1.1 	A bill for an act
1.2 	relating to energy; prohibiting recovery of certain costs of electric service; 
1.3 	barring issuance of certificate of need by Public Utilities Commission under 
1.4 	certain circumstances;amending Minnesota Statutes 2004, sections 216B.1645, 
1.5 	by adding a subdivision; 216B.243, by adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 216B.1645, is amended by adding a 
1.8 	subdivision to read:
1.9 		Subd. 5.Prohibition of cost recovery. A utility may not recover from Minnesota 
1.10 	ratepayers who receive electric service any costs, including capacity costs and costs of 
1.11 	purchased energy, associated with a coal-fired electric generating unit located outside 
1.12 	Minnesota whose construction begins after January 1, 2007, unless all carbon and mercury 
1.13 	that would otherwise be emitted into the atmosphere in gaseous or particulate form from 
1.14 	the coal-fired electric generating unit is sequestered. For purposes of this subdivision, 
1.15 	"sequestered" has the meaning given in section 216B.243, subdivision 3c, paragraph (b).

1.16 	Sec. 2. Minnesota Statutes 2004, section 216B.243, is amended by adding a 
1.17 	subdivision to read:
1.18 		Subd. 3c.Sequestration required. (a) The commission may not issue a certificate 
1.19 	of need for a coal-fired electric generating unit unless the applicant for the certificate has 
1.20 	demonstrated to the commission's satisfaction that all carbon and mercury that would 
1.21 	otherwise be emitted into the atmosphere in gaseous or particulate form from the coal-fired 
1.22 	electric generating unit is sequestered.
2.1 	(b) For purposes of this subdivision, "sequestered" means the taking and storing of 
2.2 	carbon or mercury that would otherwise be emitted into the atmosphere as a result of coal 
2.3 	combustion in order to prevent their release to the atmosphere.

2.4 	Sec. 3. EFFECTIVE DATE.
 2.5 	Sections 1 and 2 are effective the day following final enactment.