1.1                          A bill for an act 
  1.2             relating to energy; authorizing public utilities 
  1.3             commission to order public utility to initiate 
  1.4             emissions reduction rider process or to proceed with 
  1.5             an approved emissions reduction rider; amending 
  1.6             Minnesota Statutes 2002, section 216B.1692, 
  1.7             subdivisions 2, 3, 6.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 216B.1692, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [PROPOSAL SUBMISSION.] A public utility that 
  1.12  intends to submit a proposal for an emissions reduction rider 
  1.13  under this section, or that is ordered to do so by the 
  1.14  commission, must submit to the commission, the department, the 
  1.15  pollution control agency, and interested parties its plans for 
  1.16  emissions reduction projects at its generating facilities.  This 
  1.17  submission must be made at least 60 days in advance of a 
  1.18  petition for a rider and shall include: 
  1.19     (1) the priority order of emissions reduction projects the 
  1.20  utility plans to pursue at its generating facilities; 
  1.21     (2) the planned schedule for implementation; 
  1.22     (3) the analysis and considerations relied on by the public 
  1.23  utility to develop that priority ranking; 
  1.24     (4) the alternative emissions reduction projects 
  1.25  considered, including but not limited to applications of the 
  1.26  best available control technology and repowering with natural 
  2.1   gas, and reasons for not pursuing them; 
  2.2      (5) the emissions reductions expected to be achieved by the 
  2.3   projects and their relation to applicable standards for new 
  2.4   facilities under the federal Clean Air Act; and 
  2.5      (6) the general rationale and conclusions of the public 
  2.6   utility in determining the priority ranking. 
  2.7      Sec. 2.  Minnesota Statutes 2002, section 216B.1692, 
  2.8   subdivision 3, is amended to read: 
  2.9      Subd. 3.  [FILING PETITION TO RECOVER PROJECT COSTS.] 
  2.10  (a) The commission may order a public utility ~~may~~ to petition 
  2.11  the commission for approval of an emissions reduction rider to 
  2.12  recover the costs of a qualifying emissions reduction project 
  2.13  outside of a general rate case proceeding under section 
  2.14  216B.16.  A public utility may also voluntarily submit such a 
  2.15  petition.  In its filing, the public utility shall provide: 
  2.16     (1) a description of the planned emissions reduction 
  2.17  project; 
  2.18     (2) the activities involved in the project; 
  2.19     (3) a schedule for implementation; 
  2.20     (4) any analysis provided to the pollution control agency 
  2.21  regarding the project; 
  2.22     (5) an assessment of alternatives to the project, including 
  2.23  costs, environmental impact, and operational issues; 
  2.24     (6) the proposed method of cost recovery; 
  2.25     (7) any proposed recovery above cost; and 
  2.26     (8) the projected emissions reductions from the project.  
  2.27     (b) Nothing in this section precludes a public utility or 
  2.28  interested party from seeking commission guidelines for 
  2.29  emissions reduction rider filings; however, commission 
  2.30  guidelines are not required as a prerequisite to a public 
  2.31  utility-initiated filing. 
  2.32     Sec. 3.  Minnesota Statutes 2002, section 216B.1692, 
  2.33  subdivision 6, is amended to read: 
  2.34     Subd. 6.  [IMPLEMENTATION.] Within 60 days of a final 
  2.35  commission order requiring an emissions reduction project under 
  2.36  this section, the public utility shall ~~notify the commission and~~ 
  3.1   ~~the pollution control agency whether it will~~ proceed with the 
  3.2   project.  ~~Nothing in this section commits a public utility to~~ 
  3.3   ~~implementing a proposed emissions reduction project if the~~ 
  3.4   ~~proposed project or terms of the emissions reduction rider have~~ 
  3.5   ~~been either modified or rejected by the commission.~~  A public 
  3.6   utility implementing a project under this section will not be 
  3.7   required for a period of eight years after installation to 
  3.8   undertake additional investments to comply with a new state 
  3.9   requirement regarding pollutants addressed by the project at the 
  3.10  project generating facility.  This section does not affect 
  3.11  requirements of federal law.  The term of the rider shall extend 
  3.12  for the period approved by the commission regardless of any 
  3.13  subsequent state or federal requirement affecting any pollutant 
  3.14  addressed by the approved emissions reduction project and 
  3.15  regardless of the sunset date in subdivision 8. 
  3.16     Sec. 4.  [EFFECTIVE DATE.] 
  3.17     Sections 1 to 3 are effective the day following final 
  3.18  enactment.