1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 861.2A bill for an act1.3relating to energy; removing ban on increased carbon dioxide emissions by 1.4utilities; amending Minnesota Statutes 2010, section 216H.02, subdivision 4; 1.5repealing Minnesota Statutes 2010, section 216H.03.1.6May 20, 20111.7The Honorable Michelle L. Fischbach1.8President of the Senate1.9The Honorable Kurt Zellers1.10Speaker of the House of Representatives1.11We, the undersigned conferees for S.F. No. 86 report that we have agreed upon the 1.12items in dispute and recommend as follows:1.13That the House recede from its amendment and that S.F. No. 86 be further amended 1.14as follows:1.15Delete everything after the enacting clause and insert:1.16    "Section 1. Minnesota Statutes 2010, section 216H.03, subdivision 7, is amended to 1.17read:1.18    Subd. 7. Other exemptions. The prohibitions in subdivision 3 do not apply to:1.19    (1) a new large energy facility under consideration by the Public Utilities 1.20Commission pursuant to proposals or applications filed with the Public Utilities 1.21Commission before April 1, 2007, or to any power purchase agreement related to a facility 1.22described in this clause. The exclusion of pending proposals and applications from the 1.23prohibitions in subdivision 3 does not limit the applicability of any other law and is not an 1.24expression of legislative intent regarding whether any pending proposal or application 1.25should be approved or denied;1.26    (2) a contract not subject to commission approval that was entered into prior to 1.27April 1, 2007, to purchase power from a new large energy facility that was approved by 1.28a comparable authority in another state prior to that date, for which municipal or public 1.29power district bonds have been issued, and on which construction has begun; or2.1    (3) a new large energy facility or a power purchase agreement between a Minnesota 2.2utility and a new large energy facility located outside Minnesota that the Public 2.3Utilities Commission has determined is essential to ensure the long-term reliability of 2.4Minnesota's electric system, to allow electric service for increased industrial demand, 2.5or to avoid placing a substantial financial burden on Minnesota ratepayers. An order 2.6of the commission granting an exemption under this clause is stayed until the June 1 2.7following the next regular or annual session of the legislature that begins after the date of 2.8the commission's final order; or2.9(4) 1,500 megawatts of electric generating capacity, in aggregate, from new large 2.10energy facilities or power purchase agreements with those new large energy facilities that:2.11(i) are fueled by feedstock coal; and2.12(ii) began construction after April 1, 2007.2.13Projects will receive priority for exemption under this clause based on the shortest amount 2.14of time after April 1, 2007, and the date construction of a new large energy facility begins. 2.15Power purchase agreements with new large energy facilities that are exempt from the 2.16prohibitions in subdivision 3 pursuant to this clause are also exempt from the prohibitions 2.17in subdivision 3. An exemption under this clause is not valid unless certified by the Public 2.18Utilities Commission. The commission must certify a request for an exemption if it finds 2.19the request and the grant of the exemption is in compliance with this clause.2.20EFFECTIVE DATE.This section is effective the day following final enactment."2.21Delete the title and insert:2.22"A bill for an act2.23relating to energy; modifying ban on increased carbon dioxide emissions by 2.24utilities;amending Minnesota Statutes 2010, section 216H.03, subdivision 7."

3.1We request the adoption of this report and repassage of the bill.3.2Senate Conferees:3.3
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                     						3.4Julie A. RosenLeRoy A. Stumpf3.5
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                     						3.6Doug Magnus3.7House Conferees:3.8
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                     						3.9Michael BeardTim O'Driscoll3.10
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                     						3.11Lyle Koenen