HF 1326

as introduced - 88th Legislature (2013 - 2014) Posted on 03/06/2013 03:09pm

A bill for an act
relating to public utilities; providing for cost recovery for certain emission
reduction projects; amending Minnesota Statutes 2012, sections 216B.1692,
subdivisions 1, 8, by adding a subdivision; 216B.1695, subdivision 5.

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

Section 1.

Minnesota Statutes 2012, section 216B.1692, subdivision 1, is amended to
read:

Subdivision 1.

Qualifying projects.

new text begin (a) new text end Projects that may be approved for the
emissions reduction-rate rider allowed in this section must:

(1) be installed on existing large electric generating power plants, as defined in
section 216B.2421, subdivision 2, clause (1), that are located in the state and that are
currently not subject to emissions limitations for new power plants under the federal Clean
Air Act, United States Code, title 42, section 7401 et seq.;

(2) not increase the capacity of the existing electric generating power plant more
than ten percent or more than 100 megawatts, whichever is greater; and

(3) result in the existing plant either:

(i) complying with applicable new source review standards under the federal Clean
Air Act; or

(ii) emitting air contaminants at levels substantially lower than allowed for new
facilities by the applicable new source performance standards under the federal Clean
Air Act; or

(iii) reducing emissions from current levels at a unit to the lowest cost-effective level
when, due to the age or condition of the generating unit, the public utility demonstrates
that it would not be cost-effective to reduce emissions to the levels in item (i) or (ii).

new text begin (b) Notwithstanding paragraph (a), a project may be approved for the emission
reduction rate rider allowed in this section if the project is to be installed on existing
large electric generating power plants, as defined in section 216B.2421, subdivision 2,
clause (1), that are located outside the state and are needed to comply with state or federal
air quality standards, but only if the project has received an advance determination of
prudence from the commission under section 216B.1695.
new text end

Sec. 2.

Minnesota Statutes 2012, section 216B.1692, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Exemption. new text end

new text begin Subdivisions 2, 4, and 5, paragraph (c), clause (1), do not
apply to projects qualifying under subdivision 1, paragraph (b).
new text end

Sec. 3.

Minnesota Statutes 2012, section 216B.1692, subdivision 8, is amended to read:

Subd. 8.

Sunset.

This section is effective until December 31, deleted text begin 2015 deleted text end new text begin 2020 new text end , and
applies to plans, projects, and riders approved before that date and modifications made to
them after that date.

Sec. 4.

Minnesota Statutes 2012, section 216B.1695, subdivision 5, is amended to read:

Subd. 5.

Cost recovery.

The utility may begin recovery of costs that have been
incurred by the utility in connection with implementation of the project in the next rate
case following an advance determination of prudence new text begin or in a rider approved under section
216B.1692 new text end . The commission shall review the costs incurred by the utility for the project.
The utility must show that the project costs are reasonable and necessary, and demonstrate
its efforts to ensure the lowest reasonable project costs. Notwithstanding the commission's
prior determination of prudence, it may accept, modify, or reject any of the project costs.
The commission may determine whether to require an allowance for funds used during
construction offset.