HF 4394

as introduced - 90th Legislature (2017 - 2018) Posted on 04/12/2018 02:37pm

A bill for an act
relating to energy; requiring the Public Utilities Commission to consider
employment opportunity growth when evaluating certain certificate of need
applications; modifying criteria used to evaluate compliance with renewable energy
standards; amending Minnesota Statutes 2016, sections 216B.1691, subdivisions
2d, 9, by adding a subdivision; 216B.243, subdivision 3, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2016, section 216B.1691, subdivision 2d, is amended to
read:

Subd. 2d.

Commission order.

The commission shall issue necessary orders detailing
the criteria and standards by which it will measure an electric utility's efforts to meet the
renewable energy objectives of subdivision 2 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. new text begin In an order under
this subdivision, the commission must also include criteria evaluating whether at least 50
percent of the hours worked by construction employees at each of the electric utility's eligible
energy technology project work sites are performed by employees who are (1) Minnesota
residents for income tax purposes, or (2) reside within 100 miles of the eligible energy
technology project construction site.
new text end

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, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Reports on state and local employment opportunities. new text end

new text begin (a) For purposes of
this subdivision and subdivision 2d, "construction employees" means employees working
in construction occupations, as defined by the United States Bureau of Labor Statistics.
new text end

new text begin (b) Each electric utility engaged in building an eligible energy technology project under
the objectives and standards of this section must submit to the commission a quarterly report
certifying to the best of the utility's knowledge:
new text end

new text begin (1) the total number of hours worked for any employer that quarter by all construction
employees at the project site, including the full names and addresses of all the construction
employees;
new text end

new text begin (2) the total number of hours worked that quarter for any employer at the project site by
all construction employees who are Minnesota residents for income tax purposes, including
the full names and addresses of all Minnesota resident employees; and
new text end

new text begin (3) the total number of hours worked for any employer that quarter at the project site by
all construction employees who reside within 100 miles of the project site, including the
full names and addresses of all such local resident employees.
new text end

new text begin The commission must develop a standard reporting form to facilitate compliance with this
subdivision.
new text end

new text begin (c) The commission must submit to the chairs and ranking minority members of the
legislative committees with primary jurisdiction over energy policy an annual report prepared
with the assistance of the Department of Commerce and the Department of Labor and
Industry that addresses the training and use of Minnesota workers for the general and
specialized skills required to build eligible energy technology projects that comply with the
objectives and standards of this section. The report must include the estimated economic
impacts resulting from the use of local and nonlocal labor on projects under this section.
new text end

new text begin (d) Reports submitted under this subdivision are public data under section 13.03,
subdivision 1.
new text end

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 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, new text begin the creation
of high-quality employment opportunities for Minnesota workers and local workers, new text end the
costs of energy generation to satisfy the renewable 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. 4.

Minnesota Statutes 2016, section 216B.243, subdivision 3, is amended to read:

Subd. 3.

Showing required for construction.

No proposed large energy facility shall
be certified for construction unless the applicant can show that demand for electricity cannot
be met more cost effectively through energy conservation and load-management measures
and unless the applicant has otherwise justified its need. In assessing need, the commission
shall evaluate:

(1) the accuracy of the long-range energy demand forecasts on which the necessity for
the facility is based;

(2) the effect of existing or possible energy conservation programs under sections 216C.05
to 216C.30 and this section or other federal or state legislation on long-term energy demand;

(3) the relationship of the proposed facility to overall state energy needs, as described
in the most recent state energy policy and conservation report prepared under section
216C.18, or, in the case of a high-voltage transmission line, the relationship of the proposed
line to regional energy needs, as presented in the transmission plan submitted under section
216B.2425;

(4) promotional activities that may have given rise to the demand for this facility;

(5) benefits of this facility, including its uses to protect or enhance environmental quality,
and to increase reliability of energy supply in Minnesota and the region;

(6) possible alternatives for satisfying the energy demand or transmission needs including
but not limited to potential for increased efficiency and upgrading of existing energy
generation and transmission facilities, load-management programs, and distributed generation;

(7) the policies, rules, and regulations of other state and federal agencies and local
governments;

(8) any feasible combination of energy conservation improvements, required under
section 216B.241, that can (i) replace part or all of the energy to be provided by the proposed
facility, and (ii) compete with it economically;

(9) with respect to a high-voltage transmission line, the benefits of enhanced regional
reliability, access, or deliverability to the extent these factors improve the robustness of the
transmission system or lower costs for electric consumers in Minnesota;

(10) whether the applicant or applicants are in compliance with applicable provisions
of sections 216B.1691 and 216B.2425, subdivision 7, and have filed or will file by a date
certain an application for certificate of need under this section or for certification as a priority
electric transmission project under section 216B.2425 for any transmission facilities or
upgrades identified under section 216B.2425, subdivision 7;

(11) whether the applicant has made the demonstrations required under subdivision 3a;
deleted text begin and
deleted text end

(12) if the applicant is proposing a nonrenewable generating plant, the applicant's
assessment of the risk of environmental costs and regulation on that proposed facility over
the expected useful life of the plant, including a proposed means of allocating costs associated
with that risk deleted text begin . deleted text end new text begin ; and
new text end

new text begin (13) whether the applicant has demonstrated that at least 50 percent of the hours to be
performed by construction employees at the proposed large energy facility construction site
are by employees who are Minnesota residents for income tax purposes or employees who
reside within 100 miles of the proposed large energy facility construction site.
new text end

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.243, is amended by adding a subdivision
to read:

new text begin Subd. 3c. new text end

new text begin Reports on state and local employment opportunities. new text end

new text begin (a) For purposes of
this subdivision and subdivision 3, clause (13), "construction employees" means employees
working in construction occupations, as defined by the United States Bureau of Labor
Statistics.
new text end

new text begin (b) A project owner or developer building a large energy facility for which a certificate
of need has been approved must submit to the commission a quarterly report, certifying to
the best of the project owner's or developer's knowledge:
new text end

new text begin (1) the total number of hours worked that quarter by construction employees at the large
energy facility project site, including the full names and addresses of all the construction
employees;
new text end

new text begin (2) the total number of hours worked that quarter at the project site by construction
employees who are Minnesota residents for income tax purposes, including the full names
and addresses of all the Minnesota resident employees; and
new text end

new text begin (3) the total number of hours worked that quarter at the project site by construction
employees who reside within 100 miles of the project site, including the full names and
addresses of all the local resident employees. The commission must develop a standard
reporting form to facilitate compliance with this subdivision.
new text end

new text begin (c) The commission must prepare annual reports with the assistance of the Department
of Commerce and the Department of Labor and Industry that address the training and use
of Minnesota workers for the general and specialized skills required to build large energy
facilities approved by the commission. The reports must include the estimated economic
impacts resulting from the use of local and nonlocal labor on the projects. The reports must
be submitted each year to the chairs and ranking minority members of the legislative
committees with primary jurisdiction over energy policy.
new text end

new text begin (d) Reports submitted under this subdivision are public data under section 13.03,
subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end