HF 249

1st Engrossment - 94th Legislature (2025 - 2026) Posted on 06/03/2025 10:35am

A bill for an act
relating to energy; amending the definition of "carbon-free"; amending Minnesota
Statutes 2024, section 216B.1691, subdivision 1.

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

Section 1.

Minnesota Statutes 2024, section 216B.1691, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meaning given deleted text begin them deleted text end .

(b) "Carbon-free" means a technology that generates electricity without emitting carbon
dioxide. new text begin Carbon-free includes a technology that, as of the effective date of this act and
thereafter, is used by a utility to generate electricity for retail sale in Minnesota by combusting
wood chips derived from:
new text end

new text begin (1) limbs, branches, and other by-products of timber harvesting operations conducted
to obtain wood for nonenergy purposes; or
new text end

new text begin (2) discarded wood products.
new text end

(c) 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: (i) less than 100 megawatts; or (ii) 100 megawatts
or more, provided that the facility is in operation as of February 8, 2023;

(4) hydrogen generated from the resources listed in this paragraph; or

(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester
system; 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 electricity; and, except as provided in subdivision 1a, 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.

(d) "Electric utility" means: (1) a public utility providing electric service; (2) a generation
and transmission cooperative electric association; (3) a municipal power agency; (4) a power
district; or (5) a cooperative electric association or municipal utility providing electric service
that is not a member of an entity in clauses (2) to (4).

(e) "Environmental justice area" means an area in Minnesota that, based on the most
recent data published by the United States Census Bureau, meets one or more of the following
criteria:

(1) 40 percent or more of the area's total population is nonwhite;

(2) 35 percent or more of households in the area have an income that is at or below 200
percent of the federal poverty level;

(3) 40 percent or more of the area's residents over the age of five have limited English
proficiency; or

(4) the area is located within Indian country, as defined in United State Code, title 18,
section 1151.

(f) "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.

new text begin EFFECTIVE DATE. new text end

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