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HF 1000

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 05/08/2013 08:47am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 3rd Engrossment

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A bill for an act
relating to energy; modifying the emissions reductions-rate rider for certain
projects; requiring the commissioner of commerce to make assessments to
fund clean energy resource teams; amending Minnesota Statutes 2012, sections
216B.1692, subdivisions 1, 8, by adding a subdivision; 216B.1695, subdivision
5; 216B.241, subdivision 1e.

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

Section 1.

Minnesota Statutes 2012, section 216B.1692, subdivision 1, is amended to
read:


Subdivision 1.

Qualifying projects.

new text begin (a) new text end Projects that may be approved for the
emissions reduction-rate rider allowed in this section must:

(1) be installed on existing large electric generating power plants, as defined in
section 216B.2421, subdivision 2, clause (1), that are located in the state and that are
currently not subject to emissions limitations for new power plants under the federal Clean
Air Act, United States Code, title 42, section 7401 et seq.;

(2) not increase the capacity of the existing electric generating power plant more
than ten percent or more than 100 megawatts, whichever is greater; and

(3) result in the existing plant either:

(i) complying with applicable new source review standards under the federal Clean
Air Act; or

(ii) emitting air contaminants at levels substantially lower than allowed for new
facilities by the applicable new source performance standards under the federal Clean
Air Act; or

(iii) reducing emissions from current levels at a unit to the lowest cost-effective level
when, due to the age or condition of the generating unit, the public utility demonstrates
that it would not be cost-effective to reduce emissions to the levels in item (i) or (ii).

new text begin (b) Notwithstanding paragraph (a), a project may be approved for the emission
reduction rate rider allowed in this section if the project is to be installed on existing
large electric generating power plants, as defined in section 216B.2421, subdivision 2,
clause (1), that are located outside the state and are needed to comply with state or federal
air quality standards, but only if the project has received an advance determination of
prudence from the commission under section 216B.1695.
new text end

Sec. 2.

Minnesota Statutes 2012, section 216B.1692, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Exemption. new text end

new text begin Subdivisions 2, 4, and 5, paragraph (c), clause (1), do not
apply to projects qualifying under subdivision 1, paragraph (b).
new text end

Sec. 3.

Minnesota Statutes 2012, section 216B.1692, subdivision 8, is amended to read:


Subd. 8.

Sunset.

This section is effective until December 31, deleted text begin 2015deleted text end new text begin 2020new text end , and
applies to plans, projects, and riders approved before that date and modifications made to
them after that date.

Sec. 4.

Minnesota Statutes 2012, section 216B.1695, subdivision 5, is amended to read:


Subd. 5.

Cost recovery.

The utility may begin recovery of costs that have been
incurred by the utility in connection with implementation of the project in the next rate
case following an advance determination of prudencenew text begin or in a rider approved under section
216B.1692
new text end . The commission shall review the costs incurred by the utility for the project.
The utility must show that the project costs are reasonable and necessary, and demonstrate
its efforts to ensure the lowest reasonable project costs. Notwithstanding the commission's
prior determination of prudence, it may accept, modify, or reject any of the project costs.
The commission may determine whether to require an allowance for funds used during
construction offset.

Sec. 5.

Minnesota Statutes 2012, section 216B.241, subdivision 1e, is amended to read:


Subd. 1e.

Applied research and development grants.

(a) The commissioner
may, by order, approve and make grants for applied research and development projects
of general applicability that identify new technologies or strategies to maximize energy
savings, improve the effectiveness of energy conservation programs, or document
the carbon dioxide reductions from energy conservation programs. When approving
projects, the commissioner shall consider proposals and comments from utilities and
other interested parties. The commissioner may assess up to $3,600,000 annually for the
purposes of this subdivision. The assessments must be deposited in the state treasury
and credited to the energy and conservation account created under subdivision 2a. An
assessment made under this subdivision is not subject to the cap on assessments provided
by section 216B.62, or any other law.

(b) The commissioner, as part of the assessment authorized under paragraph (a),
shall annually assess and grant up to $500,000 for the purpose of subdivision 9.

new text begin (c) The commissioner, as part of the assessment authorized under paragraph (a),
shall annually assess $500,000 for a grant to the partnership created by section 216C.385,
subdivision 2. The grant must be used to exercise the powers and perform the duties
specified in section 216C.385, subdivision 3.
new text end

new text begin (d) By February 15 annually, the commissioner shall report to the chairs and ranking
minority members of the committees of the legislature with primary jurisdiction over
energy policy and energy finance on the assessments made under this subdivision for the
previous calendar year and the use of the assessment. The report must clearly describe the
activities supported by the assessment and the parties that engaged in those activities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) is effective for assessments for state fiscal years
commencing after June 30, 2013.
new text end