2005 Minnesota Statutes

     216B.1694 Innovative energy project. 

    Subdivision 1.    Definition.  For the purposes of this 
 section, the term "innovative energy project" means a proposed 
 energy-generation facility or group of facilities which may be 
 located on up to three sites: 

    (1) that makes use of an innovative generation technology 
 utilizing coal as a primary fuel in a highly efficient 
 combined-cycle configuration with significantly reduced sulfur 
 dioxide, nitrogen oxide, particulate, and mercury emissions from 
 those of traditional technologies; 

    (2) that the project developer or owner certifies is a 
 project capable of offering a long-term supply contract at a 
 hedged, predictable cost; and 

    (3) that is designated by the commissioner of the Iron 
 Range Resources and Rehabilitation Board as a project that is 
 located in the taconite tax relief area on a site that has 
 substantial real property with adequate infrastructure to 
 support new or expanded development and that has received prior 
 financial and other support from the board.  

    Subd. 2.    Regulatory incentives.  (a) An innovative 
 energy project: 

    (1) is exempted from the requirements for a certificate of 
 need under section 216B.243, for the generation facilities, and 
 transmission infrastructure associated with the generation 
 facilities, but is subject to all applicable environmental 
 review and permitting procedures of sections 116C.51 to 116C.69; 

    (2) once permitted and constructed, is eligible to increase 
 the capacity of the associated transmission facilities without 
 additional state review upon filing notice with the commission; 

    (3) has the power of eminent domain, which shall be limited 
 to the sites and routes approved by the Environmental Quality 
 Board for the project facilities.  The project shall be 
 considered a utility as defined in section 116C.52, subdivision 
 10, for the limited purpose of section 116C.63.  The project 
 shall report any intent to exercise eminent domain authority to 
 the board; 

    (4) shall qualify as a "clean energy technology" as defined 
 in section 216B.1693; 

    (5) shall, prior to the approval by the commission of any 
 arrangement to build or expand a fossil-fuel-fired generation 
 facility, or to enter into an agreement to purchase capacity or 
 energy from such a facility for a term exceeding five years, be 
 considered as a supply option for the generation facility, and 
 the commission shall ensure such consideration and take any 
 action with respect to such supply proposal that it deems to be 
 in the best interest of ratepayers; 

    (6) shall make a good faith effort to secure funding from 
 the United States Department of Energy and the United States 
 Department of Agriculture to conduct a demonstration project at 
 the facility for either geologic or terrestrial carbon 
 sequestration projects to achieve reductions in facility 
 emissions or carbon dioxide; 

    (7) shall be entitled to enter into a contract with a 
 public utility that owns a nuclear generation facility in the 
 state to provide 450 megawatts of baseload capacity and energy 
 under a long-term contract, subject to the approval of the terms 
 and conditions of the contract by the commission.  The 
 commission may approve, disapprove, amend, or modify the 
 contract in making its public interest determination, taking 
 into consideration the project's economic development benefits 
 to the state; the use of abundant domestic fuel sources; the 
 stability of the price of the output from the project; the 
 project's potential to contribute to a transition to hydrogen as 
 a fuel resource; and the emission reductions achieved compared 
 to other solid fuel baseload technologies; and 

    (8) shall be eligible for a grant from the renewable 
 development account, subject to the approval of the entity 
 administering that account, of $2,000,000 a year for five years 
 for development and engineering costs, including those costs 
 related to mercury-removal technology; thermal efficiency 
 optimization and emission minimization; environmental impact 
 statement preparation and licensing; development of hydrogen 
 production capabilities; and fuel cell development and 
 utilization. 

    (b) This subdivision does not apply to nor affect a 
 proposal to add utility-owned resources that is pending on May 
 29, 2003, before the Public Utilities Commission or to 
 competitive bid solicitations to provide capacity or energy that 
 is scheduled to be on line by December 31, 2006. 

    HIST: 1Sp2003 c 11 art 4 s 1