HF 3793

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

A bill for an act
relating to energy; requiring that 25 percent of retail electricity and liquid
fuel sold in the state be derived from renewable sources by 2025; amending
Minnesota Statutes 2004, section 216B.1691, subdivision 2; Minnesota Statutes
2005 Supplement, section 239.7911.

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

Section 1.

Minnesota Statutes 2004, section 216B.1691, subdivision 2, is amended to
read:

Subd. 2.

Eligible energy objectives.

(a) Each electric utility shall make a good
faith effort to generate or procure sufficient electricity generated by an eligible energy
technology to provide its retail consumers, or the retail customers of a distribution utility
to which the electric utility provides wholesale electric service, so that:

(1) commencing in 2005, at least one percent of the electric utility's total retail
electric sales is generated by eligible energy technologies;

(2) the amount provided under clause (1) is increased by new text begin at least new text end one percent of the
utility's total retail electric sales each year until deleted text begin 2015; and deleted text end new text begin 2025;
new text end

(3) new text begin no later than 2015, at least new text end ten percent of the electric energy provided to retail
customers in Minnesota is generated by eligible energy technologies deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) no later than 2025, at least 25 percent of electric energy provided to retail
customers in Minnesota is generated by eligible energy technologies.
new text end

(b) Of the eligible energy technology generation required under paragraph (a),
clauses (1) and (2), not less than 0.5 percent of the energy must be generated by biomass
energy technologies, including 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, by 2005. By 2010, one percent of the eligible technology generation
required under paragraph (a), clauses (1) and (2), shall be generated by biomass energy
technologies. An energy recovery facility used to capture the heat value of mixed
municipal solid waste or refuse-derived fuel from mixed municipal solid waste, with a
power sales agreement in effect as of May 29, 2003, that terminates after December 31,
2010, does not qualify as an eligible energy technology unless the agreement provides for
rate adjustment in the event the facility qualifies as a renewable energy source.

(c) By June 1, 2004, and as needed thereafter, the commission shall issue an
order detailing the criteria and standards by which it will measure an electric utility's
efforts to meet the renewable energy objectives of this section to determine whether
the utility is making the required good faith effort. In this order, the commission shall
include criteria and standards 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.

(d) In its order under paragraph (c), the commission shall provide for a weighted
scale of how energy produced by various eligible energy technologies shall count toward a
utility's objective. In establishing this scale, the commission shall consider the attributes
of various technologies and fuels, and shall establish a system that grants multiple credits
toward the objectives for those technologies and fuels the commission determines is in
the public interest to encourage.

Sec. 2.

Minnesota Statutes 2005 Supplement, section 239.7911, is amended to read:

239.7911 PETROLEUM REPLACEMENT PROMOTION.

Subdivision 1.

Petroleum replacement goal.

The new text begin tiered new text end petroleum replacement
goal of the state of Minnesota is that new text begin :
new text end

new text begin (1) new text end at least 20 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2015 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2005.
new text end

Subd. 2.

Promotion of renewable liquid fuels.

(a) The commissioner of
agriculture, in consultation with the commissioners of commerce and the Pollution
Control Agency, shall identify and implement activities necessary for the widespread use
of renewable liquid fuels in the state. Beginning November 1, 2005, and continuing
through deleted text begin 2015 deleted text end new text begin 2025 new text end , the commissioners, or their designees, shall work with representatives
from the renewable fuels industry, petroleum retailers, refiners, automakers, small engine
manufacturers, and other interested groups, to develop annual recommendations for
administrative and legislative action.

(b) The activities of the commissioners under this subdivision shall include, but not
be limited to:

(1) developing recommendations for incentives for retailers to install equipment
necessary for dispensing renewable liquid fuels to the public;

(2) obtaining federal approval for the use of E20 as gasoline new text begin and, if deemed
necessary by the commissioners or their designees to achieve the goal in subdivision 1,
clause (2), obtaining federal approval for the use of E25 as gasoline new text end ;

(3) developing recommendations for ensuring that motor vehicles and small engine
equipment have access to an adequate supply of fuel;

(4) working with the owners and operators of large corporate automotive fleets in the
state to increase their use of renewable fuels; and

(5) working to maintain an affordable retail price for liquid fuels.