HF 1955

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to public utilities; transferring power plant
siting and routing, wind energy conversion system, and
pipeline authority from the Environmental Quality
Board to the Public Utilities Commission; amending
Minnesota Statutes 2004, sections 116C.52, subdivision
2; 116C.53, subdivision 2; 116C.57, subdivisions 1,
2c, by adding a subdivision; 116C.575, subdivision 5;
116C.577; 116C.58; 116C.69, subdivisions 2, 2a;
216B.243, subdivisions 4, 5; 216C.052.

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

Section 1.

Minnesota Statutes 2004, section 116C.52,
subdivision 2, is amended to read:

Subd. 2.

deleted text begin board deleted text end new text begin commission new text end .

" deleted text begin Board deleted text end new text begin Commission new text end " deleted text begin shall
mean the Minnesota Environmental Quality Board deleted text end new text begin means the Public
Utilities Commission new text end .

Sec. 2.

Minnesota Statutes 2004, section 116C.53,
subdivision 2, is amended to read:

Subd. 2.

Jurisdiction.

The deleted text begin board deleted text end new text begin commission new text end is hereby
given the authority to provide for site and route selection for
large electric power facilities. The deleted text begin board deleted text end new text begin commission new text end shall
issue permits for large electric power facilities in a timely
fashion deleted text begin . When the Public Utilities Commission has determined
the deleted text end new text begin and in a manner consistent with the overall determination of
new text end need for the project under section 216B.243 or 216B.2425 deleted text begin , deleted text end new text begin .
new text end Questions of need, including size, type, and timing; alternative
system configurations; and voltage deleted text begin are not within the board's
siting and routing authority and deleted text end must not be included in the
scope of environmental review conducted under sections 116C.51
to 116C.69.

Sec. 3.

Minnesota Statutes 2004, section 116C.57,
subdivision 1, is amended to read:

Subdivision 1.

Site permit.

No person may construct a
large electric generating plant without a site permit from the
deleted text begin board deleted text end new text begin commission new text end . A large electric generating plant may be
constructed only on a site approved by the deleted text begin board deleted text end new text begin commission new text end .
The deleted text begin board deleted text end new text begin commission new text end must incorporate into one proceeding the
route selection for a high voltage transmission line that is
directly associated with and necessary to interconnect the large
electric generating plant to the transmission system and whose
need is certified deleted text begin as part of the generating plant project by the
Public Utilities Commission deleted text end new text begin under section 216B.243 new text end .

Sec. 4.

Minnesota Statutes 2004, section 116C.57,
subdivision 2c, is amended to read:

Subd. 2c.

Environmental review.

The deleted text begin board deleted text end new text begin commissioner
of the Pollution Control Agency new text end shall prepare new text begin for the commission
new text end an environmental impact statement on each proposed large
electric generating plant or high voltage transmission line for
which a complete application has been submitted. deleted text begin For any
project that has obtained a certificate of need from the Public
Utilities Commission, the board deleted text end new text begin The commissioner new text end shall not
consider whether or not the project is needed. No other state
environmental review documents shall be required. The deleted text begin board
deleted text end new text begin commissioner new text end shall study and evaluate any site or route proposed
by an applicant and any other site or route the deleted text begin board deleted text end new text begin commission
new text end deems necessary that was proposed in a manner consistent with
rules deleted text begin adopted by the board deleted text end concerning the form, content, and
timeliness of proposals for alternate sites or routes.

Sec. 5.

Minnesota Statutes 2004, section 116C.57, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Pollution control agency to provide technical
expertise and other assistance. new text end

new text begin The commissioner of the
Pollution Control Agency shall provide technical expertise and
other assistance to the commission for activities and
proceedings under this section, sections 116C.51 to 116C.697,
and chapter 116I. The commissioner shall periodically report to
the commission concerning the Pollution Control Agency's costs
of providing assistance. The report shall conform to the
schedule and include the required contents specified by the
commission. The commission shall include the costs of the
assistance in assessments for activities and proceedings under
those sections and reimburse the special revenue fund for those
costs.
new text end

Sec. 6.

Minnesota Statutes 2004, section 116C.575,
subdivision 5, is amended to read:

Subd. 5.

Environmental review.

For the projects
identified in subdivision 2 and following these procedures, the
deleted text begin board deleted text end new text begin commissioner of the Pollution Control Agency new text end shall prepare
new text begin for the commission new text end an environmental assessment. The
environmental assessment shall contain information on the human
and environmental impacts of the proposed project and other
sites or routes identified by the deleted text begin board deleted text end new text begin commission new text end and shall
address mitigating measures for all of the sites or routes
considered. The environmental assessment shall be the only
state environmental review document required to be prepared on
the project.

Sec. 7.

Minnesota Statutes 2004, section 116C.577, is
amended to read:

116C.577 EMERGENCY PERMIT.

(a) Any utility whose electric power system requires the
immediate construction of a large electric power generating
plant or high voltage transmission line due to a major
unforeseen event may apply to the deleted text begin board deleted text end new text begin commission new text end for an
emergency permit deleted text begin after providing deleted text end new text begin . The application shall provide
new text end notice in writing deleted text begin to the Public Utilities Commission deleted text end of the
major unforeseen event and the need for immediate construction.
The permit must be issued in a timely manner, no later than 195
days after the deleted text begin board's deleted text end new text begin commission's new text end acceptance of the
application and upon a finding by the deleted text begin board deleted text end new text begin commission new text end that (1)
a demonstrable emergency exists, (2) the emergency requires
immediate construction, and (3) adherence to the procedures and
time schedules specified in section 116C.57 would jeopardize the
utility's electric power system or would jeopardize the
utility's ability to meet the electric needs of its customers in
an orderly and timely manner.

(b) A public hearing to determine if an emergency exists
must be held within 90 days of the application. The
deleted text begin board deleted text end new text begin commission new text end , after notice and hearing, shall adopt rules
specifying the criteria for emergency certification.

Sec. 8.

Minnesota Statutes 2004, section 116C.58, is
amended to read:

116C.58 ANNUAL HEARING.

The deleted text begin board deleted text end new text begin commission new text end shall hold an annual public hearing at
a time and place prescribed by rule in order to afford
interested persons an opportunity to be heard regarding any
matters relating to the siting of large electric generating
power plants and routing of high voltage transmission lines. At
the meeting, the deleted text begin board deleted text end new text begin commission new text end shall advise the public of the
permits issued by the deleted text begin board deleted text end new text begin commission new text end in the past year.
The deleted text begin board deleted text end new text begin commission new text end shall provide at least ten days but no more
than 45 days' notice of the annual meeting by mailing notice to
those persons who have requested notice and by publication in
the EQB Monitor new text begin and the commission's weekly calendar new text end .

Sec. 9.

Minnesota Statutes 2004, section 116C.69,
subdivision 2, is amended to read:

Subd. 2.

Site application fee.

Every applicant for a
site permit shall pay to the deleted text begin board deleted text end new text begin commission new text end a fee deleted text begin in an amount
equal to $500 for each $1,000,000 of production plant investment
in the proposed installation as defined in the Federal Power
Commission Uniform System of Accounts. The board shall specify
the time and manner of payment of the fee. If any single
payment requested by the board is in excess of 25 percent of the
total estimated fee, the board shall show that the excess is
reasonably necessary. The applicant shall pay within 30 days of
notification any additional fees reasonably necessary for
completion of the site evaluation and designation process by the
board. In no event shall the total fees required of the
applicant under this subdivision exceed an amount equal to 0.001
of said production plant investment ($1,000 for each
$1,000,000). deleted text end new text begin to cover the necessary and reasonable costs
incurred by the commission in acting on the permit application
and carrying out the requirements of sections 116C.51 to
116C.69. The commission may adopt rules providing for the
payment of the fee. Section 16A.1283 does not apply to
establishment of this fee. new text end All money received pursuant to this
subdivision shall be deposited in a special account. Money in
the account is appropriated to the deleted text begin board deleted text end new text begin commission new text end to pay
expenses incurred in processing applications for site permits in
accordance with sections 116C.51 to 116C.69 and in the event the
expenses are less than the fee paid, to refund the excess to the
applicant.

Sec. 10.

Minnesota Statutes 2004, section 116C.69,
subdivision 2a, is amended to read:

Subd. 2a.

Route application fee.

Every applicant for a
transmission line route permit shall pay to the deleted text begin board deleted text end new text begin commission
new text end a deleted text begin base fee of $35,000 plus a fee in an amount equal to $1,000
per mile length of the longest proposed route. The board shall
specify the time and manner of payment of the fee. If any
single payment requested by the board is in excess of 25 percent
of the total estimated fee, the board shall show that the excess
is reasonably necessary. In the event the actual cost of
processing an application up to the board's final decision to
designate a route exceeds the above fee schedule, the board may
assess the applicant any additional fees necessary to cover the
actual costs, not to exceed an amount equal to $500 per mile
length of the longest proposed route. deleted text end new text begin fee to cover the
necessary and reasonable costs incurred by the commission in
acting on the permit application and carrying out the
requirements of sections 116C.51 to 116C.69. The commission may
adopt rules providing for the payment of the fee. Section
16A.1283 does not apply to establishment of this fee. new text end All money
received pursuant to this subdivision shall be deposited in a
special account. Money in the account is appropriated to
the deleted text begin board deleted text end new text begin commission new text end to pay expenses incurred in processing
applications for route permits in accordance with sections
116C.51 to 116C.69 and in the event the expenses are less than
the fee paid, to refund the excess to the applicant.

Sec. 11.

Minnesota Statutes 2004, section 216B.243,
subdivision 4, is amended to read:

Subd. 4.

Application for certificate; hearing.

Any
person proposing to construct a large energy facility shall
apply for a certificate of need deleted text begin prior to applying deleted text end new text begin and new text end for a site
or route permit under sections 116C.51 to 116C.69 or
construction of the facility. The application shall be on forms
and in a manner established by the commission. In reviewing
each application the commission shall hold at least one public
hearing pursuant to chapter 14. The public hearing shall be
held at a location and hour reasonably calculated to be
convenient for the public. An objective of the public hearing
shall be to obtain public opinion on the necessity of granting a
certificate of need new text begin and, if a joint hearing is held, a site or
route permit new text end . The commission shall designate a commission
employee whose duty shall be to facilitate citizen participation
in the hearing process. deleted text begin If deleted text end new text begin Unless new text end the commission deleted text begin and the
Environmental Quality Board determine deleted text end new text begin determines new text end that a joint
hearing on siting and need under this subdivision and section
116C.57, subdivision 2d, is new text begin not new text end feasible deleted text begin , deleted text end new text begin or new text end more efficient, deleted text begin and
may further deleted text end new text begin or otherwise not in new text end the public interest, a joint
hearing under those subdivisions deleted text begin may deleted text end new text begin shall new text end be held.

Sec. 12.

Minnesota Statutes 2004, section 216B.243,
subdivision 5, is amended to read:

Subd. 5.

Approval, denial, or modification.

Within
deleted text begin six deleted text end new text begin 12 new text end months of the submission of an application, the
commission shall approve or deny a certificate of need for the
facility. Approval or denial of the certificate shall be
accompanied by a statement of the reasons for the decision.
Issuance of the certificate may be made contingent upon
modifications required by the commission.

Sec. 13.

Minnesota Statutes 2004, section 216C.052, is
amended to read:

216C.052 RELIABILITY ADMINISTRATOR.

Subdivision 1.

Responsibilities.

(a) There is
established the position of reliability administrator in the
deleted text begin Department of Commerce deleted text end new text begin Public Utilities Commission new text end . The
administrator shall act as a source of independent expertise and
a technical advisor to the commissioner, the commission, the
public, and the Legislative Electric Energy Task Force on issues
related to the reliability of the electric system. In
conducting its work, the administrator shall:

(1) model and monitor the use and operation of the energy
infrastructure in the state, including generation facilities,
transmission lines, natural gas pipelines, and other energy
infrastructure;

(2) develop and present to the commission and parties
technical analyses of proposed infrastructure projects, and
provide technical advice to the commission;

(3) present independent, factual, expert, and technical
information on infrastructure proposals and reliability issues
at public meetings hosted by the task force, the Environmental
Quality Board, the department, or the commission.

(b) Upon request and subject to resource constraints, the
administrator shall provide technical assistance regarding
matters unrelated to applications for infrastructure
improvements to the task force, the department, or the
commission.

(c) The administrator may not advocate for any particular
outcome in a commission proceeding, but may give technical
advice to the commission as to the impact on the reliability of
the energy system of a particular project or projects. The
administrator must not be considered a party or a participant in
any proceeding before the commission.

Subd. 2.

Administrative issues.

(a) The
deleted text begin commissioner deleted text end new text begin commission new text end may select the administrator who shall
serve for a four-year term. The administrator may not have been
a party or a participant in a commission energy proceeding for
at least one year prior to selection by the deleted text begin commissioner
deleted text end new text begin commission new text end . The deleted text begin commissioner deleted text end new text begin commission new text end shall oversee and
direct the work of the administrator, annually review the
expenses of the administrator, and annually approve the budget
of the administrator. The administrator may hire staff and may
contract for technical expertise in performing duties when
existing state resources are required for other state
responsibilities or when special expertise is required. The
salary of the administrator is governed by section 15A.0815,
subdivision 2.

(b) Costs relating to a specific proceeding, analysis, or
project are not general administrative costs. For purposes of
this section, "energy utility" means public utilities,
generation and transmission cooperative electric associations,
and municipal power agencies providing natural gas or electric
service in the state.

(c) The deleted text begin Department of Commerce deleted text end new text begin commission new text end shall pay:

(1) the general administrative costs of the administrator,
not to exceed $1,000,000 in a fiscal year, and shall assess
energy utilities for those administrative costs. These costs
must be consistent with the budget approved by the
deleted text begin commissioner deleted text end new text begin commission new text end under paragraph (a). The deleted text begin department
deleted text end new text begin commission new text end shall apportion the costs among all energy utilities
in proportion to their respective gross operating revenues from
sales of gas or electric service within the state during the
last calendar year, and shall then render a bill to each utility
on a regular basis; and

(2) costs relating to a specific proceeding analysis or
project and shall render a bill to the specific energy utility
or utilities participating in the proceeding, analysis, or
project directly, either at the conclusion of a particular
proceeding, analysis, or project, or from time to time during
the course of the proceeding, analysis, or project.

(d) For purposes of administrative efficiency, the
deleted text begin department deleted text end new text begin commission new text end shall assess energy utilities and issue
bills in accordance with the billing and assessment procedures
provided in section 216B.62, to the extent that these procedures
do not conflict with this subdivision. The amount of the bills
rendered by the deleted text begin department deleted text end new text begin commission new text end under paragraph (c) must
be paid by the energy utility into an account in the special
revenue fund in the state treasury within 30 days from the date
of billing and is appropriated to the deleted text begin commissioner deleted text end new text begin commission
new text end for the purposes provided in this section. The commission shall
approve or approve as modified a rate schedule providing for the
automatic adjustment of charges to recover amounts paid by
utilities under this section. All amounts assessed under this
section are in addition to amounts appropriated to the
commission deleted text begin and the department deleted text end by other law.

Subd. 3.

Assessment and appropriation.

In addition to
the amount noted in subdivision 2, the deleted text begin commissioner deleted text end new text begin commission
new text end may assess utilities, using the mechanism specified in that
subdivision, up to an additional $500,000 annually through June
30, 2006. The amounts assessed under this subdivision are
appropriated to the deleted text begin commissioner deleted text end new text begin commission new text end , and some or all of
the amounts assessed may be transferred to the commissioner of
administration, for the purposes specified in section 16B.325
and Laws 2001, chapter 212, article 1, section 3, as needed to
implement those sections.

Subd. 4.

Expiration.

This section expires June 30,
deleted text begin 2006 deleted text end new text begin 2007 new text end .

Sec. 14. new text begin TRANSFERRING POWER PLANT SITING
RESPONSIBILITIES.
new text end

new text begin All responsibilities, as defined in Minnesota Statutes,
section 15.039, subdivision 1, held by the Environmental Quality
Board relating to power plant siting and routing under Minnesota
Statutes, sections 116C.51 to 116C.69; wind energy conversion
systems under Minnesota Statutes, sections 116C.691 to 116C.697;
pipelines under Minnesota Statutes, chapter 116I; and rules
associated with those sections are transferred to the Public
Utilities Commission under Minnesota Statutes, section 15.039,
except that the responsibilities of the Environmental Quality
Board under Minnesota Statutes, section 116C.83, subdivision 6,
and Minnesota Rules, parts 4400.1700, 4400.2750, and 4410.7010
to 4410.7070, are transferred to the commissioner of the
Pollution Control Agency.
new text end

Sec. 15. new text begin TRANSFERRING RELIABILITY ADMINISTRATOR
RESPONSIBILITIES.
new text end

new text begin All responsibilities, as defined in Minnesota Statutes
2004, section 15.039, subdivision 1, held by the Minnesota
Department of Commerce relating the reliability administrator
under Minnesota Statutes 2004, section 216C.052, are transferred
to the Minnesota Public Utilities Commission under Minnesota
Statutes 2004, section 15.039.
new text end

Sec. 16. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall change the words
"Environmental Quality Board," "board," "chair of the board,"
"chair," "board's," and similar terms, when they refer to the
Environmental Quality Board or chair of the Environmental
Quality Board, to the term "Public Utilities Commission,"
"commission," or "commission's," as appropriate, where they
appear in Minnesota Statutes, sections 13.741, subdivision 3,
116C.51 to 116C.697, and chapter 116I. The revisor shall also
make those changes in Minnesota Rules, chapters 4400, 4401, and
4415, except as specified in paragraph (b).
new text end

new text begin (b) The revisor of statutes shall change the words
"Environmental Quality Board," "board," "chair of the board,"
"chair," "board's," and similar terms, when they refer to the
Environmental Quality Board or chair of the Environmental
Quality Board, to the term "commissioner of the Pollution
Control Agency," "commissioner," or "commissioner's," as
appropriate, where they appear in Minnesota Statutes, section
116C.83, subdivision 6; and Minnesota Rules, parts 4400.1700,
subparts 1 to 9, 11, and 12; 4400.2750; and 4410.7010 to
4410.7070.
new text end

Sec. 17. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 16 are effective July 1, 2005.
new text end