SF 3398

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to the environment; extending life of utility emissions-reduction
program; requiring mercury emissions reductions by public utilities; amending
Minnesota Statutes 2004, section 216B.1692, subdivision 8; proposing coding
for new law in Minnesota Statutes, chapter 216B.

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

Section 1.

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

Subd. 8.

Sunset.

This section is effective until deleted text begin June 30, 2006 deleted text end new text begin December 31, 2011,
and applies to projects and riders approved before that date new text end .

Sec. 2.

new text begin [216B.1695] MERCURY EMISSIONS REDUCTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purpose of this section, the following terms
have the meanings given them:
new text end

new text begin (1) "coal-fired electric generating unit" means any electric generating power plant
in Minnesota that supplied more than one-third of its potential output capacity and 250
megawatts or more of electrical output from coal-fired generation to any public utility as
of January 1, 2006;
new text end

new text begin (2) "dry-scrubbed units" means a coal-fired electric generating unit at which
pollution control technology that uses a spray dryer and fabric filter system to remove
pollutants from air emissions is installed; and
new text end

new text begin (3) "wet-scrubbed units" means a coal-fired electric generating unit at which
pollution control technology that uses water or solutions to remove pollutants from air
emissions is installed.
new text end

new text begin Subd. 2. new text end

new text begin Monitoring. new text end

new text begin By January 1, 2007, a public utility that owns or operates
a coal-fired electric generating unit shall install, maintain, and operate a continuous
mercury emissions-monitoring system approved by the Pollution Control Agency on each
coal-fired electrical generating unit. The data from six months of continuous emissions
monitoring or its equivalent must be used to establish a baseline for mercury emissions
reductions under subdivision 3. The public utility shall report to the Pollution Control
Agency as public data the quality assured data produced from monitoring implemented
pursuant to this subdivision on a quarterly basis on a form prescribed by the agency.
new text end

new text begin Subd. 3. new text end

new text begin Mercury emissions limits. new text end

new text begin Subject to commission approval, mercury
emissions from coal-fired electric generating units relative to the baseline established by
monitoring under subdivision 2 must be reduced as follows:
new text end

new text begin (1) mercury emissions from dry-scrubbed units must be reduced by 90 percent
by January 1, 2009; and
new text end

new text begin (2) mercury emissions from wet-scrubbed units must be reduced by 90 percent
by January 1, 2011.
new text end

new text begin Subd. 4. new text end

new text begin Compliance plans. new text end

new text begin (a) By September 1, 2007, for dry-scrubbed units, a
public utility that owns or operates a coal-fired electrical generating unit shall submit to
the Pollution Control Agency and the commission a plan for compliance with the mercury
emissions limit in subdivision 3, clause (1).
new text end

new text begin (b) By July 1, 2008, for wet-scrubbed units, a public utility that owns or operates
a coal-fired electrical generating unit shall submit to the Pollution Control Agency and
the commission a plan for compliance with the mercury emissions limit in subdivision
3, clause (2).
new text end

new text begin (c) Plans under paragraphs (a) and (b) shall provide the cost, technical feasibility,
operational conditions, and mercury emissions reductions expected for each option.
The plans may specify permit conditions proposed by the public utility for each
mercury emission control option, including, but not limited to, numeric emission target,
percent removal expectations, emission control technology installation, and operative
requirements or work practice standards.
new text end

new text begin (d) The public utility may also submit one or more alternatives to the plans required
under subdivision 3. For each required and alternative plan submitted pursuant to this
subdivision, the utility shall present information assessing the plan's ability to optimize
human health benefits and achieve cost efficiencies.
new text end

new text begin Subd. 5. new text end

new text begin Multiple pollutant reductions. new text end

new text begin A utility required to submit a compliance
plan under this section may also propose plans and associated emissions-reduction
riders to reduce emissions of multiple pollutants. The plans must propose to implement
emission control initiatives that exceed and are implemented in advance of state or federal
requirements.
new text end

new text begin Subd. 6. new text end

new text begin Emission-reduction rider. new text end

new text begin A public utility required to file a compliance
plan under subdivision 4 may also file for approval of an emissions-reduction rate
rider, under section 216B.1692, subdivision 3, for its compliance and multiple pollutant
reduction plans under this section. The emissions-reduction rate rider may include
recovery of capital, operating, and maintenance costs associated with continuous
monitoring, mercury emissions reduction, multiple pollutant emissions reduction, and any
studies undertaken by the utility in support of the compliance plan, in addition to the cost
recovery under section 216B.1692, subdivision 3. The utility may propose to phase in
the emissions-reduction riders to recover these costs over the development and life of the
projects.
new text end

new text begin Subd. 7. new text end

new text begin Compliance assessment. new text end

new text begin (a) The Pollution Control Agency shall evaluate
a utility's compliance plan and alternatives, and within 90 days for dry-scrubbed units
and within 180 days for wet-scrubbed units from the date the plan was submitted, assess
the following:
new text end

new text begin (1) whether the plan will result in compliance with subdivision 3; and
new text end

new text begin (2) the technical feasibility and effectiveness of the technologies proposed in
achieving maximum mercury reductions.
new text end

new text begin (b) For multiple pollutant emissions-reduction plans, the Pollution Control Agency
shall evaluate within 180 days whether the plan complies with the requirements of
subdivisions 3 and 5, in addition to providing an environmental assessment under section
216B.1692, subdivision 4.
new text end

new text begin Subd. 8. new text end

new text begin Commission approval. new text end

new text begin (a) Within 90 days of receiving the Pollution
Control Agency's compliance assessment for dry-scrubbed units, and within 180 days of
receiving the Pollution Control Agency's compliance assessment for wet-scrubbed units,
the commission shall approve a utility's compliance plan that has been assessed to comply
with subdivision 3, clause (1) or (2), unless the applicant or other party establishes that the
plan would impose excessive customer costs.
new text end

new text begin (b) If the commission is unable to approve a plan under paragraph (a), the
commission shall, in consultation with the Pollution Control Agency, order the utility to
implement the most stringent mercury reduction alternative proposed that does not impose
excessive costs. The commission shall not require the replacement of existing pollution
control equipment for that unit. The order must include provisions:
new text end

new text begin (1) requiring the utility to optimize the operation of installed equipment to obtain
maximum mercury reductions and report its efforts and results quarterly to the Pollution
Control Agency; and
new text end

new text begin (2) stating that if compliance with the 90 percent reduction requirement has not been
met by January 1, 2013, the Pollution Control Agency and the commission shall conduct a
de novo review to determine the technical feasibility of compliance with subdivision 3.
new text end

new text begin (c) Within 180 days of receiving the Pollution Control Agency's assessments, the
commission may approve a utility's multiple pollutant emissions-reduction plan if it:
new text end

new text begin (1) results in compliance with subdivision 3 in a manner that is technically feasible
without excessive consumer costs; and
new text end

new text begin (2) provides greater environmental and public health benefits by reducing multiple
emissions simultaneously, including, but not limited to, emissions of mercury, sulfur
oxides, nitrogen oxides, and particulate matter.
new text end

new text begin (d) The commission shall defer to the expertise of the Pollution Control Agency
on compliance issues under subdivision 3, technical feasibility of emission control
technology, and environmental and public health benefits.
new text end

new text begin (e) Section 216B.1692 applies to plans and emission control riders proposed
under this section, and projects included in a plan approved under this section are
considered qualifying projects under section 216B.1692. Section 216B.1692, subdivision
5, paragraph (c), and subdivision 6, do not apply to plans or riders submitted under this
section. Commission approval of an emissions-reduction plan under this section shall
include approval of an emissions-reduction rider associated with that plan, if one was
submitted by the utility.
new text end

new text begin Subd. 9. new text end

new text begin Implementation and operation. new text end

new text begin (a) A public utility required to file a
compliance plan shall implement the plan as approved under subdivision 8.
new text end

new text begin (b) For the first year of operation, except as required by federal regulation, any
mercury emission limit incorporated into the permit of a coal-fired electric generating unit
for which a plan has been approved, shall be a state-only condition of the permit and is not
enforceable by the Pollution Control Agency.
new text end

new text begin (c) After one year, the Pollution Control Agency shall incorporate the mercury limit
as an enforceable state-only limit for any coal-fired electric generating unit that is in
compliance with its plan.
new text end

new text begin (d) For any coal-fired electric generating unit that is not in compliance with the
limits of subdivision 3 after one year, the Pollution Control Agency shall:
new text end

new text begin (1) provide public notice and revise the mercury limit for that unit, incorporating
that limit as an enforceable state-only limit in the facility's permit; and
new text end

new text begin (2) revise the unit's air permit on a biannual basis or as the plan for mercury
reduction at that unit is modified to ensure optimal mercury emissions reduction in light of
technical and operational advances made since the date of plan approval.
new text end

new text begin (e) For any coal-fired electric generating unit that is not in compliance with the
limits of subdivision 3 after one year, the public utility shall report its efforts to optimize
the operation of installed equipment quarterly to the Pollution Control Agency until
compliance with the emission limits set in subdivision 3 is attained.
new text end