1998 Minnesota Statutes

     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.  A biomass power facility selected to 
 satisfy the mandate in subdivision 5 also may use fuel sources 
 that are not biomass during any period when biomass fuel sources 
 are not reasonably available to the facility due to any 
 circumstances constituting an act of God.  Fuel sources that are 
 not biomass used during such a period of biomass fuel source 
 unavailability shall not be counted toward the 25 percent 
 exemption provided in this subdivision.  For purposes of this 
 subdivision, "act of God" means any natural disaster or other 
 natural phenomenon of an exceptional, inevitable, or 
 irresistible character, including, but not limited to, flood, 
 fire, drought, earthquake, and crop failure resulting from 
 climatic conditions, infestation, or disease. 

    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. 

    HIST: 1994 c 641 art 3 s 3; 1995 c 224 s 76; 1996 c 450 s 1; 
 1998 c 345 s 2