Minnesota Legislature
SF 3051
as introduced - 92nd Legislature (2021 - 2022) Posted on 07/27/2022 01:31pm
Current Version - as introduced
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A bill for an act
relating to energy; promoting the hiring of local workers to construct and maintain
energy facilities; requiring additional information in a utility's integrated resource
plan; exempting certain wind and solar projects from the certificate of need process;
amending the definition of "solar energy generating system"; allowing longer
transmission lines to utilize the existing alternative route permit review process;
amending Minnesota Statutes 2020, sections 216B.16, subdivision 13; 216B.1645,
subdivision 2; 216B.1691, subdivision 9; 216B.2422, subdivisions 1, 5, by adding
subdivisions; 216B.243, subdivision 8; 216E.01, subdivision 9a; 216E.04,
subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 216B.16, subdivision 13, is amended to read:
Subd. 13.
Economic and community development.
The commission may allow a
public utility to recover from ratepayers thenew text begin reasonablenew text end expenses incurrednew text begin (1)new text end for economic
and community developmentnew text begin , and (2) to employ local workers, as defined in section
216B.2422, subdivision 1, to construct and maintain generation facilities that supply power
to the utility's customersnew 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 2020, section 216B.1645, subdivision 2, is amended to read:
Subd. 2.
Cost recovery.
The expenses incurred by the utility over the duration of the
approved contract or useful life of the investment deleted text begin anddeleted text end new text begin ,new text end expenditures made pursuant to section
116C.779 deleted text begin shall bedeleted text end new text begin , and the expenses incurred to employ local workers to construct and
maintain generation facilities that supply power to the utility's customers arenew text end recoverable
from the ratepayers of the utilitydeleted text begin ,deleted text end to the extent deleted text begin theydeleted text end new text begin the expenses or expendituresnew text end are not
offset by utility revenues attributable to the contracts, investments, or expendituresnew text begin , and if
the expenses or expenditures are deemed reasonable by the commissionnew text end . Upon petition by
a public utility, the commission shall approve or approve as modified a rate schedule
providing for the automatic adjustment of charges to recover the expenses or costs approved
by the commission under subdivision 1, which, in the case of transmission expenditures,
are limited to the portion of actual transmission costs that are directly allocable to the need
to transmit power from the renewable sources of energy. The commission may not approve
recovery of the costs for that portion of the power generated from sources governed by this
section that the utility sells into the wholesale market.
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 2020, 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
citizensnew text begin and local workers, as defined in section 216B.2422, subdivision 1new text end , balancing factors
such as local ownership of or participation in energy productiondeleted text begin ,deleted text end new text begin ; local job impacts, as
defined in section 216B.2422, subdivision 1;new text end development and ownership of eligible energy
technology facilities by independent power producersdeleted text begin ,deleted text end new text begin ;new text end Minnesota utility ownership of
eligible energy technology facilitiesdeleted text begin ,deleted text end new text begin ;new text end the costs of energy generation to satisfy the renewable
standarddeleted text begin ,deleted text end new text begin ;new text end and the reliability of electric service to Minnesotans.
Sec. 4.
Minnesota Statutes 2020, section 216B.2422, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.
(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more
of electric power and serving, either directly or indirectly, the needs of 10,000 retail
customers in Minnesota. Utility does not include federal power agencies.
(c) "Renewable energy" means electricity generated through use of any of the following
resources:
(1) wind;
(2) solar;
(3) geothermal;
(4) hydro;
(5) trees or other vegetation;
(6) landfill gas; or
(7) predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge.
(d) "Resource plan" means a set of resource options that a utility could use to meet the
service needs of its customers over a forecast period, including an explanation of the supply
and demand circumstances under which, and the extent to which, each resource option
would be used to meet those service needs. These resource options include using,
refurbishing, and constructing utility plant and equipment, buying power generated by other
entities, controlling customer loads, and implementing customer energy conservation.
(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating
resource of 30 megawatts or greater.
(f) "Energy storage system" means a commercially available technology that:
(1) uses mechanical, chemical, or thermal processes to:
(i) store energy, including energy generated from renewable resources and energy that
would otherwise be wasted, and deliver the stored energy for use at a later time; or
(ii) store thermal energy for direct use for heating or cooling at a later time in a manner
that reduces the demand for electricity at the later time;
(2) is composed of stationary equipment;
(3) if being used for electric grid benefits, is operationally visible and capable of being
controlled by the distribution or transmission entity managing it, to enable and optimize the
safe and reliable operation of the electric system; and
(4) achieves any of the following:
(i) reduces peak or electrical demand;
(ii) defers the need or substitutes for an investment in electric generation, transmission,
or distribution assets;
(iii) improves the reliable operation of the electrical transmission or distribution systems,
while ensuring transmission or distribution needs are not created; or
(iv) lowers customer costs by storing energy when the cost of generating or purchasing
it is low and delivering it to customers when the costs are high.
new text begin
(f) "Local job impacts" means the impacts of a certificate of need, a power purchase
agreement, or commission approval of a new or refurbished energy facility on the availability
of construction employment opportunities to local workers.
new text end
new text begin
(g) "Local workers" means workers employed to construct and maintain energy
infrastructure that are Minnesota residents, residents of the utility's service territory, or who
permanently reside within 150 miles of a proposed new or refurbished energy facility.
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 2020, section 216B.2422, is amended by adding a subdivision
to read:
new text begin Subd. 4a. new text end
new text begin Preference for local job creation. new text end
new text begin
As part of a resource plan filing, a utility
must report on associated local job impacts and the steps the utility and the utility's energy
suppliers and contractors are taking to maximize the availability of construction employment
opportunities for local workers. The commission must consider local job impacts and give
preference to proposals that maximize the creation of construction employment opportunities
for local workers, consistent with the public interest, when evaluating any utility proposal
that involves the selection or construction of facilities used to generate or deliver energy to
serve the utility's customers, including but not limited to an integrated resource plan, a
certificate of need, a power purchase agreement, or commission approval of a new or
refurbished electric generation facility. The commission must, to the maximum extent
possible, prioritize the hiring of workers from communities hosting retiring electric generation
facilities, including workers previously employed at the retiring facilities.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to an integrated resource plan filed with the commission on or after that date.
new text end
Sec. 6.
Minnesota Statutes 2020, section 216B.2422, subdivision 5, is amended to read:
Subd. 5.
Bidding; exemption from certificate of need proceeding.
(a) A utility may
select resources to meet its projected energy demand through a bidding process approved
or established by the commission. A utility shall use the environmental cost estimates
determined under subdivision 3 deleted text begin indeleted text end new text begin and consider local job impacts whennew text end evaluating bids
submitted in a process established under this subdivision.
(b) Notwithstanding any other provision of this section, if an electric power generating
plant, as described in section 216B.2421, subdivision 2, clause (1), is selected in a bidding
process approved or established by the commission, a certificate of need proceeding under
section 216B.243 is not required.
(c) A certificate of need proceeding is also not required for an electric power generating
plant that has been selected in a bidding process approved or established by the commission,
or such other selection process approved by the commission, to satisfy, in whole or in part,
the wind power mandate of section 216B.2423 or the biomass mandate of section 216B.2424.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to an integrated resource plan filed with the commission on or after that date.
new text end
Sec. 7.
Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:
new text begin Subd. 8. new text end
new text begin Transmission planning in advance of generation retirement. new text end
new text begin
A utility must
identify in a resource plan each nonrenewable energy facility on the utility's system that
has a depreciation term, probable service life, or operating license term that ends within 15
years of the resource plan filing date. For each nonrenewable energy facility identified, the
utility must include in the resource plan an initial plan to: (1) replace the nonrenewable
energy facility; and (2) upgrade any transmission or other grid capabilities needed to support
the retirement of that nonrenewable energy facility.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to an integrated resource plan filed with the commission on or after that date.
new text end
Sec. 8.
Minnesota Statutes 2020, section 216B.243, subdivision 8, is amended to read:
Subd. 8.
Exemptions.
(a) This section does not apply to:
(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined after being advised by the attorney general
that its application has been preempted by federal law;
(2) a high-voltage transmission line proposed primarily to distribute electricity to serve
the demand of a single customer at a single location, unless the applicant opts to request
that the commission determine need under this section or section 216B.2425;
(3) the upgrade to a higher voltage of an existing transmission line that serves the demand
of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
request that the commission determine need under this section or section 216B.2425;
(4) a high-voltage transmission line of one mile or less required to connect a new or
upgraded substation to an existing, new, or upgraded high-voltage transmission line;
(5) conversion of the fuel source of an existing electric generating plant to using natural
gas;
(6) the modification of an existing electric generating plant to increase efficiency, as
long as the capacity of the plant is not increased more than ten percent or more than 100
megawatts, whichever is greater;
(7) a new text begin large new text end wind energy conversion systemnew text begin , as defined in section 216F.01, subdivision
2,new text end or new text begin a new text end solar deleted text begin electricdeleted text end new text begin energynew text end generation deleted text begin facilitydeleted text end new text begin system, as defined in section 216E.01,
subdivision 9a,new text end if the system deleted text begin or facilitydeleted text end is owned and operated by an independent power
producer and the electric output of the system deleted text begin or facilitydeleted text end new text begin :
new text end
new text begin (i)new text end is not sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator; or
new text begin
(ii) is sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator, provided that the system
represents solar or wind capacity that the entity purchasing the system's electric output was
ordered by the commission to develop in the entity's most recent integrated resource plan
approved under section 216B.2422; or
new text end
(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating new text begin system that is a new text end large energy facility, as defined in section
216B.2421, subdivision 2, engaging in a repowering project that:
(i) will not result in the deleted text begin facilitydeleted text end new text begin systemnew text end exceeding the nameplate capacity under its most
recent interconnection agreement; or
(ii) will result in the deleted text begin facilitydeleted text end new text begin systemnew text end exceeding the nameplate capacity under its most
recent interconnection agreement, provided that the Midcontinent Independent System
Operator has provided a signed generator interconnection agreement that reflects the expected
net power increase.
(b) For the purpose of this subdivision, "repowering project" means:
(1) modifying a large wind energy conversion system or a solar energy generating new text begin system
that is a new text end large energy facility to increase its efficiency without increasing its nameplate
capacity;
(2) replacing turbines in a large wind energy conversion system without increasing the
nameplate capacity of the system; or
(3) increasing the nameplate capacity of a large wind energy conversion system.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to a large wind energy conversion system or a solar energy generating system whose
owner has filed an application for a certificate of need with the Minnesota Public Utilities
Commission on or after that date.
new text end
Sec. 9.
Minnesota Statutes 2020, section 216E.01, subdivision 9a, is amended to read:
Subd. 9a.
Solar energy generating system.
"Solar energy generating system" means a
set of devices whose primary purpose is to produce electricity by means of any combination
of collecting, transferring, or converting solar-generated energynew text begin , and may include
transmission lines designed for and capable of operating at 100 kilovolts or less that
interconnect a solar energy generating system with a high-voltage transmission linenew 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. 10.
Minnesota Statutes 2020, section 216E.04, subdivision 2, is amended to read:
Subd. 2.
Applicable projects.
The requirements and procedures in this section apply to
the following projects:
(1) large electric power generating plants with a capacity of less than 80 megawatts;
(2) large electric power generating plants that are fueled by natural gas;
(3) high-voltage transmission lines of between 100 and 200 kilovolts;
(4) high-voltage transmission lines in excess of 200 kilovolts and less than deleted text begin fivedeleted text end new text begin 30new text end miles
in length in Minnesota;
(5) high-voltage transmission lines in excess of 200 kilovolts if at least 80 percent of
the distance of the line in Minnesota will be located along existing high-voltage transmission
line right-of-way;
(6) a high-voltage transmission line service extension to a single customer between 200
and 300 kilovolts and less than ten miles in length;
(7) a high-voltage transmission line rerouting to serve the demand of a single customer
when the rerouted line will be located at least 80 percent on property owned or controlled
by the customer or the owner of the transmission line; and
(8) large electric power generating plants that are powered by solar energy.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to a high-voltage transmission line in excess of 200 kilovolts whose owner has filed
an application for a route permit with the Minnesota Public Utilities Commission on or after
that date.
new text end