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Minnesota Legislature

Office of the Revisor of Statutes

SF 1013

as introduced - 91st Legislature (2019 - 2020) Posted on 02/07/2019 03:29pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to energy; modifying the definition of biomass as an eligible energy
technology; increasing the proportion of energy that electricity-generating utilities
must supply from renewable sources and setting target dates by which those goals
must be achieved; amending Minnesota Statutes 2018, section 216B.1691,
subdivisions 1, 2a, 2b, 9, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, section 216B.1691, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) 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 with a capacity of less than 100 megawatts;

(4) hydrogen, provided that after January 1, 2010, the hydrogen must be generated from
the resources listed in this paragraph; or

(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester
system;new text begin andnew text end 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 electricitydeleted text begin; and 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 end.

(b) "Electric utility" means a public utility providing electric service, a generation and
transmission cooperative electric association, a municipal power agency, or a power district.

(c) "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. "Total retail electric sales"
does not include the sale of hydroelectricity supplied by a federal power marketing
administration or other federal agency, regardless of whether the sales are directly to a
distribution utility or are made to a generation and transmission utility and pooled for further
allocation to a distribution utility.

new text begin (d) "Carbon-free" means a technology that generates electricity without emitting carbon
dioxide.
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 2018, section 216B.1691, subdivision 2a, is amended to read:


Subd. 2a.

Eligible energy technology standard.

(a) Except as provided in paragraph
(b), each electric utility shall generate or procure sufficient electricity generated by an
eligible energy technology to provide its retail customers in Minnesota, or the retail customers
of a distribution utility to which the electric utility provides wholesale electric service, so
that at least the following standard percentages of the electric utility's total retail electric
sales to retail customers in Minnesota are generated by eligible energy technologies by the
end of the year indicated:

(1)
2012
12 percent
(2)
2016
17 percent
(3)
2020
20 percent
(4)
2025
25 percentdeleted text begin.
deleted text end
new text begin (5)
new text end
new text begin 2030
new text end
new text begin 55 percent
new text end
new text begin (6)
new text end
new text begin 2035
new text end
new text begin 80 percent.
new text end

(b) An electric utility that owned a nuclear generating facility as of January 1, 2007,
must meet the requirements of this paragraph rather than paragraph (a). An electric utility
subject to this paragraph must generate or procure sufficient electricity generated by an
eligible energy technology to provide its retail customers in Minnesota or the retail customer
of a distribution utility to which the electric utility provides wholesale electric service so
that at least the following percentages of the electric utility's total retail electric sales to
retail customers in Minnesota are generated by eligible energy technologies by the end of
the year indicated:

(1)
2010
15 percent
(2)
2012
18 percent
(3)
2016
25 percent
(4)
2020
30 percentdeleted text begin.
deleted text end
new text begin (5)
new text end
new text begin 2026
new text end
new text begin 55 percent
new text end
new text begin (6)
new text end
new text begin 2030
new text end
new text begin 60 percent
new text end
new text begin (7)
new text end
new text begin 2035
new text end
new text begin 85 percent.
new text end

deleted text begin Of the 30 percent in 2020, at least 25 percent must be generated by solar energy or wind
energy conversion systems and the remaining five percent by other eligible energy
technology. Of the 25 percent that must be generated by wind or solar, no more than one
percent may be solar generated and the remaining 24 percent or greater must be wind
generated.
deleted 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. 3.

Minnesota Statutes 2018, section 216B.1691, subdivision 2b, is amended to read:


Subd. 2b.

Modification or delay of standard.

(a) The commission shall modify or delay
the implementation of a standard obligation, in whole or in part, if the commission determines
it is in the public interest to do so. The commission, when requested to modify or delay
implementation of a standard, must consider:

(1) the impact of implementing the standard on its customers' utility costs, including the
economic and competitive pressure on the utility's customers;

(2) new text beginthe environmental costs that would be incurred as a result of a delay or modification,
based on the environmental cost values established in section 216B.2422, subdivision 3;
new text end

new text begin (3) new text endthe effects of implementing the standard on the reliability of the electric system;

deleted text begin (3)deleted text endnew text begin (4)new text end technical advances or technical concerns;

deleted text begin (4)deleted text endnew text begin (5)new text end delays in acquiring sites or routes due to rejection or delays of necessary siting
or other permitting approvals;

deleted text begin (5)deleted text endnew text begin (6)new text end delays, cancellations, or nondelivery of necessary equipment for construction or
commercial operation of an eligible energy technology facility;

deleted text begin (6)deleted text endnew text begin (7)new text end transmission constraints preventing delivery of service; and

deleted text begin (7)deleted text endnew text begin (8)new text end other statutory obligations imposed on the commission or a utility.

The commission may modify or delay implementation of a standard obligation under
clauses (1) to deleted text begin(3)deleted text endnew text begin (4)new text end only if it finds implementation would cause significant rate impact,
requires significant measures to address reliability, new text beginwould cause significant environmental
costs,
new text endor raises significant technical issues. The commission may modify or delay
implementation of a standard obligation under clauses deleted text begin(4)deleted text endnew text begin (5)new text end to deleted text begin(6)deleted text endnew text begin (7)new text end only if it finds that
the circumstances described in those clauses were due to circumstances beyond an electric
utility's control and make compliance not feasible.

new text begin (b) When evaluating transmission capacity constraints under paragraph (a), clause (7),
the commission must consider:
new text end

new text begin (1) whether the utility has, in a timely fashion, undertaken reasonable measures under
its control and consistent with its obligations under local, state, and federal laws and
regulations, and its obligations as a member of the Midcontinent Independent System
Operator, to acquire sites, necessary permit approvals, and necessary equipment to develop
and construct new transmission lines or upgrade existing transmission lines to transmit
electricity generated by eligible energy technologies; and
new text end

new text begin (2) whether the utility has taken all reasonable operational measures to maximize
cost-effective electricity delivery from eligible energy technologies in advance of
transmission availability.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end When considering whether to delay or modify implementation of a standard
obligation, the commission must give due consideration to a preference for electric generation
through use of eligible energy technology and to the achievement of the standards set by
this section.

deleted text begin (c)deleted text endnew text begin (d)new text end An electric utility requesting a modification or delay in the implementation of a
standard must file a plan to comply with its standard obligation in the same proceeding that
it is requesting the delay.

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 2018, section 216B.1691, is amended by adding a subdivision
to read:


new text begin Subd. 2g. new text end

new text begin Carbon-free standard. new text end

new text begin (a) By 2050, 100 percent of the electricity each electric
utility subject to subdivision 2a, paragraph (a), provides directly to Minnesota retail
customers, or indirectly through wholesale sales to a distribution utility serving Minnesota
retail customers, must be generated by a technology that is carbon-free.
new text end

new text begin (b) By 2045, 100 percent of the electricity each electric utility subject to subdivision 2a,
paragraph (b), provides directly to Minnesota retail customers, or indirectly through wholesale
sales to a distribution utility serving Minnesota retail customers, must be generated by a
technology that is carbon-free.
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 2018, section 216B.1691, subdivision 9, is amended to read:


Subd. 9.

Local benefits.

new text begin(a) new text endThe commission shall take all reasonable actions within its
statutory authority to ensure this section is implemented deleted text beginto maximizedeleted text endnew text begin in a manner that
maximizes
new text end benefits to new text beginall new text endMinnesota citizensdeleted text begin, balancingdeleted text endnew text begin throughout the state, including but
not limited to:
new text end

new text begin (1) the creation of high-quality jobs in Minnesota paying wages that support families;
new text end

new text begin (2) recognition of the rights of workers to organize and unionize;
new text end

new text begin (3) ensuring that workers have the necessary tools, opportunities, and economic assistance
to adapt successfully during the energy transition, particularly in communities that host
retiring power plants or that contain historically marginalized and underrepresented
populations;
new text end

new text begin (4) ensuring that all Minnesotans share the benefits of clean and renewable energy, and
the opportunity to participate fully in the clean energy economy;
new text end

new text begin (5) ensuring that air emissions are reduced in communities historically burdened by
pollution and the impacts of climate change; and
new text end

new text begin (6) the provision of affordable electric service to Minnesotans, particularly to low-income
consumers.
new text end

new text begin (b) The commission must also implement this section in a manner that balancesnew text end factors
such as local ownership of or participation in energy production, development and ownership
of eligible energy technology facilities by independent power producers, Minnesota utility
ownership of eligible energy technology facilities, the costs of energy generation to satisfy
the renewable deleted text beginstandarddeleted text endnew text begin and carbon-free standardsnew text end, and the reliability of electric service to
Minnesotans.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end