SF 2146

as introduced - 91st Legislature (2019 - 2020) Posted on 03/08/2019 08:39am

A bill for an act
relating to energy; amending a contract requiring approval by the Public Utilities
Commission under the state's biomass mandate; amending Minnesota Statutes
2018, section 216B.2424, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, section 216B.2424, is amended by adding a subdivision
to read:

new text begin Subd. 5b. new text end

new text begin Contract amendment. new text end

new text begin (a) The legislature recognizes:
new text end

new text begin (1) the need to preserve critical infrastructure to manage and dispose of waste wood
resulting from storms, tree trimmings, community tree management plans, land clearing,
and the removal of dead and diseased trees;
new text end

new text begin (2) the Department of Natural Resources, other agencies, and stakeholders have begun
to study and evaluate alternative methods to assist state and local governments dispose of
waste wood; and
new text end

new text begin (3) the large volumes of waste wood the St. Paul district heating and cooling system
cogeneration facility uses as a primary fuel source to supply electricity to the public utility
subject to this section fulfills a portion of the biomass electric energy mandate.
new text end

new text begin Therefore, the legislature finds it is in the public interest to facilitate continued operation
of the St. Paul district heating and cooling system cogeneration facility until alternative
solutions to manage waste wood can be fully evaluated and implemented.
new text end

new text begin (b) The public utility that is a party to a power purchase agreement with the St. Paul
district heating and cooling system cogeneration facility must agree to amend the existing
power purchase agreement as follows:
new text end

new text begin (1) the term must be extended through the end of 2030;
new text end

new text begin (2) the cogeneration facility must utilize waste wood as its primary fuel source during
the extended term of the power purchase agreement; and
new text end

new text begin (3) the price per megawatt hour in nominal dollars measured over the extended term
must be at least 20 percent below the average rate for the time period of January 1, 2019,
to April 16, 2023, established under the existing power purchase agreement. Nothing in this
subdivision precludes the parties to the extended power purchase agreement from agreeing
to other subsequent changes to the agreement, including the amount of megawatt hours
generated annually, provided the changes are consistent with this subdivision and are
approved by the commission.
new text end

new text begin The amendment must be negotiated and executed no later than 60 days after the effective
date of this act.
new text end

new text begin (c) The commission must approve an amended power purchase agreement that complies
with paragraph (b) as reasonable and in the public interest within 30 days of its filing with
the commission. The amended power purchase agreement is not effective until it is approved
by the commission.
new text end

new text begin (d) A utility may petition the commission to approve a rate schedule that automatically
adjusts charges to recover expenses and costs associated with the amended power purchase
agreement. Cost recovery approved by the commission under this paragraph may include
all cost recovery allowed for renewable facilities under section 216B.1645, subdivisions 2
and 2a.
new text end

new text begin (e) For the purposes of this subdivision, "waste wood" means waste materials, including
bark, brush, limbs, and tree residues, resulting from storms, tree trimmings, the
implementation of community tree management plans, land clearing, and the removal of
dead and diseased trees.
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