HF 2836

as introduced - 91st Legislature (2019 - 2020) Posted on 02/11/2020 03:07pm

A bill for an act
relating to climate change; establishing a Minnesota Green New Deal; requiring
reports; amending Minnesota Statutes 2018, sections 216B.1691, subdivisions 1,
9, by adding a subdivision; 216B.243, by adding a subdivision; 216C.18; proposing
coding for new law in Minnesota Statutes, chapters 116; 175; 216B.

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

Section 1. new text begin TITLE.
new text end

new text begin Sections 2 to 16 may be referred to as the "Minnesota Green New Deal Act."
new text end

Sec. 2. new text begin FINDINGS; CLIMATE CHANGE; GREENHOUSE GAS EMISSIONS.
new text end

new text begin The legislature finds:
new text end

new text begin (1) Minnesota is already experiencing the impacts of climate change, as evidenced by
changes in climate and weather patterns, temperature, rain and snowfall events, water
availability, and alteration of the variety of plant and animal species present in the state;
new text end

new text begin (2) climate change is the result of increased levels of greenhouse gases entering the
atmosphere, largely as a result of human activity;
new text end

new text begin (3) the Special Report of the Intergovernmental Panel on Climate Change issued in
October 2018 found that greenhouse gas emissions must be reduced from 2010 levels by
45 percent by 2030 and to net zero by 2050 in order to limit the rise in atmospheric
temperature to 1.5 degrees Celsius, a level that results in severe ecological, health, and
economic impacts;
new text end

new text begin (4) the impacts of burning fossil fuels are spread unequally, reinforcing economic
disparities that reduce the capacity of some Minnesotans to cope with the impacts; and
new text end

new text begin (5) the urgency to address the challenge of climate change compels the state to accelerate
the greenhouse gas emissions-reduction goal established under Minnesota Statutes, section
216H.02, subdivision 1, by establishing a goal of net zero greenhouse gas emissions by
2030.
new text end

Sec. 3.

new text begin [116.911] CLIMATE CHANGE ADVISORY COUNCIL.
new text end

new text begin (a) The Climate Change Advisory Council is established to provide recommendations
to improve Minnesota state government operations, functions, and policies to identify groups
and individuals in need of assistance in adapting to climate change and develop programs
to assist those groups and individuals.
new text end

new text begin (b) The Climate Change Advisory Council must advise the commissioner. The
commissioner must appoint the members of the council. The members must represent a
cross section of organizations and populations facing the challenges of adapting to climate
change and organizations providing assistance to those impacted by climate change, including
counties, cities, businesses, labor unions, universities, nonprofit organizations, tribal
governments, state agencies, scientists, low-income communities, people of color, indigenous
people, and residents in urban and rural parts of the state. The agency must provide
administrative support to the Climate Change Advisory Council.
new text end

new text begin (c) Members of the Climate Change Advisory Council serve for a term of two years and
may be reappointed. A member serves until a successor is appointed.
new text end

new text begin (d) Members of the Climate Change Advisory Council must be compensated for time
spent on council activities, as provided in section 15.059, subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [175.47] JOB TRAINING PROGRAMS; GREEN PRODUCTS AND
SERVICES.
new text end

new text begin (a) The commissioner must approve job training programs in occupations that are heavily
represented in industries that produce green products and services, and must target the
programs to youth, communities of color, indigenous people, individuals with low incomes,
workers in fossil fuel industries, and released prisoners.
new text end

new text begin (b) For the purposes of this section, "green products and services" means:
new text end

new text begin (1) the manufacture, production, installation, repair, and maintenance of products and
services that:
new text end

new text begin (i) produce energy from wind, solar, or hydropower, or are energy storage devices;
new text end

new text begin (ii) improve energy efficiency, as defined in section 216B.241, subdivision 1;
new text end

new text begin (iii) reduce and remove pollution, including but not limited to greenhouse gas emissions,
and recycle and reuse goods;
new text end

new text begin (iv) conserve natural resources, including but not limited to organic agriculture,
sustainable forestry, soil, water, and wildlife conservation, and storm water management;
and
new text end

new text begin (v) enforce compliance with environmental laws and standards, and promote
environmental education; and
new text end

new text begin (2) occupations in which workers research, develop, maintain, or use technologies and
practices to lessen the environmental impact of the workplace by deploying the products
and services described in clause (1).
new text end

Sec. 5.

Minnesota Statutes 2018, section 216B.1691, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) Unless otherwise specified in law, "eligible energy
technology" means an energy technology that generates electricity from the following
renewable energy sources:

(1) solar;

(2) wind;

(3) hydroelectric with a capacity of less than 100 megawatts;

(4) hydrogen, provided that after January 1, 2010, the hydrogen must be generated from
the resources listed in this paragraph; or

(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester
system; new text begin and new text end the predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge to produce electricity deleted text begin ; and an energy recovery facility used to capture
the heat value of mixed municipal solid waste or refuse-derived fuel from mixed municipal
solid waste as a primary fuel deleted text end .

(b) "Electric utility" means a public utility providing electric service, a generation and
transmission cooperative electric association, a municipal power agency, or a power district.

(c) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year by
an electric utility to retail customers of the electric utility or to a distribution utility for
distribution to the retail customers of the distribution utility. "Total retail electric sales"
does not include the sale of hydroelectricity supplied by a federal power marketing
administration or other federal agency, regardless of whether the sales are directly to a
distribution utility or are made to a generation and transmission utility and pooled for further
allocation to a distribution utility.

new text begin (d) "Carbon-free" means a technology that generates electricity without emitting carbon
dioxide.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2018, section 216B.1691, is amended by adding a subdivision
to read:

new text begin Subd. 2g. new text end

new text begin Carbon-free standard. new text end

new text begin By 2030, 100 percent of the electricity each electric
utility subject to subdivision 2a provides directly to Minnesota retail customers, or indirectly
provides through wholesale sales to a distribution utility serving Minnesota retail customers,
must be generated by a technology that is carbon-free.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2018, section 216B.1691, subdivision 9, is amended to read:

Subd. 9.

Local benefits.

new text begin (a) new text end The commission shall take all reasonable actions within its
statutory authority to ensure this section is implemented deleted text begin to maximize deleted text end new text begin in a manner that
maximizes new text end benefits to new text begin all new text end Minnesota citizens deleted text begin , balancing deleted text end new text begin throughout Minnesota. Benefits
under this subdivision include but are not limited to:
new text end

new text begin (1) the creation of high-quality jobs in Minnesota that pay wages that support families;
new text end

new text begin (2) recognition of the rights of workers to organize and unionize;
new text end

new text begin (3) ensuring workers have the necessary tools, opportunities, and economic assistance
to adapt successfully during the energy transition, particularly in communities that host
retiring power plants or that contain historically marginalized and underrepresented
populations;
new text end

new text begin (4) ensuring all Minnesotans share the benefits of clean and renewable energy and are
provided the opportunity to participate fully in the clean energy economy, with special
attention paid to communities of color, indigenous people, and individuals with low incomes;
new text end

new text begin (5) ensuring air emissions are reduced in communities historically burdened by pollution
and the impacts of climate change; and
new text end

new text begin (6) the provision of affordable electric service to Minnesotans, particularly to low-income
consumers.
new text end

new text begin (b) The commission must also implement this section in a manner that balances new text end factors
such as local ownership of or participation in energy production, development and ownership
of eligible energy technology facilities by independent power producers, Minnesota utility
ownership of eligible energy technology facilities, the costs of energy generation to satisfy
the renewable deleted text begin standard deleted text end new text begin and carbon-free standards new text end , and the reliability of electric service to
Minnesotans.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

new text begin [216B.2427] FOSSIL FUEL FACILITIES; CONSTRUCTION
MORATORIUM.
new text end

new text begin A state agency is prohibited from issuing a permit to construct (1) a facility to transport,
store, or process coal, crude oil or its derivative products, propane, or natural gas, or (2) a
facility defined in section 216B.2421, subdivision 2, clause (9), pending issuance of the
report required under section 11.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2018, section 216B.243, is amended by adding a subdivision
to read:

new text begin Subd. 3c. new text end

new text begin Fossil fuel facilities; construction moratorium. new text end

new text begin (a) The commission is
prohibited from issuing a certificate of need to construct an electric generating plant powered
by coal, products refined from crude oil, or natural gas.
new text end

new text begin (b) The commission is prohibited from issuing a certificate of need to construct a facility
that (1) transports or stores coal, crude oil, or derivative products, or (2) is defined in section
216B.2421, subdivision 2, clause (9), pending issuance of the report required under section
11.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2018, section 216C.18, is amended to read:

216C.18 STATE ENERGY deleted text begin POLICY AND CONSERVATION deleted text end new text begin STRATEGY new text end
REPORT.

Subdivision 1.

Report on trends and issues.

By July 1 of 1988 and every deleted text begin four deleted text end new text begin two new text end
years thereafter, the commissioner shall issue a comprehensive report deleted text begin designed to identify
major emerging trends and issues in energy supply, consumption, conservation, and costs deleted text end new text begin
that measures the state's progress toward achieving the goals regarding energy conservation,
reducing greenhouse gas emissions, and eliminating fossil fuel use new text end . The report deleted text begin shall deleted text end new text begin must new text end
include the following:

(1) projections of the level and composition of statewide new text begin and individual sector new text end energy
consumption under current government policies and an evaluation of the deleted text begin ability of existing
and anticipated facilities to supply the necessary energy for that consumption deleted text end new text begin likelihood of
achieving the state energy goals identified in this subdivision under those policies new text end ;

(2) deleted text begin projections of how the level and the composition of energy consumption would be
affected by deleted text end new text begin recommendations of new text end new programs or new policies new text begin designed to achieve the state
energy goals identified in this subdivision new text end ;

(3) projections of energy costs to consumers, businesses, and government new text begin resulting from
the recommendations made in clause (2) new text end ;

(4) identification and discussion of key social, economic, and environmental issues in
energy; new text begin and
new text end

(5) explanations of the department's current energy programs and studies deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (6) recommendations.
deleted text end

Subd. 1a.

Rate plan.

The energy policy and conservation report shall include a section
prepared by the Public Utilities Commission. The commission's section shall be prepared
in consultation with the commissioner and shall include, but not be limited to, all of the
following:

(1) a description and analysis of the commission's rate design policy as it pertains to the
goals stated in sections 216B.164, 216B.241, and 216C.05, including a description of all
energy conservation improvements ordered by the commission; and

(2) recommendations to the governor and the legislature for administrative and legislative
actions to accomplish the purposes of sections 216B.164, 216B.241, and 216C.05.

Subd. 2.

Draft report; public meeting.

Prior to the preparation of a final report, the
commissioner shall issue a draft report to the Environmental Quality Board new text begin , the Climate
Change Advisory Council, new text end and any person, upon request, and shall hold a public meeting.
Notice of the public meeting shall be provided to each regional development commission.

Subd. 3.

Final report, distribution.

The commissioner shall distribute the final report
to any person upon request.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11. new text begin GREENHOUSE GAS EMISSIONS REDUCTION STRATEGY; REPORT.
new text end

new text begin (a) The commissioner of commerce must develop benchmarks and strategies designed
to significantly accelerate the reduction in greenhouse gas emissions in the state by 2030.
Benchmarks and strategies developed under this section must include strategies to:
new text end

new text begin (1) increase energy efficiency in all buildings, including residential;
new text end

new text begin (2) provide consumers with tools to manage personal energy use automatically, remotely,
and electronically;
new text end

new text begin (3) present consumers with financial incentives to shift energy use to periods when
systemwide demand and the cost of generation are low;
new text end

new text begin (4) electrify all sectors of the economy currently powered by fossil fuels;
new text end

new text begin (5) increase carbon sequestration in Minnesota lands and wetlands;
new text end

new text begin (6) incentivize the adoption of energy storage systems to accelerate the use of wind and
solar resources;
new text end

new text begin (7) modernize the electric grid and promote the use of distributed energy resources; and
new text end

new text begin (8) incentivize the design and production of products with a low environmental impact,
measured on a life-cycle basis.
new text end

new text begin (b) Greenhouse gas emission reduction strategies must recognize the inequitable impacts
of pollution resulting from fossil fuel use and provide economic opportunities to those most
affected by climate change and the transition from fossil fuel use.
new text end

new text begin (c) By November 30, 2019, the commissioner must submit a report containing the
benchmarks and strategies to the chairs and ranking minority members of the senate and
house of representatives committees with primary jurisdiction over energy policy.
new text end

Sec. 12. new text begin ENERGY TRANSITION ASSISTANCE; GREEN PRODUCT EXPORTS;
REPORTS.
new text end

new text begin (a) By November 30, 2019, the commissioner of employment and economic development
must prepare a report on:
new text end

new text begin (1) options to establish a state program that provides assistance to communities negatively
impacted by the transition from fossil to renewable fuels; and
new text end

new text begin (2) ways to accelerate the export of green products and services produced in Minnesota.
new text end

new text begin (b) By November 30, 2019, the commissioner must submit the report to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over energy policy.
new text end

Sec. 13. new text begin AGRICULTURE; ENERGY TRANSITION; REPORT.
new text end

new text begin (a) The commissioner of agriculture must prepare a report on strategies to:
new text end

new text begin (1) accelerate the transition from fossil to renewable fuels in Minnesota's agricultural
sector;
new text end

new text begin (2) increase the ability of agricultural land to capture and retain atmospheric carbon;
and
new text end

new text begin (3) reduce greenhouse gas emissions from nonenergy agricultural sources.
new text end

new text begin (b) By November 30, 2019, the commissioner must submit the report to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over energy policy.
new text end

Sec. 14. new text begin REDUCING GREENHOUSE GAS EMISSIONS IN TRANSPORTATION;
REPORT.
new text end

new text begin (a) The commissioner of transportation must prepare a report that evaluates:
new text end

new text begin (1) policies designed to accelerate the adoption of electric vehicles as substitutes for
motor vehicles powered by fossil fuels, including:
new text end

new text begin (i) the effectiveness of using tax credits or rebates to accelerate the adoption of electric
vehicles and the construction of electric vehicle charging stations by individuals and
businesses;
new text end

new text begin (ii) requiring buses purchased by public and private entities in Minnesota to operate on
electricity;
new text end

new text begin (iii) requiring new multifamily and single-family housing and workplaces construction
to include electric vehicle charging stations; and
new text end

new text begin (iv) providing financial incentives to promote the construction of public electric vehicle
charging stations;
new text end

new text begin (2) options to power off-road vehicles, watercraft, passenger and freight trains, and
airplanes without fossil fuels, and ways to accelerate the adoption of the options;
new text end

new text begin (3) policies designed to reduce vehicle miles traveled by motor vehicles, including
expanding opportunities for:
new text end

new text begin (i) use of mass transit;
new text end

new text begin (ii) carpooling, telecommuting, distance learning, and telemedicine; and
new text end

new text begin (iii) biking and walking;
new text end

new text begin (4) land use planning policies that reduce the need for transportation;
new text end

new text begin (5) policies that ensure low-income Minnesotans have access to carbon-neutral
transportation options; and
new text end

new text begin (6) emission reduction strategies that target communities exposed to high levels of air
pollutants.
new text end

new text begin (b) By November 30, 2019, the commissioner must submit the report to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over energy policy. The report must highlight recommendations that
require funding or a change in law.
new text end

Sec. 15. new text begin STATE BOARD OF INVESTMENT; RISKS AND IMPACTS OF
DIVESTMENT OF FOSSIL FUEL COMPANIES FROM STATE RETIREMENT
PORTFOLIOS.
new text end

new text begin The executive director of the State Board of Investment must examine the risks and
impacts of: (1) divesting the assets of the combined public pension and retirement funds
the board manages that currently invest in companies whose business activities are associated
with the exploration, drilling, production, development, processing, transportation, or sale
of fossil fuels; and (2) reinvesting the assets elsewhere.
new text end

Sec. 16. new text begin MINNESOTA GREEN BANK STUDY.
new text end

new text begin (a) The commissioner of commerce must contract with an independent consultant with
experience in financing energy conservation and renewable energy projects to study the
prospects, options, benefits, and costs of developing a green bank in Minnesota, in order to
meet the carbon-free standard established in Minnesota Statutes, section 216B.1691,
subdivision 2g.
new text end

new text begin (b) At a minimum, the study must analyze:
new text end

new text begin (1) the structure, authorities and duties, and operations of green banks operating in other
states, including:
new text end

new text begin (i) the types of projects green banks finance;
new text end

new text begin (ii) the process of aggregating multiple small projects into financial instruments that are
attractive to private lenders, and securitizing and marketing those instruments;
new text end

new text begin (iii) how green banks can stimulate the demand for and the supply of capital for projects;
new text end

new text begin (iv) the levels of the initial capital provided to green banks from public funds and the
length of time before the banks generated sufficient funds to fully pay operating expenses;
and
new text end

new text begin (v) how green banks can utilize existing bonding tools;
new text end

new text begin (2) the implications of developing a green bank as a public, quasi-public, or nonprofit
entity;
new text end

new text begin (3) existing energy efficiency and financing programs in Minnesota, and the gaps a
Minnesota green bank could most effectively fill; and
new text end

new text begin (4) a business plan and timeline outlining start-up operations and milestones for a
Minnesota green bank.
new text end

new text begin (c) By January 1, 2020, the commissioner of commerce must submit the report required
under this section to the chairs and ranking minority members of the senate and house of
representatives committees with primary jurisdiction over energy policy.
new text end

new text begin (d) For the purposes of this section, "green bank" means an institution that finances
renewable energy and energy efficiency project deployment by aggregating individual
projects to develop turn-key financial products that leverage capital from private lenders
and enable broader implementation of projects while preserving public funds through loan
repayment.
new text end

new text begin (e) By January 1, 2020, the commissioner of commerce must submit the report to the
chairs and ranking minority members of the senate and house of representatives committees
with primary jurisdiction over energy policy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end