1.1                          A bill for an act 
  1.2             relating to energy; regulating a state mandate 
  1.3             requiring certain electric energy to be generated by 
  1.4             using biomass as a fuel; amending Minnesota Statutes 
  1.5             1998, section 216B.2424, subdivision 5. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 216B.2424, 
  1.8   subdivision 5, is amended to read: 
  1.9      Subd. 5.  [MANDATE.] A public utility, as defined in 
  1.10  section 216B.02, subdivision 4, that operates a nuclear-powered 
  1.11  electric generating plant within this state must construct and 
  1.12  operate, purchase, or contract to construct and operate (1) by 
  1.13  December 31, 1998, 50 megawatts of electric energy installed 
  1.14  capacity generated by farm-grown closed-loop biomass scheduled 
  1.15  to be operational by December 31, 2001; and (2) by December 31, 
  1.16  1998, an additional 75 megawatts of installed capacity so 
  1.17  generated scheduled to be operational by December 31, 2002.  Of 
  1.18  the 125 megawatts of biomass electricity installed capacity 
  1.19  required under this subdivision, no more than 50 megawatts of 
  1.20  this capacity may be provided by a facility that uses poultry 
  1.21  litter as its primary fuel source and any such facility:  (i) 
  1.22  need not use biomass that complies with the definition in 
  1.23  subdivision 1; (ii) must have entered into a contract with the 
  1.24  public utility for such capacity prior to December 31, 2000; and 
  1.25  (iii) such capacity must be scheduled to be operational by 
  2.1   December 31, 2005.  Of the total 125 megawatts of biomass 
  2.2   electric energy installed capacity required under this section, 
  2.3   no more than 75 megawatts may be provided by a single project.  
  2.4   Of the 75 megawatts of biomass electric energy installed 
  2.5   capacity required under clause (2), no more than 25 megawatts of 
  2.6   this capacity may be provided by a St. Paul district heating and 
  2.7   cooling system cogeneration facility utilizing waste wood as a 
  2.8   primary fuel source.  The St. Paul district heating and cooling 
  2.9   system cogeneration facility need not use biomass that complies 
  2.10  with the definition in subdivision 1.  The public utility must 
  2.11  accept and consider on an equal basis with other proposals a 
  2.12  proposal to satisfy the requirements of this section that 
  2.13  includes a project that exceeds the megawatt capacity 
  2.14  requirements of either clause (1) or (2) and that proposes to 
  2.15  sell the excess capacity to the public utility or to other 
  2.16  purchasers. 
  2.17     Sec. 2.  [EFFECTIVE DATE.] 
  2.18     Section 1 is effective the day following its final 
  2.19  enactment.