subdivision 2; 216F.04;
repealing Minnesota Statutes 2022, section 216B.1691, subdivision 2.

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

Section 1.

Minnesota Statutes 2022, section 216B.1691, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

new text begin (a) For purposes of this section, the following terms have
the meaning given them.
new text end

new text begin (b) "Carbon-free" means a technology that generates electricity without emitting carbon
dioxide.
new text end

deleted text begin (a) deleted text end new text begin (c) new text end Unless otherwise specified in law, "eligible energy technology" means an energy
technology that generates electricity from the following renewable energy sources:

(1) solar;

(2) wind;

(3) hydroelectric deleted text begin with a capacity of less than 100 megawatts deleted text end ;

(4) hydrogen deleted text begin , provided that after January 1, 2010, the hydrogen must be deleted text end generated from
the resources listed in this paragraph; or

(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester
system; the predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge to produce electricity; and new text begin , except as provided in subdivision 1a, new text end an
energy recovery facility used to capture the heat value of mixed municipal solid waste or
refuse-derived fuel from mixed municipal solid waste as a primary fuel.

deleted text begin (b) deleted text end new text begin (d) new text end "Electric utility" means a public utility providing electric service, a generation
and transmission cooperative electric association, a municipal power agency, or a power
district.

new text begin (e) "Environmental justice area" means an area in Minnesota that, based on the most
recent data published by the United States Census Bureau, meets one or more of the following
criteria:
new text end

new text begin (1) 50 percent or more of the area's total population is nonwhite;
new text end

new text begin (2) 40 percent or more of households in the area have an income that is at or below 185
percent of the federal poverty level; or
new text end

new text begin (3) the area is located within Indian country, as defined in United State Code, title 18,
section 1151.
new text end

deleted text begin (c) deleted text end new text begin (f) new text end "Total retail electric sales" means the kilowatt-hours of electricity sold in a year
by an electric utility to retail customers of the electric utility or to a distribution utility for
distribution to the retail customers of the distribution utility. "Total retail electric sales"
does not include the sale of hydroelectricity supplied by a federal power marketing
administration or other federal agency, regardless of whether the sales are directly to a
distribution utility or are made to a generation and transmission utility and pooled for further
allocation to a distribution utility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2022, section 216B.1691, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Exception; energy recovery facility. new text end

new text begin An energy recovery facility used to
capture the heat value of mixed municipal solid waste or refuse-derived fuel from mixed
municipal solid waste as a primary fuel is not an eligible energy technology, as defined in
subdivision 1, if:
new text end

new text begin (1) air pollutants emitted by the facility are deposited in an environmental justice area;
and
new text end

new text begin (2) the facility has a permitted maximum capacity of 1,000 tons per day or more.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2022, section 216B.1691, subdivision 2a, is amended to read:

Subd. 2a.

Eligible energy technology standard.

deleted text begin (a) Except as provided in paragraph
(b), deleted text end Each electric utility shall generate or procure sufficient electricity generated by an
eligible energy technology to provide its retail customers in Minnesota, or the retail customers
of a distribution utility to which the electric utility provides wholesale electric service, so
that at least the following standard percentages of the electric utility's total retail electric
sales to retail customers in Minnesota are generated by eligible energy technologies by the
end of the year indicated:

(1)	2012	12 percent
(2)	2016	17 percent
(3)	2020	20 percent
(4)	2025	25 percent deleted text begin . deleted text end
new text begin (5) new text end	new text begin 2035 new text end	new text begin 55 percent. new text end

deleted text begin (b) An electric utility that owned a nuclear generating facility as of January 1, 2007,
must meet the requirements of this paragraph rather than paragraph (a). An electric utility
subject to this paragraph must generate or procure sufficient electricity generated by an
eligible energy technology to provide its retail customers in Minnesota or the retail customer
of a distribution utility to which the electric utility provides wholesale electric service so
that at least the following percentages of the electric utility's total retail electric sales to
retail customers in Minnesota are generated by eligible energy technologies by the end of
the year indicated:
deleted text end

deleted text begin (1) deleted text end	deleted text begin 2010 deleted text end	deleted text begin 15 percent deleted text end
deleted text begin (2) deleted text end	deleted text begin 2012 deleted text end	deleted text begin 18 percent deleted text end
deleted text begin (3) deleted text end	deleted text begin 2016 deleted text end	deleted text begin 25 percent deleted text end
deleted text begin (4) deleted text end	deleted text begin 2020 deleted text end	deleted text begin 30 percent. deleted text end

deleted text begin Of the 30 percent in 2020, at least 25 percent must be generated by solar energy or wind
energy conversion systems and the remaining five percent by other eligible energy
technology. Of the 25 percent that must be generated by wind or solar, no more than one
percent may be solar generated and the remaining 24 percent or greater must be wind
generated.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2022, section 216B.1691, subdivision 2b, is amended to read:

Subd. 2b.

Modification or delay of standard.

(a) The commission shall modify or delay
the implementation of a standard obligation new text begin under subdivision 2a, 2f, or 2g new text end , in whole or in
part, if the commission determines deleted text begin it deleted text end new text begin that modifying or delaying the standard obligation new text end is
in the public interest deleted text begin to do so deleted text end . The commission, when deleted text begin requested deleted text end new text begin evaluating a request new text end to
modify or delay implementation of a standard, must consider:

(1) the impact of implementing the standard on its customers' utility costs, including the
economic and competitive pressure on the utility's customers;

new text begin (2) the environmental costs that would be incurred as a result of a delay or modification,
based on the full range of environmental cost values established in section 216B.2422,
subdivision 3;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end the effects of implementing the standard on the reliability of the electric system;

deleted text begin (3) deleted text end new text begin (4) new text end technical advances or technical concerns;

deleted text begin (4) deleted text end new text begin (5) new text end delays in acquiring sites or routes due to rejection or delays of necessary siting
or other permitting approvals;

deleted text begin (5) deleted text end new text begin (6) new text end delays, cancellations, or nondelivery of necessary equipment for construction or
commercial operation of an eligible energy technology facility;

deleted text begin (6) deleted text end new text begin (7) new text end transmission constraints preventing delivery of service; deleted text begin and
deleted text end

deleted text begin (7) deleted text end new text begin (8) new text end other statutory obligations imposed on the commission or a utility deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) impacts on environmental justice areas.
new text end

The commission may modify or delay implementation of a standard obligation under
clauses (1) to deleted text begin (3) deleted text end new text begin (4) new text end only if it finds implementation would cause significant rate impact,
requires significant measures to address reliability, or raises significant technical issues.
The commission may modify or delay implementation of a standard obligation under clauses
deleted text begin (4) deleted text end new text begin (5) new text end to deleted text begin (6) deleted text end new text begin (7) new text end only if it finds that the circumstances described in those clauses were due
to circumstances beyond an electric utility's control and make compliance not feasible.

new text begin (b) When evaluating transmission capacity constraints under paragraph (a), clause (7),
the commission must consider whether the utility has:
new text end

new text begin (1) taken reasonable measures that are under the utility's control and consistent with the
utility's obligations under local, state, and federal laws and regulations, and the utility's
obligations as a member of a regional transmission organization or independent system
operator, to acquire sites, necessary permit approvals, and necessary equipment to develop
and construct new transmission lines or upgrade existing transmission lines to transmit
electricity generated by eligible energy technologies; and
new text end

new text begin (2) taken all reasonable operational measures to maximize cost-effective electricity
delivery from eligible energy technologies in advance of transmission availability.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end When considering whether to delay or modify implementation of a standard
obligation, the commission must give due consideration to a preference for electric generation
through use of eligible energy technology and to the achievement of the standards set by
this section.

deleted text begin (c) deleted text end new text begin (d) new text end An electric utility deleted text begin requesting deleted text end new text begin that requests new text end a modification or delay deleted text begin in deleted text end new text begin to new text end the
implementation of a standard must file a plan to comply with deleted text begin its deleted text end new text begin the electric utility's new text end standard
obligation deleted text begin in deleted text end new text begin as part of new text end the same proceeding deleted text begin that it is requesting deleted text end new text begin in which the electric utility
requests new text end the new text begin modification or new text end delay.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2022, section 216B.1691, subdivision 2d, is amended to read:

Subd. 2d.

Commission order.

The commission shall issue necessary orders detailing
the criteria and standards deleted text begin by which it will deleted text end new text begin used to new text end new text begin (1) new text end measure an electric utility's efforts to
meet the renewable energy deleted text begin objectives of subdivision 2 to deleted text end new text begin standards under subdivisions 2a,
2f, and 2g; and (2) new text end determine whether the utility is deleted text begin making the required good faith effort deleted text end new text begin
achieving the standards new text end . In this order, the commission shall include criteria and standards
that protect against undesirable impacts on the reliability of the utility's system and economic
impacts on the utility's ratepayers and that consider technical feasibility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2022, section 216B.1691, subdivision 2e, is amended to read:

Subd. 2e.

Rate impact of standard compliance; report.

Each electric utility must
submit to the commission and the legislative committees with primary jurisdiction over
energy policy a report containing an estimation of the rate impact of activities of the electric
utility necessary to comply with this section. In consultation with the Department of
Commerce, the commission shall determine a uniform reporting system to ensure that
individual utility reports are consistent and comparable, and shall, by order, require each
electric utility subject to this section to use that reporting system. The rate impact estimate
must be for wholesale rates and, if the electric utility makes retail sales, the estimate shall
also be for the impact on the electric utility's retail rates. Those activities include, without
limitation, energy purchases, generation facility acquisition and construction, and
transmission improvements. deleted text begin An initial report must be submitted within 150 days of May
28, 2011. After the initial report, deleted text end A report must be updated and submitted as part of each
integrated resource plan or plan modification filed by the electric utility under section
216B.2422. The reporting obligation of an electric utility under this subdivision expires
December 31, deleted text begin 2025, for an electric utility subject to subdivision 2a, paragraph (a), and
December 31, 2020, for an electric utility subject to subdivision 2a, paragraph (b) deleted text end new text begin 2040 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2022, section 216B.1691, subdivision 2f, is amended to read:

Subd. 2f.

Solar energy standard.

(a) In addition to the requirements of subdivisions 2a
and deleted text begin 2b deleted text end new text begin 2g new text end , each public utility shall generate or procure sufficient electricity generated by
solar energy to serve its retail electricity customers in Minnesota so that by the end of 2020,
at least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota
is generated by solar energy.

(b) For a public utility with more than 200,000 retail electric customers, at least ten
percent of the 1.5 percent goal must be met by solar energy generated by or procured from
solar photovoltaic devices with a nameplate capacity of 40 kilowatts or less.

(c) A public utility with between 50,000 and 200,000 retail electric customers:

(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by
or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or
less; and

(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions
of 40 kilowatts or less to a community solar garden program operated by the public utility
that has been approved by the commission.

(d) The solar energy standard established in this subdivision is subject to all the provisions
of this section governing a utility's standard obligation under subdivision 2a.

(e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the retail
electric sales in Minnesota be generated by solar energy.

(f) For the purposes of calculating the total retail electric sales of a public utility under
this subdivision, there shall be excluded retail electric sales to customers that are:

(1) an iron mining extraction and processing facility, including a scram mining facility
as defined in Minnesota Rules, part 6130.0100, subpart 16; or

(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
manufacturer.

Those customers may not have included in the rates charged to them by the public utility
any costs of satisfying the solar standard specified by this subdivision.

(g) A public utility may not use energy used to satisfy the solar energy standard under
this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may
not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the
solar standard under this subdivision.

(h) Notwithstanding any law to the contrary, a solar renewable energy credit associated
with a solar photovoltaic device installed and generating electricity in Minnesota after
August 1, 2013, but before 2020 may be used to meet the solar energy standard established
under this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2022, section 216B.1691, is amended by adding a subdivision
to read:

new text begin Subd. 2g. new text end

new text begin Carbon-free standard. new text end

new text begin In addition to the requirements under subdivisions
2a and 2f, each electric utility must generate or procure sufficient electricity generated from
a carbon-free energy technology to provide the electric utility's retail customers in Minnesota,
or the retail customers of a distribution utility to which the electric utility provides wholesale
electric service, so that at least the following standard percentages of the electric utility's
total retail electric sales to retail customers in Minnesota are generated from carbon-free
energy technologies by the end of the year indicated:
new text end

new text begin (1) new text end	new text begin 2030 new text end	new text begin 80 percent new text end
new text begin (2) new text end	new text begin 2035 new text end	new text begin 90 percent new text end
new text begin (3) new text end	new text begin 2040 new text end	new text begin 100 percent. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2022, section 216B.1691, subdivision 3, is amended to read:

Subd. 3.

Utility plans filed with commission.

(a) Each electric utility shall report on
its plans, activities, and progress with regard to the deleted text begin objectives and standards of deleted text end new text begin standard
obligations under new text end this section in its filings under section 216B.2422 or in a separate report
submitted to the commission every two years, whichever is more frequent, demonstrating
to the commission the utility's effort to comply with this section. In its resource plan or a
separate report, each electric utility shall provide a description of:

(1) the status of the utility's renewable energy mix relative to the deleted text begin objective and standards deleted text end new text begin
standard obligations new text end ;

(2) efforts taken to meet the deleted text begin objective and standards deleted text end new text begin standard obligations new text end ;

(3) any obstacles encountered or anticipated in meeting the deleted text begin objective or standards; and deleted text end new text begin
standard obligations;
new text end

(4) potential solutions to the obstacles deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) the number of Minnesotans employed to construct facilities designed to meet the
utility's standard obligations under this section;
new text end

new text begin (6) efforts taken to retain and retrain workers employed at electric generating facilities
that the utility has ceased operating or designated to cease operating for new positions
constructing or operating facilities used to meet a utility's standard obligation;
new text end

new text begin (7) the impacts of facilities designed to meet the utility's standard obligations under this
section on areas of concern for environmental justice; and
new text end

new text begin (8) efforts made to increase the diversity of both the utility's workforce and vendors.
new text end

(b) The commissioner shall compile the information provided to the commission under
paragraph (a), and report to the chairs of the house of representatives and senate committees
with jurisdiction over energy and environment policy issues as to the progress of utilities
in the state, including the progress of each individual electric utility, in increasing the amount
of renewable energy provided to retail customers, with any recommendations for regulatory
or legislative action, by January 15 of each odd-numbered year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2022, section 216B.1691, subdivision 4, is amended to read:

Subd. 4.

Renewable energy credits.

(a) To facilitate compliance with this section, the
commission, by rule or order, shall establish by January 1, 2008, a program for tradable
renewable energy credits for electricity generated by eligible energy technology. The credits
must represent energy produced by an eligible energy technology, as defined in subdivision
1. Each kilowatt-hour of renewable energy credits must be treated the same as a kilowatt-hour
of eligible energy technology generated or procured by an electric utility if it is produced
by an eligible energy technology. The program must permit a credit to be used only once.
The program must treat all eligible energy technology equally and shall not give more or
less credit to energy based on the state where the energy was generated or the technology
with which the energy was generated. The commission must determine the period in which
the credits may be used for purposes of the program.

(b) In lieu of generating or procuring energy directly to satisfy deleted text begin the eligible energy
technology objective or deleted text end new text begin a new text end standard deleted text begin of this section deleted text end new text begin obligation under subdivision 2a, 2f, or
2g new text end , an electric utility may utilize renewable energy credits allowed under the program to
satisfy the deleted text begin objective or deleted text end standard.

(c) The commission shall facilitate the trading of renewable energy credits between
states.

(d) The commission shall require all electric utilities to participate in a
commission-approved credit-tracking system or systems. Once a credit-tracking system is
in operation, the commission shall issue an order establishing protocols for trading credits.

deleted text begin (e) An electric utility subject to subdivision 2a, paragraph (b), may not sell renewable
energy credits to an electric utility subject to subdivision 2a, paragraph (a), until 2021.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2022, section 216B.1691, subdivision 5, is amended to read:

Subd. 5.

Technology based on fuel combustion.

(a) Electricity produced by fuel
combustion through fuel blending or co-firing under paragraph (b) may only count toward
a utility's deleted text begin objectives or standards deleted text end new text begin standard obligation new text end if the generation facility:

(1) was constructed in compliance with new source performance standards promulgated
under the federal Clean Air Act, United States Code, title 42, section 7401 et seq., for a
generation facility of that type; or

(2) employs the maximum achievable or best available control technology available for
a generation facility of that type.

(b) An eligible energy technology may blend or co-fire a fuel listed in subdivision 1,
paragraph (a), clause (5), with other fuels in the generation facility, but only the percentage
of electricity that is attributable to a fuel listed in that clause can be counted toward an
electric utility's deleted text begin renewable energy objectives deleted text end new text begin standard obligation new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2022, section 216B.1691, subdivision 7, is amended to read:

Subd. 7.

Compliance.

The commission must regularly investigate whether an electric
utility is in compliance with deleted text begin its good faith objective under subdivision 2 and deleted text end new text begin the electric
utility's new text end standard obligation under deleted text begin subdivision deleted text end new text begin subdivisions new text end 2a new text begin , 2f, and 2g new text end . If the commission
finds noncompliance, it may order the electric utility to construct facilities, purchase energy
generated by eligible energy technology, purchase renewable energy credits, or engage in
other activities to achieve compliance. If an electric utility fails to comply with an order
under this subdivision, the commission may impose a financial penalty on the electric utility
in an amount not to exceed the estimated cost of the electric utility to achieve compliance.
The penalty may not exceed the lesser of the cost of constructing facilities or purchasing
credits. The commission must deposit financial penalties imposed under this subdivision
in the energy and conservation account established in the special revenue fund under section
216B.241, subdivision 2a. This subdivision is in addition to and does not limit any other
authority of the commission to enforce this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2022, section 216B.1691, subdivision 9, is amended to read:

Subd. 9.

Local benefits.

new text begin (a) new text end The commission shall take all reasonable actions within deleted text begin its deleted text end new text begin
the commission's new text end statutory authority to ensure this section is implemented deleted text begin to maximize deleted text end new text begin in
a manner that maximizes new text end new text begin net new text end benefits to new text begin all new text end Minnesota citizens deleted text begin , balancing deleted text end new text begin . new text end new text begin Reasonable
actions the commission must take and benefits that must be maximized include but are not
limited to:
new text end

new text begin (1) the creation of high-quality jobs in Minnesota paying wages that support families;
new text end

new text begin (2) recognition of the rights of workers to organize and unionize;
new text end

new text begin (3) ensuring that workers have the necessary tools, opportunities, and economic assistance
to adapt successfully during the energy transition, particularly in areas of concern for
environmental justice;
new text end

new text begin (4) ensuring that all Minnesotans share (i) the benefits of clean and renewable energy,
and (ii) the opportunity to participate fully in the clean energy economy;
new text end

new text begin (5) ensuring that statewide air emissions are reduced, particularly in areas of concern
for environmental justice; and
new text end

new text begin (6) the provision of affordable electric service to Minnesotans, particularly to low-income
consumers.
new text end

new text begin (b) The commission must also implement this section in a manner that balances new text end factors
such as local ownership of or participation in energy production, development and ownership
of eligible energy technology facilities by independent power producers, Minnesota utility
ownership of eligible energy technology facilities, the costs of energy generation to satisfy
the renewable deleted text begin standard deleted text end new text begin and carbon-free standards new text end , and the reliability of electric service to
Minnesotans.

new text begin (c) When making investments to meet the requirements under this section, utilities are
encouraged to locate new energy generating facilities in Minnesota communities where
fossil-fuel-generating plants have been retired or are scheduled for retirement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2022, section 216B.1691, subdivision 10, is amended to read:

Subd. 10.

Utility acquisition of resources.

A competitive resource acquisition process
established by the commission prior to June 1, 2007, shall not apply to a utility for the
construction, ownership, and operation of generation facilities used to satisfy the requirements
of this section unless, upon a finding that it is in the public interest, the commission issues
an order on or after June 1, 2007, that requires compliance by a utility with a competitive
resource acquisition process. A utility that owns a nuclear generation facility and intends
to construct, own, or operate facilities under this section shall file with the commission deleted text begin on
or before March 1, 2008, deleted text end new text begin as part of the utility's filing under section 216B.2422 new text end a renewable
energy plan setting forth the manner in which the utility proposes to meet the requirements
of this section. deleted text begin The utility shall update the plan as necessary in its filing under section
216B.2422. deleted text end The commission shall approve the plan unless it determines, after public hearing
and comment, that the plan is not in the public interest. As part of its determination of public
interest, the commission shall consider the plan's impact on balancing the state's interest in:

(1) promoting the policy of economic development in rural areas through the development
of renewable energy projects, as expressed in subdivision 9;

(2) maintaining the reliability of the state's electric power grid; and

(3) minimizing cost impacts on ratepayers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

Minnesota Statutes 2022, section 216B.2422, subdivision 3, is amended to read:

Subd. 3.

Environmental costs.

(a) The commission shall, to the extent practicable,
quantify and establish a range of environmental costs associated with each method of
electricity generation. A utility shall use the values established by the commission in
conjunction with other external factors, including socioeconomic costs, when evaluating
and selecting resource options in all proceedings before the commission, including resource
plan and certificate of need proceedings.

(b) new text begin The commission shall provisionally adopt and apply the draft cost of greenhouse gas
emissions valuations presented in the United States Environmental Protection Agency's
EPA External Review Draft of Report on the Social Cost of Greenhouse Gases: Estimates
Incorporating Recent Scientific Advances, released in September 2022, including the time
horizon, global estimates of damages, and the full range of discount rates from 2.5 to 1.5
percent, with two percent as the central estimate. The commission shall adopt the estimates
contained in the final version of the external review draft report when it becomes available.
new text end

new text begin (c) If, at any time, the estimates adopted by the commission under paragraph (a) are
exceeded by estimates released by the federal Interagency Working Group on the Social
Cost of Greenhouse Gases or its successors, the commission shall adopt the working group
estimates.
new text end

new text begin (d) new text end The commission shall establish interim environmental cost values associated with
each method of electricity generation by March 1, 1994. These values expire on the date
the commission establishes environmental cost values under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16.

Minnesota Statutes 2022, section 216B.243, subdivision 8, is amended to read:

Subd. 8.

Exemptions.

(a) This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined after being advised by the attorney general
that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to serve
the demand of a single customer at a single location, unless the applicant opts to request
that the commission determine need under this section or section 216B.2425;

(3) the upgrade to a higher voltage of an existing transmission line that serves the demand
of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
request that the commission determine need under this section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less required to connect a new or
upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using natural
gas;

(6) the modification of an existing electric generating plant to increase efficiency, as
long as the capacity of the plant is not increased more than ten percent or more than 100
megawatts, whichever is greater;

(7) a new text begin large new text end wind energy conversion system new text begin , as defined in section 216F.01, subdivision
2, new text end or new text begin a new text end solar deleted text begin electric generation facility deleted text end new text begin energy generating system, as defined in section
216E.01, subdivision 9a, new text end if the system deleted text begin or facility deleted text end is owned and operated by an independent
power producer and the electric output of the system deleted text begin or facility deleted text end new text begin :
new text end

new text begin (i) new text end is not sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator; or

new text begin (ii) is sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator, provided that the system
represents solar or wind capacity that the entity purchasing the system's electric output was
ordered by the commission to develop in the entity's most recent integrated resource plan
approved under section 216B.2422; or
new text end

(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating new text begin system that is a new text end large energy facility, as defined in section
216B.2421, subdivision 2, engaging in a repowering project that:

(i) will not result in the deleted text begin facility deleted text end new text begin system new text end exceeding the nameplate capacity under its most
recent interconnection agreement; or

(ii) will result in the deleted text begin facility deleted text end new text begin system new text end exceeding the nameplate capacity under its most
recent interconnection agreement, provided that the Midcontinent Independent System
Operator has provided a signed generator interconnection agreement that reflects the expected
net power increase.

(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating new text begin system
that is a new text end large energy facility to increase its efficiency without increasing its nameplate
capacity;

(2) replacing turbines in a large wind energy conversion system without increasing the
nameplate capacity of the system; or

(3) increasing the nameplate capacity of a large wind energy conversion system.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to a large wind energy conversion system or a solar energy generating system whose
owner has filed an application for a certificate of need with the Public Utilities Commission
on or after that date.
new text end

Sec. 17.

Minnesota Statutes 2022, section 216E.01, subdivision 9a, is amended to read:

Subd. 9a.

Solar energy generating system.

"Solar energy generating system" means a
set of devices whose primary purpose is to produce electricity by means of any combination
of collecting, transferring, or converting solar-generated energy new text begin , and may include
transmission lines designed for and capable of operating at 100 kilovolts or less that
interconnect a solar energy generating system with a high-voltage transmission line new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18.

Minnesota Statutes 2022, section 216E.03, subdivision 5, is amended to read:

Subd. 5.

Environmental review.

(a) The commissioner of the Department of Commerce
shall prepare for the commission an environmental impact statement on each proposed large
electric new text begin power new text end generating plant or high-voltage transmission line for which a complete
application has been submitted. The commissioner shall not consider whether or not the
project is needed. No other state environmental review documents shall be required. The
commissioner shall study and evaluate any site or route proposed by an applicant and any
other site new text begin , other than a site for a solar energy generating system, new text end or route the commission
deems necessary that was proposed in a manner consistent with rules concerning the form,
content, and timeliness of proposals for alternate sites or routes.

(b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is a
large electric power generating plant and is not proposed by a utility, the commissioner
must make a finding in the environmental impact statement whether the project is likely to
result in a net reduction of carbon dioxide emissions, considering both the utility providing
electric service to the proposed cogeneration facility and any reduction in carbon dioxide
emissions as a result of increased efficiency from the production of thermal energy on the
part of the customer operating or owning the proposed cogeneration facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 19.

Minnesota Statutes 2022, section 216E.03, subdivision 10, is amended to read:

Subd. 10.

Final decision.

(a) No site permit shall be issued in violation of the site
selection standards and criteria established in this section and in rules adopted by the
commission. When the commission designates a site, it shall issue a site permit to the
applicant with any appropriate conditions. The commission shall publish a notice of its
decision in the State Register within 30 days of issuance of the site permit.

(b) No route permit shall be issued in violation of the route selection standards and
criteria established in this section and in rules adopted by the commission. When the
commission designates a route, it shall issue a permit for the construction of a high-voltage
transmission line specifying the design, routing, right-of-way preparation, and facility
construction it deems necessary, and with any other appropriate conditions. The commission
may order the construction of high-voltage transmission line facilities that are capable of
expansion in transmission capacity through multiple circuiting or design modifications. The
commission shall publish a notice of its decision in the State Register within 30 days of
issuance of the permit.

new text begin (c) The commission may require as a condition of permit issuance that the recipient of
a site permit to construct a large electric power generating plant, including all of the permit
recipient's construction contractors and subcontractors on the project, pay no less than the
prevailing wage rate, as defined in section 177.42. The commission may also require as a
condition of modifying a site permit for a large electric power generating plant repowering
project, as defined in section 216B.243, subdivision 8, paragraph (b), that the recipient of
the site permit, including all of the permit recipient's construction contractors and
subcontractors on the repowering project, pay no less than the prevailing wage rate, as
defined in section 177.42.
new text end

new text begin (d) When deciding whether to require payment of no less than the prevailing wage rate
under paragraph (c), the commission must consider relevant factors, including:
new text end

new text begin (1) the direct and indirect economic impact of construction; and
new text end

new text begin (2) the quality, efficiency, and safety of construction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20.

Minnesota Statutes 2022, section 216E.03, subdivision 11, is amended to read:

Subd. 11.

Department of Commerce to provide technical expertise and other
assistance.

new text begin (a) new text end The commissioner of the Department of Commerce shall consult with other
state agencies and provide technical expertise and other assistance to the commission or to
individual members of the commission for activities and proceedings under this chapter
and chapters 216F and 216G. This assistance shall include the sharing of power plant siting
and routing staff and other resources as necessary. The commissioner shall periodically
report to the commission concerning the Department of Commerce's costs of providing
assistance. The report shall conform to the schedule and include the required contents
specified by the commission. The commission shall include the costs of the assistance in
assessments for activities and proceedings under those sections and reimburse the special
revenue fund for those costs. If either the commissioner or the commission deems it
necessary, the department and the commission shall enter into an interagency agreement
establishing terms and conditions for the provision of assistance and sharing of resources
under this subdivision.

new text begin (b) Notwithstanding the requirements of section 216B.33, the commissioner may take
any action required or requested by the commission related to the environmental review
requirements under chapter 216E or 216F immediately following a hearing and vote by the
commission, prior to issuing a written order, finding, authorization, or certificate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 21.

Minnesota Statutes 2022, section 216E.04, subdivision 2, is amended to read:

Subd. 2.

Applicable projects.

The requirements and procedures in this section apply to
the following projects:

(1) large electric power generating plants with a capacity of less than 80 megawatts;

(2) large electric power generating plants that are fueled by natural gas;

(3) high-voltage transmission lines of between 100 and 200 kilovolts;

(4) high-voltage transmission lines in excess of 200 kilovolts and less than deleted text begin five deleted text end new text begin 30 new text end miles
in length in Minnesota;

(5) high-voltage transmission lines in excess of 200 kilovolts if at least 80 percent of
the distance of the line in Minnesota will be located along existing high-voltage transmission
line right-of-way;

(6) a high-voltage transmission line service extension to a single customer between 200
and 300 kilovolts and less than ten miles in length;

(7) a high-voltage transmission line rerouting to serve the demand of a single customer
when the rerouted line will be located at least 80 percent on property owned or controlled
by the customer or the owner of the transmission line; and

(8) large electric power generating plants that are powered by solar energy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to a high-voltage transmission line in excess of 200 kilovolts whose owner has filed
an application for a route permit with the Public Utilities Commission on or after that date.
new text end

Sec. 22.

Minnesota Statutes 2022, section 216F.04, is amended to read:

216F.04 SITE PERMIT.

(a) No person may construct an LWECS without a site permit issued by the Public
Utilities Commission.

(b) Any person seeking to construct an LWECS shall submit an application to the
commission for a site permit in accordance with this chapter and any rules adopted by the
commission. The permitted site need not be contiguous land.

(c) The commission shall make a final decision on an application for a site permit for
an LWECS within 180 days after acceptance of a complete application by the commission.
The commission may extend this deadline for cause.

(d) The commission may place conditions in a permit and may deny, modify, suspend,
or revoke a permit.

new text begin (e) The commission may require as a condition of permit issuance that the recipient of
a site permit to construct an LWECS with a nameplate capacity above 25,000 kilowatts,
including all of the permit recipient's construction contractors and subcontractors on the
project, pay no less than the prevailing wage rate, as defined in section 177.42. The
commission may also require as a condition of modifying a site permit for an LWECS
repowering project, as defined in section 216B.243, subdivision 8, paragraph (b), that the
recipient of the site permit, including all of the permit recipient's construction contractors
and subcontractors on the repowering project, pay no less than the prevailing wage rate, as
defined in section 177.42.
new text end

new text begin (f) When deciding whether to require payment of no less than the prevailing wage rate
under paragraph (e), the commission must consider relevant factors, including:
new text end

new text begin (1) the direct and indirect economic impact of construction; and
new text end

new text begin (2) the quality, efficiency, and safety of construction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 23. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall make any necessary cross-references changes in Minnesota
Statutes and Minnesota Rules resulting from the changes made to Minnesota Statutes, section
216B.1691, subdivision 1, in this act.
new text end

Sec. 24. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 216B.1691, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-02419

216B.1691 RENEWABLE ENERGY OBJECTIVES.

Subd. 2.

Eligible energy objectives.

Each electric utility shall make a good faith effort to generate or procure sufficient electricity generated by an eligible energy technology to provide its retail consumers, or the retail customers of a distribution utility to which the electric utility provides wholesale electric service, so that commencing in 2005, at least one percent of the electric utility's total retail electric sales to retail customers in Minnesota is generated by eligible energy technologies and seven percent of the electric utility's total retail electric sales to retail customers in Minnesota by 2010 is generated by eligible energy technologies.