HF 2817

as introduced - 89th Legislature (2015 - 2016) Posted on 03/10/2016 03:06pm

A bill for an act
relating to energy; allocating emission credits resulting from implementation of
federal carbon emissions reduction requirements to certain cities; proposing
coding for new law in Minnesota Statutes, chapter 216B.

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

Section 1.

new text begin [216B.1649] ALLOCATION OF EMISSION CREDITS TO
AFFECTED COMMUNITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "Clean Power Plan"
means the final rule of the federal Carbon Pollution Emission Guidelines for Existing
Stationary Sources: Electric Utility Generating Units, issued by the United States
Environmental Protection Agency in Docket No. EPA-HQ-OAR-2013-0602, and any
subsequent amendments made to the plan.
new text end

new text begin Subd. 2. new text end

new text begin Emission allowance allocation. new text end

new text begin (a) Unless federal law provides otherwise,
emission allowances granted to the state by the United States Environmental Protection
Agency under the Clean Power Plan must be allocated as provided in this section.
new text end

new text begin (b) Ten percent of any emissions allowances granted to the state of Minnesota by
the United States Environmental Protection Agency under the Clean Power Plan that are
not allocated to coal-fired electric generating plants must be set aside for allocation to
statutory and home rule charter cities and towns in which coal-fired electric generating
plants have ceased operation. A statutory or home rule charter city or a town may be
allocated emission allowances under this section only if the commission has determined
that the implementation of the Clean Power Plan was a significant factor contributing to
a utility's decision to cease operations at the coal-fired electric generating plant. When
making a determination under this paragraph, the commission must consider:
new text end

new text begin (1) the remaining useful life of the electric generating plant;
new text end

new text begin (2) the future cost of generating electricity at the plant compared with the cost of
purchasing electricity or generating electricity from newly constructed facilities;
new text end

new text begin (3) projected changes in the utility's electricity demand and customer base;
new text end

new text begin (4) other factors affecting the financial condition of the utility that owns the electric
generating plant that ceases operation; and
new text end

new text begin (5) any other factor the commission deems relevant.
new text end

new text begin (c) Allowances set aside under paragraph (b) must be distributed to an individual
city or town based on the proportion of carbon dioxide emissions from the city or town's
coal-fired electric generating plant compared to the total carbon dioxide emissions from
all coal-fired electric generating plants in Minnesota. The calculation under this paragraph
must be based on carbon dioxide emissions from the calendar year immediately preceding
the year in which electric generation ceases. A town or city may receive an allocation
under this paragraph only if the commission determines the city or town's closed coal-fired
plant meets the requirements under paragraph (b).
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin This section applies to any coal-fired electric generating plant
located in Minnesota that ceases operation after 2010 and before 2026 that the commission
determines has met the requirements under subdivision 2, paragraph (b).
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