SF 3080

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 05/07/2010 03:25pm

A bill for an act
relating to energy; modifying programs for reducing emissions at electric
generating plants; amending Minnesota Statutes 2008, sections 216B.1692,
subdivision 8; 216B.6851, subdivisions 3, 5, 6.

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

Section 1.

Minnesota Statutes 2008, section 216B.1692, subdivision 8, is amended to
read:

Subd. 8.

Sunset.

This section is effective until December 31, deleted text begin 2013 deleted text end new text begin 2015 new text end , and
applies to plans, projects, and riders approved before that date and modifications made to
them after that date.

Sec. 2.

Minnesota Statutes 2008, section 216B.6851, subdivision 3, is amended to read:

Subd. 3.

Plan for 90 percent reduction required.

A public utility that elects to be
regulated under this section must file a mercury emissions-reduction plan that is designed
to achieve total mercury reduction at targeted and supplemental units owned by the utility
equivalent to a goal of 90 percent reduction of mercury emissions at the utility's targeted
units by December 31, deleted text begin 2014 deleted text end new text begin 2018 new text end .

Sec. 3.

Minnesota Statutes 2008, section 216B.6851, subdivision 5, is amended to read:

Subd. 5.

Early action; wet scrubbed units.

new text begin (a) new text end The utility electing for regulation
under this section shall file an initial plan for mercury emissions reduction at one of its
two wet scrubbed units on or before December 31, 2007. The plan must provide for
mercury emissions reduction to be implemented at that unit by December 31, 2010. If
the plan is approved by the commission, and implemented by the utility, the utility may
have until July 1, deleted text begin 2011 deleted text end new text begin 2015 new text end , to file its plans for reduction at its other wet scrubbed unit
at the qualifying facility, and may have until December 31, deleted text begin 2014 deleted text end new text begin 2018 new text end , to implement
mercury emissions reduction at that unit.

new text begin (b) Until the utility files its plans for the other wet scrubbed unit, the utility must
submit to the commission and agency, by July 1 each year, beginning in 2011, a report
containing the following information:
new text end

new text begin (1) mercury control plans for units subject to this section, including how elements
of the plans may affect the performance and cost-effectiveness of emission controls for
air pollutants other than mercury;
new text end

new text begin (2) an assessment of the impacts of federal laws regulating various air pollutants
emitted by coal-fired power plants that can reasonably be expected to be enacted by 2018
on the utility's units subject to this section, and potential utility responses to those laws,
including, but not limited, to:
new text end

new text begin (i) installing pollution control equipment;
new text end

new text begin (ii) using pollution allowances to achieve regulatory compliance; and
new text end

new text begin (iii) retiring or repowering the plant that is the subject of the filing with cleaner fuels
considering the costs of complying with state and federal environmental regulations.
new text end

new text begin For each potential response, the report must include an analysis of the impacts on
ratepayers, the utility's financial position, and utility operations, including the impacts on
the service life of affected units.
new text end

new text begin (c) The utility shall consult with the agency, the Department of Commerce, and other
interested stakeholders to determine which future federal laws to assess under paragraph
(b), clause (2), and the scope of the assessment of the impact of those laws.
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. 4.

Minnesota Statutes 2008, section 216B.6851, subdivision 6, is amended to read:

Subd. 6.

Agency review and commission approval.

(a) The agency shall review
the utility's plans as provided in section 216B.684.

(b) The Public Utilities Commission shall review and evaluate a utility's mercury
emissions-reduction plans submitted under this section. In its review, the commission
shall consider the environmental and public health benefits, the agency's determination
of technical feasibility, competitiveness of customer rates, and cost-effectiveness
of the utility's proposed mercury-control initiatives in light of the Pollution Control
Agency's review under paragraph (a). Within 180 days of receiving the agency's report,
the commission shall approve a utility's mercury emissions-reduction plan that the
commission reasonably expects will come closest to achieving total mercury reductions at
targeted and supplemental units owned by the utility equivalent to a goal of 90 percent
reduction of mercury emissions at the utility's targeted units by December 31, deleted text begin 2014 deleted text end new text begin
2018 new text end , in a manner that provides for increased environmental and public health benefits
without imposing excessive costs on the utility's customers. If the commission is unable to
approve the utility's 90 percent reduction plan filed under subdivision 3, the commission,
in consultation with the Pollution Control Agency, shall order the utility to implement
the most stringent mercury-control alternative proposed by the utility under this section
that provides for increased environmental and public health benefits without imposing
excessive costs on the utility's customers.

(c) At each targeted and supplemental unit included in a plan under this section, a
utility shall propose to implement mercury emissions-control measures that will result
in the greatest reduction of mercury emitted from that unit that is technically feasible
without imposing excessive costs.