HF 3134

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

A bill for an act
relating to energy; removing the entitlement of an innovative energy project to
enter into a contract to sell energy; making technical and clarifying changes;
amending Minnesota Statutes 2004, section 216B.1694, subdivision 2.

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

Section 1.

Minnesota Statutes 2004, section 216B.1694, subdivision 2, is amended to
read:

Subd. 2.

Regulatory incentives.

(a) An innovative energy project:

(1) is exempted from the requirements for a certificate of need under section
216B.243, for the generation facilities, and transmission infrastructure associated with the
generation facilities, but is subject to all applicable environmental review and permitting
procedures of sections 116C.51 to 116C.69;

(2) once permitted and constructed, is eligible to increase the capacity of the
associated transmission facilities without additional state review upon filing notice with
the commission;

(3) has the power of eminent domain, which shall be is limited to the sites and routes
approved by the Environmental Quality Board for the project facilities. The project shall
be by the commission or predecessor authority; is considered a utility as defined in section
116C.52, subdivision 10, for the limited purpose of section 116C.63. The project; and
shall report any intent to exercise eminent domain authority to the board commission;

(4) shall qualify qualifies as a "clean energy technology" as defined in section
216B.1693;

(5) shall, prior to the approval by the commission of any arrangement to build or
expand a fossil-fuel-fired generation facility, or to enter and prior to entering into an
agreement to purchase capacity or energy from such a the facility for a term exceeding five
years, be is considered as a supply option for the generation facility, and the commission
shall ensure such consideration and take any action with respect to such the supply
proposal that it deems to be in the best interest of ratepayers;

(6) shall make a good faith effort to secure funding from the United States
Department of Energy and the United States Department of Agriculture to conduct a
demonstration project at the facility for either geologic or terrestrial carbon sequestration
projects to achieve reductions in facility emissions or carbon dioxide; and

(7) shall be entitled to enter into a contract with a public utility that owns a nuclear
generation facility in the state to provide 450 megawatts of baseload capacity and energy
under a long-term contract, subject to the approval of the terms and conditions of the
contract by the commission. The commission may approve, disapprove, amend, or modify
the contract in making its public interest determination, taking into consideration the
project's economic development benefits to the state; the use of abundant domestic fuel
sources; the stability of the price of the output from the project; the project's potential to
contribute to a transition to hydrogen as a fuel resource; and the emission reductions
achieved compared to other solid fuel baseload technologies; and

(8) shall be is eligible for a grant from the renewable development account, subject
to the approval of the entity administering that account, of $2,000,000 a year for five years
for development and engineering costs, including those costs related to mercury-removal
technology; thermal efficiency optimization and emission minimization; environmental
impact statement preparation and licensing; development of hydrogen production
capabilities; and fuel cell development and utilization.

(b) This subdivision does not apply to nor affect a proposal to add utility-owned
resources that is pending on May 29, 2003, before the Public Utilities Commission or to
competitive bid solicitations to provide capacity or energy that is scheduled to be on line
by December 31, 2006.

EFFECTIVE DATE.

This section is effective the day following final enactment.