HF 306

as introduced - 88th Legislature (2013 - 2014) Posted on 02/18/2013 02:45pm

A bill for an act
relating to energy; abolishing 2025 renewable energy standards; making
clarifying changes; amending Minnesota Statutes 2012, sections 3.8851,
subdivision 3; 216B.1691, subdivisions 2d, 3, 4, 5, 7, 9; repealing Minnesota
Statutes 2012, section 216B.1691, subdivisions 2a, 2b, 2c.

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

Section 1.

Minnesota Statutes 2012, section 3.8851, subdivision 3, is amended to read:

Subd. 3.

Duties.

(a) The commission shall continuously evaluate the energy policies
of this state and the degree to which they promote an environmentally and economically
sustainable energy future. The commission shall monitor the state's progress in achieving
its goals to develop renewable sources of electric energy under section 216B.1691,
deleted text begin subdivision 2a, deleted text end and the progress of energy-related sectors in reducing greenhouse gas
emissions under the state's greenhouse gas emissions-reductions goals established in
section 216H.02, subdivision 1. The commission may review proposed energy legislation
and may recommend legislation. The commission shall when feasible solicit and consider
public testimony regarding the economic, environmental, and social implications of state
energy plans and policies. Notwithstanding any other law to the contrary the commission's
evaluations and reviews under this subdivision shall include new and existing technologies
for nuclear power.

(b) The commission may study, analyze, hold hearings, and make legislative
recommendations regarding the following issues:

(1) the generation, transmission, and distribution of electricity;

(2) the reduction of greenhouse gas emissions;

(3) the conservation of energy;

(4) alternative energy sources available to replace dwindling fossil fuel and other
nonrenewable fuel sources;

(5) the development of renewable energy supplies;

(6) the economic development potential associated with issues described in clauses
(1) to (5); and

(7) other energy-related subjects the commission finds significant.

Sec. 2.

Minnesota Statutes 2012, section 216B.1691, subdivision 2d, is amended to read:

Subd. 2d.

Commission order.

The commission shall issue necessary orders
detailing the criteria deleted text begin and standards deleted text end by which it will measure an electric utility's efforts to
meet the renewable energy objectives of deleted text begin subdivision 2 deleted text end new text begin this section new text end to determine whether
the utility is making the required good new text begin - new text end faith effort. In this order, the commission shall
include criteria deleted text begin and standards deleted text end that protect against undesirable impacts on the reliability
of the utility's system and economic impacts on the utility's ratepayers and that consider
technical feasibility.

Sec. 3.

Minnesota Statutes 2012, 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 new text begin good-faith new text end objectives deleted text begin and standards
deleted text end 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 new text begin good-faith new text end effort to deleted text begin comply with this section deleted text end new text begin generate or procure
electricity generated by an eligible energy technology new text end . In its resource plan or a separate
report, each electric utility shall provide a description of:

(1) the status of the utility's renewable energy mix relative to the new text begin good-faith
new text end objective deleted text begin and standards deleted text end ;

(2) efforts taken to meet the objective deleted text begin and standards deleted text end ;

(3) any obstacles encountered or anticipated in meeting the objective deleted text begin or standards deleted text end ; 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.

Sec. 4.

Minnesota Statutes 2012, 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 1. 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 deleted text begin or standard deleted text end of this section, an electric utility may utilize renewable
energy credits allowed under the program to satisfy the objective deleted text begin or standard deleted text end .

(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.

deleted text begin (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.
deleted text end

Sec. 5.

Minnesota Statutes 2012, 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 deleted text begin or standards deleted text end 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 renewable energy objectives.

Sec. 6.

Minnesota Statutes 2012, section 216B.1691, subdivision 7, is amended to read:

Subd. 7.

Compliance.

The commission must regularly investigate whether an
electric utility is in compliance with its good new text begin - new text end faith objective under subdivision 2 deleted text begin and
standard obligation under subdivision 2a deleted text end . If the commission finds noncompliance, it may
order the electric utility to construct facilities, purchase energy generated by eligible
energy technology, purchase renewable energy credits, or engage in other activities
to achieve compliance. If an electric utility fails to comply with an order under this
subdivision, the commission may impose a financial penalty on the electric utility in an
amount not to exceed the estimated cost of the electric utility to achieve compliance. The
penalty may not exceed the lesser of the cost of constructing facilities or purchasing
credits. The commission must deposit financial penalties imposed under this subdivision
in the energy and conservation account established in the special revenue fund under
section 216B.241, subdivision 2a. This subdivision is in addition to and does not limit any
other authority of the commission to enforce this section.

Sec. 7.

Minnesota Statutes 2012, 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 renewable standard deleted text end new text begin good-faith
objective new text end , and the reliability of electric service to Minnesotans.

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 216B.1691, subdivisions 2a, 2b, and 2c, new text end new text begin are
repealed.
new text end