SF 2948

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/17/2023 08:37am

A bill for an act
relating to energy; modifying Public Utility Commission authority to modify or
delay implementation of standard obligations; amending Minnesota Statutes 2022,
section 216B.1691, subdivision 2b, as amended.

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

Section 1.

Minnesota Statutes 2022, section 216B.1691, subdivision 2b, as amended by
Laws 2023, chapter 7, section 6, is amended to read:

Subd. 2b.

Modification or delay of standard.

(a) The commission shall modify or delay
the implementation of a standard obligation under subdivision 2a, 2f, or 2g, in whole or in
part, if the commission determines that modifying or delaying the standard obligation is in
the public interest. The commission, when evaluating a request to modify or delay
implementation of a standard, must consider:

(1) the impact of implementing the standard on its customers' utility costs, including the
economic and competitive pressure on the utility's customers;

(2) the environmental costs that would be incurred as a result of a delay or modification,
based on the full range of environmental cost values established in section 216B.2422,
subdivision 3;

(3) the effects of implementing the standard on the reliability of the electric system;

(4) technical advances or technical concerns;

(5) delays in acquiring sites or routes due to rejection or delays of necessary siting or
other permitting approvals;

(6) delays, cancellations, or nondelivery of necessary equipment for construction or
commercial operation of an eligible energy technology facility;

(7) transmission constraints preventing delivery of service;

(8) other statutory obligations imposed on the commission or a utility;

(9) impacts on environmental justice areas; and

(10) additional electric load from beneficial electrification and the greenhouse gas
emissions savings associated with those loads as compared to serving the load with
nonelectric energy sources.

For the purposes of this paragraph, "beneficial electrification" means the substitution of
electricity for a fossil fuel, provided that the substitution meets at least one of the following
conditions without adversely affecting either of the other two, as determined by the
commission:

(i) saves a consumer money over the long run compared with continued use of the fossil
fuel;

(ii) enables an electric utility to better manage the electric utility's electric grid network;
or

(iii) reduces negative environmental impacts of fuel use, including but not limited to
statewide greenhouse gas emissions.

(b) new text begin For a public utility, new text end the commission may modify or delay implementation of a standard
obligation under paragraph (a), clauses (1) to (4), only if deleted text begin it deleted text end new text begin the commission new text end finds
implementation would cause significant rate impact, requires significant measures to address
reliability, or raises significant technical issues. new text begin For a public utility, new text end the commission may
modify or delay implementation of a standard obligation under paragraph (a), clauses (5)
to (7), only if deleted text begin it deleted text end new text begin the commission new text end finds that the circumstances described in deleted text begin those deleted text end new text begin paragraph
(a), new text end clauses new text begin (5) to (7), new text end were due to circumstances beyond deleted text begin an electric deleted text end new text begin a public new text end utility's control
and make compliance deleted text begin not feasible deleted text end new text begin infeasible new text end .

new text begin (c) For an electric utility other than a public utility, the commission must modify or
delay implementation of a standard obligation under paragraph (a), clauses (1) to (4), if the
commission finds implementation would cause significant rate impact, requires significant
measures to address reliability, or raises significant technical issues. For an electric utility
other than a public utility, the commission must modify or delay implementation of a standard
obligation under paragraph (a), clauses (5) to (7), if the commission finds that the
circumstances described in paragraph (a), clauses (5) to (7), were due to circumstances
beyond an electric utility's control and make compliance infeasible.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end When evaluating transmission capacity constraints under paragraph (a), clause
(7), the commission must consider whether the utility has:

(1) taken reasonable measures that are under the utility's control and consistent with the
utility's obligations under local, state, and federal laws and regulations, and the utility's
obligations as a member of a regional transmission organization or independent system
operator, to acquire sites, necessary permit approvals, and necessary equipment to develop
and construct new transmission lines or upgrade existing transmission lines to transmit
electricity generated by eligible energy technologies; and

(2) taken all reasonable operational measures to maximize cost-effective electricity
delivery from eligible energy technologies in advance of transmission availability.

deleted text begin (d) deleted text end new text begin (e) new text end When considering whether to delay or modify implementation of a standard
obligation, the commission must give due consideration to a preference for electric generation
through use of eligible energy technology and to the achievement of the standards set by
this section.

deleted text begin (e) deleted text end new text begin (f) new text end An electric utility that requests a modification or delay to the implementation of
a standard must file a plan to comply with the electric utility's standard obligation as part
of the same proceeding in which the electric utility requests the modification or delay.

new text begin EFFECTIVE DATE. new text end

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