HF 3738

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to energy; authorizing establishment of 
  1.3             energy parks; appropriating money; proposing coding 
  1.4             for new law in Minnesota Statutes, chapter 216B. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [216B.1693] [3-R'S ENERGY PARKS.] 
  1.7      Subdivision 1.  [DEFINITION.] A "3-R's energy park" or 
  1.8   "energy park" means a geographic area that the public utilities 
  1.9   commission determines meets the criteria under subdivision 2. 
  1.10     Subd. 2.  [CRITERIA.] (a) Upon receiving a petition from a 
  1.11  developer of a proposed energy park under this section, the 
  1.12  commission shall determine whether: 
  1.13     (1) the proposed energy park would host a new electric 
  1.14  high-efficiency, low-emissions generation facility that utilizes 
  1.15  the by-product of another industrial process as a primary 
  1.16  generation fuel; 
  1.17     (2) the new electric generation facility described in 
  1.18  clause (1) would have a capacity of 500 megawatts or less; and 
  1.19     (3) the park developer would dedicate a portion of the park 
  1.20  for testing, installing, and operating environmentally 
  1.21  sustainable, nonpeaking generation technologies and smaller, 
  1.22  more efficient transmission facilities that are the subject of 
  1.23  research under section 3 of this act. 
  1.24     (b) The commission shall approve the petition if it finds 
  1.25  that the proposal meets those criteria.  The commission may not 
  2.1   approve more than 1500 megawatts of capacity under this section. 
  2.2      Subd. 3.  [RESOURCE RECOVERY TAX CREDIT.] (a) An electric 
  2.3   generation facility that is part of an energy park proposal 
  2.4   approved under subdivision 2 qualifies for a resource recovery 
  2.5   tax credit.  The commission shall establish the amount of the 
  2.6   credit to equalize the cost of power to be produced at the 
  2.7   proposed electric generation facility with that which would be 
  2.8   produced at a new, conventional, coal-fired power plant.  The 
  2.9   commission shall certify the amount of the credit to the 
  2.10  commissioner of revenue, who shall then exclude an appropriate 
  2.11  amount of market value for the proposed electric generation 
  2.12  facility from the state general tax imposed under section 
  2.13  275.025. 
  2.14     (b) Some or all of the resource recovery credit provided 
  2.15  for under this section may be sold or exchanged by the entity to 
  2.16  whom it is issued or by any other person who acquires the credit.
  2.17     (c) The attached machinery and other personal property that 
  2.18  is part of the proposed electric generation facility is exempt 
  2.19  property as defined in section 272.02, subdivision 1. 
  2.20     Subd. 4.  [REGULATORY BENEFITS.] (a) A project to construct 
  2.21  an electric generation facility that is part of an energy park 
  2.22  proposal approved under subdivision 2 may qualify for beneficial 
  2.23  regulatory treatment under this subdivision if: 
  2.24     (1) the entity proposing the project is a utility certified 
  2.25  by the commission as exceeding the actions required of or, in 
  2.26  the case of a rural electric cooperative or municipal utility, 
  2.27  recommended to, the utility under sections 216B.241 and 
  2.28  216B.2422, and plans associated with those sections, including 
  2.29  the renewable energy objectives provided for in section 
  2.30  216B.1691; and 
  2.31     (2) the site selected by the park developer requires only 
  2.32  minimal additional infrastructure to connect the facility to the 
  2.33  energy grid or to deliver fuel to the facility. 
  2.34     (b) If the commission finds that the conditions in 
  2.35  paragraph (a) apply: 
  2.36     (1) the commission may, by order, provide for an expedited 
  3.1   certificate of need proceeding on the proposed electric 
  3.2   generation facility under section 216B.241, by waiving those 
  3.3   portions of the statute the commission finds is in the public 
  3.4   interest to waive; and 
  3.5      (2) the proposed electric generation facility and 
  3.6   associated infrastructure is subject to the alternate permitting 
  3.7   process provided for in section 116C.575. 
  3.8      Sec. 2.  [216B.1694] [EMISSIONS RESEARCH.] 
  3.9      Subdivision 1.  [FUND.] Utilities subject to section 
  3.10  216B.241 are authorized to contribute an aggregated total of 
  3.11  $5,000,000 annually, to be credited against their conservation 
  3.12  expenditures required under that section, to an emissions 
  3.13  research and sustainable generation fund established in the 
  3.14  state treasury. 
  3.15     Subd. 2.  [PURPOSES.] Money in the fund may be expended for 
  3.16  the purpose of conducting: 
  3.17     (1) research into reducing air emissions from power 
  3.18  production; and 
  3.19     (2) research and installation of environmentally 
  3.20  sustainable, nonpeaking generation technologies and smaller, 
  3.21  more efficient transmission facilities. 
  3.22     Subd. 3.  [EXPENDITURES.] (a) The public utilities 
  3.23  commission shall conduct annual proceedings by which applicants 
  3.24  may compete for grants from the fund under this section.  
  3.25  Amounts necessary to provide for grants awarded under this 
  3.26  section are appropriated to the commission for distribution to 
  3.27  grant winners. 
  3.28     (b) Recipients of grant funds are required to partner with 
  3.29  higher education authorities in Minnesota, the department of 
  3.30  commerce, Minnesota utilities and independent power producers, 
  3.31  and other entities, including national research organizations 
  3.32  and the federal department of energy, to coordinate research 
  3.33  effort and to maximize the impacts of research dollars. 
  3.34     (c) In addition, up to $1,000,000 of these funds may be 
  3.35  used for a center for energy security at the university of 
  3.36  Minnesota, if the university establishes such a center.  If 
  4.1   established, the center shall research and identify present and 
  4.2   emerging issues, including adequacy of energy supply to 
  4.3   consumers in the state; energy infrastructure issues; demand and 
  4.4   delivery concerns; environmental constraints; emerging, 
  4.5   energy-related technologies, fuels, and applications; 
  4.6   energy-restructuring policies; and matters that affect energy 
  4.7   prices paid by Minnesota consumers.  In addition, the center 
  4.8   shall serve as an information resource and clearinghouse and 
  4.9   advise state agencies and legislators on energy policy issues 
  4.10  affecting Minnesota consumers.  The center shall coordinate its 
  4.11  activities with the state energy office at the department of 
  4.12  commerce. 
  4.13     Sec. 3.  [ENERGY INFRASTRUCTURE TRAINING CENTER.] 
  4.14     (a) Developers of energy parks approved under Minnesota 
  4.15  Statutes, section 216B.1693, shall partner with vocational 
  4.16  technical institutes, state utilities, and utility labor 
  4.17  representatives to create one or more energy infrastructure 
  4.18  training centers in the state.  Such a training center shall 
  4.19  provide a training facility, faculty, and curriculum to train 
  4.20  utility workers with regard to the safe operation and 
  4.21  maintenance of infrastructure for the generation, transmission, 
  4.22  and distribution of energy.  Trainees must be given access to, 
  4.23  and training on, the advanced technologies tested and installed 
  4.24  with the park that are the subject of research grants under 
  4.25  Minnesota Statutes, section 216B.1694. 
  4.26     (b) Funding for the training center consists of state 
  4.27  funding, utility funding, and tuition.  The partners named in 
  4.28  paragraph (a) shall, by January 15, 2004, make recommendations 
  4.29  to the legislature as to the amount and type of funding required 
  4.30  for training centers under this section.