Minnesota Session Laws - 1996, Regular Session

  
    
KEY: stricken = old language to be removed
     underscored = new language to be added
    
                            CHAPTER 450-H.F.No. 2419 
                  An act relating to energy; regulating a mandate to 
                  generate electricity using biomass as a fuel; 
                  modifying matching requirements for appropriations; 
                  amending Minnesota Statutes 1995 Supplement, section 
                  216B.2424; and Laws 1995, chapter 220, section 14. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1995 Supplement, section 
        216B.2424, is amended to read: 
           216B.2424 [BIOMASS POWER MANDATE.] 
           Subdivision 1.  [FARM GROWN CLOSED-LOOP BIOMASS.] For the 
        purposes of this section, "farm grown closed-loop biomass" means 
        biomass, as defined in section 216C.051, subdivision 7, that: 
           (1) is intentionally cultivated, harvested, and prepared 
        for use, in whole or in part, as a fuel for the generation of 
        electricity; 
           (2) when combusted, releases an amount of carbon dioxide 
        that is less than or approximately equal to the carbon dioxide 
        absorbed by the biomass fuel during its growing cycle; and 
           (3) is fired in a new or substantially retrofitted electric 
        generating facility that is: 
           (i) located within 400 miles of the site of the biomass 
        production; and 
           (ii) designed to use biomass to meet at least 75 percent of 
        its fuel requirements. 
           The legislature finds that the negative environmental 
        impacts within 400 miles of the facility resulting from 
        transporting and combusting the biomass are offset in that 
        region by the environmental benefits to air, soil, and water of 
        the biomass production. 
           Among the biomass fuel sources that meet the requirements 
        of clause (2) are poplar, aspen, willow, switch grass, sorghum, 
        alfalfa, and cultivated prairie grass. 
           Subd. 2.  [INTERIM EXEMPTION.] (a) A biomass project 
        proposing to use, as its primary fuel over the life of the 
        project, short rotation woody crops, may use as an interim fuel 
        agricultural waste and other biomass which is not farm grown 
        closed-loop biomass for up to six years after the project's 
        electric generating facility becomes operational; provided, the 
        project developer demonstrates the project will use the 
        designated short rotation woody crops as its primary fuel after 
        the interim period and provided the location of the interim fuel 
        production meets the requirements of subdivision 1, clause (3). 
           (b) A biomass project proposing to use, as its primary fuel 
        over the life of the project, short rotation woody crops, may 
        use as an interim fuel agricultural waste and other biomass 
        which is not farm grown closed-loop biomass for up to three 
        years after the project's electric generating facility becomes 
        operational; provided, the project developer demonstrates the 
        project will use the designated short rotation woody crops as 
        its primary fuel after the interim period. 
           (c) A biomass project that uses an interim fuel under the 
        terms of paragraph (b) may, in addition, use an interim fuel 
        under the terms of paragraph (a) for six years less the number 
        of years that an interim fuel was used under paragraph (b). 
           (d) A project developer proposing to use an exempt interim 
        fuel under paragraphs (a) and (b) must demonstrate to the public 
        utility that the project will have an adequate supply of short 
        rotation woody crops which meet the requirements of subdivision 
        1 to fuel the project after the interim period. 
           Subd. 3.  [FUEL EXEMPTION.] Over the duration of the 
        contract of a biomass power facility selected to satisfy the 
        mandate in subdivision 5, fuel sources that are not biomass may 
        be used to satisfy up to 25 percent of the fuel requirements of 
        a biomass power facility selected to satisfy the biomass power 
        mandate in subdivision 5. 
           Subd. 4.  [FINANCIAL VIABILITY.] A biomass project 
        developer must demonstrate to the public utility evidence of 
        sufficient financial viability necessary for the construction 
        and operation of the biomass project. 
           Subd. 5.  [MANDATE.] A public utility, as defined in 
        section 216B.02, subdivision 4, that operates a nuclear-powered 
        electric generating plant within this state must construct and 
        operate, purchase, or contract to construct and operate (1) by 
        December 31, 1998, 50 megawatts of electric energy installed 
        capacity generated by farm grown closed-loop biomass scheduled 
        to be operational by December 31, 2001; and (2) by December 31, 
        1998, an additional 75 megawatts of installed capacity so 
        generated scheduled to be operational by December 31, 2002.  Of 
        the total 125 megawatts of biomass electric energy installed 
        capacity required under this section, no more than 75 megawatts 
        may be provided by a single project.  Of the 75 megawatts of 
        biomass electric energy installed capacity required under clause 
        (2), no more than 25 megawatts of this capacity may be provided 
        by a St. Paul district heating and cooling system cogeneration 
        facility utilizing waste wood as a primary fuel source.  The St. 
        Paul district heating and cooling system cogeneration facility 
        need not use biomass that complies with the definition in 
        subdivision 1.  The public utility must accept and consider on 
        an equal basis with other proposals a proposal to satisfy the 
        requirements of this section that includes a project that 
        exceeds the megawatt capacity requirements of either clause (1) 
        or (2) and that proposes to sell the excess capacity to the 
        public utility or to other purchasers. 
           Sec. 2.  Laws 1995, chapter 220, section 14, is amended to 
        read: 
        Sec. 14.  AGRICULTURAL UTILIZATION
        RESEARCH INSTITUTE                     4,330,000      4,330,000
                      Summary by Fund
        General               4,130,000     4,130,000
        Special Revenue         200,000       200,000
        $200,000 each year is for a grant to 
        the natural resources research 
        institute for hybrid tree management 
        research and development of an 
        implementation plan for establishing 
        hybrid tree plantations in the state.  
        This appropriation is available to the 
        extent matched by $2 of nonstate money 
        contributions, either cash or in-kind, 
        for each $1 of state money. 
           Sec. 3.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective the day following final 
        enactment. 
           Presented to the governor April 4, 1996 
           Signed by the governor April 11, 1996, 11:37 a.m.