SF 2152

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

A bill for an act
relating to environment; imposing limits on mercury
emissions for coal-fired electric generating
facilities; creating a grant program to research
mercury reduction technologies for taconite
processing; amending Minnesota Statutes 2004, sections
116.915, subdivision 3; 116.925, subdivision 2;
216B.1692, subdivisions 1, 8; proposing coding for new
law in Minnesota Statutes, chapters 116; 298.

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

Section 1.

Minnesota Statutes 2004, section 116.915,
subdivision 3, is amended to read:

Subd. 3.

Progress reports.

The commissioner, in
cooperation with the director of the Office of Environmental
Assistance, shall submit progress reports to the legislature on
October 15, 2001, and October 15, 2005. The reports shall
address the state's success in meeting the mercury release
reduction goals of subdivision 1, and discuss whether different
voluntary or mandatory reduction strategies are needed. The
reports shall also discuss whether the reduction goals are still
appropriate given the most recent information regarding mercury
risks. new text begin In the report due October 15, 2005, the commissioner
shall describe the reductions made in mercury emissions since
1990 by each individual sector, including, but not limited to,
materials processing, energy production, and intentional use,
and shall estimate the amount of the reduction achieved in each
sector overall and specifically as a result of implementing a
voluntary reduction plan. The report must also contain revised
estimates of mercury emissions by individual sectors in 1990,
1995, 2000, and 2005.
new text end

Sec. 2.

new text begin [116.922] MERCURY EMISSIONS REDUCTION AT ELECTRIC
GENERATING PLANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin This section applies to any
coal-fired steam electric generating unit located in Minnesota
that is constructed for the purpose of supplying more than
one-third of its potential electric output capacity and 25
megawatts or more of electrical output to any utility power
distribution system for sale. Any steam supplied to a steam
distribution system for the purpose of providing steam to a
steam-electric generator that would produce electrical energy
for sale is also considered in determining the electrical energy
output capacity of the unit. For purposes of this section,
"electric generating unit" means a coal-fired steam electric
generating unit.
new text end

new text begin Subd. 2. new text end

new text begin Emissions limit. new text end

new text begin (a) After December 31, 2011,
an owner or operator of an electric generating unit utilizing
wet scrubbers to control emissions of particulate matter shall
operate the electric generating unit so that emissions of
mercury are, on an annual basis, the lesser of:
new text end

new text begin (1) 6.9 x 10 new text end ^{new text begin -6 new text end} new text begin pounds per megawatt-hour of electricity
generated; or
new text end

new text begin (2) 90 percent less than total mercury emissions reported
for the electric generating unit in calendar year 1999 in the
report submitted under section 116.925, subdivisions 1 and 2.
new text end

new text begin (b) After December 31, 2009, an owner or operator of an
electric generating unit not included in paragraph (a) shall
operate the electric generating unit so that emissions of
mercury are, on an annual basis, the lesser of:
new text end

new text begin (1) 6.9 x 10 new text end ^{new text begin -6 new text end} new text begin pounds per megawatt-hour of electricity
generated; or
new text end

new text begin (2) 90 percent less than total mercury emissions reported
for the electric generating unit in calendar year 1999 in the
report submitted under section 116.925, subdivisions 1 and 2.
new text end

new text begin (c) An owner or operator of two or more electric generating
units at the same facility may request the agency to approve a
plan in which the weighted average amount of mercury emissions
meets the applicable mercury emissions limit under this
subdivision, but which does not require that each electric
generating unit meet that limit. The agency may approve an
averaging plan only if the owner or operator of the electric
generating units included in the plan enters into an enforceable
agreement with the agency requiring the weighted average of
mercury emissions from the electric generating units at the
facility to meet the applicable mercury emissions limit under
this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Compliance plan and report. new text end

new text begin (a) By January 1,
2007, an owner or operator of an electric generating unit shall
submit to the commissioner a compliance plan demonstrating the
steps the owner or operator will take to ensure that the
electric generating unit will meet the applicable mercury
emissions limit of subdivision 2. The plan shall include, at a
minimum, the following information:
new text end

new text begin (1) a list of each electric generating unit on which
mercury emissions control equipment will be installed;
new text end

new text begin (2) a list of each electric generating unit whose coal
input will be switched to a lower mercury-content coal; and
new text end

new text begin (3) a description of any plans to improve the combustion
efficiency of an electric generating unit to meet the applicable
memory emissions limit of subdivision 2.
new text end

new text begin (b) By January 1, 2009, an owner or operator of an electric
generating unit shall submit to the commissioner an updated plan
describing any changes made to the compliance plan submitted
under paragraph (a).
new text end

new text begin (c) By March 1 of the year following the effective date of
the applicable mercury emission limits in subdivision 2, and no
later than March 1 of each following year, an owner or operator
shall submit a compliance certification report to the
commissioner certifying that, during the preceding calendar
year, each electric generating unit or, if an averaging plan has
been approved by the commissioner under subdivision 2, paragraph
(c), the weighted average of the electric generating units, was
in compliance with the applicable mercury emissions limit under
subdivision 2, based on the determination made under subdivision
4. If the mercury emissions exceed the applicable mercury
emissions limit under subdivision 2, the compliance
certification report must include the following information:
new text end

new text begin (1) a determination of the amount and cause of the excess
mercury emissions; and
new text end

new text begin (2) a description of actions the owner or operator has
taken and will take to ensure that the applicable mercury
emissions limit under subdivision 2 will be met in subsequent
years.
new text end

new text begin Subd. 4. new text end

new text begin Compliance determination. new text end

new text begin (a) After the
effective date of the applicable mercury emission limits set
forth in subdivision 2, an owner or operator of an electric
generating unit shall conduct performance tests of the unit
twice within a 12-month period, measuring, simultaneously, the
amount of mercury in the gas stream at the inlet and the exit of
the air pollution control equipment serving each electric
generating unit. The performance tests must be conducted
according to Minnesota Rules, chapter 7017.
new text end

new text begin (b) Any owner or operator who achieves and maintains
compliance with the applicable mercury emissions limit under
subdivision 2 for two consecutive years for an electric
generating unit may thereafter conduct performance tests
annually. However, if an annual performance test fails to
demonstrate compliance with the applicable mercury emissions
limit under subdivision 2, the frequency of performance testing
shall revert to that established in paragraph (a).
new text end

new text begin (c) When a federal performance specification for a mercury
continuous emissions monitoring system is published in the
Federal Register, and a system capable of meeting the federal
performance specification is available, an owner or operator of
an electric generating unit may request approval from the agency
to install a mercury continuous emissions monitoring system to
determine compliance with the applicable mercury emissions limit
set forth in subdivision 2. The owner or operator of an
electric generating unit must demonstrate to the agency that the
mercury continuous emissions monitoring system that it proposes
to install complies with the quality assurance requirements in
the federal specification. If the agency approves the
installation of a mercury continuous emissions monitoring
system, performance testing under paragraph (a) is no longer
required, so long as the mercury continuous emissions monitoring
system continues to comply with the quality assurance
requirements in the federal specification and meet the
specifications in Minnesota Rules, chapter 7017.
new text end

Sec. 3.

Minnesota Statutes 2004, section 116.925,
subdivision 2, is amended to read:

Subd. 2.

Contents of report.

(a) A report must include:

(1) a list of all generation facilities owned or operated
by the utility or person subject to subdivision 1;

(2) all readily available information regarding the amount
of electricity purchased by the utility or person subject to
subdivision 1, for use in the state; and

(3) information for each facility new text begin and each electric
generating unit new text end owned or operated by the utility or person
subject to subdivision 1, stating: (i) the amount of
electricity generated deleted text begin at the facility deleted text end for use or for sale in
this state at retail or wholesale; (ii) the amount new text begin , rank, grade,
and mercury content new text end of deleted text begin fuel deleted text end new text begin coal new text end used to generate that
electricity deleted text begin at the facility deleted text end ; and (iii) the amount of mercury
emitted in generating that electricity in the previous calendar
year, based on deleted text begin emission factors, stack deleted text end new text begin performance new text end tests deleted text begin , fuel
analysis, or other methods approved by the
commissioner deleted text end new text begin conducted under section 116.922 new text end . deleted text begin The report must
include the mercury content of the fuel if it is determined in
conjunction with a stack test.
deleted text end

(b) The following are de minimis standards for small and
little-used generation facilities:

(1) less than 240 hours of operation by the combustion unit
per year;

(2) a fuel capacity input at the combustion unit of less
than 150,000,000 British thermal units per hour; or

(3) an electrical generation unit with maximum output of
less than or equal to 15 megawatts.

A utility or person subject to this section who owns or
operates a combustion unit that qualifies under one of these de
minimis standards is not required to provide the information
described in paragraph (a) for that combustion unit.

(c) A report need not be filed for a combustion device for
a year in which the device has documented mercury emissions of
three pounds or less.

Sec. 4.

Minnesota Statutes 2004, section 216B.1692,
subdivision 1, is amended to read:

Subdivision 1.

Qualifying projects.

Projects that may be
approved for the emissions reduction-rate rider allowed in this
section must:

(1) be installed on existing large electric generating
power plants, as defined in section 216B.2421, subdivision 2,
clause (1), that are located in the state and that are currently
not subject to emissions limitations for new power plants under
the federal Clean Air Act;

(2) not increase the capacity of the existing electric
generating power plant more than ten percent or more than 100
megawatts, whichever is greater; deleted text begin and
deleted text end

(3) result in the existing plant either:

(i) complying with applicable new source review standards
under the federal Clean Air Act; or

(ii) emitting air contaminants at levels substantially
lower than allowed for new facilities by the applicable new
source performance standards under the federal Clean Air Act; or

(iii) reducing emissions from current levels at a unit to
the lowest cost-effective level when, due to the age or
condition of the generating unit, the public utility
demonstrates that it would not be cost-effective to reduce
emissions to the levels in item (i) or (ii) new text begin ; and
new text end

new text begin (4) be designed to reduce emissions of several pollutants
simultaneously, including, but not limited to, mercury, sulfur
oxides, and particulate matter new text end .

Sec. 5.

Minnesota Statutes 2004, section 216B.1692,
subdivision 8, is amended to read:

Subd. 8.

Sunset.

This section deleted text begin is effective until June
30, 2006 deleted text end new text begin expires December 31, 2009 new text end .

Sec. 6.

new text begin [298.228] TACONITE MERCURY CONTROL RESEARCH GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of account. new text end

new text begin The taconite mercury
control research account is established. All money appropriated
to the account, and all fees and other money from any source
that may be credited to the account, including interest earned
on the account, is annually appropriated to the commissioner of
natural resources for implementation and maintenance of the
taconite mercury control research grant program.
new text end

new text begin Subd. 2. new text end

new text begin Funding of account. new text end

new text begin Five percent of the taxes
distributed to the taconite economic development fund under
section 298.28, subdivision 9a, must be paid to the commissioner
of natural resources prior to being allocated under section
298.28, subdivision 9a, to be deposited in the taconite mercury
control research account. The deposits must be made annually
and funds in the account must remain available until the
commissioner makes both determinations required under
subdivision 5. The allocations made under section 298.28,
subdivision 9a, are each reduced by five percent.
new text end

new text begin Subd. 3. new text end

new text begin Program purpose. new text end

new text begin The Department of Natural
Resources shall establish and administer a program to award
grants for the purpose of developing technology to reduce
mercury emissions from taconite indurating furnaces and
direct-reduced iron furnaces to a level at least 70 percent
below the rate of 15.88 pounds of mercury emissions per million
long tons of taconite pellets produced, as estimated for all
Minnesota taconite processing plants for the year 2000 in the
Pollution Control Agency report "Estimated Mercury Emissions in
Minnesota for 1990, 1995, and 2000," March 2004 update. The
department shall establish criteria for funding research and
development projects that apply for grants under this program
and shall award grants to projects it determines are most likely
to achieve the purpose of the program.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin Any private party or public
institution within the state is eligible to receive grants under
the program, including, but not limited to, taconite producers,
institutions of higher education, and government agencies. The
Department of Natural Resources may utilize up to 20 percent of
the funds in the account for research projects intended to
achieve the purpose of the program and may also pay the costs of
administering the program from the account. All work paid for
with grant funds must take place within the state.
new text end

new text begin Subd. 5. new text end

new text begin Findings. new text end

new text begin When the commissioner of natural
resources determines that a mercury control technology has been
developed that achieves the purpose of the program set forth in
subdivision 3 with respect to taconite indurating furnaces or
direct-reduced iron furnaces, the commissioner of natural
resources shall make a separate finding to that effect.
new text end

new text begin Subd. 6. new text end

new text begin Rule adoption. new text end

new text begin Within one year of the date of a
finding made under subdivision 5, the Pollution Control Agency
shall adopt a rule requiring that, within three years of the
date of the rule adoption, each taconite indurating furnace or
direct-reduced iron furnace must reduce its mercury emissions to
the level achievable by the applicable mercury control
technology that is the subject of the finding made in
subdivision 5.
new text end

new text begin Subd. 7. new text end

new text begin Incorporation into permit. new text end

new text begin Within one year of
the rule adoption, the Pollution Control Agency shall
incorporate into the air quality permit of each taconite
indurating furnace and direct-reduced iron furnace the
requirement that each reduce its mercury emissions to the level
achievable by the applicable mercury control technology that is
the subject of the finding made in subdivision 5.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin Section 6 is effective for taxable years beginning after
December 31, 2004.
new text end