Minnesota Legislature
HF 3003
as introduced - 90th Legislature (2017 - 2018) Posted on 02/26/2018 04:01pm
Current Version - as introduced
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A bill for an act
relating to energy; establishing a carbon-free energy standard; modifying a
definition; making conforming changes; amending Minnesota Statutes 2016,
sections 116J.437, subdivision 1; 216B.1691, subdivisions 1, 3, 4, 5, 9; Minnesota
Statutes 2017 Supplement, section 216B.2422, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 116J.437, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For the purpose of this section, the following terms have
the meanings given.
(b) "Green economy" means products, processes, methods, technologies, or services
intended to do one or more of the following:
(1) increase the use of energy from renewable sources, including through achieving the
deleted text begin renewabledeleted text end new text begin carbon-freenew text end energy standard established in section 216B.1691;
(2) achieve the statewide energy-savings goal established in section 216B.2401, including
energy savings achieved by the conservation investment program under section 216B.241;
(3) achieve the greenhouse gas emission reduction goals of section 216H.02, subdivision
1, including through reduction of greenhouse gas emissions, as defined in section 216H.01,
subdivision 2, or mitigation of the greenhouse gas emissions through, but not limited to,
carbon capture, storage, or sequestration;
(4) monitor, protect, restore, and preserve the quality of surface waters, including actions
to further the purposes of the Clean Water Legacy Act as provided in section 114D.10,
subdivision 1;
(5) expand the use of biofuels, including by expanding the feasibility or reducing the
cost of producing biofuels or the types of equipment, machinery, and vehicles that can use
biofuels, including activities to achieve the petroleum replacement goal in section 239.7911;
or
(6) increase the use of green chemistry, as defined in section 116.9401.
For the purpose of clause (3), "green economy" includes strategies that reduce carbon
emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
transit or otherwise reducing commuting for employees.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2016, 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
deleted text begin renewabledeleted text end new text begin carbon-freenew text end energy sources:
(1) solar;
(2) wind;
(3) hydroelectric deleted text begin with a capacity of less than 100 megawattsdeleted text end ;
(4) hydrogen, provided that after January 1, 2010, the hydrogen must be generated from
the resources listed in this paragraph; deleted text begin or
deleted text end
(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester
system; 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; 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 fuelnew text begin ; or
new text end
new text begin (6) nuclear fuelnew 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 EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2016, section 216B.1691, subdivision 3, is amended to read:
Subd. 3.
Utility plans filed with commission.
(a) Each electric utility shall report on
its plans, activities, and progress with regard to the objectives and standards of this section
in its filings under section 216B.2422 or in a separate report submitted to the commission
every two years, whichever is more frequent, demonstrating to the commission the utility's
effort to comply with this section. In its resource plan or a separate report, each electric
utility shall provide a description of:
(1) the status of the utility's deleted text begin renewabledeleted text end new text begin carbon-freenew text end energy mix relative to the objective
and standards;
(2) efforts taken to meet the objective and standards;
(3) any obstacles encountered or anticipated in meeting the objective or standards; and
(4) potential solutions to the obstacles.
(b) The commissioner shall compile the information provided to the commission under
paragraph (a), and report to the chairs of the house of representatives and senate committees
with jurisdiction over energy and environment policy issues as to the progress of utilities
in the state, including the progress of each individual electric utility, in increasing the amount
of renewable energy provided to retail customers, with any recommendations for regulatory
or legislative action, by January 15 of each odd-numbered year.
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.
Minnesota Statutes 2016, section 216B.1691, subdivision 4, is amended to read:
Subd. 4.
Renewable energy credits.
(a) To facilitate compliance with this section, the
commission, by rule or order, shall establish by January 1, 2008, a program for tradable
renewable energy credits for electricity generated by eligible energy technology. The credits
must represent energy produced by an eligible energy technology, as defined in subdivision
1new text begin , paragraph (a), clauses (1) to (5)new text end . Each kilowatt-hour of renewable energy credits must
be treated the same as a kilowatt-hour of eligible energy technology generated or procured
by an electric utility if it is produced by an eligible energy technology. The program must
permit a credit to be used only once. The program must treat all eligible energy technology
equally and shall not give more or less credit to energy based on the state where the energy
was generated or the technology with which the energy was generated. The commission
must determine the period in which the credits may be used for purposes of the program.
(b) In lieu of generating or procuring energy directly to satisfy the eligible energy
technology objective or standard of this section, an electric utility may utilize renewable
energy credits allowed under the program to satisfy the objective or standard.
(c) The commission shall facilitate the trading of renewable energy credits between
states.
(d) The commission shall require all electric utilities to participate in a
commission-approved credit-tracking system or systems. Once a credit-tracking system is
in operation, the commission shall issue an order establishing protocols for trading credits.
(e) An electric utility subject to subdivision 2a, paragraph (b), may not sell renewable
energy credits to an electric utility subject to subdivision 2a, paragraph (a), until 2021.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2016, section 216B.1691, subdivision 5, is amended to read:
Subd. 5.
Technology based on fuel combustion.
(a) Electricity produced by fuel
combustion through fuel blending or co-firing under paragraph (b) may only count toward
a utility's objectives or standards if the generation facility:
(1) was constructed in compliance with new source performance standards promulgated
under the federal Clean Air Act, United States Code, title 42, section 7401 et seq., for a
generation facility of that type; or
(2) employs the maximum achievable or best available control technology available for
a generation facility of that type.
(b) An eligible energy technology may blend or co-fire a fuel listed in subdivision 1,
paragraph (a), clause (5), with other fuels in the generation facility, but only the percentage
of electricity that is attributable to a fuel listed in that clause can be counted toward an
electric utility's deleted text begin renewabledeleted text end new text begin carbon-freenew text end energy objectives.
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 2016, section 216B.1691, subdivision 9, is amended to read:
Subd. 9.
Local benefits.
The commission shall take all reasonable actions within its
statutory authority to ensure this section is implemented to maximize benefits to Minnesota
citizens, balancing 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 deleted text begin renewabledeleted text end new text begin carbon-freenew text end standard, 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. 7.
Minnesota Statutes 2017 Supplement, section 216B.2422, subdivision 4, is amended
to read:
Subd. 4.
Preference for renewable energy facility.
The commission shall not approve
a new or refurbished nonrenewable energy facility in an integrated resource plan or a
certificate of need, pursuant to section 216B.243, nor shall the commission allow rate
recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the
utility has demonstrated that a renewable energy facility is not in the public interest. When
making the public interest determination, the commission must consider:
(1) whether the resource plan helps the utility achieve the greenhouse gas reduction
goals under section 216H.02, the deleted text begin renewabledeleted text end new text begin carbon-freenew text end energy standard under section
216B.1691, or the solar energy standard under section 216B.1691, subdivision 2f;
(2) impacts on local and regional grid reliability;
(3) utility and ratepayer impacts resulting from the intermittent nature of renewable
energy facilities, including but not limited to the costs of purchasing wholesale electricity
in the market and the costs of providing ancillary services; and
(4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility,
changes in transmission costs, portfolio diversification, and environmental compliance
costs.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end