SF 1530

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/18/2025 10:11 a.m.

A bill for an act
relating to energy; suspending implementation of carbon-free standards under
certain circumstances; amending Minnesota Statutes 2024, section 216B.1691,
subdivision 2b.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 216B.1691, subdivision 2b, is amended to
read:

Subd. 2b.

Modification or delay of standard.

(a) The commission shall modify or delay
the implementation of a standard obligation under subdivision 2a, 2f, or 2g, in whole or in
part, if the commission determines that modifying or delaying the standard obligation is in
the public interest. The commission, when evaluating a request to modify or delay
implementation of a standard, must consider:

(1) the impact of implementing the standard on its customers' utility costs, including the
economic and competitive pressure on the utility's customers;

(2) the environmental costs that would be incurred as a result of a delay or modification,
based on the full range of environmental cost values established in section 216B.2422,
subdivision 3;

(3) the effects of implementing the standard on the reliability of the electric system;

(4) technical advances or technical concerns;

(5) delays in acquiring sites or routes due to rejection or delays of necessary siting or
other permitting approvals;

(6) delays, cancellations, or nondelivery of necessary equipment for construction or
commercial operation of an eligible energy technology facility;

(7) transmission constraints preventing new text begin the new text end delivery of service new text begin that results in a lapse of
utility service in an area new text end ;

(8) other statutory obligations imposed on the commission or a utility;

(9) impacts on environmental justice areas; and

(10) additional electric load from beneficial electrification and the greenhouse gas
emissions savings associated with those loads as compared to serving the load with
nonelectric energy sources.

For the purposes of this paragraph, "beneficial electrification" means the substitution of
electricity for a fossil fuel, provided that the substitution meets at least one of the following
conditions without adversely affecting either of the other two, as determined by the
commission:

(i) saves a consumer money over the long run compared with continued use of the fossil
fuel;

(ii) enables an electric utility to better manage the electric utility's electric grid network;
or

(iii) reduces negative environmental impacts of fuel use, including but not limited to
statewide greenhouse gas emissions.

(b) The commission may modify or delay implementation of a standard obligation under
paragraph (a), clauses (1) to (4), only if it finds implementation would cause significant rate
impact, requires significant measures to address reliability, or raises significant technical
issues. The commission may modify or delay implementation of a standard obligation under
paragraph (a), deleted text begin clauses deleted text end new text begin clause new text end (5) deleted text begin to (7) deleted text end , only if it finds that the circumstances described in
deleted text begin those clauses deleted text end new text begin paragraph (a), clause (5), new text end were due to circumstances beyond an electric utility's
control and make compliance not feasible. new text begin The commission must delay the standard
obligation under paragraph (a), clauses (6) and (7), for two years if the commission finds
that the circumstances described in paragraph (a), clauses (6) and (7), are due to
circumstances beyond an electric utility's control and make compliance infeasible.
new text end

(c) When evaluating transmission capacity constraints under paragraph (a), clause (7),
the commission must consider whether the utility has:

(1) taken reasonable measures that are under the utility's control and consistent with the
utility's obligations under local, state, and federal laws and regulations, and the utility's
obligations as a member of a regional transmission organization or independent system
operator, to acquire sites, necessary permit approvals, and necessary equipment to develop
and construct new transmission lines or upgrade existing transmission lines to transmit
electricity generated by eligible energy technologies; and

(2) taken all reasonable operational measures to maximize cost-effective electricity
delivery from eligible energy technologies in advance of transmission availability.

(d) When considering whether to delay or modify implementation of a standard obligation,
the commission must give due consideration to a preference for electric generation through
use of eligible energy technology and to the achievement of the standards set by this section.

(e) An electric utility that requests a modification or delay to the implementation of a
standard must file a plan to comply with the electric utility's standard obligation as part of
the same proceeding in which the electric utility requests the modification or delay.