1.1 	A bill for an act
1.2 	relating to energy; establishing the Clean Energy First Act; requiring utilities to 
1.3 	meet resource needs using clean energy resources; authorizing certain cost recovery; 
1.4 	establishing a pilot project; requiring reports;amending Minnesota Statutes 2018, 
1.5 	sections 216B.16, subdivision 13; 216B.1645, subdivisions 1, 2; 216B.1691, 
1.6 	subdivision 9; 216B.2422, subdivisions 2, 3, 4, 5, by adding subdivisions; 216F.04; 
1.7 	216H.02, by adding a subdivision; Minnesota Statutes 2019 Supplement, section 
1.8 	216B.2422, subdivision 1; proposing coding for new law in Minnesota Statutes, 
1.9 	chapters 216B; 216C; 216F.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. TITLE.
 1.12 	Sections 2 to 26 shall be referred to as the "Clean Energy First Act."

1.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

1.14 	Sec. 2. Minnesota Statutes 2018, section 216B.16, subdivision 13, is amended to read:
1.15 		Subd. 13.Economic and community development. The commission may allow a 
1.16 	public utility to recover from ratepayers the expenses incurred for (1) economic and 
1.17 	community development, and (2) efforts to maximize employment of local workers to 
1.18 	construct and maintain generation facilities that supply power to the utility's customers. The 
1.19 	commission must, to the maximum extent possible, prioritize the hiring of workers from 
1.20 	communities hosting retiring power plants, including but not limited to Becker, Monticello, 
1.21 	Oak Park Heights, and Red Wing.

2.1 	Sec. 3. Minnesota Statutes 2018, section 216B.1645, subdivision 1, is amended to read:
2.2 		Subdivision 1.Commission authority. Upon the petition of a public utility, the Public 
2.3 	Utilities Commission shall approve or disapprove power purchase contracts, investments, 
2.4 	or expenditures entered into or made by the utility to satisfy the wind and biomass mandates 
2.5 	contained in sections 216B.169, 216B.2423, and 216B.2424, and to satisfy the renewable 
2.6 	energy objectives and standards set forth in section 216B.1691, including reasonable 
2.7 	investments and expenditures, net of revenues, made to:
2.8 	(1) transmit the electricity generated from sources developed under those sections that 
2.9 	is ultimately used to provide service to the utility's retail customers, including studies 
2.10 	necessary to identify new transmission facilities needed to transmit electricity to Minnesota 
2.11 	retail customers from generating facilities constructed to satisfy the renewable energy 
2.12 	objectives and standards, provided that the costs of the studies have not been recovered 
2.13 	previously under existing tariffs and the utility has filed an application for a certificate of 
2.14 	need or for certification as a priority project under section 216B.2425 for the new 
2.15 	transmission facilities identified in the studies;
2.16 	(2) provide storage facilities for renewable energy generation facilities that contribute 
2.17 	to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or
2.18 	(3) develop renewable energy sources from the account required in section 116C.779.; 
2.19 	or
2.20 	(4) upgrade or modify existing transmission facilities used primarily to transmit electricity 
2.21 	generated by a clean energy resource, as defined in section 216B.2422, subdivision 1, 
2.22 	paragraph (f), regardless of whether the public utility has satisfied the standards set forth 
2.23 	in section 216B.1691.

2.24 	Sec. 4. Minnesota Statutes 2018, section 216B.1645, subdivision 2, is amended to read:
2.25 		Subd. 2.Cost recovery. (a) The expenses incurred by the utility over the duration of 
2.26 	the approved contract or useful life of the investment and, expenditures made pursuant to 
2.27 	section 116C.779shall be, and efforts to maximize employment of local workers to construct 
2.28 	and maintain generation facilities that supply power to the utility's customers are recoverable 
2.29 	from the ratepayers of the utility, to the extent they are not offset by utility revenues 
2.30 	attributable to the contracts, investments, or expenditures. The commission must, to the 
2.31 	maximum extent possible, prioritize the hiring of workers from communities hosting retiring 
2.32 	power plants, including but not limited to Becker, Monticello, Oak Park Heights, and Red 
2.33 	Wing.
3.1 	(b) Upon petition by a public utility, the commission shall approve or approve as modified 
3.2 	a rate schedule providing for the automatic adjustment of charges to recover the expenses 
3.3 	or costs approved by the commission under subdivision 1, which, in the case of transmission 
3.4 	expenditures, are limited to the portion of actual transmission costs that are directly allocable 
3.5 	to the need to transmit power from the renewable sources of energy.
3.6 	(c) The commission may not approve recovery of the costs for that portion of the power 
3.7 	generated from sources governed by this section that the utility sells into the wholesale 
3.8 	market.

3.9 	Sec. 5. [216B.1682] ELECTRICITY RATES; WEBSITE POSTING.
3.10 	(a) A utility providing retail electric service to customers in Minnesota must post on its 
3.11 	website a copy of the current rate schedules available to each customer class, including:
3.12 	(1) the amount of any demand charge that is paid monthly regardless of the amount of 
3.13 	the customer's electricity consumption;
3.14 	(2) the amount paid per kilowatt-hour of electricity consumed, including how the rate 
3.15 	changes with the amount of electricity consumed and the season or time of day when the 
3.16 	electricity is consumed, as applicable; and
3.17 	(3) any other relevant factors, terms, or conditions that directly impact a customer's bill, 
3.18 	excluding rate riders.
3.19 	(b) A utility must update the posted rate schedules required under this section within 30 
3.20 	days of the date any change is made.
3.21 	(c) A utility must submit a copy of all postings required under this section to the 
3.22 	commission within 30 days of the date the posting is made.
3.23 	(d) Within 30 days of the date the commission receives a posting under paragraph (c), 
3.24 	the commission must post on its website the most recent copy of the utility's rate schedule 
3.25 	submitted to the commission under this section.

3.26 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
3.27 	final enactment. A utility providing retail electric service must comply with this section no 
3.28 	later than September 1, 2020.

3.29 	Sec. 6. [216B.1683] UTILITY FINANCIAL INCENTIVES; BILL INSERTS.
3.30 	(a) By September 1, 2020, and continuing at least twice annually beginning in 2021, a 
3.31 	utility providing retail electric service to customers in Minnesota must include with each 
4.1 	customer's electricity bill, including bills delivered electronically, information regarding 
4.2 	financial incentives provided by the utility to encourage customers to:
4.3 	(1) implement energy conservation improvements and measures that increase energy 
4.4 	efficiency; and
4.5 	(2) use electricity that is generated from renewable energy sources.
4.6 	(b) The utility must send a copy of the information provided to customers under paragraph 
4.7 	(a) to the commission.
4.8 	(c) For the purposes of this section, the following terms have the meanings given:
4.9 	(1) "energy conservation improvement" has the meaning given in section 216B.241, 
4.10 	subdivision 1, paragraph (e);
4.11 	(2) "energy efficiency" has the meaning given in section 216B.241, subdivision 1, 
4.12 	paragraph (f); and
4.13 	(3) "renewable energy" has the meaning given in section 216B.2422, subdivision 1, 
4.14 	paragraph (c).

4.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

4.16 	Sec. 7. [216B.1684] PREVAILING WAGE.
4.17 	Erection, construction, installation, remodeling, and repairs approved or authorized by 
4.18 	the commission are projects under section 177.42, subdivision 2. All laborers and mechanics 
4.19 	on the project must be paid the prevailing wage rate as defined in section 177.42, subdivision 
4.20 	6, and the project is subject to the requirements of sections 177.30 and 177.41 to 177.45.

4.21 	EFFECTIVE DATE. This section is effective the day following final enactment and 
4.22 	applies to all applicable approvals or authorizations issued by the commission on or after 
4.23 	that date.

4.24 	Sec. 8. Minnesota Statutes 2018, section 216B.1691, subdivision 9, is amended to read:
4.25 		Subd. 9.Local benefits. The commission shall take all reasonable actions within its 
4.26 	statutory authority to ensure this section is implemented to maximize benefits to Minnesota 
4.27 	citizens and local workers as defined in section 216B.2422, subdivision 1, balancing factors 
4.28 	such as local ownership of or participation in energy production, local job impacts as defined 
4.29 	in section 216B.2422, subdivision 1, development and ownership of eligible energy 
4.30 	technology facilities by independent power producers, Minnesota utility ownership of 
5.1 	eligible energy technology facilities, the costs of energy generation to satisfy the renewable 
5.2 	standard, and the reliability of electric service to Minnesotans.

5.3 	Sec. 9. [216B.1697] ELECTRIC UTILITY REPORTS TO CUSTOMERS; 
5.4 	GENERATION SOURCES AND ENVIRONMENTAL IMPACTS.
5.5 	(a) The commission must develop a uniform reporting format that all utilities providing 
5.6 	retail electric service to customers in Minnesota must use to report to customers as required 
5.7 	under this section.
5.8 	(b) By April 1, 2021, and by April 1 each year thereafter, a utility providing retail electric 
5.9 	service to customers in Minnesota must report the information required by this section for 
5.10 	the previous calendar year. The report must be included in an easily understood presentation 
5.11 	as part of a customer's monthly electric bill.
5.12 	(c) The uniform report format developed by the commission must provide for reporting 
5.13 	of the following information each calendar year:
5.14 	(1) the average proportion of each technology or fuel source used to generate all electricity 
5.15 	sold at retail to the utility's Minnesota retail customers, including but not limited to coal, 
5.16 	natural gas, nuclear fuel, wind, solar, hydropower, solid waste incineration, and biomass. 
5.17 	Electricity purchased by a utility from the Midcontinent Independent System Operator must 
5.18 	reflect the system's average fuel mix during the calendar year;
5.19 	(2) for each megawatt-hour of electricity sold by a utility to Minnesota retail customers, 
5.20 	the average number of pounds each of carbon dioxide, sulfur dioxide, and nitrogen oxides 
5.21 	released into the atmosphere as a result of generating the electricity. For electricity purchased 
5.22 	by a utility from the Midcontinent Independent System Operator, the commission must:
5.23 	(i) determine default values for each pollutant listed in this clause per megawatt-hour 
5.24 	of electricity purchased;
5.25 	(ii) share the default values with all utilities subject to this section; and
5.26 	(iii) update the default values annually; and
5.27 	(3) for each megawatt-hour of electricity sold by a utility to Minnesota retail customers 
5.28 	that is generated from nuclear fuel, the number of pounds of nuclear waste produced.
5.29 	(d) Within 15 days after the date the information required under this section is distributed 
5.30 	with a customer's monthly bill, the utility compiling the information must place the 
5.31 	information on its website.
6.1 	(e) A utility subject to this section must forward a copy of the information required under 
6.2 	this section to the commission. The commission must place the information on the 
6.3 	commission's website and must update the information as necessary.

6.4 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
6.5 	final enactment. The commission must develop the uniform reporting format required under 
6.6 	this section no later than January 1, 2021.

6.7 	Sec. 10. Minnesota Statutes 2019 Supplement, section 216B.2422, subdivision 1, is 
6.8 	amended to read:
6.9 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
6.10 	subdivision have the meanings given them.
6.11 	(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more 
6.12 	of electric power and serving, either directly or indirectly, the needs of 10,000 retail 
6.13 	customers in Minnesota. Utility does not include federal power agencies.
6.14 	(c) "Renewable energy" means electricity generated through use of any of the following 
6.15 	resources:
6.16 	(1) wind;
6.17 	(2) solar;
6.18 	(3) geothermal;
6.19 	(4) hydro;
6.20 	(5) trees or other vegetation;
6.21 	(6) landfill gas; or
6.22 	(7) predominantly organic components of wastewater effluent, sludge, or related 
6.23 	by-products from publicly owned treatment works, but not including incineration of 
6.24 	wastewater sludge.
6.25 	(d) "Resource plan" means a set of resource options that a utility could use to meet the 
6.26 	service needs of its customers over a forecast period, including an explanation of the supply 
6.27 	and demand circumstances under which, and the extent to which, each resource option 
6.28 	would be used to meet those service needs. These resource options include using, 
6.29 	refurbishing, and constructing utility plant and equipment, buying power generated by other 
6.30 	entities, controlling customer loads, and implementing customer energy conservation.
7.1 	(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating 
7.2 	resource of 30 megawatts or greater.
7.3 	(f) "Energy storage system" means a commercially available technology that:
7.4 	(1) uses mechanical, chemical, or thermal processes to:
7.5 	(i) store energy, including energy generated from renewable resources and energy that 
7.6 	would otherwise be wasted, and deliver the stored energy for use at a later time; or
7.7 	(ii) store thermal energy for direct use for heating or cooling at a later time in a manner 
7.8 	that reduces the demand for electricity at the later time;
7.9 	(2) is composed of stationary equipment;
7.10 	(3) if being used for electric grid benefits, is operationally visible and capable of being 
7.11 	controlled by the distribution or transmission entity managing it, to enable and optimize the 
7.12 	safe and reliable operation of the electric system; and
7.13 	(4) achieves any of the following:
7.14 	(i) reduces peak or electrical demand;
7.15 	(ii) defers the need or substitutes for an investment in electric generation, transmission, 
7.16 	or distribution assets;
7.17 	(iii) improves the reliable operation of the electrical transmission or distribution systems, 
7.18 	while ensuring transmission or distribution needs are not created; or
7.19 	(iv) lowers customer costs by storing energy when the cost of generating or purchasing 
7.20 	it is low and delivering it to customers when the costs are high.
7.21 	(g) "Clean energy resource" means renewable energy; an energy storage system; energy 
7.22 	efficiency, as defined in section 216B.241, subdivision 1, paragraph (f); or load management, 
7.23 	as defined in section 216B.241, subdivision 1, paragraph (k).
7.24 	(h) "Carbon-free resource" means a generation technology that, when operating, does 
7.25 	not contribute to statewide greenhouse gas emissions, as defined in section 216H.01, 
7.26 	subdivision 2. Carbon-free resource does not include a nuclear-powered electric generation 
7.27 	facility operating in Minnesota on the effective date of this act.
7.28 	(i) "Nonrenewable energy facility" means a generation facility, other than a nuclear 
7.29 	facility, that does not use a renewable energy or other clean energy resource.
7.30 	(j) "Local job impacts" means the impacts of an integrated resource plan, a certificate 
7.31 	of need, a power purchase agreement, or commission approval of a new or refurbished 
8.1 	electric generation facility on the availability of high-quality construction and mining 
8.2 	employment opportunities for local workers.
8.3 	(k) "Local workers" means workers employed to construct and maintain energy 
8.4 	infrastructure, or employed in a mining industry, that are Minnesota residents, residents of 
8.5 	the utility's service territory, or who permanently reside within 150 miles of a proposed new 
8.6 	or refurbished energy facility.

8.7 	Sec. 11. Minnesota Statutes 2018, section 216B.2422, subdivision 2, is amended to read:
8.8 		Subd. 2.Resource plan filing and approval. (a) A utility shall file a resource plan with 
8.9 	the commission periodically in accordance with rules adopted by the commission. The 
8.10 	commission shall approve, reject, or modify the plan of a public utility, as defined in section 
8.11 	216B.02, subdivision 4, consistent with the public interest.
8.12 	(b) In the resource plan proceedings of all other utilities, the commission's order shall 
8.13 	be advisory and the order's findings and conclusions shall constitute prima facie evidence 
8.14 	which may be rebutted by substantial evidence in all other proceedings. With respect to 
8.15 	utilities other than those defined in section 216B.02, subdivision 4, the commission shall 
8.16 	consider the filing requirements and decisions in any comparable proceedings in another 
8.17 	jurisdiction.
8.18 	(c) As a part of its resource plan filing, a utility shall include the least cost plan for 
8.19 	meeting 50 and, 75, and 100 percent of all energy needs from both new and refurbished 
8.20 	generating facilities through a combination of conservationclean energy and renewable 
8.21 	energycarbon-free resources.

8.22 	Sec. 12. Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision 
8.23 	to read:
8.24 		Subd. 2d.Seasonal operations analysis. (a) Each utility required to file a resource plan 
8.25 	under subdivision 2 must include in the plan an analysis of the economic and environmental 
8.26 	costs and benefits of operating each of its coal-fired electric generating units on a seasonal 
8.27 	basis. The analysis must include:
8.28 	(1) an estimate of the amount of excess generating capacity on the utility's grid for each 
8.29 	of the next three years;
8.30 	(2) a list of the dates on which each coal-fired electric generating unit was not committed 
8.31 	to the Midcontinent Independent System Operator as a result of economics for the three 
8.32 	most recent years;
9.1 	(3) a comparison of the estimated reduction in variable costs to operate each unit on a 
9.2 	seasonal basis for each of the next three years, including but not limited to operations costs, 
9.3 	maintenance costs, and capital expenditures, with the concomitant reduction in revenues;
9.4 	(4) the estimated reduction in carbon dioxide and criteria pollutant emissions at units 
9.5 	operating on a seasonal basis for each of the next three years, and projections of the economic 
9.6 	value of those reductions calculated using the environmental costs established by the 
9.7 	commission under subdivision 3;
9.8 	(5) the impact of seasonal operation on the reliability of the utility's grid;
9.9 	(6) the impact of different Midcontinent Independent System Operator auction clearing 
9.10 	prices on the economics of seasonal operation;
9.11 	(7) how seasonal operations might require modification in order to comply with 
9.12 	Midcontinent Independent System Operator and Federal Energy Regulatory Commission 
9.13 	rules and regulations;
9.14 	(8) additional operational flexibility that may be required in order to meet contingencies 
9.15 	that develop under seasonal operation; and
9.16 	(9) any other information requested by the commission.
9.17 	(b) For the purposes of this subdivision, "seasonal operation" or "seasonal basis" means 
9.18 	operating a coal-fired electric generating unit only during the months of June through August 
9.19 	and December through February, while retaining the ability to restart the idled plant in other 
9.20 	months.

9.21 	EFFECTIVE DATE. This section is effective January 1, 2021, and applies to any 
9.22 	integrated resource plan filed on or after that date.

9.23 	Sec. 13. Minnesota Statutes 2018, section 216B.2422, subdivision 3, is amended to read:
9.24 		Subd. 3.Environmental costs. (a) The commission shall, to the extent practicable, 
9.25 	quantify and establish a range of environmental costs associated with each method of 
9.26 	electricity generation. A utility shall use the values established by the commission in 
9.27 	conjunction with other external factors, including socioeconomic costs, when evaluating 
9.28 	and selecting resource options in all proceedings before the commission, including power 
9.29 	purchase agreement, resource plan, and certificate of need proceedings. When evaluating 
9.30 	resource options, the commission must include and consider the environmental cost values 
9.31 	adopted under this subdivision. When considering the costs of a nonrenewable energy 
9.32 	facility under this section, the commission must consider only nonzero values for the 
10.1 	environmental costs that must be analyzed under this subdivision, including both the low 
10.2 	and high values of any cost range adopted by the commission.
10.3 	(b) The commission shall establish interim environmental cost values associated with 
10.4 	each method of electricity generation by March 1, 1994. These values expire on the date 
10.5 	the commission establishes environmental cost values under paragraph (a).

10.6 	Sec. 14. Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision 
10.7 	to read:
10.8 		Subd. 3a.Favored electricity resources; state policy. It is the policy of the state that, 
10.9 	in order to hasten the achievement of the greenhouse gas reduction goals under section 
10.10 	216H.02, the renewable energy standard under section 216B.1691, subdivision 2a, and the 
10.11 	solar energy standard under section 216B.1691, subdivision 2f, and given the significant 
10.12 	and continuing reductions in the cost of wind technologies, solar technologies, energy 
10.13 	storage systems, and demand-response technologies, the favored method to meet electricity 
10.14 	demand in Minnesota is a combination of clean energy resources.

10.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.16 	Sec. 15. Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision 
10.17 	to read:
10.18 		Subd. 3b.Nonrenewable energy facility; required analysis. (a) In an application 
10.19 	requesting the commission to approve the construction, refurbishing, or purchase of energy 
10.20 	or capacity from a nonrenewable energy facility in an integrated resource plan, a power 
10.21 	purchase agreement, or any other proceeding, a utility must include, at a minimum, the 
10.22 	information required under this subdivision.
10.23 	(b) A utility must include plans to meet 50, 75, and 100 percent of the energy or capacity 
10.24 	provided by the proposed nonrenewable energy facility using the least costly combination 
10.25 	of clean energy and carbon-free resources.
10.26 	(c) When analyzing costs under this subdivision, a utility must include the environmental 
10.27 	costs most recently adopted by the commission for carbon dioxide emissions and criteria 
10.28 	air pollutants, and socioeconomic costs required under subdivision 3, using both the low 
10.29 	and high ends of any cost range adopted by the commission. When considering the costs 
10.30 	of a nonrenewable energy facility under this section, the commission must consider only 
10.31 	nonzero values for the environmental costs that must be analyzed under subdivision 3, 
10.32 	including both the low and high values of any cost range adopted by the commission.

11.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

11.2 	Sec. 16. Minnesota Statutes 2018, section 216B.2422, subdivision 4, is amended to read:
11.3 		Subd. 4.Preference for renewable energy facility clean energy resources. (a) In order 
11.4 	to achieve the greenhouse gas reduction goals under section 216H.02, and the renewable 
11.5 	and solar energy standards under section 216B.1691, the commission shall not (1) approve 
11.6 	a new or refurbished nonrenewable energy facility in an integrated resource plan or a 
11.7 	certificate of need, pursuant to under section 216B.243, nor shall the commission or in any 
11.8 	proceeding in which a utility seeks to construct an electric generating facility or procure 
11.9 	electricity or capacity, (2) approve a power purchase agreement for power with a 
11.10 	nonrenewable energy facility, or (3) allow rate recovery pursuant to under section 216B.16
11.11 	for such a nonrenewable energy facility, unless the utility has demonstrated by clear and 
11.12 	convincing evidence that a renewable energy facility, alone or in combination with other 
11.13 	clean energy resources, is not in the public interest. When making the public interest 
11.14 	determination, the commission must consider:
11.15 	(1) whether the resource plan helps the utility achieve the greenhouse gas reduction 
11.16 	goals under section 216H.02, the renewable energy standard under section 216B.1691, or 
11.17 	the solar energy standard under section 216B.1691, subdivision 2f;
11.18 	(2) impacts on local and regional grid reliability;
11.19 	(3) utility and ratepayer impacts resulting from the intermittent nature of renewable 
11.20 	energy facilities, including but not limited to the costs of purchasing wholesale electricity 
11.21 	in the market and the costs of providing ancillary services; and
11.22 	(4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility, 
11.23 	changes in transmission costs, portfolio diversification, and environmental compliance 
11.24 	costs.
11.25 	(b) In order to find that a renewable energy facility, alone or in combination with other 
11.26 	clean energy resources, is not in the public interest, the commission must find by clear and 
11.27 	convincing evidence that utilizing renewable or clean energy resources to meet the need 
11.28 	for resources cannot be done affordably or reliably.
11.29 	(c) To determine affordability, the commission must consider utility and ratepayer effects 
11.30 	resulting from:
11.31 	(1) the intermittent nature of renewable energy facilities, including but not limited to 
11.32 	the costs to purchase wholesale electricity in the market and the costs to provide ancillary 
11.33 	services;
12.1 	(2) reduced exposure to fuel price volatility and changes in transmission and distribution 
12.2 	costs, portfolio diversification, and environmental compliance costs; and
12.3 	(3) other environmental costs of a nonrenewable energy facility, as determined by the 
12.4 	commission under subdivision 3.
12.5 	(d) To determine reliability, the commission must consider:
12.6 	(1) effects on regional grid reliability; and
12.7 	(2) the ability of the proposed energy resources or facilities to provide:
12.8 	(i) essential reliability services, including frequency response, balancing services, and 
12.9 	voltage control; and
12.10 	(ii) energy and capacity.
12.11 	(e) When considering the costs of a nonrenewable energy facility under this section, the 
12.12 	commission must consider only nonzero values for the environmental costs that must be 
12.13 	analyzed under subdivision 3, including both the low and high values of any cost range 
12.14 	adopted by the commission.
12.15 	(f) The commission must make a written determination of its findings and conclusions 
12.16 	regarding affordability and reliability under this subdivision. The commission must also 
12.17 	make a written determination as to whether the energy resources approved by the 
12.18 	commission: (1) help the state achieve the greenhouse gas reduction goals under section 
12.19 	216H.02; or (2) help the utility achieve the renewable energy standard under section 
12.20 	216B.1691 or the solar energy standard under section 216B.1691, subdivision 2f.
12.21 	(g) If the commission approves a resource plan that includes the retirement of a 
12.22 	nonrenewable energy facility owned by a public utility, the public utility shall own at least 
12.23 	an amount of the accredited capacity of clean energy resources equal to the percentage of 
12.24 	the retiring nonrenewable energy facility that remains undepreciated multiplied by the 
12.25 	accredited capacity of the retiring facility, and owns the transmission and other facilities 
12.26 	necessary to replace the accredited capacity of the retiring facility, provided:
12.27 	(1) the utility demonstrates its ownership of replacement resources is in the public 
12.28 	interest, considering customer impacts and benefits; and
12.29 	(2) the resource plan results in the utility meeting the following standards:
12.30 	(i) for an electric utility that owned a nuclear generating facility as of January 1, 2007, 
12.31 	at least 85 percent of its electric supply by the year 2030 and until 2045, and 100 percent 
12.32 	of its electric supply by the year 2045 and thereafter, is generated by resources that do not 
13.1 	contribute to statewide greenhouse gas emissions, as defined in section 216H.01, subdivision 
13.2 	2; and
13.3 	(ii) for an electric utility that did not own a nuclear generating facility as of January 1, 
13.4 	2007, at least 80 percent of its electric supply by the year 2030 and until 2050, and 100 
13.5 	percent of its electric supply by the year 2050 and thereafter, is generated by resources that 
13.6 	do not contribute to statewide greenhouse gas emissions, as defined in section 216H.01, 
13.7 	subdivision 2.
13.8 	(h) Nothing in this section impacts a utility's decision to continue operating a nuclear 
13.9 	facility that is generating energy in Minnesota as of June 1, 2020. If a decision is made to 
13.10 	retire an existing nuclear unit, the process in paragraphs (a) to (g) applies to the process to 
13.11 	identify replacement resources.

13.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

13.13 	Sec. 17. Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision 
13.14 	to read:
13.15 		Subd. 4a.Preference for local job creation. As a part of its resource plan filing, a utility 
13.16 	must report on associated local job impacts and the steps the utility and its energy suppliers 
13.17 	and contractors are taking to maximize the availability of construction employment 
13.18 	opportunities for local workers. The commission must consider local job impacts and give 
13.19 	preference to proposals that maximize the creation of construction employment opportunities 
13.20 	for local workers, consistent with the public interest, when evaluating any utility proposal 
13.21 	that involves the selection or construction of facilities used to generate or deliver energy to 
13.22 	serve the utility's customers, including but not limited to an integrated resource plan, a 
13.23 	certificate of need, a power purchase agreement, or commission approval of a new or 
13.24 	refurbished electric generation facility. The commission must, to the maximum extent 
13.25 	possible, prioritize the hiring of workers from communities hosting retiring power plants, 
13.26 	including but not limited to Becker, Monticello, Oak Park Heights, and Red Wing.

13.27 	Sec. 18. Minnesota Statutes 2018, section 216B.2422, subdivision 5, is amended to read:
13.28 		Subd. 5.Bidding; exemption from certificate of need proceeding. (a) A utility may 
13.29 	select resources to meet its projected energy demand through a bidding process approved 
13.30 	or established by the commission. A utility shall use the environmental cost estimates 
13.31 	determined under subdivision 3 and consider local job impacts in evaluating bids submitted 
13.32 	in a process established under this subdivision.
14.1 	(b) Notwithstanding any other provision of this section, if an electric power generating 
14.2 	plant, as described in section 216B.2421, subdivision 2, clause (1), is selected in a bidding 
14.3 	process approved or established by the commission, a certificate of need proceeding under 
14.4 	section 216B.243 is not required.
14.5 	(c) A certificate of need proceeding is also not required for an electric power generating 
14.6 	plant that has been selected in a bidding process approved or established by the commission, 
14.7 	or such other selection process approved by the commission, to satisfy, in whole or in part, 
14.8 	the wind power mandate of section 216B.2423 or the biomass mandate of section 216B.2424.

14.9 	Sec. 19. Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision 
14.10 	to read:
14.11 		Subd. 8.Transmission planning in advance of generation retirement. A utility must 
14.12 	identify in its resource plan each nonrenewable resource on the utility's system that has a 
14.13 	depreciation term, probable service life, or operating license term that will end within 15 
14.14 	years of the resource plan filing date. For each resource identified, the utility must include 
14.15 	in its resource plan an initial plan to (1) replace the resource if retired, and (2) upgrade any 
14.16 	transmission or other grid capabilities needed to support the retirement of that resource.

14.17 	Sec. 20. [216B.2427] SEASONAL OPERATIONS; PILOT PROJECT PLAN.
14.18 	(a) A public utility may file a plan, as part of an integrated resource plan or via a separate 
14.19 	filing, for the commission to review and approve the public utility's implementation of a 
14.20 	pilot project to operate one or more of its coal-fired electric generating facilities on a seasonal 
14.21 	basis. The plan must include:
14.22 	(1) the analysis required under section 216B.2422, subdivision 2d;
14.23 	(2) the proposed changes in operation and the duration of the changes;
14.24 	(3) a description of the data collected from the pilot project;
14.25 	(4) how the public utility proposes to evaluate the data collected;
14.26 	(5) protections employed by the public utility to ensure the pilot project does not 
14.27 	unreasonably increase rates to ratepayers or negatively impact the utility's ability to provide 
14.28 	reliable electric service; and
14.29 	(6) a schedule of reports made by the public utility to the commission during and after 
14.30 	the operation of the pilot project, and the data and analyses contained in the reports.
15.1 	(b) The commission may approve, modify, or reject a plan. A public utility may decide 
15.2 	to not implement a plan modified by the commission.
15.3 	(c) The commission may approve a plan if it finds that the plan:
15.4 	(1) produces useful information on the costs and benefits of seasonal operations as a 
15.5 	means of reducing the electric utility's greenhouse gas emissions;
15.6 	(2) does not jeopardize reliable electric service to ratepayers; and
15.7 	(3) does not unreasonably increase electric rates.
15.8 	(d) A public utility implementing an approved pilot project under this section is authorized 
15.9 	to recover prudently incurred costs, including fuel costs, resulting from the plan's 
15.10 	implementation.

15.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

15.12 	Sec. 21. [216B.2428] SEASONAL OPERATIONS; ENERGY CLAUSE 
15.13 	ADJUSTMENT.
15.14 	An electric utility may propose seasonal operation of one or more of its coal-fired electric 
15.15 	generating facilities through an energy clause adjustment under section 216B.16, subdivision 
15.16 	7.

15.17 	Sec. 22. [216C.45] POWER PLANT HOST COMMUNITY TRANSITION 
15.18 	PLANNING.
15.19 	The commissioner of commerce must coordinate with the commissioner of labor and 
15.20 	industry and the commissioner of employment and economic development to develop plans, 
15.21 	programs, and other recommendations to mitigate the impacts on host communities and 
15.22 	workers resulting from the eventual retirement of large generation facilities. The 
15.23 	commissioners must coordinate this work with representatives of the local government units 
15.24 	that host large generation facilities; the workers at large generation facilities, including 
15.25 	full-time employees and contractors; and the utilities that own large generation facilities.

15.26 	Sec. 23. Minnesota Statutes 2018, section 216F.04, is amended to read:
15.27 	216F.04 SITE PERMIT.
15.28 	(a) No person may construct an LWECS without a site permit issued by the Public 
15.29 	Utilities Commission.
16.1 	(b) Any person seeking to construct an LWECS shall submit an application to the 
16.2 	commission for a site permit in accordance with this chapter and any rules adopted by the 
16.3 	commission. The permitted site need not be contiguous land.
16.4 	(c) The commission shall make a final decision on an application for a site permit for 
16.5 	an LWECS within 180 days after acceptance of a complete application by the commission. 
16.6 	The commission may extend this deadline for cause.
16.7 	(d) The commission may place conditions in a permit and may deny, modify, suspend, 
16.8 	or revoke a permit.
16.9 	(e) The commission must not issue an applicant a site permit to construct an LWECS 
16.10 	with a nameplate capacity exceeding 25 megawatts, or a site permit amendment for a 
16.11 	repowering project, as defined in section 216B.243, subdivision 8, paragraph (b), unless 
16.12 	the applicant certifies that all employees constructing the project are paid, at a minimum, 
16.13 	the prevailing wage rate, as defined in section 177.42.

16.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

16.15 	Sec. 24. [216F.084] WIND TURBINE LIGHTING SYSTEMS.
16.16 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
16.17 	the meanings given.
16.18 	(b) "Duration" means the length of time during which the lights of a wind turbine lighting 
16.19 	system are lit.
16.20 	(c) "Intensity" means the brightness of a wind turbine lighting system's lights.
16.21 	(d) "Light-mitigating technology" means a sensor-based system that reduces the duration 
16.22 	or intensity of wind turbine lighting systems by:
16.23 	(1) using radio frequency or other sensors to detect aircraft approaching one or more 
16.24 	wind turbines, or detecting visibility conditions at turbine sites; and
16.25 	(2) automatically activating appropriate obstruction lights until the lights are no longer 
16.26 	needed by the aircraft and are turned off or dimmed.
16.27 	A light-mitigating technology may include an audio feature that transmits an audible warning 
16.28 	message to provide a pilot additional information regarding a wind turbine the aircraft is 
16.29 	approaching.
16.30 	(e) "Repowering project" has the meaning given in section 216B.243, subdivision 8, 
16.31 	paragraph (b).
17.1 	(f) "Wind turbine lighting system" means a system of lights installed on an LWECS that 
17.2 	meets the applicable Federal Aviation Administration requirements.
17.3 		Subd. 2.Application. This section applies to an LWECS issued a site permit or site 
17.4 	permit amendment by the commission under section 216F.04 or a county that has assumed 
17.5 	responsibility for issuing site permits and site permit amendments for an LWECS under 
17.6 	section 216F.08, provided that the application for a site permit or a site permit amendment 
17.7 	for an LWECS repowering project is filed after July 1, 2020.
17.8 		Subd. 3.Required lighting system. (a) An LWECS subject to this section must be 
17.9 	equipped with a light-mitigating technology that meets the requirements established in 
17.10 	Chapter 14 of the Federal Aviation Administration's Advisory Circular 70/760-1, Obstruction 
17.11 	Marking and Lighting, as updated, unless the Federal Aviation Administration, after 
17.12 	reviewing the LWECS site plan, rejects the use of the light-mitigating technology for the 
17.13 	LWECS. A light-mitigating technology installed on a wind turbine in Minnesota must be 
17.14 	purchased from a vendor approved by the Federal Aviation Administration.
17.15 	(b) If the Federal Aviation Administration, after reviewing the LWECS site plan, rejects 
17.16 	the use of a light-mitigating technology for the LWECS under paragraph (a), the LWECS 
17.17 	must be equipped with a wind turbine lighting system that minimizes the duration or intensity 
17.18 	of the lighting system while maintaining full compliance with the lighting standards 
17.19 	established in Chapter 13 of the Federal Aviation Administration's Advisory Circular 
17.20 	70/760-1, Obstruction Marking and Lighting, as updated.
17.21 		Subd. 4.Exemptions. (a) The Public Utilities Commission or a county that has assumed 
17.22 	permitting authority under section 216F.08 must grant an owner of an LWECS an exemption 
17.23 	from the provisions of subdivision 3, paragraph (a), if the Federal Aviation Administration 
17.24 	denies the owner's application to equip an LWECS with a light-mitigating technology.
17.25 	(b) The Public Utilities Commission or a county that has assumed permitting authority 
17.26 	under section 216F.08 must grant an owner of an LWECS an exemption from or an extension 
17.27 	of time to comply with the provisions of subdivision 3, paragraph (a), if, after notice and 
17.28 	public hearing, the owner of the LWECS demonstrates to the satisfaction of the commission 
17.29 	or county that:
17.30 	(1) equipping an LWECS with a light-mitigating technology is technically infeasible;
17.31 	(2) equipping an LWECS with a light-mitigating technology imposes a significant 
17.32 	financial burden on the permittee; or
18.1 	(3) a vendor approved by the Federal Aviation Administration cannot deliver a 
18.2 	light-mitigating technology to the LWECS owner in a reasonable amount of time.

18.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.4 	Sec. 25. Minnesota Statutes 2018, section 216H.02, is amended by adding a subdivision 
18.5 	to read:
18.6 		Subd. 1b.Emissions-reduction goals; transmission resources. It is the policy of the 
18.7 	state that sufficient electric transmission infrastructure be constructed in a timely manner 
18.8 	in order to facilitate the state's meeting the greenhouse gas emissions reduction goals 
18.9 	established in subdivision 1.

18.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.11 	Sec. 26. COORDINATED ELECTRIC TRANSMISSION STUDY.
 18.12 	(a) The commissioner of commerce must request the Midcontinent Independent System 
18.13 	Operator (MISO) to conduct an engineering study of the impacts on reliability and the 
18.14 	estimated costs of operational changes and enhancements to the transmission system 
18.15 	necessary to support increased use of carbon-free electrical generation sources for Minnesota 
18.16 	and throughout the MISO footprint, including the possible eventual retirement of existing 
18.17 	generation resources serving Minnesota customers.
18.18 	(b) If the request is accepted, MISO is responsible for completing the study work, with 
18.19 	the support of the electric utilities subject to transmission planning under Minnesota Rules, 
18.20 	chapter 7848. Prior to the start of the study, MISO must appoint a technical review committee 
18.21 	with experience and expertise in electric transmission system engineering, power system 
18.22 	operation, and renewable and carbon-free energy technologies to review the study's proposed 
18.23 	methods, work plan, models, and preliminary and near final results. The technical review 
18.24 	committee must be chaired by a representative from MISO and include representatives from 
18.25 	Minnesota electric utilities, including one representative from a utility that owns nuclear 
18.26 	generation, one from a generation and transmission cooperative, and one from a municipal 
18.27 	utility. In addition, MISO must work with state utility regulators, as well as stakeholders 
18.28 	from across the electricity industry, nongovernmental organizations, consumer advocates, 
18.29 	and labor representatives.
18.30 	(c) To the extent possible, the study must integrate and optimize the study and resulting 
18.31 	potential transmission projects with previous and current study efforts, coordinate with 
19.1 	neighboring regions to the MISO footprint and adjacent regional transmission organizations, 
19.2 	and identify barriers, challenges, and opportunities.
19.3 	(d) The study must include but is not limited to:
19.4 	(1) establishing scenarios to study increased carbon-free energy resources, energy storage, 
19.5 	and retirement of existing generation;
19.6 	(2) identifying new power system operating challenges, possible mitigation strategies, 
19.7 	and areas where new strategies are required but not yet discernible;
19.8 	(3) developing conceptual level plans of the required new and modified transmission, 
19.9 	including time frames and indicative cost;
19.10 	(4) when ascertainable, identifying likely new significant transmission projects or 
19.11 	modifications, including time frames and indicative cost; and
19.12 	(5) identifying functional requirements for and time frames when nontransmission 
19.13 	technology may be needed to augment the transmission in conceptual plan and the new 
19.14 	projects or modifications.
19.15 	(e) The first meeting of the technical review committee must be held no later than June 
19.16 	15, 2020, and the study completed, with a comprehensive report submitted to the Public 
19.17 	Utilities Commission, no later than December 1, 2021.