1.1                          A bill for an act 
  1.2             relating to energy; directing the electric energy task 
  1.3             force to consider new preferred alternative energy 
  1.4             sources; providing for incentive payments to closed 
  1.5             system pumped hydropower facilities; amending 
  1.6             Minnesota Statutes 1994, sections 216C.051, 
  1.7             subdivision 7; and 216C.41, subdivision 1. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 216C.051, 
  1.10  subdivision 7, is amended to read: 
  1.11     Subd. 7.  [GUIDELINES; PREFERRED ELECTRIC GENERATION 
  1.12  SOURCES; DEFINITIONS.] (a) The legislative task force on 
  1.13  electric energy shall undertake its responsibilities in light of 
  1.14  the guidelines specified in this subdivision. 
  1.15     (b) The highest priority in electric energy production and 
  1.16  consumption is conservation of electric energy and management of 
  1.17  demand by all segments of the community. 
  1.18     (c) The following energy sources for generating electric 
  1.19  power distributed in the state, listed in their descending order 
  1.20  of preference, based on minimizing long-term negative 
  1.21  environmental, social, and economic burdens imposed by the 
  1.22  specific energy sources, are: 
  1.23     (1) wind and solar; 
  1.24     (2) biomass and low-head or refurbished hydropower; 
  1.25     (3) decomposition gases produced by solid waste management 
  1.26  facilities, natural gas-fired cogeneration, and waste materials 
  2.1   or byproducts combined with natural gas; 
  2.2      (4) natural gas, hydropower that is not low-head or 
  2.3   refurbished hydropower, and solid waste as a direct fuel or 
  2.4   refuse-derived fuel; and 
  2.5      (5) coal and nuclear power. 
  2.6      (d) For the purposes of paragraph (c) within each clause, 
  2.7   the more efficient an energy source is in generating electricity 
  2.8   or the more efficient a technology is that utilizes an energy 
  2.9   source, the more preferred it is for use in generating 
  2.10  electricity for distribution and consumption in the state. 
  2.11     (e) For the purposes of paragraph (c), clauses (3) and (4), 
  2.12  the use of waste materials and byproducts for generating 
  2.13  electric power must be limited to those waste materials and 
  2.14  byproducts that are necessarily generated or produced by 
  2.15  efficient processes and systems.  Preventing and minimizing 
  2.16  waste and byproducts are preferred in every situation to relying 
  2.17  on the continued generation or production of waste materials and 
  2.18  byproducts. 
  2.19     (f) For the purposes of this section, "preferred" or 
  2.20  "renewable" energy sources are those described in paragraph (c), 
  2.21  clauses (1) to (3), and "subordinate" or "traditional" energy 
  2.22  sources are those described in paragraph (c), clauses (4) and 
  2.23  (5). 
  2.24     (g) For the purposes of this section: 
  2.25     (1) "biomass" means herbaceous crops, trees, agricultural 
  2.26  waste, and aquatic plant matter, excluding mixed municipal solid 
  2.27  waste, as defined in section 115A.03, used to generate 
  2.28  electricity; and 
  2.29     (2) "low-head hydropower" means a hydropower facility that 
  2.30  has a head of less than 66 feet. 
  2.31     (h) The legislative task force on electric energy is 
  2.32  further directed to consider the appropriate placement of other 
  2.33  energy sources in the list of preferred electric generation 
  2.34  sources in paragraph (c), including: 
  2.35     (1) cogeneration gasification processes other than natural 
  2.36  gas-fired cogeneration; and 
  3.1      (2) low-head, refurbished, or closed system pumped 
  3.2   hydropower. 
  3.3      Sec. 2.  Minnesota Statutes 1994, section 216C.41, 
  3.4   subdivision 1, is amended to read: 
  3.5      Subdivision 1.  [DEFINITIONS.] For purposes of this 
  3.6   section, a "qualified hydroelectric facility" or "facility" 
  3.7   means a hydroelectric generating facility in this state 
  3.8   that begins generating electricity after July 1, 1994, and: 
  3.9      (1) is located at the site of a dam, if the dam was in 
  3.10  existence as of March 31, 1994; and or 
  3.11     (2) begins generating electricity after July 1, 1994 whose 
  3.12  source is closed system pumped hydropower.