Minnesota Legislature
SF 3337
2nd Unofficial Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.2relating to energy; modifying Petrofund program; providing that certain
1.3eminent domain appraisal and negotiation requirements apply to public service
1.4corporations; modifying cost recovery provisions for electric transmission and
1.5renewable energy facilities; requiring a certain proportion of solar-generated
1.6electricity under a utility's renewable energy standard; allowing utilities to fund
1.7certain solar energy products under the conservation improvement program;
1.8requiring some electricity to be generated from solar energy by 2012; exempting
1.9certain wind and solar projects from the requirement to obtain a certificate
1.10of need; modifying and adding provisions relating to notice to and meetings
1.11with local units of government for siting large electric generating plant or
1.12high-voltage transmission line; allowing size election for certain wind energy
1.13conversion systems; creating a wind project aggregation program; requiring
1.14reports on reducing greenhouse gas emissions; requiring reporting of emissions
1.15or leakage of greenhouse gases with high global warming potential; requiring
1.16development of plan for solar rating and certification laboratory; appropriating
1.17money;amending Minnesota Statutes 2006, sections 115C.04, subdivision 3;
1.18115C.09, subdivision 3h, by adding a subdivision; 117.189; 216B.16, subdivision
1.197b; 216B.1645, subdivisions 1, 2; 216B.2411, subdivision 2, by adding a
1.20subdivision; 216B.243, by adding a subdivision; 216E.03, subdivision 4, by
1.21adding subdivisions; Minnesota Statutes 2007 Supplement, sections 216B.1645,
1.22subdivision 2a; 216B.1691, subdivision 2a; 216B.2411, subdivision 1; proposing
1.23coding for new law in Minnesota Statutes, chapters 216F; 216H; repealing
1.24Minnesota Statutes 2006, section 115C.09, subdivision 3j.
1.25BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.26 Section 1. Minnesota Statutes 2006, section 115C.04, subdivision 3, is amended to read:
1.27 Subd. 3.Agency Cost recovery; subrogation. Reasonable and necessary expenses
1.28incurred by the agency in taking a corrective action, including costs of investigating
1.29a release, administrative and legal expenses, and reimbursement costs described in
1.30subdivision 1, paragraph (b), may be recovered in a civil action in district court brought
1.31by theattorney general board against a responsible person. The agency's certification of
1.32expenses is prima facie evidence that the expenses are reasonable and necessary. If the
2.1responsible person has petroleum tank leakage or spill insurance coverage that insures
2.2against the liability provided in this section, theagency board is subrogated to the rights
2.3of the responsible person with respect to that insurance coverage, to the extent of the
2.4expenses incurred by the agency and described in this subdivision. Theagency board
2.5may request the attorney general to bring an action in district court against the insurer
2.6to enforce this subrogation right. Expenses that are recovered under this section must
2.7be deposited in the fund.
2.8 Sec. 2. Minnesota Statutes 2006, section 115C.09, subdivision 3h, is amended to read:
2.9 Subd. 3h. Reimbursement; aboveground tanks in bulk plants. (a) As used in
2.10this subdivision, "bulk plant" means an aboveground or underground tank facility with a
2.11storage capacity of more than 1,100 gallons but less than 1,000,000 gallons that is used to
2.12dispense petroleum into cargo tanks for transportation and sale at another location.
2.13 (b)Notwithstanding any other provision in this chapter and any rules adopted
2.14pursuant to this chapter, the board shall reimburse 90 percent of an applicant's cost for bulk
2.15plant upgrades or closures completed between June 1, 1998, and November 1, 2003, to
2.16comply with Minnesota Rules, chapter 7151, provided that the board determines the costs
2.17were incurred and reasonable. The reimbursement may not exceed $10,000 per bulk plant.
2.18The board may provide reimbursement under this paragraph for work completed after
2.19November 1, 2003, if the work was contracted for prior to that date and was not completed
2.20by that date as a result of an unanticipated situation, provided that an application for
2.21reimbursement under this paragraph, which may be a renewal of an application previously
2.22denied, is submitted prior to December 31, 2005.
2.23(c) For corrective action at a bulk plant located on what is or was railroad
2.24right-of-way, the board shall reimburse 90 percent of total reimbursable costs on the first
2.25$40,000 of reimbursable costs and 100 percent of any remaining reimbursable costs when
2.26the applicant can document that more than one bulk plant was operated on the same
2.27section of right-of-way, as determined by the commissioner of commerce.
2.28 Sec. 3. Minnesota Statutes 2006, section 115C.09, is amended by adding a subdivision
2.29to read:
2.30 Subd. 3k. PVC piping at residential locations. (a) The purpose of this subdivision
2.31is to assist homeowners who have installed PVC fill piping as part of the heating oil
2.32system at their residences, not knowing that heating oil has been shown to dissolve certain
2.33types of glue used to hold PVC piping together. Replacement of the PVC piping with
3.1metal piping is intended to avoid the catastrophic release of heating oil, as well as the
3.2ensuing cleanup costs, that can occur at residences where the PVC piping fails.
3.3 (b) As used in this subdivision:
3.4 (1) "residential locations" means a storage tank and appurtenances for heating oil
3.5that are used to heat a single-family residence; and
3.6 (2) "qualified person" means someone who is registered as a contractor under section
3.7115C.11 and, as part of their trade or business, installs or repairs nonpressure piping,
3.8heating systems, air conditioning systems, or storage tank systems.
3.9 (c) Notwithstanding any other provision of this chapter or any rules adopted
3.10under this chapter, the board shall reimburse a qualified person 90 percent of the cost
3.11for replacing PVC fill piping with metal piping at residential locations between May 1,
3.122008, and September 1, 2011, provided that the board determines the costs were incurred
3.13and reasonable. The reimbursement may not exceed $250 per residential location. The
3.14maximum expenditure from the fund may not exceed $1,500,000.
3.15 (d) A heating oil vendor is not a responsible person for a heating oil spill inside a
3.16residential location if the spill was caused solely by the failure of a tank or appurtenance
3.17to a tank owned by the homeowner.
3.18 Sec. 4. Minnesota Statutes 2006, section 117.189, is amended to read:
3.19117.189 PUBLIC SERVICE CORPORATION EXCEPTIONS.
3.20 Sections117.031 ;
117.036;
117.055 , subdivision 2, paragraph (b);
117.186 ;
117.187 ;
3.21117.188
; and
117.52 , subdivisions 1a and 4, do not apply to public service corporations.
3.22For purposes of an award of appraisal fees under section117.085 , the fees awarded may
3.23not exceed $500 for all types of property.
3.24EFFECTIVE DATE.This section is effective August 1, 2008, and applies to
3.25eminent domain proceedings commenced on or after August 1, 2008.
3.26 Sec. 5. Minnesota Statutes 2006, section 216B.16, subdivision 7b, is amended to read:
3.27 Subd. 7b. Transmission cost adjustment. (a) Notwithstanding any other provision
3.28of this chapter, the commission may approve a tariff mechanism for the automatic annual
3.29adjustment of charges for the Minnesota jurisdictional costs of: (i) new transmission
3.30facilities that have been separately filed and reviewed and approved by the commission
3.31under section216B.243 or are certified as a priority project or deemed to be a priority
3.32transmission project under section216B.2425 ; and (ii) charges incurred by a utility that
3.33accrue from other transmission owners' regionally planned transmission projects that have
4.1been determined by the Midwest Independent System Operator to benefit the utility, as
4.2provided for under a federally approved tariff.
4.3 (b) Upon filing by a public utility or utilities providing transmission service, the
4.4commission may approve, reject, or modify, after notice and comment, a tariff that:
4.5 (1) allows the utility to recover on a timely basis the costs net of revenues of
4.6facilities approved under section216B.243 or certified or deemed to be certified under
4.7section216B.2425 or exempt from the requirements of section 216B.243;
4.8 (2) allows the charges incurred by a utility that accrue from other transmission
4.9owners' regionally planned transmission projects that have been determined by the
4.10Midwest Independent System Operator to benefit the utility, as provided for under a
4.11federally approved tariff;
4.12 (3) allows a return on investment at the level approved in the utility's last general
4.13rate case, unless a different return is found to be consistent with the public interest;
4.14(3) (4) provides a current return on construction work in progress, provided that
4.15recovery from Minnesota retail customers for the allowance for funds used during
4.16construction is not sought through any other mechanism;
4.17(4) (5) allows for recovery of other expenses if shown to promote a least-cost project
4.18option or is otherwise in the public interest;
4.19(5) (6) allocates project costs appropriately between wholesale and retail customers;
4.20(6) (7) provides a mechanism for recovery above cost, if necessary to improve the
4.21overall economics of the project or projects or is otherwise in the public interest; and
4.22(7) (8) terminates recovery once costs have been fully recovered or have otherwise
4.23been reflected in the utility's general rates.
4.24 (c) A public utility may file annual rate adjustments to be applied to customer bills
4.25paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:
4.26 (1) a description of and context for the facilities included for recovery;
4.27 (2) a schedule for implementation of applicable projects;
4.28 (3) the utility's costs for these projects;
4.29 (4) a description of the utility's efforts to ensure the lowest costs to ratepayers for
4.30the project; and
4.31 (5) calculations to establish that the rate adjustment is consistent with the terms
4.32of the tariff established in paragraph (b).
4.33 (d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in
4.34paragraph (b), the commission shall approve the annual rate adjustments provided that,
4.35after notice and comment, the costs included for recovery through the tariff were or are
5.1expected to be prudently incurred and achieve transmission system improvements at the
5.2lowest feasible and prudent cost to ratepayers.
5.3 Sec. 6. Minnesota Statutes 2006, section 216B.1645, subdivision 1, is amended to read:
5.4 Subdivision 1. Commission authority. Upon the petition of a public utility, the
5.5Public Utilities Commission shall approve or disapprove power purchase contracts,
5.6investments, or expenditures entered into or made by the utility to satisfy the wind and
5.7biomass mandates contained in sections216B.169 ,
216B.2423 , and
216B.2424 , and to
5.8satisfy the renewable energy objectives and standards set forth in section216B.1691 ,
5.9including reasonable investments and expenditures made to:
5.10 (1) transmit the electricity generated from sources developed under those sections
5.11that is ultimately used to provide service to the utility's retail customers, including
5.12studies necessary to identify new transmission facilities needed to transmit electricity to
5.13Minnesota retail customers from generating facilities constructed to satisfy the renewable
5.14energy objectives and standards, provided that the costs of the studies have not been
5.15recovered previously under existing tariffs and the utility has filed an application for a
5.16certificate of need or for certification as a priority project under section216B.2425 for the
5.17new transmission facilities identified in the studies;
5.18 (2) provide storage facilities for renewable energy generation facilities that
5.19contribute to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or
5.20(2) (3) develop renewable energy sources from the account required in section
5.21116C.779
.
5.22 Sec. 7. Minnesota Statutes 2006, section 216B.1645, subdivision 2, is amended to read:
5.23 Subd. 2. Cost recovery. The expenses incurred by the utility over the duration of
5.24the approved contract or useful life of the investment and expenditures made pursuant
5.25to section116C.779 shall be recoverable from the ratepayers of the utility, to the extent
5.26they are not offset by utility revenues attributable to the contracts, investments, or
5.27expenditures. Upon petition by a public utility, the commission shall approve or approve
5.28as modified a rate schedule providing for the automatic adjustment of charges to recover
5.29the expenses or costs approved by the commission under subdivision 1, which, in the case
5.30of transmission expenditures, are limited to the portion of actual transmission costs that are
5.31directly allocable to the need to transmit power from the renewable sources of energy. The
5.32commission may not approve recovery of the costs for that portion of the power generated
5.33from sources governed by this section that the utility sells into the wholesale market.
6.1 Sec. 8. Minnesota Statutes 2007 Supplement, section 216B.1645, subdivision 2a,
6.2is amended to read:
6.3 Subd. 2a. Cost recovery for owned renewable facilities. (a) A utility may petition
6.4the commission to approve a rate schedule that provides for the automatic adjustment of
6.5charges to recover prudently incurred investments, expenses, or costs associated with
6.6facilities constructed, owned, or operated by a utility to satisfy the requirements of section
6.7216B.1691
, provided those facilities were previously approved by the commission under
6.8section 216B.2422 or 216B.243, or were determined by the commission to be reasonable
6.9and prudent under section 216B.243, subdivision 9. The commission may approve, or
6.10approve as modified, a rate schedule that:
6.11 (1) allows a utility to recover directly from customers on a timely basis the costs of
6.12qualifying renewable energy projects, including:
6.13 (i) return on investment;
6.14 (ii) depreciation;
6.15 (iii) ongoing operation and maintenance costs;
6.16 (iv) taxes; and
6.17 (v) costs of transmission and other ancillary expenses directly allocable to
6.18transmitting electricity generated from a project meeting the specifications of this
6.19paragraph;
6.20 (2) provides a current return on construction work in progress, provided that recovery
6.21of these costs from Minnesota ratepayers is not sought through any other mechanism;
6.22 (3) allows recovery of other expenses incurred that are directly related to a
6.23renewable energy project, including expenses for energy storage, provided that the
6.24utility demonstrates to the commission's satisfaction that the expenses improve project
6.25economics, ensure project implementation, or facilitate coordination with the development
6.26of transmission necessary to transport energy produced by the project to market;
6.27 (4) allocates recoverable costs appropriately between wholesale and retail customers;
6.28 (5) terminates recovery when costs have been fully recovered or have otherwise
6.29been reflected in a utility's rates.
6.30 (b) A petition filed under this subdivision must include:
6.31 (1) a description of the facilities for which costs are to be recovered;
6.32 (2) an implementation schedule for the facilities;
6.33 (3) the utility's costs for the facilities;
6.34 (4) a description of the utility's efforts to ensure that costs of the facilities are
6.35reasonable and were prudently incurred; and
7.1 (5) a description of the benefits of the project in promoting the development of
7.2renewable energy in a manner consistent with this chapter.
7.3 Sec. 9. Minnesota Statutes 2007 Supplement, section 216B.1691, subdivision 2a,
7.4is amended to read:
7.5 Subd. 2a. Eligible energy technology standard. (a) Except as provided in
7.6paragraph (b), each electric utility shall generate or procure sufficient electricity generated
7.7by an eligible energy technology to provide its retail customers in Minnesota, or the
7.8retail customers of a distribution utility to which the electric utility provides wholesale
7.9electric service, so that at least the following standard percentages of the electric utility's
7.10total retail electric sales to retail customers in Minnesota are generated by eligible energy
7.11technologies by the end of the year indicated:
7.16 (b) An electric utility that owned a nuclear generating facility as of January 1, 2007,
7.17must meet the requirements of this paragraph rather than paragraph (a). An electric utility
7.18subject to this paragraph must generate or procure sufficient electricity generated by
7.19an eligible energy technology to provide its retail customers in Minnesota or the retail
7.20customer of a distribution utility to which the electric utility provides wholesale electric
7.21service so that at least the following percentages of the electric utility's total retail electric
7.22sales to retail customers in Minnesota are generated by eligible energy technologies by the
7.23end of the year indicated:
7.28Of the 30 percent in 2020, at least 25 percent must be generated by wind energy conversion
7.29systems and the remaining five percent by other eligible energy technology.
7.30 (c) By the end of the year 2012, at least 0.0125 percent of the electricity required by
7.31paragraphs (a) and (b) to be generated by each electric utility must be generated by solar
7.32energy. At least 60 percent of the required solar energy electric generation by each utility
7.33must be distributed solar generated at a customer's site with customer-owned facilities.
7.34For the purposes of this paragraph, "distributed solar" means solar electric equipment that
7.35meets the requirements of section 216C.25 with a total peak generating capacity of 100
8.1kilowatts or less used for generating electricity primarily for use in a residential property
8.2or small business, as defined by section 645.445, to reduce the effective electric load
8.3for that residence or business. An electric utility that generates less than 60 percent of
8.4its required solar energy electric generation with customer-owned distributed solar must
8.5demonstrate that reasonable efforts were made to achieve sufficient customer participation
8.6in a timely manner.
8.7 Sec. 10. Minnesota Statutes 2007 Supplement, section 216B.2411, subdivision 1,
8.8is amended to read:
8.9 Subdivision 1. Generation projects. (a) Any municipality or rural electric
8.10association providing electric service and subject to section216B.241 that is meeting the
8.11objectives under section
216B.1691
8.12of the total amount to be spent on energy conservation improvements under section
8.13216B.241
, on:
8.14 (1) projects in Minnesota to construct an electric generating facility that utilizes
8.15eligible renewable energy sources as defined in subdivision 2, such as methane or other
8.16combustible gases derived from the processing of plant or animal wastes, biomass fuels
8.17such as short-rotation woody or fibrous agricultural crops, or other renewable fuel, as its
8.18primary fuel source;or
8.19 (2) projects in Minnesota to install a distributed generation facility of ten megawatts
8.20or less of interconnected capacity that is fueled by natural gas, renewable fuels, or another
8.21similarly clean fuel.; or
8.22 (3) installing a qualifying solar energy project as defined in subdivision 2.
8.23 (b) For public utilities, as defined under section216B.02, subdivision 4 , projects
8.24under this section must be considered energy conservation improvements as defined in
8.25section216B.241 . For cooperative electric associations and municipal utilities, projects
8.26under this section must be considered load-management activities described in section
8.27216B.241, subdivision 1
.
8.28 Sec. 11. Minnesota Statutes 2006, section 216B.2411, subdivision 2, is amended to
8.29read:
8.30 Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
8.31subdivision and section216B.241, subdivision 1 , have the meanings given them.
8.32 (b) "Eligible renewable energy sources" means fuels and technologies to generate
8.33electricity through the use of any of the resources listed in section216B.1691, subdivision
8.341 , paragraph (a), clause (1), except that the term "biomass" has the meaning provided
9.1under paragraph (c), and "solar" must meet the definition of a qualified solar energy
9.2project under paragraph (d).
9.3 (c) "Biomass" includes:
9.4 (1) methane or other combustible gases derived from the processing of plant or
9.5animal material;
9.6 (2) alternative fuels derived from soybean and other agricultural plant oils or animal
9.7fats;
9.8 (3) combustion of barley hulls, corn, soy-based products, or other agricultural
9.9products;
9.10 (4) wood residue from the wood products industry in Minnesota or other wood
9.11products such as short-rotation woody or fibrous agricultural crops; and
9.12 (5) landfill gas, mixed municipal solid waste, and refuse-derived fuel from mixed
9.13municipal solid waste.
9.14 (d) "Qualifying solar energy project" means a qualifying solar thermal project or
9.15qualifying solar electric project.
9.16 (e) "Qualifying solar thermal project" means a flat plate or evacuated tube that meets
9.17the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant
9.18energy and transfers it to a storage medium for distribution as energy to heat or cool air or
9.19water, but does not include equipment used to heat water at a residential property (1) for
9.20domestic use if less than one-half of the energy used for that purpose is derived from the
9.21sun or (2) for use in a hot tub or swimming pool.
9.22 (f) "Qualifying solar electric project" means solar electric equipment that meets the
9.23requirements of section 216C.25 with a total peak generating capacity of 100 kilowatts
9.24or less used for generating electricity primarily for use in a residential property or small
9.25business to reduce the effective electric load for that residence or small business.
9.26 (g) "Residential property" means the principal residence used by the homeowner at
9.27the time the solar equipment is placed in service.
9.28 (h) "Small business" has the meaning given to it in section 645.445.
9.29 Sec. 12. Minnesota Statutes 2006, section 216B.2411, is amended by adding a
9.30subdivision to read:
9.31 Subd. 4. Qualifying solar energy project. (a) A utility subject to section 216B.241
9.32may include in its conservation plan programs for the installation of qualifying solar
9.33energy projects as provided in this section. Qualifying solar energy projects must
9.34meet or exceed cost-effectiveness and other guidelines to be developed by order of
9.35the commissioner. Energy savings from qualifying solar energy projects may not be
10.1counted toward the minimum energy savings goal of at least one percent for energy
10.2conservation improvements required under section 216B.241, subdivision 1c, but may, as
10.3the commissioner determines appropriate:
10.4 (1) be counted above that minimum percentage; and
10.5 (2) be considered when establishing performance incentives under section 216B.241,
10.6subdivision 2c.
10.7 (b) Qualifying solar energy projects may not be considered when establishing
10.8demand-side management targets under sections 216B.2422, 216B.243, or any other
10.9section of this chapter.
10.10 Sec. 13. Minnesota Statutes 2006, section 216B.243, is amended by adding a
10.11subdivision to read:
10.12 Subd. 9. Renewable energy standard facilities. The requirements of this section
10.13do not apply to a wind energy conversion system or a solar electric generation facility that
10.14is intended to be used to meet or exceed the obligations of section 216B.1691; provided
10.15that, after notice and comment, the commission determines that the facility is a reasonable
10.16and prudent approach to meeting a utility's obligations under that section. When making
10.17this determination, the commission may consider the size of the facility relative to a
10.18utility's total need for renewable resources and alternative approaches for supplying
10.19the renewable energy to be supplied by the proposed facility, and must consider the
10.20facility's ability to promote economic development, as required under section 216B.1691,
10.21subdivision 9, maintain electric system reliability and consider impacts on ratepayers, and
10.22other criteria as the commission may determine are relevant.
10.23EFFECTIVE DATE.This section is effective the day following final enactment.
10.24 Sec. 14. Minnesota Statutes 2006, section 216E.03, is amended by adding a subdivision
10.25to read:
10.26 Subd. 3a. Project notice. At least 120 days before filing an application with the
10.27commission, the applicant shall provide notice to each local unit of government within
10.28which a route may be proposed. The notice must describe the proposed project and the
10.29opportunity for a preapplication consultation meeting with local units of government as
10.30provided in subdivision 3b.
10.31EFFECTIVE DATE.This section is effective the day following final enactment.
11.1 Sec. 15. Minnesota Statutes 2006, section 216E.03, is amended by adding a subdivision
11.2to read:
11.3 Subd. 3b. Preapplication consultation meetings. Within 30 days of receiving a
11.4project notice, local units of government may request the applicant hold a consultation
11.5meeting with local units of government. Upon receiving notice from a local unit of
11.6government requesting a preapplication consultation meeting, the applicant shall arrange
11.7the meeting at a location chosen by the local unit of government.
11.8EFFECTIVE DATE.This section is effective the day following final enactment.
11.9 Sec. 16. Minnesota Statutes 2006, section 216E.03, subdivision 4, is amended to read:
11.10 Subd. 4.Notice of Application notice. Within 15 days after submission of an
11.11application to the commission, the applicant shall publish notice of the application in
11.12a legal newspaper of general circulation in each county in which the site or route is
11.13proposed and send a copy of the application by certified mail to any regional development
11.14commission, county, incorporated municipality, andtownship town in which any part
11.15of the site or route is proposed. Within the same 15 days, the applicant shall also send
11.16a notice of the submission of the application and description of the proposed project to
11.17each owner whose property is on or adjacent to any of the proposed sites for the power
11.18plant or along any of the proposed routes for the transmission line. The noticeshall must
11.19identify a location where a copy of the application can be reviewed. For the purpose
11.20of giving mailed notice under this subdivision, ownersshall be are those shown on the
11.21records of the county auditor or, in any county where tax statements are mailed by the
11.22county treasurer, on the records of the county treasurer; but other appropriate records may
11.23be used for this purpose. The failure to give mailed notice to a property owner, or defects
11.24in the notice,shall does not invalidate the proceedings, provided a bona fide attempt to
11.25comply with this subdivision has been made. Within the same 15 days, the applicant shall
11.26also send the same notice of the submission of the application and description of the
11.27proposed project to those persons who have requested to be placed on a list maintained by
11.28the commission for receiving notice of proposed large electric generating power plants
11.29and high voltage transmission lines.
11.30EFFECTIVE DATE.This section is effective the day following final enactment.
11.31 Sec. 17. [216F.012] SIZE ELECTION.
11.32 (a) Owners of wind energy conversion systems that consist of single ownership
11.33units with a nameplate capacity less than five megawatts and a combined nameplate
12.1capacity of less than 25 megawatts, as determined under section 216F.011, may elect to be
12.2classified as a small wind energy conversion system or a large wind energy conversion
12.3system under this chapter.
12.4 (b) This section expires July 1, 2012.
12.5 Sec. 18. [216F.09] WECS AGGREGATION PROGRAM.
12.6 Subdivision 1. Program established. The entity selected to provide rural wind
12.7development assistance under Laws 2007, chapter 57, article 2, section 3, subdivision 6,
12.8shall also establish a wind energy conversion system (WECS) aggregation program. The
12.9purpose of the program is to create a clearinghouse to coordinate and arrange umbrella
12.10sales arrangements for groups of individuals, farmstead property owners, farmers'
12.11cooperative associations, community-based energy project developers, school districts,
12.12and other political subdivisions to aggregate small-volume purchases, as a group, in order
12.13to place large orders for wind energy conversion systems with WECS manufacturers.
12.14 Subd. 2. Responsibilities. The entity shall:
12.15 (1) provide application procedures for participation in the program;
12.16 (2) set minimum standards for wind energy conversion systems to be considered for
12.17purchase through the program, which may include price, quality and installation standards,
12.18timely delivery schedules and arrangements, performance and reliability ratings, and any
12.19other factors considered necessary or desirable for participants;
12.20 (3) set eligibility considerations and requirements for purchasers, including
12.21availability to the applicant of land authorized for installation and use of WECS,
12.22likelihood of a permit being approved by the commission or a county under this chapter,
12.23documentation of adequate financing, and other necessary or usual financial or business
12.24practices or requirements;
12.25 (4) provide a minimal framework for soliciting or contacting manufacturers on
12.26behalf of participants; and
12.27 (5) coordinate purchase agreements between the manufacturer and participants.
12.28 Subd. 3. Report. By February 1 of 2009, and each year thereafter, the commissioner
12.29of commerce shall submit a report to the chairs and ranking minority members of the
12.30senate and house of representatives committees with primary jurisdiction over energy
12.31policy on the activities and results of the program, including the number of participants
12.32and the number of purchases made.
12.33 Subd. 4. Assessment; appropriation. Annual costs of the program, up to $100,000,
12.34must be assessed under section 216C.052, subdivision 2, paragraph (c), clause (1). The
12.35assessment is appropriated to the commissioner of commerce to be used by the director
13.1of the Office of Energy Security for a grant to the entity to carry out the purposes of
13.2this section.
13.3EFFECTIVE DATE.This section is effective the day following final enactment.
13.4 Sec. 19. [216H.07] GREENHOUSE GAS EMISSION REDUCTION
13.5ATTAINMENT; POLICY DEVELOPMENT PROCESS.
13.6 Subdivision 1. Definition. For the purpose of this section, "reductions" means the
13.7greenhouse gas emissions reductions goals specified in section 216H.02, subdivision 1.
13.8 Subd. 2. Purpose. This section is intended to create a nonexclusive, regular process
13.9for the state to develop policies to attain the greenhouse gas reduction goals specified
13.10in section 216H.02.
13.11 Subd. 3. Biennial reduction progress report. By November 1 of each
13.12even-numbered year, the commissioners of commerce and the Pollution Control Agency
13.13shall jointly report to the chairs and ranking minority members of the legislative
13.14committees with primary policy jurisdiction over energy and environmental issues the
13.15most recent and best available evidence identifying the level of reductions already
13.16achieved and the level necessary to achieve the reduction goals established in section
13.17216H.02. The report must be written in easily understood, nontechnical language.
13.18 Subd. 4. Annual legislative proposal. The commissioners of commerce and the
13.19Pollution Control Agency shall annually by November 1 provide to the chairs and ranking
13.20minority members of the legislative committees with primary policy jurisdiction over
13.21energy and environmental issues proposed legislation the commissioners determine
13.22appropriate to achieve the reductions. If the commissioners determine no legislation is
13.23appropriate, they shall report that determination to the chairs along with an explanation of
13.24the determination.
13.25EFFECTIVE DATE.This section is effective the day following final enactment.
13.26 Sec. 20. [216H.10] DEFINITIONS.
13.27 Subdivision 1. Applicability. For purposes of sections 216H.10 to 216H.15, the
13.28following terms have the meanings given.
13.29 Subd. 2. Agency. "Agency" means the Pollution Control Agency.
13.30 Subd. 3. Carbon dioxide equivalent. "Carbon dioxide equivalent" means the
13.31quantity of carbon dioxide that has the same global warming potential as a given amount
13.32of another greenhouse gas.
14.1 Subd. 4. Commissioner. "Commissioner" means the commissioner of the Pollution
14.2Control Agency.
14.3 Subd. 5. Global warming. "Global warming" means the observed and predicted
14.4increase in the temperature of the atmosphere near the earth's surface and the oceans.
14.5 Subd. 6. Global warming potential or GWP. "Global warming potential" or
14.6"GWP" means a quantitative measure of the potential of an emission of a greenhouse
14.7gas to contribute to global warming over a 100-year period expressed in terms of the
14.8equivalent emission of carbon dioxide needed to produce the same 100-year warming
14.9effect, as reported in Fourth Assessment Report: Climate Change 2007, Intergovernmental
14.10Panel on Climate Change.
14.11 Subd. 7. High-GWP greenhouse gas. "High-GWP greenhouse gas" means
14.12hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
14.13 Subd. 8. Mobile air conditioner. "Mobile air conditioner" means mechanical
14.14vapor compression refrigeration equipment used to cool the passenger compartment of a
14.15motor vehicle.
14.16 Subd. 9. Motor vehicle. "Motor vehicle" has the meaning given in section 168.011,
14.17subdivision 4.
14.18 Subd. 10. New motor vehicle. "New motor vehicle" has the meaning given in
14.19section 80E.03, subdivision 7.
14.20 Subd. 11. Refrigerant. "Refrigerant" means a substance used, sold for use, or
14.21designed and intended for use in a mobile air conditioner to transfer heat out of the space
14.22being cooled.
14.23EFFECTIVE DATE.This section is effective the day following final enactment.
14.24 Sec. 21. [216H.11] HIGH-GWP GREENHOUSE GAS REPORTING.
14.25 Subdivision 1. Gas manufacturers. Beginning October 1, 2008, and each year
14.26thereafter, a manufacturer of a high-GWP greenhouse gas must report to the agency the
14.27total amount of each high-GWP greenhouse gas sold to a purchaser in this state during
14.28the previous year.
14.29 Subd. 2. Purchases. Beginning October 1, 2008, and each year thereafter, a
14.30person in this state who purchases 100 metric tons or more carbon dioxide equivalent
14.31of a high-GWP greenhouse gas must report to the agency, on a form prescribed by the
14.32commissioner, the total amount of each high-GWP greenhouse gas purchased during the
14.33previous year and the purpose for which the gas was used.
15.1 Subd. 3. Acceptance of federal filing. With the approval of the commissioner, this
15.2section may be satisfied by filing with the commissioner a copy of a greenhouse gas
15.3emissions report filed with a federal agency.
15.4EFFECTIVE DATE.This section is effective the day following final enactment.
15.5 Sec. 22. [216H.12] MOBILE AIR CONDITIONER LEAKAGE RATES;
15.6DISCLOSURE.
15.7 Subdivision 1. Leakage disclosure. Beginning January 1, 2009, a manufacturer
15.8selling or offering for sale a new motor vehicle in this state containing a mobile air
15.9conditioner that uses the high-GWP greenhouse gas HFC-134a (1,1,1,2-tetrafluoroethane)
15.10as a refrigerant must, 90 days prior to the initial sale or offer for sale, report to the
15.11commissioner the leakage rate, in grams of refrigerant per year, for the type of mobile
15.12air conditioner contained in that make, model, and model year. The leakage rate must be
15.13calculated using the information provided in the most recently published version of the
15.14Society of Automotive Engineers International document J2727, "HFC-134a Mobile
15.15Air Conditioning System Emission Chart." The method by which the leakage rate is
15.16calculated, accounting for each component of the air conditioning unit, must also be
15.17reported to the commissioner.
15.18 Subd. 2. Posting. Beginning January 1, 2009, the agency and the Office of the
15.19Attorney General must post on their Web sites:
15.20 (1) the leakage rate disclosed by a manufacturer under subdivision 1 for each model
15.21and make of new motor vehicle sold or offered for sale in this state; and
15.22 (2) the following statement: "Vehicle air conditioning systems may leak refrigerants.
15.23Information provided in the chart compares the potential global warming effects of
15.24refrigerant leakage from different makes and models of vehicles."
15.25EFFECTIVE DATE.This section is effective the day following final enactment.
15.26 Sec. 23. [216H.15] ENFORCEMENT.
15.27 Sections 216H.10 to 216H.12 may be enforced under section 116.072.
15.28EFFECTIVE DATE.This section is effective the day following final enactment.
15.29 Sec. 24. REPORT.
15.30 By February 1, 2009, the commissioner of the Pollution Control Agency shall
15.31submit a report to the chairs and ranking minority members of the senate and house of
15.32representatives committees with primary jurisdiction over environmental policy that
16.1identifies the uses and emissions sources of hydrofluorocarbons, perfluorocarbons, and
16.2sulfur hexafluoride in this state and suggests options for reducing or eliminating those
16.3uses and emissions and the costs of implementing those options. The options for reducing
16.4emissions must include phasing out specific consumer products containing high global
16.5warming potential gases where that is cost-effective.
16.6EFFECTIVE DATE.This section is effective the day following final enactment.
16.7 Sec. 25. SOLAR RATING AND CERTIFICATION LABORATORY.
16.8 The director of the Office of Energy Security shall convene technical stakeholders
16.9who are expert in the design, manufacture, installation, and operation of solar energy
16.10systems to develop criteria and characteristics for a Minnesota-based solar rating and
16.11certification laboratory. The criteria shall include, but not be limited to, consideration of
16.12durability, cold-weather operations, and indoor air quality. The director shall develop and,
16.13by September 15, 2008, issue a request for proposals for the development of a plan, based
16.14on the criteria and characteristics developed by the stakeholder group, for a solar rating
16.15and certification laboratory in the state, including cost estimates. By January 15, 2009,
16.16the director shall submit a report to the chairs of the house and senate committees with
16.17jurisdiction over energy finance issues, detailing the responses to the request and making
16.18recommendations, including draft legislation.
16.19EFFECTIVE DATE.This section is effective the day following final enactment.
16.20 Sec. 26. REPEALER.
16.21Minnesota Statutes 2006, section 115C.09, subdivision 3j, is repealed.
16.22EFFECTIVE DATE.This section is effective the day following final enactment.
1.3eminent domain appraisal and negotiation requirements apply to public service
1.4corporations; modifying cost recovery provisions for electric transmission and
1.5renewable energy facilities; requiring a certain proportion of solar-generated
1.6electricity under a utility's renewable energy standard; allowing utilities to fund
1.7certain solar energy products under the conservation improvement program;
1.8requiring some electricity to be generated from solar energy by 2012; exempting
1.9certain wind and solar projects from the requirement to obtain a certificate
1.10of need; modifying and adding provisions relating to notice to and meetings
1.11with local units of government for siting large electric generating plant or
1.12high-voltage transmission line; allowing size election for certain wind energy
1.13conversion systems; creating a wind project aggregation program; requiring
1.14reports on reducing greenhouse gas emissions; requiring reporting of emissions
1.15or leakage of greenhouse gases with high global warming potential; requiring
1.16development of plan for solar rating and certification laboratory; appropriating
1.17money;amending Minnesota Statutes 2006, sections 115C.04, subdivision 3;
1.18115C.09, subdivision 3h, by adding a subdivision; 117.189; 216B.16, subdivision
1.197b; 216B.1645, subdivisions 1, 2; 216B.2411, subdivision 2, by adding a
1.20subdivision; 216B.243, by adding a subdivision; 216E.03, subdivision 4, by
1.21adding subdivisions; Minnesota Statutes 2007 Supplement, sections 216B.1645,
1.22subdivision 2a; 216B.1691, subdivision 2a; 216B.2411, subdivision 1; proposing
1.23coding for new law in Minnesota Statutes, chapters 216F; 216H; repealing
1.24Minnesota Statutes 2006, section 115C.09, subdivision 3j.
1.25BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.26 Section 1. Minnesota Statutes 2006, section 115C.04, subdivision 3, is amended to read:
1.27 Subd. 3.
1.28incurred by the agency in taking a corrective action, including costs of investigating
1.29a release, administrative and legal expenses, and reimbursement costs described in
1.30subdivision 1, paragraph (b), may be recovered in a civil action in district court brought
1.31by the
1.32expenses is prima facie evidence that the expenses are reasonable and necessary. If the
2.1responsible person has petroleum tank leakage or spill insurance coverage that insures
2.2against the liability provided in this section, the
2.3of the responsible person with respect to that insurance coverage, to the extent of the
2.4expenses incurred by the agency and described in this subdivision. The
2.5may request the attorney general to bring an action in district court against the insurer
2.6to enforce this subrogation right. Expenses that are recovered under this section must
2.7be deposited in the fund.
2.8 Sec. 2. Minnesota Statutes 2006, section 115C.09, subdivision 3h, is amended to read:
2.9 Subd. 3h. Reimbursement; aboveground tanks in bulk plants. (a) As used in
2.10this subdivision, "bulk plant" means an aboveground or underground tank facility with a
2.11storage capacity of more than 1,100 gallons but less than 1,000,000 gallons that is used to
2.12dispense petroleum into cargo tanks for transportation and sale at another location.
2.13 (b)
2.14
2.15
2.16
2.17
2.18
2.19
2.20
2.21
2.22
2.23
2.24right-of-way, the board shall reimburse 90 percent of total reimbursable costs on the first
2.25$40,000 of reimbursable costs and 100 percent of any remaining reimbursable costs when
2.26the applicant can document that more than one bulk plant was operated on the same
2.27section of right-of-way, as determined by the commissioner of commerce.
2.28 Sec. 3. Minnesota Statutes 2006, section 115C.09, is amended by adding a subdivision
2.29to read:
2.30 Subd. 3k. PVC piping at residential locations. (a) The purpose of this subdivision
2.31is to assist homeowners who have installed PVC fill piping as part of the heating oil
2.32system at their residences, not knowing that heating oil has been shown to dissolve certain
2.33types of glue used to hold PVC piping together. Replacement of the PVC piping with
3.1metal piping is intended to avoid the catastrophic release of heating oil, as well as the
3.2ensuing cleanup costs, that can occur at residences where the PVC piping fails.
3.3 (b) As used in this subdivision:
3.4 (1) "residential locations" means a storage tank and appurtenances for heating oil
3.5that are used to heat a single-family residence; and
3.6 (2) "qualified person" means someone who is registered as a contractor under section
3.7115C.11 and, as part of their trade or business, installs or repairs nonpressure piping,
3.8heating systems, air conditioning systems, or storage tank systems.
3.9 (c) Notwithstanding any other provision of this chapter or any rules adopted
3.10under this chapter, the board shall reimburse a qualified person 90 percent of the cost
3.11for replacing PVC fill piping with metal piping at residential locations between May 1,
3.122008, and September 1, 2011, provided that the board determines the costs were incurred
3.13and reasonable. The reimbursement may not exceed $250 per residential location. The
3.14maximum expenditure from the fund may not exceed $1,500,000.
3.15 (d) A heating oil vendor is not a responsible person for a heating oil spill inside a
3.16residential location if the spill was caused solely by the failure of a tank or appurtenance
3.17to a tank owned by the homeowner.
3.18 Sec. 4. Minnesota Statutes 2006, section 117.189, is amended to read:
3.19117.189 PUBLIC SERVICE CORPORATION EXCEPTIONS.
3.20 Sections
3.22For purposes of an award of appraisal fees under section
3.23not exceed $500 for all types of property.
3.24EFFECTIVE DATE.This section is effective August 1, 2008, and applies to
3.25eminent domain proceedings commenced on or after August 1, 2008.
3.26 Sec. 5. Minnesota Statutes 2006, section 216B.16, subdivision 7b, is amended to read:
3.27 Subd. 7b. Transmission cost adjustment. (a) Notwithstanding any other provision
3.28of this chapter, the commission may approve a tariff mechanism for the automatic annual
3.29adjustment of charges for the Minnesota jurisdictional costs of: (i) new transmission
3.30facilities that have been separately filed and reviewed and approved by the commission
3.31under section
3.32transmission project under section
3.33accrue from other transmission owners' regionally planned transmission projects that have
4.1been determined by the Midwest Independent System Operator to benefit the utility, as
4.2provided for under a federally approved tariff.
4.3 (b) Upon filing by a public utility or utilities providing transmission service, the
4.4commission may approve, reject, or modify, after notice and comment, a tariff that:
4.5 (1) allows the utility to recover on a timely basis the costs net of revenues of
4.6facilities approved under section
4.7section
4.8 (2) allows the charges incurred by a utility that accrue from other transmission
4.9owners' regionally planned transmission projects that have been determined by the
4.10Midwest Independent System Operator to benefit the utility, as provided for under a
4.11federally approved tariff;
4.12 (3) allows a return on investment at the level approved in the utility's last general
4.13rate case, unless a different return is found to be consistent with the public interest;
4.14
4.15recovery from Minnesota retail customers for the allowance for funds used during
4.16construction is not sought through any other mechanism;
4.17
4.18option or is otherwise in the public interest;
4.19
4.20
4.21overall economics of the project or projects or is otherwise in the public interest; and
4.22
4.23been reflected in the utility's general rates.
4.24 (c) A public utility may file annual rate adjustments to be applied to customer bills
4.25paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:
4.26 (1) a description of and context for the facilities included for recovery;
4.27 (2) a schedule for implementation of applicable projects;
4.28 (3) the utility's costs for these projects;
4.29 (4) a description of the utility's efforts to ensure the lowest costs to ratepayers for
4.30the project; and
4.31 (5) calculations to establish that the rate adjustment is consistent with the terms
4.32of the tariff established in paragraph (b).
4.33 (d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in
4.34paragraph (b), the commission shall approve the annual rate adjustments provided that,
4.35after notice and comment, the costs included for recovery through the tariff were or are
5.1expected to be prudently incurred and achieve transmission system improvements at the
5.2lowest feasible and prudent cost to ratepayers.
5.3 Sec. 6. Minnesota Statutes 2006, section 216B.1645, subdivision 1, is amended to read:
5.4 Subdivision 1. Commission authority. Upon the petition of a public utility, the
5.5Public Utilities Commission shall approve or disapprove power purchase contracts,
5.6investments, or expenditures entered into or made by the utility to satisfy the wind and
5.7biomass mandates contained in sections
5.8satisfy the renewable energy objectives and standards set forth in section
5.9including reasonable investments and expenditures made to:
5.10 (1) transmit the electricity generated from sources developed under those sections
5.11that is ultimately used to provide service to the utility's retail customers, including
5.12studies necessary to identify new transmission facilities needed to transmit electricity to
5.13Minnesota retail customers from generating facilities constructed to satisfy the renewable
5.14energy objectives and standards, provided that the costs of the studies have not been
5.15recovered previously under existing tariffs and the utility has filed an application for a
5.16certificate of need or for certification as a priority project under section
5.17new transmission facilities identified in the studies;
5.18 (2) provide storage facilities for renewable energy generation facilities that
5.19contribute to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or
5.20
5.22 Sec. 7. Minnesota Statutes 2006, section 216B.1645, subdivision 2, is amended to read:
5.23 Subd. 2. Cost recovery. The expenses incurred by the utility over the duration of
5.24the approved contract or useful life of the investment and expenditures made pursuant
5.25to section
5.26they are not offset by utility revenues attributable to the contracts, investments, or
5.27expenditures. Upon petition by a public utility, the commission shall approve or approve
5.28as modified a rate schedule providing for the automatic adjustment of charges to recover
5.29the expenses or costs approved by the commission under subdivision 1, which, in the case
5.30of transmission expenditures, are limited to the portion of actual transmission costs that are
5.31directly allocable to the need to transmit power from the renewable sources of energy. The
5.32commission may not approve recovery of the costs for that portion of the power generated
5.33from sources governed by this section that the utility sells into the wholesale market.
6.1 Sec. 8. Minnesota Statutes 2007 Supplement, section 216B.1645, subdivision 2a,
6.2is amended to read:
6.3 Subd. 2a. Cost recovery for owned renewable facilities. (a) A utility may petition
6.4the commission to approve a rate schedule that provides for the automatic adjustment of
6.5charges to recover prudently incurred investments, expenses, or costs associated with
6.6facilities constructed, owned, or operated by a utility to satisfy the requirements of section
6.8section 216B.2422 or 216B.243, or were determined by the commission to be reasonable
6.9and prudent under section 216B.243, subdivision 9. The commission may approve, or
6.10approve as modified, a rate schedule that:
6.11 (1) allows a utility to recover directly from customers on a timely basis the costs of
6.12qualifying renewable energy projects, including:
6.13 (i) return on investment;
6.14 (ii) depreciation;
6.15 (iii) ongoing operation and maintenance costs;
6.16 (iv) taxes; and
6.17 (v) costs of transmission and other ancillary expenses directly allocable to
6.18transmitting electricity generated from a project meeting the specifications of this
6.19paragraph;
6.20 (2) provides a current return on construction work in progress, provided that recovery
6.21of these costs from Minnesota ratepayers is not sought through any other mechanism;
6.22 (3) allows recovery of other expenses incurred that are directly related to a
6.23renewable energy project, including expenses for energy storage, provided that the
6.24utility demonstrates to the commission's satisfaction that the expenses improve project
6.25economics, ensure project implementation, or facilitate coordination with the development
6.26of transmission necessary to transport energy produced by the project to market;
6.27 (4) allocates recoverable costs appropriately between wholesale and retail customers;
6.28 (5) terminates recovery when costs have been fully recovered or have otherwise
6.29been reflected in a utility's rates.
6.30 (b) A petition filed under this subdivision must include:
6.31 (1) a description of the facilities for which costs are to be recovered;
6.32 (2) an implementation schedule for the facilities;
6.33 (3) the utility's costs for the facilities;
6.34 (4) a description of the utility's efforts to ensure that costs of the facilities are
6.35reasonable and were prudently incurred; and
7.1 (5) a description of the benefits of the project in promoting the development of
7.2renewable energy in a manner consistent with this chapter.
7.3 Sec. 9. Minnesota Statutes 2007 Supplement, section 216B.1691, subdivision 2a,
7.4is amended to read:
7.5 Subd. 2a. Eligible energy technology standard. (a) Except as provided in
7.6paragraph (b), each electric utility shall generate or procure sufficient electricity generated
7.7by an eligible energy technology to provide its retail customers in Minnesota, or the
7.8retail customers of a distribution utility to which the electric utility provides wholesale
7.9electric service, so that at least the following standard percentages of the electric utility's
7.10total retail electric sales to retail customers in Minnesota are generated by eligible energy
7.11technologies by the end of the year indicated:
| 7.12 |
(1) |
2012 |
12 percent |
| 7.13 |
(2) |
2016 |
17 percent |
| 7.14 |
(3) |
2020 |
20 percent |
| 7.15 |
(4) |
2025 |
25 percent. |
7.17must meet the requirements of this paragraph rather than paragraph (a). An electric utility
7.18subject to this paragraph must generate or procure sufficient electricity generated by
7.19an eligible energy technology to provide its retail customers in Minnesota or the retail
7.20customer of a distribution utility to which the electric utility provides wholesale electric
7.21service so that at least the following percentages of the electric utility's total retail electric
7.22sales to retail customers in Minnesota are generated by eligible energy technologies by the
7.23end of the year indicated:
| 7.24 |
(1) |
2010 |
15 percent |
| 7.25 |
(2) |
2012 |
18 percent |
| 7.26 |
(3) |
2016 |
25 percent |
| 7.27 |
(4) |
2020 |
30 percent. |
7.29systems and the remaining five percent by other eligible energy technology.
7.30 (c) By the end of the year 2012, at least 0.0125 percent of the electricity required by
7.31paragraphs (a) and (b) to be generated by each electric utility must be generated by solar
7.32energy. At least 60 percent of the required solar energy electric generation by each utility
7.33must be distributed solar generated at a customer's site with customer-owned facilities.
7.34For the purposes of this paragraph, "distributed solar" means solar electric equipment that
7.35meets the requirements of section 216C.25 with a total peak generating capacity of 100
8.1kilowatts or less used for generating electricity primarily for use in a residential property
8.2or small business, as defined by section 645.445, to reduce the effective electric load
8.3for that residence or business. An electric utility that generates less than 60 percent of
8.4its required solar energy electric generation with customer-owned distributed solar must
8.5demonstrate that reasonable efforts were made to achieve sufficient customer participation
8.6in a timely manner.
8.7 Sec. 10. Minnesota Statutes 2007 Supplement, section 216B.2411, subdivision 1,
8.8is amended to read:
8.9 Subdivision 1. Generation projects. (a) Any municipality or rural electric
8.10association providing electric service and subject to section
8.11
8.12of the total amount to be spent on energy conservation improvements under section
8.14 (1) projects in Minnesota to construct an electric generating facility that utilizes
8.15eligible renewable energy sources as defined in subdivision 2, such as methane or other
8.16combustible gases derived from the processing of plant or animal wastes, biomass fuels
8.17such as short-rotation woody or fibrous agricultural crops, or other renewable fuel, as its
8.18primary fuel source;
8.19 (2) projects in Minnesota to install a distributed generation facility of ten megawatts
8.20or less of interconnected capacity that is fueled by natural gas, renewable fuels, or another
8.21similarly clean fuel
8.22 (3) installing a qualifying solar energy project as defined in subdivision 2.
8.23 (b) For public utilities, as defined under section
8.24under this section must be considered energy conservation improvements as defined in
8.25section
8.26under this section must be considered load-management activities described in section
8.28 Sec. 11. Minnesota Statutes 2006, section 216B.2411, subdivision 2, is amended to
8.29read:
8.30 Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
8.31subdivision and section
8.32 (b) "Eligible renewable energy sources" means fuels and technologies to generate
8.33electricity through the use of any of the resources listed in section
8.341
9.1under paragraph (c), and "solar" must meet the definition of a qualified solar energy
9.2project under paragraph (d).
9.3 (c) "Biomass" includes:
9.4 (1) methane or other combustible gases derived from the processing of plant or
9.5animal material;
9.6 (2) alternative fuels derived from soybean and other agricultural plant oils or animal
9.7fats;
9.8 (3) combustion of barley hulls, corn, soy-based products, or other agricultural
9.9products;
9.10 (4) wood residue from the wood products industry in Minnesota or other wood
9.11products such as short-rotation woody or fibrous agricultural crops; and
9.12 (5) landfill gas, mixed municipal solid waste, and refuse-derived fuel from mixed
9.13municipal solid waste.
9.14 (d) "Qualifying solar energy project" means a qualifying solar thermal project or
9.15qualifying solar electric project.
9.16 (e) "Qualifying solar thermal project" means a flat plate or evacuated tube that meets
9.17the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant
9.18energy and transfers it to a storage medium for distribution as energy to heat or cool air or
9.19water, but does not include equipment used to heat water at a residential property (1) for
9.20domestic use if less than one-half of the energy used for that purpose is derived from the
9.21sun or (2) for use in a hot tub or swimming pool.
9.22 (f) "Qualifying solar electric project" means solar electric equipment that meets the
9.23requirements of section 216C.25 with a total peak generating capacity of 100 kilowatts
9.24or less used for generating electricity primarily for use in a residential property or small
9.25business to reduce the effective electric load for that residence or small business.
9.26 (g) "Residential property" means the principal residence used by the homeowner at
9.27the time the solar equipment is placed in service.
9.28 (h) "Small business" has the meaning given to it in section 645.445.
9.29 Sec. 12. Minnesota Statutes 2006, section 216B.2411, is amended by adding a
9.30subdivision to read:
9.31 Subd. 4. Qualifying solar energy project. (a) A utility subject to section 216B.241
9.32may include in its conservation plan programs for the installation of qualifying solar
9.33energy projects as provided in this section. Qualifying solar energy projects must
9.34meet or exceed cost-effectiveness and other guidelines to be developed by order of
9.35the commissioner. Energy savings from qualifying solar energy projects may not be
10.1counted toward the minimum energy savings goal of at least one percent for energy
10.2conservation improvements required under section 216B.241, subdivision 1c, but may, as
10.3the commissioner determines appropriate:
10.4 (1) be counted above that minimum percentage; and
10.5 (2) be considered when establishing performance incentives under section 216B.241,
10.6subdivision 2c.
10.7 (b) Qualifying solar energy projects may not be considered when establishing
10.8demand-side management targets under sections 216B.2422, 216B.243, or any other
10.9section of this chapter.
10.10 Sec. 13. Minnesota Statutes 2006, section 216B.243, is amended by adding a
10.11subdivision to read:
10.12 Subd. 9. Renewable energy standard facilities. The requirements of this section
10.13do not apply to a wind energy conversion system or a solar electric generation facility that
10.14is intended to be used to meet or exceed the obligations of section 216B.1691; provided
10.15that, after notice and comment, the commission determines that the facility is a reasonable
10.16and prudent approach to meeting a utility's obligations under that section. When making
10.17this determination, the commission may consider the size of the facility relative to a
10.18utility's total need for renewable resources and alternative approaches for supplying
10.19the renewable energy to be supplied by the proposed facility, and must consider the
10.20facility's ability to promote economic development, as required under section 216B.1691,
10.21subdivision 9, maintain electric system reliability and consider impacts on ratepayers, and
10.22other criteria as the commission may determine are relevant.
10.23EFFECTIVE DATE.This section is effective the day following final enactment.
10.24 Sec. 14. Minnesota Statutes 2006, section 216E.03, is amended by adding a subdivision
10.25to read:
10.26 Subd. 3a. Project notice. At least 120 days before filing an application with the
10.27commission, the applicant shall provide notice to each local unit of government within
10.28which a route may be proposed. The notice must describe the proposed project and the
10.29opportunity for a preapplication consultation meeting with local units of government as
10.30provided in subdivision 3b.
10.31EFFECTIVE DATE.This section is effective the day following final enactment.
11.1 Sec. 15. Minnesota Statutes 2006, section 216E.03, is amended by adding a subdivision
11.2to read:
11.3 Subd. 3b. Preapplication consultation meetings. Within 30 days of receiving a
11.4project notice, local units of government may request the applicant hold a consultation
11.5meeting with local units of government. Upon receiving notice from a local unit of
11.6government requesting a preapplication consultation meeting, the applicant shall arrange
11.7the meeting at a location chosen by the local unit of government.
11.8EFFECTIVE DATE.This section is effective the day following final enactment.
11.9 Sec. 16. Minnesota Statutes 2006, section 216E.03, subdivision 4, is amended to read:
11.10 Subd. 4.
11.11application to the commission, the applicant shall publish notice of the application in
11.12a legal newspaper of general circulation in each county in which the site or route is
11.13proposed and send a copy of the application by certified mail to any regional development
11.14commission, county, incorporated municipality, and
11.15of the site or route is proposed. Within the same 15 days, the applicant shall also send
11.16a notice of the submission of the application and description of the proposed project to
11.17each owner whose property is on or adjacent to any of the proposed sites for the power
11.18plant or along any of the proposed routes for the transmission line. The notice
11.19identify a location where a copy of the application can be reviewed. For the purpose
11.20of giving mailed notice under this subdivision, owners
11.21records of the county auditor or, in any county where tax statements are mailed by the
11.22county treasurer, on the records of the county treasurer; but other appropriate records may
11.23be used for this purpose. The failure to give mailed notice to a property owner, or defects
11.24in the notice,
11.25comply with this subdivision has been made. Within the same 15 days, the applicant shall
11.26also send the same notice of the submission of the application and description of the
11.27proposed project to those persons who have requested to be placed on a list maintained by
11.28the commission for receiving notice of proposed large electric generating power plants
11.29and high voltage transmission lines.
11.30EFFECTIVE DATE.This section is effective the day following final enactment.
11.31 Sec. 17. [216F.012] SIZE ELECTION.
11.32 (a) Owners of wind energy conversion systems that consist of single ownership
11.33units with a nameplate capacity less than five megawatts and a combined nameplate
12.1capacity of less than 25 megawatts, as determined under section 216F.011, may elect to be
12.2classified as a small wind energy conversion system or a large wind energy conversion
12.3system under this chapter.
12.4 (b) This section expires July 1, 2012.
12.5 Sec. 18. [216F.09] WECS AGGREGATION PROGRAM.
12.6 Subdivision 1. Program established. The entity selected to provide rural wind
12.7development assistance under Laws 2007, chapter 57, article 2, section 3, subdivision 6,
12.8shall also establish a wind energy conversion system (WECS) aggregation program. The
12.9purpose of the program is to create a clearinghouse to coordinate and arrange umbrella
12.10sales arrangements for groups of individuals, farmstead property owners, farmers'
12.11cooperative associations, community-based energy project developers, school districts,
12.12and other political subdivisions to aggregate small-volume purchases, as a group, in order
12.13to place large orders for wind energy conversion systems with WECS manufacturers.
12.14 Subd. 2. Responsibilities. The entity shall:
12.15 (1) provide application procedures for participation in the program;
12.16 (2) set minimum standards for wind energy conversion systems to be considered for
12.17purchase through the program, which may include price, quality and installation standards,
12.18timely delivery schedules and arrangements, performance and reliability ratings, and any
12.19other factors considered necessary or desirable for participants;
12.20 (3) set eligibility considerations and requirements for purchasers, including
12.21availability to the applicant of land authorized for installation and use of WECS,
12.22likelihood of a permit being approved by the commission or a county under this chapter,
12.23documentation of adequate financing, and other necessary or usual financial or business
12.24practices or requirements;
12.25 (4) provide a minimal framework for soliciting or contacting manufacturers on
12.26behalf of participants; and
12.27 (5) coordinate purchase agreements between the manufacturer and participants.
12.28 Subd. 3. Report. By February 1 of 2009, and each year thereafter, the commissioner
12.29of commerce shall submit a report to the chairs and ranking minority members of the
12.30senate and house of representatives committees with primary jurisdiction over energy
12.31policy on the activities and results of the program, including the number of participants
12.32and the number of purchases made.
12.33 Subd. 4. Assessment; appropriation. Annual costs of the program, up to $100,000,
12.34must be assessed under section 216C.052, subdivision 2, paragraph (c), clause (1). The
12.35assessment is appropriated to the commissioner of commerce to be used by the director
13.1of the Office of Energy Security for a grant to the entity to carry out the purposes of
13.2this section.
13.3EFFECTIVE DATE.This section is effective the day following final enactment.
13.4 Sec. 19. [216H.07] GREENHOUSE GAS EMISSION REDUCTION
13.5ATTAINMENT; POLICY DEVELOPMENT PROCESS.
13.6 Subdivision 1. Definition. For the purpose of this section, "reductions" means the
13.7greenhouse gas emissions reductions goals specified in section 216H.02, subdivision 1.
13.8 Subd. 2. Purpose. This section is intended to create a nonexclusive, regular process
13.9for the state to develop policies to attain the greenhouse gas reduction goals specified
13.10in section 216H.02.
13.11 Subd. 3. Biennial reduction progress report. By November 1 of each
13.12even-numbered year, the commissioners of commerce and the Pollution Control Agency
13.13shall jointly report to the chairs and ranking minority members of the legislative
13.14committees with primary policy jurisdiction over energy and environmental issues the
13.15most recent and best available evidence identifying the level of reductions already
13.16achieved and the level necessary to achieve the reduction goals established in section
13.17216H.02. The report must be written in easily understood, nontechnical language.
13.18 Subd. 4. Annual legislative proposal. The commissioners of commerce and the
13.19Pollution Control Agency shall annually by November 1 provide to the chairs and ranking
13.20minority members of the legislative committees with primary policy jurisdiction over
13.21energy and environmental issues proposed legislation the commissioners determine
13.22appropriate to achieve the reductions. If the commissioners determine no legislation is
13.23appropriate, they shall report that determination to the chairs along with an explanation of
13.24the determination.
13.25EFFECTIVE DATE.This section is effective the day following final enactment.
13.26 Sec. 20. [216H.10] DEFINITIONS.
13.27 Subdivision 1. Applicability. For purposes of sections 216H.10 to 216H.15, the
13.28following terms have the meanings given.
13.29 Subd. 2. Agency. "Agency" means the Pollution Control Agency.
13.30 Subd. 3. Carbon dioxide equivalent. "Carbon dioxide equivalent" means the
13.31quantity of carbon dioxide that has the same global warming potential as a given amount
13.32of another greenhouse gas.
14.1 Subd. 4. Commissioner. "Commissioner" means the commissioner of the Pollution
14.2Control Agency.
14.3 Subd. 5. Global warming. "Global warming" means the observed and predicted
14.4increase in the temperature of the atmosphere near the earth's surface and the oceans.
14.5 Subd. 6. Global warming potential or GWP. "Global warming potential" or
14.6"GWP" means a quantitative measure of the potential of an emission of a greenhouse
14.7gas to contribute to global warming over a 100-year period expressed in terms of the
14.8equivalent emission of carbon dioxide needed to produce the same 100-year warming
14.9effect, as reported in Fourth Assessment Report: Climate Change 2007, Intergovernmental
14.10Panel on Climate Change.
14.11 Subd. 7. High-GWP greenhouse gas. "High-GWP greenhouse gas" means
14.12hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
14.13 Subd. 8. Mobile air conditioner. "Mobile air conditioner" means mechanical
14.14vapor compression refrigeration equipment used to cool the passenger compartment of a
14.15motor vehicle.
14.16 Subd. 9. Motor vehicle. "Motor vehicle" has the meaning given in section 168.011,
14.17subdivision 4.
14.18 Subd. 10. New motor vehicle. "New motor vehicle" has the meaning given in
14.19section 80E.03, subdivision 7.
14.20 Subd. 11. Refrigerant. "Refrigerant" means a substance used, sold for use, or
14.21designed and intended for use in a mobile air conditioner to transfer heat out of the space
14.22being cooled.
14.23EFFECTIVE DATE.This section is effective the day following final enactment.
14.24 Sec. 21. [216H.11] HIGH-GWP GREENHOUSE GAS REPORTING.
14.25 Subdivision 1. Gas manufacturers. Beginning October 1, 2008, and each year
14.26thereafter, a manufacturer of a high-GWP greenhouse gas must report to the agency the
14.27total amount of each high-GWP greenhouse gas sold to a purchaser in this state during
14.28the previous year.
14.29 Subd. 2. Purchases. Beginning October 1, 2008, and each year thereafter, a
14.30person in this state who purchases 100 metric tons or more carbon dioxide equivalent
14.31of a high-GWP greenhouse gas must report to the agency, on a form prescribed by the
14.32commissioner, the total amount of each high-GWP greenhouse gas purchased during the
14.33previous year and the purpose for which the gas was used.
15.1 Subd. 3. Acceptance of federal filing. With the approval of the commissioner, this
15.2section may be satisfied by filing with the commissioner a copy of a greenhouse gas
15.3emissions report filed with a federal agency.
15.4EFFECTIVE DATE.This section is effective the day following final enactment.
15.5 Sec. 22. [216H.12] MOBILE AIR CONDITIONER LEAKAGE RATES;
15.6DISCLOSURE.
15.7 Subdivision 1. Leakage disclosure. Beginning January 1, 2009, a manufacturer
15.8selling or offering for sale a new motor vehicle in this state containing a mobile air
15.9conditioner that uses the high-GWP greenhouse gas HFC-134a (1,1,1,2-tetrafluoroethane)
15.10as a refrigerant must, 90 days prior to the initial sale or offer for sale, report to the
15.11commissioner the leakage rate, in grams of refrigerant per year, for the type of mobile
15.12air conditioner contained in that make, model, and model year. The leakage rate must be
15.13calculated using the information provided in the most recently published version of the
15.14Society of Automotive Engineers International document J2727, "HFC-134a Mobile
15.15Air Conditioning System Emission Chart." The method by which the leakage rate is
15.16calculated, accounting for each component of the air conditioning unit, must also be
15.17reported to the commissioner.
15.18 Subd. 2. Posting. Beginning January 1, 2009, the agency and the Office of the
15.19Attorney General must post on their Web sites:
15.20 (1) the leakage rate disclosed by a manufacturer under subdivision 1 for each model
15.21and make of new motor vehicle sold or offered for sale in this state; and
15.22 (2) the following statement: "Vehicle air conditioning systems may leak refrigerants.
15.23Information provided in the chart compares the potential global warming effects of
15.24refrigerant leakage from different makes and models of vehicles."
15.25EFFECTIVE DATE.This section is effective the day following final enactment.
15.26 Sec. 23. [216H.15] ENFORCEMENT.
15.27 Sections 216H.10 to 216H.12 may be enforced under section 116.072.
15.28EFFECTIVE DATE.This section is effective the day following final enactment.
15.29 Sec. 24. REPORT.
15.30 By February 1, 2009, the commissioner of the Pollution Control Agency shall
15.31submit a report to the chairs and ranking minority members of the senate and house of
15.32representatives committees with primary jurisdiction over environmental policy that
16.1identifies the uses and emissions sources of hydrofluorocarbons, perfluorocarbons, and
16.2sulfur hexafluoride in this state and suggests options for reducing or eliminating those
16.3uses and emissions and the costs of implementing those options. The options for reducing
16.4emissions must include phasing out specific consumer products containing high global
16.5warming potential gases where that is cost-effective.
16.6EFFECTIVE DATE.This section is effective the day following final enactment.
16.7 Sec. 25. SOLAR RATING AND CERTIFICATION LABORATORY.
16.8 The director of the Office of Energy Security shall convene technical stakeholders
16.9who are expert in the design, manufacture, installation, and operation of solar energy
16.10systems to develop criteria and characteristics for a Minnesota-based solar rating and
16.11certification laboratory. The criteria shall include, but not be limited to, consideration of
16.12durability, cold-weather operations, and indoor air quality. The director shall develop and,
16.13by September 15, 2008, issue a request for proposals for the development of a plan, based
16.14on the criteria and characteristics developed by the stakeholder group, for a solar rating
16.15and certification laboratory in the state, including cost estimates. By January 15, 2009,
16.16the director shall submit a report to the chairs of the house and senate committees with
16.17jurisdiction over energy finance issues, detailing the responses to the request and making
16.18recommendations, including draft legislation.
16.19EFFECTIVE DATE.This section is effective the day following final enactment.
16.20 Sec. 26. REPEALER.
16.21Minnesota Statutes 2006, section 115C.09, subdivision 3j, is repealed.
16.22EFFECTIVE DATE.This section is effective the day following final enactment.