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SF 3902

as introduced - 90th Legislature (2017 - 2018) Posted on 07/13/2018 02:38pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to energy; eliminating the requirement that the Public Utilities Commission
establish a range of environmental costs for use in utility planning; amending
Minnesota Statutes 2016, section 216B.243, subdivisions 3, 3a; repealing Minnesota
Statutes 2016, section 216B.2422, subdivision 3.

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

Section 1.

Minnesota Statutes 2016, section 216B.243, subdivision 3, is amended to read:


Subd. 3.

Showing required for construction.

No proposed large energy facility shall
be certified for construction unless the applicant can show that demand for electricity cannot
be met more cost effectively through energy conservation and load-management measures
and unless the applicant has otherwise justified its need. In assessing need, the commission
shall evaluate:

(1) the accuracy of the long-range energy demand forecasts on which the necessity for
the facility is based;

(2) the effect of existing or possible energy conservation programs under sections 216C.05
to 216C.30 and this section or other federal or state legislation on long-term energy demand;

(3) the relationship of the proposed facility to overall state energy needs, as described
in the most recent state energy policy and conservation report prepared under section
216C.18, or, in the case of a high-voltage transmission line, the relationship of the proposed
line to regional energy needs, as presented in the transmission plan submitted under section
216B.2425;

(4) promotional activities that may have given rise to the demand for this facility;

(5) benefits of this facility, including its uses to protect or enhance environmental quality,
and to increase reliability of energy supply in Minnesota and the region;

(6) possible alternatives for satisfying the energy demand or transmission needs including
but not limited to potential for increased efficiency and upgrading of existing energy
generation and transmission facilities, load-management programs, and distributed generation;

(7) the policies, rules, and regulations of other state and federal agencies and local
governments;

(8) any feasible combination of energy conservation improvements, required under
section 216B.241, that can (i) replace part or all of the energy to be provided by the proposed
facility, and (ii) compete with it economically;

(9) with respect to a high-voltage transmission line, the benefits of enhanced regional
reliability, access, or deliverability to the extent these factors improve the robustness of the
transmission system or lower costs for electric consumers in Minnesota;

(10) whether the applicant or applicants are in compliance with applicable provisions
of sections 216B.1691 and 216B.2425, subdivision 7, and have filed or will file by a date
certain an application for certificate of need under this section or for certification as a priority
electric transmission project under section 216B.2425 for any transmission facilities or
upgrades identified under section 216B.2425, subdivision 7;

(11) whether the applicant has made the demonstrations required under subdivision 3a;
and

(12) if the applicant is proposing a nonrenewable generating plant, the applicant's
assessment of the risk of deleted text beginenvironmental costs anddeleted text end regulation on that proposed facility over
the expected useful life of the plant, including a proposed means of allocating costs associated
with that risk.

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 2016, section 216B.243, subdivision 3a, is amended to read:


Subd. 3a.

Use of renewable resource.

The commission may not issue a certificate of
need under this section for a large energy facility that generates electric power by means
of a nonrenewable energy source, or that transmits electric power generated by means of a
nonrenewable energy source, unless the applicant for the certificate has demonstrated to
the commission's satisfaction that it has explored the possibility of generating power by
means of renewable energy sources and has demonstrated that the alternative selected is
less expensive deleted text begin(including environmental costs)deleted text end than power generated by a renewable energy
source. For purposes of this subdivision, "renewable energy source" includes hydro, wind,
solar, and geothermal energy and the use of trees or other vegetation as fuel.

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. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 216B.2422, subdivision 3, new text end new text begin is repealed.
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

APPENDIX

Repealed Minnesota Statutes: 18-5932

216B.2422 RESOURCE PLANNING; RENEWABLE ENERGY.

Subd. 3.

Environmental costs.

(a) The commission shall, to the extent practicable, quantify and establish a range of environmental costs associated with each method of electricity generation. A utility shall use the values established by the commission in conjunction with other external factors, including socioeconomic costs, when evaluating and selecting resource options in all proceedings before the commission, including resource plan and certificate of need proceedings.

(b) The commission shall establish interim environmental cost values associated with each method of electricity generation by March 1, 1994. These values expire on the date the commission establishes environmental cost values under paragraph (a).