HF 4029

as introduced - 89th Legislature (2015 - 2016) Posted on 05/24/2016 08:25am

A bill for an act
relating to energy; establishing the Renewables First Initiative; requiring electric
utilities to replace retiring nonrenewable electric generation with renewable
energy and other clean energy resources if reliable and cost-effective; amending
Minnesota Statutes 2014, section 216B.2422, subdivision 4, by adding a
subdivision; Minnesota Statutes 2015 Supplement, section 216B.2425, by adding
a subdivision.

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

Section 1. new text begin TITLE.
new text end

new text begin This act shall be known as the "Renewables First Initiative."
new text end

Sec. 2.

Minnesota Statutes 2014, section 216B.2422, is amended by adding a
subdivision to read:

new text begin Subd. 2d. new text end

new text begin Retiring generation; resource planning. new text end

new text begin Each utility required to file a
resource plan under subdivision 2 must include in the filing a plan to retire nonrenewable
generation resources on the utility's system that are within ten years of being fully
depreciated, as determined by utility documents filed with the commission, or whose
operating licenses will expire within ten years.
new text end

Sec. 3.

Minnesota Statutes 2014, section 216B.2422, subdivision 4, is amended to read:

Subd. 4.

Preference for renewable energy facility.

new text begin (a) new text end 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 new text begin or approve a power purchase agreement
new text end for deleted text begin such deleted text end a nonrenewable energy facility, unless the utility has new text begin first new text end demonstrated that deleted text begin a
renewable energy facility deleted text end new text begin there is no cost-effective and reliable combination of renewable
energy, energy efficiency, demand response, or energy storage resources that could satisfy
the resource need identified by the utility, and that a combination of renewable energy
resources new text end is not in the public interest. The public interest determination must include
whether the resource plan helps the utility achieve the greenhouse gas reduction goals
under section 216H.02, the renewable energy standard under section 216B.1691, or the
solar energy standard under section 216B.1691, subdivision 2f.

new text begin (b) If a utility demonstrates under paragraph (a) that no cost-effective and
reliable combination of renewable energy resources exists or is in the public interest,
the commission may approve the inclusion of nonrenewable generation resources in
combination with renewable energy, energy efficiency, demand response, or energy
storage resources as necessary to cost-effectively and reliably satisfy the resource need
identified by the utility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
but does not apply to the replacement of nonrenewable generation resources proposed to
be retired in a resource plan pending before the commission as of January 1, 2016.
new text end

Sec. 4.

Minnesota Statutes 2015 Supplement, section 216B.2425, is amended by
adding a subdivision to read:

new text begin Subd. 7a. new text end

new text begin Retiring generation; transmission and distribution planning. new text end

new text begin Each
entity subject to this section must identify and include in its report under subdivision
2 transmission upgrades that are needed to support the retirement of nonrenewable
generation facilities that are within ten years of being fully depreciated, as determined by
utility documents filed with the commission at the time of the submission required under
subdivision 2, or whose operating licenses will expire within ten years of that time.
new text end