SF 3055

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/23/2023 08:45am

A bill for an act
relating to energy; establishing the A+ Energy Act; amending Minnesota Statutes
2022, sections 216B.01; 216B.1691, subdivisions 1, as amended, 2e, as amended;
216B.243, subdivisions 3b, 8, as amended.

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

Section 1. new text begin SHORT TITLE.
new text end

new text begin This act may be cited as the "A+ Energy Act."
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 2022, section 216B.01, is amended to read:

216B.01 LEGISLATIVE FINDINGS.

new text begin It is the policy of this state to preserve a safe, reliable, and affordable energy system that
facilitates the use of all available energy options. new text end It is hereby declared to be in the public
interest that public utilities be regulated as hereinafter provided in order to provide the retail
consumers of natural gas and electric service in this state with adequate and reliable services
at reasonable rates, consistent with the financial and economic requirements of public utilities
and their need to construct facilities to provide such services or to otherwise obtain energy
supplies, to avoid unnecessary duplication of facilities which increase the cost of service
to the consumer and to minimize disputes between public utilities which may result in
inconvenience or diminish efficiency in service to the consumers. Because municipal utilities
are presently effectively regulated by the residents of the municipalities which own and
operate them, and cooperative electric associations are presently effectively regulated and
controlled by the membership under the provisions of chapter 308A, it is deemed unnecessary
to subject such utilities to regulation under this chapter except as specifically provided
herein.

Sec. 3.

Minnesota Statutes 2022, section 216B.1691, subdivision 1, as amended by Laws
2023, chapter 7, section 3, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meaning given them.

(b) "Carbon-free" means a technology that generates electricity without emitting carbon
dioxide.

(c) Unless otherwise specified in law, "eligible energy technology" means an energy
technology that generates electricity from the following renewable energy sources:

(1) solar;

(2) wind;

(3) hydroelectric deleted text begin with a capacity of: (i) less than 100 megawatts; or (ii) 100 megawatts
or more, provided that the facility is in operation as of the effective date of this act deleted text end ;

(4) hydrogen generated from the resources listed in this paragraph; deleted text begin or
deleted text end

(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester
system; the predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge to produce electricity; and, except as provided in subdivision 1a, an
energy recovery facility used to capture the heat value of mixed municipal solid waste or
refuse-derived fuel from mixed municipal solid waste as a primary fuel deleted text begin . deleted text end new text begin ; or
new text end

new text begin (6) nuclear.
new text end

(d) "Electric utility" means: (1) a public utility providing electric service; (2) a generation
and transmission cooperative electric association; (3) a municipal power agency; (4) a power
district; or (5) a cooperative electric association or municipal utility providing electric service
that is not a member of an entity in clauses (2) to (4).

(e) "Environmental justice area" means an area in Minnesota that, based on the most
recent data published by the United States Census Bureau, meets one or more of the following
criteria:

(1) 40 percent or more of the area's total population is nonwhite;

(2) 35 percent or more of households in the area have an income that is at or below 200
percent of the federal poverty level;

(3) 40 percent or more of the area's residents over the age of five have limited English
proficiency; or

(4) the area is located within Indian country, as defined in United State Code, title 18,
section 1151.

(f) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year by
an electric utility to retail customers of the electric utility or to a distribution utility for
distribution to the retail customers of the distribution utility.

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 2022, section 216B.1691, subdivision 2e, as amended by Laws
2023, chapter 7, section 8, is amended to read:

Subd. 2e.

Rate impact of standard compliance; report.

new text begin (a) new text end Each electric utility must
submit to the commission and the legislative committees with primary jurisdiction over
energy policy a report containing an estimation of the rate impact of activities of the electric
utility necessary to comply with this section. In consultation with the Department of
Commerce, the commission shall determine a uniform reporting system to ensure that
individual utility reports are consistent and comparable, and shall, by order, require each
electric utility subject to this section to use that reporting system. The rate impact estimate
must be for wholesale rates and, if the electric utility makes retail sales, the estimate shall
also be for the impact on the electric utility's retail rates. Those activities include, without
limitation, energy purchases, generation facility acquisition and construction, and
transmission improvements. A report must be updated and submitted as part of each
integrated resource plan or plan modification filed by the electric utility under section
216B.2422. The reporting obligation of an electric utility under this subdivision expires
December 31, 2040.

new text begin (b) A report submitted under this subdivision must include an explanation of the electric
utility's efforts to reduce carbon dioxide emissions and increase the use of renewable energy
in the electric utility's operations in a manner that does not adversely affect customer costs
or the reliability of electric service to Minnesotans.
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 2022, section 216B.243, subdivision 3b, is amended to read:

Subd. 3b.

Nuclear power plant; deleted text begin new construction prohibited; deleted text end relicensing.

deleted text begin (a) The
commission may not issue a certificate of need for the construction of a new nuclear-powered
electric generating plant.
deleted text end

deleted text begin (b) deleted text end Any certificate of need for additional storage of spent nuclear fuel for a facility
seeking a license extension shall address the impacts of continued operations over the period
for which approval is sought.

Sec. 6.

Minnesota Statutes 2022, section 216B.243, subdivision 8, as amended by Laws
2023, chapter 7, section 23, 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 large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating system, as defined in section 216E.01, subdivision 9a, if the
system is owned and operated by an independent power producer and the electric output of
the system:

(i) 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

(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; deleted text begin or
deleted text end

(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating system that is a large energy facility, as defined in section
216B.2421, subdivision 2, engaging in a repowering project that:

(i) will not result in the system exceeding the nameplate capacity under its most recent
interconnection agreement; or

(ii) will result in the system 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 deleted text begin . deleted text end new text begin ;
new text end

new text begin (9) a nuclear-powered electric generating plant;
new text end

new text begin (10) a hydroelectric generating facility; or
new text end

new text begin (11) a biomass electric generating facility.
new text end

(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating system
that is a 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 (c) The exemptions under paragraph (a), clauses (9) to (11), do not apply if the
commission determines that the exemption is not in the public interest.
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 a large wind energy conversion system, a solar energy generating system, a
nuclear-powered electric generating plant, a hydroelectric generating facility, or a biomass
electric generating facility whose owner has filed an application for a certificate of need
with the Public Utilities Commission on or after that date.
new text end