HF 1678

as introduced - 89th Legislature (2015 - 2016) Posted on 03/11/2015 12:59pm

A bill for an act
relating to energy; modifying the renewable energy standard; enhancing the
energy assurance and emergency conservation plan; establishing a petroleum
end user program; modifying energy auditor standards; modifying eligibility
for various siting requirements; amending Minnesota Statutes 2014, sections
216B.1691, subdivision 2a; 216C.16, subdivisions 1, 2; 216C.31; 216E.01,
subdivision 5; 216E.021; 216E.03, subdivision 3; 216E.05, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapters 216C; 216E;
repealing Minnesota Statutes 2014, section 216C.15.

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

Section 1.

Minnesota Statutes 2014, section 216B.1691, subdivision 2a, is amended to
read:

Subd. 2a.

Eligible energy technology standard.

(a) Except as provided in
paragraph (b), 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	deleted text begin 20 deleted text end new text begin 25 new text end percent
(4)	2025	deleted text begin 25 deleted text end new text begin 32 new text end percent deleted text begin . deleted text end
new text begin (5) new text end	new text begin 2030 new text end	new text begin 40 percent. new text end

(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:

(1)	2010	15 percent
(2)	2012	18 percent
(3)	2016	25 percent
(4)	2020	30 percent deleted text begin . deleted text end
new text begin (5) new text end	new text begin 2025 new text end	new text begin 35 percent new text end
new text begin (6) new text end	new text begin 2030 new text end	new text begin 40 percent. new text end

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.

Sec. 2.

new text begin [216C.155] ENERGY ASSURANCE AND EMERGENCY
CONSERVATION PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Plan requirements. new text end

new text begin (a) The commissioner shall maintain an energy
assurance and emergency conservation plan. The plan shall:
new text end

new text begin (1) profile the state's energy sectors, including an assessment of the risk within each
energy sector and the character of the vulnerabilities;
new text end

new text begin (2) establish priorities for Minnesota's long-term preparedness activities to ensure
the availability of energy resources critical for the safety, health, and welfare of the state's
citizens;
new text end

new text begin (3) include Minnesota's three main energy sectors of electricity, natural gas, and
liquid fuels, including renewable and biological sources of energy available in each sector;
new text end

new text begin (4) identify relevant legal authorities governing the commissioner's actions during
an energy emergency and any necessary allocation of limited energy resources under the
emergency conservation section of the plan; and
new text end

new text begin (5) establish response protocols for the commissioner's actions in the event of an
energy supply emergency.
new text end

new text begin (b) At least once every five years, the commissioner shall review and update the
plan. Revisions of the plan directly relating to the emergency conservation requirements
of the plan must be adopted under the rulemaking procedures of chapter 14.
new text end

new text begin Subd. 2. new text end

new text begin Long-term preparedness. new text end

new text begin (a) The commissioner shall establish priorities
for Minnesota's long-term preparedness activities, with the primary goal of reducing the
consequences of any energy disruption by increasing Minnesota's resilience to short-
and long-term disruptions of energy delivery to government, commercial, industrial,
nonprofit, and citizen energy consumers.
new text end

new text begin (b) Long-term preparedness goals must also include:
new text end

new text begin (1) increasing the utilization of Minnesota-derived energy sources;
new text end

new text begin (2) reducing overall demand for energy through both cost-effective energy efficiency
and conservation activities;
new text end

new text begin (3) developing new energy production technologies, new consumer-level energy
monitoring mechanisms, and new energy provider business models; and
new text end

new text begin (4) minimizing consumer and ratepayer costs, and maximizing the economic benefits
for the state as a result of these preparedness activities.
new text end

new text begin Subd. 3. new text end

new text begin Emergency energy conservation protocols. new text end

new text begin (a) The commissioner shall
establish protocols for responding to an energy supply emergency. These protocols must
be consistent with the responsibilities identified in chapter 12, the Minnesota Emergency
Operations Plan, the State All-Hazard Mitigation Plan, and relevant guidelines issued by
the National Association of State Energy Officials.
new text end

new text begin (b) The protocols must:
new text end

new text begin (1) include a plan for coordinating information and any required response actions
with private-sector energy providers;
new text end

new text begin (2) include a plan for providing uniform, timely, and accurate information to the
public and to state agencies with responsibilities for emergency management and disaster
response; and
new text end

new text begin (3) ensure that emergency energy conservation actions by private-sector energy
providers minimize disruption for critical facilities as identified by state and local
emergency management officials.
new text end

new text begin (c) Whenever possible, the emergency energy conservation protocols should place a
priority on broader energy conservation activities that reduce the severity and duration of
an energy supply disruption, for the purpose of limiting the number of critical facilities
experiencing a complete disruption of energy at individual facilities.
new text end

new text begin Subd. 4. new text end

new text begin Emergency energy allocation protocols. new text end

new text begin (a) The commissioner shall
establish guidelines and criteria for allocation of energy supplies to critical facilities
and priority users, in the case of a widespread or severe disruption to the state's energy
sector. The guidelines and criteria shall contain alternative conservation actions and
allocation plans to reasonably meet various foreseeable shortage circumstances and allow
a choice of appropriate responses, based on reasonable energy savings or transfers from
scarce energy resources.
new text end

new text begin (b) Consistent with requirements of federal emergency energy conservation and
allocation laws and regulations, the guidelines and criteria must:
new text end

new text begin (1) require that all individuals, state agencies, local subdivisions of government,
businesses, and public transit agencies requesting emergency allocation of energy
resources demonstrate they have adopted an emergency energy conservation plan and
have engaged in energy-saving measures;
new text end

new text begin (2) ensure maintenance of reasonable job safety conditions and minimize
environmental sacrifices;
new text end

new text begin (3) ensure the availability of energy resources to emergency authorities, including
state and local law enforcement, emergency medical services, and other first responders;
new text end

new text begin (4) prioritize allocating fuel, electricity, and other available energy resources to those
critical facilities identified by state and local emergency management officials;
new text end

new text begin (5) as necessary, control the use, sale, or distribution of commodities, materials,
goods, or services that will prevent the restoration of adequate energy supply conditions
to affected individuals, state agencies, local subdivisions of government, businesses,
and public transit agencies;
new text end

new text begin (6) as necessary, determine at what level of an energy supply emergency the
Pollution Control Agency shall be requested to ask the governor to petition the president
for a temporary emergency suspension of air quality standards as required by the Clean
Air Act, United States Code, title 42, section 7410f; and
new text end

new text begin (7) ensure all affected entities maintain their rights to due process, including a fair
and equitable review of complaints and requests for special exemptions.
new text end

new text begin Subd. 5. new text end

new text begin Declaration of energy supply emergency. new text end

new text begin (a) The governor or the
Executive Council may declare an energy supply emergency when an acute shortage of
energy exists by issuing a declaration indicating the nature of the emergency, the area or
areas threatened if less than the whole state is threatened, and the conditions causing
the emergency.
new text end

new text begin (b) An energy supply emergency exists only when the state and private sector energy
partners have exhausted all economical and reasonable means of meeting the energy
needs of the state and its citizens, including operating energy facilities at their emergency
capacity, importing additional external energy resources, and implementing all available
voluntary energy conservation measures.
new text end

new text begin (c) An energy supply emergency declaration shall be disseminated promptly by
means calculated to bring its contents to the attention of the general public and shall
be promptly filed with the commissioner, the commissioner of public safety, and the
secretary of state. Upon a declaration of an energy supply emergency, the governor and
the commissioner, in consultation with the commissioner of public safety, shall implement
and enforce the emergency and energy allocation protocols or any part thereof.
new text end

new text begin (d) The Executive Council may terminate an energy supply emergency at any time
by issuing a termination declaration and indicating the condition or conditions supporting
termination. No energy supply emergency may continue for longer than 30 days unless
renewed by the Executive Council. Each renewed energy supply emergency may not
continue for longer than 30 days unless otherwise provided by law. Each person shall
carry out the responsibilities specified in the emergency conservation allocation plan, and
violation of any provision of such emergency conservation or allocation requirements shall
be deemed a violation of sections 216C.05 to 216C.30 and the rules adopted thereunder
for purposes of enforcement under section 216C.30.
new text end

Sec. 3.

Minnesota Statutes 2014, section 216C.16, subdivision 1, is amended to read:

Subdivision 1.

Purpose.

The purpose of this section is to grant to the commissioner
authority to exercise specific power to deal with shortages of refined petroleum products.
Authority granted shall be exercised for the purpose of minimizing the adverse impacts
of new text begin prolonged petroleum new text end shortages and dislocations upon the citizens and the economy of
the state and nation.

Sec. 4.

Minnesota Statutes 2014, section 216C.16, subdivision 2, is amended to read:

Subd. 2.

Establishment.

The commissioner shall establish and is responsible for
a state set-aside system for motor gasoline and middle distillates to provide emergency
petroleum requirements and thereby relieve the hardship caused by deleted text begin shortage, deleted text end new text begin prolonged
petroleum shortages and new text end supply dislocations deleted text begin , or other emergencies deleted text end . The commissioner, for
purposes of administration, may exercise all of the powers granted by this chapter.

Sec. 5.

new text begin [216C.165] PETROLEUM END USER PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of this section is to grant to the commissioner
authority to ensure availability of necessary supplies of motor gasoline, middle distillates,
and propane for priority end users essential to ensure the health, safety, and welfare of
the general public.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish and is responsible for
a state priority end user program for motor gasoline, middle distillates, and propane to
provide emergency petroleum requirements and thereby relieve the hardship caused by
emergency petroleum shortages. The commissioner, for purposes of administration, may
exercise all of the powers granted by this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

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

new text begin (b) "Current requirements" means the supply of motor gasoline, distillate fuel oil,
and propane needed by an end user or wholesale purchaser to meet its present priority
end use needs.
new text end

new text begin (c) "End user" means any person who is an ultimate consumer of a petroleum
product other than a wholesale purchaser-consumer.
new text end

new text begin (d) "Middle distillates" means distillates obtained between kerosene and lubricating
oil fractions in the refining process, including but not limited to kerosene, number one and
number two heating oil, and diesel fuel.
new text end

new text begin (e) "Motor gasoline" means a liquid mixture of hydrocarbons produced by the
distillation of petroleum and used chiefly as a fuel in internal combustion engines.
new text end

new text begin (f) "Prime supplier" means the producer or supplier now or hereafter making the first
sale of middle distillates or motor gasoline subject to the state set-aside for consumption
within the state.
new text end

new text begin (g) "Propane" means a normally gaseous paraffinic compound that boils at a
temperature of -43.67 degrees Fahrenheit, and is used primarily for heating and cooking.
It does not include the propane portion of any natural gas liquid mixes, including a
butane-propane mix.
new text end

new text begin (h) "Supplier" means any prime supplier or any other firm which presently, or during
the last 12 months, supplies, sells, transfers, or otherwise furnishes motor gasoline,
distillate oil, and propane to wholesale purchasers or end users, including but not limited
to a refiner, importer, reseller, jobber, or retailer.
new text end

new text begin Subd. 4. new text end

new text begin Priority end user program; declaration. new text end

new text begin (a) The commissioner may
implement the priority end user program only upon:
new text end

new text begin (1) declaration of an energy supply emergency under the authority of section
216C.155, or a declaration of an emergency under chapter 12; and
new text end

new text begin (2) a finding by the commissioner that (i) major petroleum suppliers are unable to
fully satisfy contractually obligated volumes and have limited customers to a percentage
of their historical purchases or contractual volumes, and (ii) public services and public
health and safety are either interrupted or threatened due to insufficient supplies of
petroleum products.
new text end

new text begin (b) A declaration implementing the priority end user program shall remain in effect
for 60 days from date of declaration unless otherwise amended, superseded, or rescinded.
new text end

new text begin Subd. 5. new text end

new text begin Supplier responsibilities. new text end

new text begin Upon commissioner order implementing the
program and within 30 days of submission of the sworn statement required under this
section, petroleum suppliers shall supply 100 percent of the current requirements of motor
gasoline, middle distillates, and propane each month to certified priority end users.
new text end

new text begin Subd. 6. new text end

new text begin Priority end users. new text end

new text begin (a) The commissioner shall certify as priority end
users those end users whose continuity of operations in an emergency is critical for public
health, safety, and welfare. Such priority end users shall include the Minnesota State
Patrol, local law enforcement, fire fighting units, emergency medical services, and any
other end users as certified by the commissioner.
new text end

new text begin (b) Priority end users shall present to a petroleum supplier evidence of this
certification and the following information:
new text end

new text begin (1) the most recent 12 months of fuel purchases, in gallons;
new text end

new text begin (2) anticipated requirements for the next 12 months;
new text end

new text begin (3) written justification explaining the need for any volumes in excess of historical
or contractual purchases; and
new text end

new text begin (4) a sworn statement that the information provided in the certification is true and
accurate and that the petroleum product to be provided will only be used for priority
use as indicated.
new text end

new text begin Subd. 7. new text end

new text begin Violation of order; penalty. new text end

new text begin Any supplier that knowingly violates this
directive is guilty of a gross misdemeanor. A court of competent jurisdiction may issue an
order to compel a supplier to perform such duties as imposed under this section.
new text end

new text begin Subd. 8. new text end

new text begin Appeal process. new text end

new text begin (a) A person aggrieved by certification of priority end
use may file a written petition of appeal to the Office of Administrative Hearings. The
petition must include:
new text end

new text begin (1) the name and address of the petitioner;
new text end

new text begin (2) a concise statement of facts surrounding the case, including the reason for the
appeal and relief sought; and
new text end

new text begin (3) the names and addresses of persons known to the petitioner who may be affected
adversely by the outcome of the appeal.
new text end

new text begin (b) The petitioner shall attach a sworn statement to the petition which states that the
information provided in the petition is true to the best of the petitioner's knowledge.
new text end

new text begin (c) The Office of Administrative Hearings shall, within three work days after the
filing of a petition, serve a copy of the petition on known persons who might be affected
adversely by the outcome of the appeal. Persons served with a petition may, not later
than five working days from service of the petition, file a written reply, supported by a
sworn statement to the effect that the information in the reply is true to the best of the
respondent's knowledge. A copy of the response shall be made available to the petitioner.
new text end

new text begin (d) Within 20 working days after the petition of appeal is filed, the Office of
Administrative Hearings shall render a decision on the appeal and serve it upon all persons
who participated in the appellate proceeding and any other person who is aggrieved by the
decision and order. A supplier is deemed to have exhausted all administrative remedies
once a decision has been rendered on the appeal.
new text end

Sec. 6.

Minnesota Statutes 2014, section 216C.31, is amended to read:

216C.31 ENERGY AUDIT PROGRAMS.

The commissioner shall develop deleted text begin state deleted text end new text begin or approve new text end programs deleted text begin of deleted text end new text begin for new text end energy deleted text begin audits of
residential and commercial buildings including the training and qualifications necessary deleted text end new text begin
auditors new text end for the auditing of residential and commercial buildings under deleted text begin the auspices of deleted text end a
program created under section 216B.241 new text begin , 216C.436, or any other energy program new text end .

Sec. 7.

Minnesota Statutes 2014, section 216E.01, subdivision 5, is amended to read:

Subd. 5.

Large electric power generating plant.

"Large electric power generating
plant" shall mean electric power generating equipment and associated facilities designed
for or capable of operation at a capacity of 50,000 kilowatts or more new text begin , or a solar energy
generating system designed for or capable of operation at a capacity of 10,000 kilowatts
or more new text end .

Sec. 8.

Minnesota Statutes 2014, section 216E.021, is amended to read:

216E.021 SOLAR ENERGY SYSTEM SIZE DETERMINATION.

(a) This section must be used to determine whether a combination of solar energy
generating systems meets the definition of large electric power generating plant and is
subject to the commission's siting authority jurisdiction under this chapter. The alternating
current nameplate capacity of one solar energy generating system must be combined with
the alternating current nameplate capacity of any other solar energy generating system that:

(1) is constructed within the same 12-month period as the solar energy generating
system; and

(2) exhibits characteristics of being a single development, including but not limited
to ownership structure, an umbrella sales arrangement, shared interconnection, revenue
sharing arrangements, and common debt or equity financing.

new text begin (b) An application to a county for a permit to construct a solar energy generating
system with a capacity of 1,000 kilowatts or greater is not complete unless it includes a
solar energy system size determination under this section.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The commissioner of commerce shall provide forms and assistance for
applicants to make a request for a size determination. Upon written request of an applicant,
the commissioner shall provide a written size determination within 30 days of receipt of
the request and of any information requested by the commissioner. In the case of a dispute,
the chair of the Public Utilities Commission shall make the final size determination.

Sec. 9.

Minnesota Statutes 2014, section 216E.03, subdivision 3, is amended to read:

Subd. 3.

Application.

Any person seeking to construct a large electric power
generating plant or a high-voltage transmission line must apply to the commission for a
site or route permit. The application shall contain such information as the commission may
require. The applicant shall propose at least two sites for a large electric power generating
plant and two routes for a high-voltage transmission line new text begin , except that an applicant shall
only be required to propose one site for a large electric power generating plant that is a
solar energy generating system new text end . Neither of the two proposed routes may be designated as
a preferred route and all proposed routes must be numbered and designated as alternatives.
The commission shall determine whether an application is complete and advise the
applicant of any deficiencies within ten days of receipt. An application is not incomplete if
information not in the application can be obtained from the applicant during the first phase
of the process and that information is not essential for notice and initial public meetings.

Sec. 10.

Minnesota Statutes 2014, section 216E.05, subdivision 2, is amended to read:

Subd. 2.

Applicable projects.

Applicants may seek approval from local units of
government to construct the following projects:

(1) large electric power generating plants new text begin , except solar energy generating systems, new text end
with a capacity of less than 80 megawatts;

(2) large electric power generating plants of any size that burn natural gas and are
intended to be a peaking plant;

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

(4) substations with a voltage designed for and capable of operation at a nominal
voltage of 100 kilovolts or more;

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

(6) 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.

Sec. 11.

new text begin [216E.055] SOLAR FACILITY PERMIT AUTHORITY; ASSUMPTION
BY COUNTIES.
new text end

new text begin (a) A county board may, by resolution and upon written notice to the Public Utilities
Commission, assume responsibility for processing applications for permits required under
this chapter for large electric power generating plants that are solar energy generating
systems up to 25,000 kilowatts. The responsibility for permit application processing, if
assumed by a county, may be delegated by the county board to an appropriate county
officer or employee. Processing by a county shall be done in accordance with procedures
and processes established under chapter 394.
new text end

new text begin (b) A county board that exercises its option under paragraph (a) may issue, deny,
modify, impose conditions upon, or revoke permits pursuant to this section. The action
of the county board about a permit application is final, subject to appeal as provided
in section 394.27.
new text end

new text begin (c) The commission shall, by order, establish general permit standards, including
appropriate set-backs, governing site permits for solar energy generating systems under
this chapter. The order must consider existing and historic commission standards for
permits issued by the commission. The general permit standards shall apply to permits
issued by counties under this section and to permits issued by the commission under this
chapter. The commission or a county may grant a variance from a general permit standard
if the variance is found to be in the public interest.
new text end

new text begin (d) A county may by ordinance adopt standards for solar energy generating systems
that are more stringent than standards in commission rules or in the commission's permit
standards. The commission, when considering a permit application for a solar energy
generating system in a county that has assumed permitting authority under this section,
shall consider and apply the county's more stringent standards unless the commission
finds good cause to not apply the standards.
new text end

new text begin (e) The commission and the commissioner of commerce shall provide technical
assistance to a county with respect to the processing of site permit applications for solar
energy generating systems.
new text end

new text begin (f) This section does not exempt applicants from the requirements under section
216E.021.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 216C.15, new text end new text begin is repealed.
new text end