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HF 2780

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/16/2006

Current Version - as introduced

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A bill for an act
relating to environment; imposing limits on mercury emissions for coal-fired
electric generating facilities; modifying emissions report requirements;
modifying the emissions reduction-rate rider; amending Minnesota Statutes
2004, sections 116.925, subdivision 2; 216B.1692, subdivisions 1, 8; proposing
coding for new law in Minnesota Statutes, chapter 116.

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

Section 1.

new text begin [116.922] MERCURY EMISSIONS REDUCTION AT ELECTRIC
GENERATING PLANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The provisions of this section apply to any coal-fired
steam electric generating unit located in Minnesota that is constructed for the purpose of
supplying more than one-third of its potential electric output capacity and 25 megawatts
or more of electrical output to any utility power distribution system for sale. Any
steam supplied to a steam distribution system for the purpose of providing steam to a
steam-electric generator that would produce electrical energy for sale is also considered in
determining the electrical energy output capacity of the unit. For purposes of this section,
"electric generating unit" means coal-fired steam electric generating unit.
new text end

new text begin Subd. 2. new text end

new text begin Emissions limit. new text end

new text begin (a) After December 31, 2011, an owner or operator of
an electric generating unit utilizing wet scrubbers to control emissions of particulate
matter shall operate the electric generating unit so that emissions of mercury are, on an
annual basis, the lesser of:
new text end

new text begin (1) 6.9 x 10 new text end new text begin -6 new text end new text begin pounds per megawatt-hour of electricity generated; or
new text end

new text begin (2) 90 percent less than total mercury emissions reported for the electric generating
unit in calendar year 1999 in the report submitted under section 116.925, subdivisions
1 and 2.
new text end

new text begin (b) After December 31, 2009, an owner or operator of an electric generating unit not
included in paragraph (a) shall operate the electric generating unit so that emissions of
mercury are, on an annual basis, the lesser of:
new text end

new text begin (1) 6.9 x 10 new text end new text begin -6 new text end new text begin pounds per megawatt-hour of electricity generated; or
new text end

new text begin (2) 90 percent less than total mercury emissions reported for the electric generating
unit in calendar year 1999 in the report submitted under section 116.925, subdivisions
1 and 2.
new text end

new text begin (c) An owner or operator of two or more electric generating units at the same facility
may request the agency to approve a plan in which the weighted average amount of
mercury emissions meets the applicable mercury emissions limit under this subdivision,
but which does not require that each electric generating unit meet that limit. The agency
may approve an averaging plan only if the owner or operator of the electric generating
units included in the plan enters into an enforceable agreement with the agency requiring
the weighted average of mercury emissions from the electric generating units at the facility
to meet the applicable mercury emissions limit under this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Compliance plan; report. new text end

new text begin (a) By January 1, 2007, an owner or operator
of an electric generating unit shall submit to the commissioner a compliance plan
demonstrating the steps the owner or operator will take to ensure that the electric
generating unit will meet the applicable mercury emissions limit in subdivision 2. The
plan shall include, at a minimum, the following information:
new text end

new text begin (1) a list of each electric generating unit on which mercury emissions control
equipment will be installed;
new text end

new text begin (2) a list of each electric generating unit the coal input of which will be switched to a
lower mercury-content coal; and
new text end

new text begin (3) a description of any plans to improve the combustion efficiency of an electric
generating unit to meet the applicable mercury emissions limit in subdivision 2.
new text end

new text begin (b) By January 1, 2009, an owner or operator of an electric generating unit shall
submit to the commissioner an updated plan describing any changes made to the
compliance plan submitted under paragraph (a).
new text end

new text begin (c) By March 1 of the year following the effective date of the applicable mercury
emission limits set forth in subdivision 2, and no later than March 1 of each following year,
an owner or operator shall submit a compliance certification report to the commissioner
certifying that, during the preceding calendar year, each electric generating unit, or, if an
averaging plan has been approved by the commissioner under subdivision 2, paragraph (c),
the weighted average of the electric generating units was in compliance with the applicable
mercury emissions limit in subdivision 2, based on the determination made under
subdivision 4. If the mercury emissions exceed the applicable mercury emissions limit in
subdivision 2, the compliance certification report must include the following information:
new text end

new text begin (1) a determination of the amount and cause of the excess mercury emissions; and
new text end

new text begin (2) a description of actions the owner or operator has taken and will take to ensure
that the applicable mercury emissions limit in subdivision 2 will be met in subsequent
years.
new text end

new text begin Subd. 4. new text end

new text begin Compliance determination. new text end

new text begin (a) After the effective date of the applicable
mercury emission limits in subdivision 2, an owner or operator of an electric generating
unit shall conduct performance tests of the unit every three months, measuring,
simultaneously, the amount of mercury in the gas stream at the inlet and the exit of the air
pollution control equipment serving each electric generating unit. The performance tests
must be conducted according to Minnesota Rules, chapter 7017.
new text end

new text begin (b) Any owner or operator who achieves and maintains compliance with the
applicable mercury emissions limit in subdivision 2 for two consecutive years for an
electric generating unit may thereafter conduct performance tests every six months.
However, if an annual performance test fails to demonstrate compliance with the
applicable mercury emissions limit in subdivision 2, the frequency of performance testing
shall revert to that established in paragraph (a).
new text end

new text begin (c) When a federal performance specification for a mercury continuous emissions
monitoring system is published in the Federal Register, and a system capable of meeting
the federal performance specification is available, an owner or operator of an electric
generating unit shall request approval from the agency to install a mercury continuous
emissions monitoring system to determine compliance with the applicable mercury
emissions limit in subdivision 2. The owner or operator of an electric generating unit must
demonstrate to the agency that the mercury continuous emissions monitoring system that
it proposes to install complies with the quality assurance requirements in the federal
specification. If the agency approves the installation of a mercury continuous emissions
monitoring system, performance testing under paragraph (a) or (b) is no longer required,
so long as the mercury continuous emissions monitoring system continues to comply with
the quality assurance requirements in the federal specification and meets the specifications
set forth in Minnesota Rules, chapter 7017.
new text end

new text begin Subd. 5. new text end

new text begin Statewide mercury emissions cap. new text end

new text begin Notwithstanding the emissions limits
set forth in this section, the commissioner shall issue no air quality permit for a new or
expanded electric generating unit that will cause total annual statewide mercury emissions
from all electric generating units subject to this section to exceed 775 pounds prior to
December 31, 2011, or 210 pounds thereafter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 116.925, subdivision 2, is amended to read:


Subd. 2.

Contents of report.

(a) A report must include:

(1) a list of all generation facilities owned or operated by the utility or person
subject to subdivision 1;

(2) all readily available information regarding the amount of electricity purchased by
the utility or person subject to subdivision 1, for use in the state; and

(3) information for each facility new text begin and each electric generating unit new text end owned or operated
by the utility or person subject to subdivision 1, stating: (i) the amount of electricity
generated deleted text begin at the facility deleted text end for use or for sale in this state at retail or wholesale; (ii) the
amountnew text begin , rank, grade, and mercury content new text end of deleted text begin fuel deleted text end new text begin coal new text end used to generate that electricity deleted text begin at
the facility
deleted text end ; and (iii) the amount of mercury emitted in generating that electricity in the
previous calendar year, based on deleted text begin emission factors, stack deleted text end new text begin performance new text end testsdeleted text begin , fuel analysis,
or other methods approved by the commissioner
deleted text end new text begin conducted under section 116.922new text end . deleted text begin The
report must include the mercury content of the fuel if it is determined in conjunction
with a stack test.
deleted text end

(b) The following are de minimis standards for small and little-used generation
facilities:

(1) less than 240 hours of operation by the combustion unit per year;

(2) a fuel capacity input at the combustion unit of less than 150,000,000 British
thermal units per hour; or

(3) an electrical generation unit with maximum output of less than or equal to 15
megawatts.

A utility or person subject to this section who owns or operates a combustion unit
that qualifies under one of these de minimis standards is not required to provide the
information described in paragraph (a) for that combustion unit.

(c) A report need not be filed for a combustion device for a year in which the device
has documented mercury emissions of three pounds or less.

Sec. 3.

Minnesota Statutes 2004, section 216B.1692, subdivision 1, is amended to read:


Subdivision 1.

Qualifying projects.

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;

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

(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 ; and
new text end

new text begin (4) be designed to reduce emissions of several pollutants simultaneously, including,
but not limited to, mercury, sulfur oxides, and particulate matter
new text end .

Sec. 4.

Minnesota Statutes 2004, section 216B.1692, subdivision 8, is amended to read:


Subd. 8.

Sunset.

This section deleted text begin is effective until June 30, 2006 deleted text end new text begin expires December
31, 2009
new text end .