1.1                          A bill for an act
  1.2             relating to the environment; establishing emissions 
  1.3             limitations for emissions from electric generating 
  1.4             facilities; authorizing the public utilities 
  1.5             commission to order a public utility to evaluate 
  1.6             emissions reductions options and to implement 
  1.7             emissions reductions initiatives; amending Minnesota 
  1.8             Statutes 2001 Supplement, section 216B.1692, 
  1.9             subdivisions 2, 3, 6; proposing coding for new law in 
  1.10            Minnesota Statutes, chapter 116. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [116.995] [EMISSIONS FROM ELECTRIC GENERATING 
  1.13  FACILITIES.] 
  1.14     Subdivision 1.  [EMISSIONS LIMITS.] The following emissions 
  1.15  limits shall apply to electric generating facilities by the year 
  1.16  2007: 
  1.17     (1) the emissions limit for nitrogen oxide shall be .015 
  1.18  pounds per million Btu's and aggregate emissions from electric 
  1.19  generating facilities shall not exceed 45,000 tons per year; 
  1.20     (2) the emissions limit for sulfur dioxide shall be .30 
  1.21  pounds per million Btu's and aggregate emissions from electric 
  1.22  generating facilities shall not exceed 25,000 tons per year; 
  1.23     (3) aggregate emissions of mercury from electric generating 
  1.24  facilities shall not exceed 425 pounds per year and, by 2010, 
  1.25  150 pounds per year; and 
  1.26     (4) aggregate emissions of carbon dioxide from electric 
  1.27  generating facilities shall not exceed 30,000,000 tons per year. 
  1.28     Subd. 2.  [PERMIT ISSUANCE OR RENEWAL.] As a condition for 
  2.1   a new or renewed air emissions permit for an electric generating 
  2.2   facility, the agency shall require that, at a minimum, the 
  2.3   generating facility meet current new source performance 
  2.4   standards for such facilities under the federal Clean Air Act, 
  2.5   United States Code, title 42, section 7411.  The agency may 
  2.6   waive this requirement if the agency finds that the facility 
  2.7   will achieve greater emissions reductions by converting the 
  2.8   facility to utilizing natural gas as its primary fuel. 
  2.9      Subd. 3.  [AGENCY RULEMAKING AND PROCEDURES.] By December 
  2.10  31, 2003, the agency shall: 
  2.11     (1) establish and implement a system for accurately 
  2.12  monitoring the quantity of each pollutant listed in subdivision 
  2.13  1 that an electric generating facility emits annually; 
  2.14     (2) adopt rules establishing a schedule for specific 
  2.15  changes in fuel, technology, pollution control equipment, or 
  2.16  operations at coal-fired electric generating facilities in the 
  2.17  state that will permit the attainment of the emissions limits 
  2.18  detailed in subdivision 1; and 
  2.19     (3) adopt rules governing the appropriate disposal of 
  2.20  mercury and other hazardous wastes, recovered through the use of 
  2.21  any emissions control method or technology associated with the 
  2.22  combustion of fossil fuel, to ensure that the adverse effects of 
  2.23  these materials are not transferred from one medium to another 
  2.24  or otherwise released to the environment. 
  2.25     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  2.26  216B.1692, subdivision 2, is amended to read: 
  2.27     Subd. 2.  [PROPOSAL SUBMISSION.] A public utility that 
  2.28  intends to submit a proposal for an emissions reduction rider 
  2.29  under this section, or that is ordered to do so by the 
  2.30  commission, must submit to the commission, the department, the 
  2.31  pollution control agency, and interested parties its plans for 
  2.32  emissions reduction projects at its generating facilities.  This 
  2.33  submission must be made at least 60 days in advance of a 
  2.34  petition for a rider and shall include: 
  2.35     (1) the priority order of emissions reduction projects the 
  2.36  utility plans to pursue at its generating facilities; 
  3.1      (2) the planned schedule for implementation; 
  3.2      (3) the analysis and considerations relied on by the public 
  3.3   utility to develop that priority ranking; 
  3.4      (4) the alternative emissions reduction projects 
  3.5   considered, including but not limited to applications of the 
  3.6   best available control technology and repowering with natural 
  3.7   gas, and reasons for not pursuing them; 
  3.8      (5) the emissions reductions expected to be achieved by the 
  3.9   projects and their relation to applicable standards for new 
  3.10  facilities under the federal Clean Air Act; and 
  3.11     (6) the general rationale and conclusions of the public 
  3.12  utility in determining the priority ranking. 
  3.13     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
  3.14  216B.1692, subdivision 3, is amended to read: 
  3.15     Subd. 3.  [FILING PETITION TO RECOVER PROJECT COSTS.] 
  3.16  (a) The commission may order a public utility may to petition 
  3.17  the commission for approval of an emissions reduction rider to 
  3.18  recover the costs of a qualifying emissions reduction project 
  3.19  outside of a general rate case proceeding under section 
  3.20  216B.16.  A public utility may also voluntarily submit such a 
  3.21  petition.  In its filing, the public utility shall provide: 
  3.22     (1) a description of the planned emissions reduction 
  3.23  project; 
  3.24     (2) the activities involved in the project; 
  3.25     (3) a schedule for implementation; 
  3.26     (4) any analysis provided to the pollution control agency 
  3.27  regarding the project; 
  3.28     (5) an assessment of alternatives to the project, including 
  3.29  costs, environmental impact, and operational issues; 
  3.30     (6) the proposed method of cost recovery; 
  3.31     (7) any proposed recovery above cost; and 
  3.32     (8) the projected emissions reductions from the project.  
  3.33     (b) Nothing in this section precludes a public utility or 
  3.34  interested party from seeking commission guidelines for 
  3.35  emissions reduction rider filings; however, commission 
  3.36  guidelines are not required as a prerequisite to a public 
  4.1   utility-initiated filing. 
  4.2      Sec. 4.  Minnesota Statutes 2001 Supplement, section 
  4.3   216B.1692, subdivision 6, is amended to read: 
  4.4      Subd. 6.  [IMPLEMENTATION.] Within 60 days of a final 
  4.5   commission order, the public utility shall notify the commission 
  4.6   and the pollution control agency whether it will implement the 
  4.7   order and proceed with the project.  Nothing in this section 
  4.8   commits a public utility to implementing a proposed emissions 
  4.9   reduction project if the proposed project or terms of the 
  4.10  emissions reduction rider have been either modified or rejected 
  4.11  by the commission.  A public utility implementing a project 
  4.12  under this section will not be required for a period of eight 
  4.13  years after installation to undertake additional investments to 
  4.14  comply with a new state requirement regarding pollutants 
  4.15  addressed by the project at the project generating facility.  
  4.16  This section does not affect requirements of federal law.  The 
  4.17  term of the rider shall extend for the period approved by the 
  4.18  commission regardless of any subsequent state or federal 
  4.19  requirement affecting any pollutant addressed by the approved 
  4.20  emissions reduction project and regardless of the sunset date in 
  4.21  subdivision 8. 
  4.22     Sec. 5.  [EFFECTIVE DATE.] 
  4.23     Sections 1 to 4 are effective the day following final 
  4.24  enactment.