SF 3716

as introduced - 90th Legislature (2017 - 2018) Posted on 03/27/2018 09:11am

A bill for an act
relating to energy; establishing the Clean Energy First Act; requiring electric
utilities to meet resource needs using renewable energy and other clean energy
resources; amending Minnesota Statutes 2016, sections 216B.2422, subdivision
1, by adding a subdivision; 216B.2425, by adding a subdivision; Minnesota Statutes
2017 Supplement, section 216B.2422, subdivision 4.

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

Section 1. new text begin TITLE.
new text end

new text begin Sections 2 to 5 may be referred to as the Clean Energy First Act.
new text end

Sec. 2.

Minnesota Statutes 2016, 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.

new text begin (f) "Clean energy resources" means renewable energy, energy efficiency, demand
response and energy storage.
new text end

Sec. 3.

Minnesota Statutes 2016, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 2d. new text end

new text begin Retiring generation; resource planning; worker and community transition.
new text end

new text begin (a) Each utility required to file a resource plan under subdivision 2 must include in its filing
a plan to eventually retire nonrenewable generation resources whose depreciation term or
operating license is within ten years of the resource plan filing date.
new text end

new text begin (b) For each nonrenewable generation resource identified under paragraph (a), the utility
must develop and submit to the Department of Employment and Economic Development
an economic remediation plan to assist communities and workers impacted by the retirement
of the nonrenewable generation resource. The utility must consult affected communities
and plant workers when developing the plan under this paragraph.
new text end

Sec. 4.

Minnesota Statutes 2017 Supplement, section 216B.2422, subdivision 4, is amended
to read:

Subd. 4.

Preference for renewable energy facility.

new text begin (a) new text end The commission deleted text begin shall not
approve deleted text end new text begin is prohibited from approving a resource plan that relies on the addition of
nonrenewable resources, approving new text end a new or refurbished nonrenewable energy facility in
an integrated resource plan or a certificate of need deleted text begin , pursuant to deleted text end new text begin under new text end section 216B.243, deleted text begin nor
shall the commission allow deleted text end new text begin approving a power purchase agreement, or allowing new text end rate recovery
deleted text begin pursuant to deleted text end new text begin under new text end section 216B.16 for deleted text begin such deleted text end a nonrenewable energy facility deleted text begin , deleted text end unless the utility
deleted text begin has demonstrated that a renewable energy facility is not in the public interest. deleted text end new text begin first
demonstrates:
new text end

new text begin (1) cost-effective energy savings are treated as the preferred energy resources to satisfy
customer demand, as required under section 216B.2401;
new text end

new text begin (2) opportunities to meet the utility's resource need entirely through a combination of
clean energy resources were thoroughly evaluated; and
new text end

new text begin (3) a combination of clean energy resources that meets the identified resource need
cost-effectively and reliably when integrated with the utility's existing system is not feasible
and in the public interest.
new text end

new text begin (b) If a utility demonstrates the conditions listed under paragraph (a), clauses (1) to (3),
the commission may approve the inclusion of nonrenewable resources, in combination with
clean energy resources, if nonrenewable resources are necessary to cost-effectively and
reliably satisfy the resource need identified by the utility.
new text end

new text begin (c) new text end When making the deleted text begin public interest deleted text end determination new text begin under paragraph (a) new text end , the commission
must consider:

(1) whether the resource plan helps the utility achieve the greenhouse gas reduction
goals under section 216H.02, the renewable energy standard under section 216B.1691, or
the solar energy standard under section 216B.1691, subdivision 2f;

(2) impacts on local and regional grid reliability;

(3) utility and ratepayer impacts resulting from the intermittent nature of renewable
energy facilities, including but not limited to the costs of purchasing wholesale electricity
in the market and the costs of providing ancillary services; and

(4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility,
changes in transmission costs, portfolio diversification, and environmental compliance
costs.

Sec. 5.

Minnesota Statutes 2016, section 216B.2425, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Retiring generation; transmission and distribution planning. new text end

new text begin Each entity
subject to this section must identify and include in the report under subdivision 2 any
transmission upgrades needed to support the eventual retirement of nonrenewable generation
facilities that are within ten years of being fully depreciated or whose operating licenses
will expire within ten years of the date the report is filed.
new text end