Bill Text: MN HF1000 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Emissions reduction-rate rider modified for projects, and commissioner of commerce required to make assessments to fund clean energy resource teams.
Spectrum: Slight Partisan Bill (Democrat 5-3)
Status: (Engrossed - Dead) 2013-05-09 - Second reading [HF1000 Detail]
Download: Minnesota-2013-HF1000-Engrossed.html
1.2relating to energy; modifying the emissions reductions-rate rider for certain
1.3projects; requiring the commissioner of commerce to make assessments to
1.4fund clean energy resource teams;amending Minnesota Statutes 2012, sections
1.5216B.1692, subdivisions 1, 8, by adding a subdivision; 216B.1695, subdivision
1.65; 216B.241, subdivision 1e.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 216B.1692, subdivision 1, is amended to
1.9read:
1.10 Subdivision 1. Qualifying projects. (a) Projects that may be approved for the
1.11emissions reduction-rate rider allowed in this section must:
1.12(1) be installed on existing large electric generating power plants, as defined in
1.13section216B.2421, subdivision 2, clause (1) , that are located in the state and that are
1.14currently not subject to emissions limitations for new power plants under the federal Clean
1.15Air Act, United States Code, title 42, section 7401 et seq.;
1.16(2) not increase the capacity of the existing electric generating power plant more
1.17than ten percent or more than 100 megawatts, whichever is greater; and
1.18(3) result in the existing plant either:
1.19(i) complying with applicable new source review standards under the federal Clean
1.20Air Act; or
1.21(ii) emitting air contaminants at levels substantially lower than allowed for new
1.22facilities by the applicable new source performance standards under the federal Clean
1.23Air Act; or
2.1(iii) reducing emissions from current levels at a unit to the lowest cost-effective level
2.2when, due to the age or condition of the generating unit, the public utility demonstrates
2.3that it would not be cost-effective to reduce emissions to the levels in item (i) or (ii).
2.4(b) Notwithstanding paragraph (a), a project may be approved for the emission
2.5reduction rate rider allowed in this section if the project is to be installed on existing
2.6large electric generating power plants, as defined in section 216B.2421, subdivision 2,
2.7clause (1), that are located outside the state and are needed to comply with state or federal
2.8air quality standards, but only if the project has received an advance determination of
2.9prudence from the commission under section 216B.1695.
2.10 Sec. 2. Minnesota Statutes 2012, section 216B.1692, is amended by adding a
2.11subdivision to read:
2.12 Subd. 1a. Exemption. Subdivisions 2, 4, and 5, paragraph (c), clause (1), do not
2.13apply to projects qualifying under subdivision 1, paragraph (b).
2.14 Sec. 3. Minnesota Statutes 2012, section 216B.1692, subdivision 8, is amended to read:
2.15 Subd. 8. Sunset. This section is effective until December 31,2015 2020, and
2.16applies to plans, projects, and riders approved before that date and modifications made to
2.17them after that date.
2.18 Sec. 4. Minnesota Statutes 2012, section 216B.1695, subdivision 5, is amended to read:
2.19 Subd. 5. Cost recovery. The utility may begin recovery of costs that have been
2.20incurred by the utility in connection with implementation of the project in the next rate
2.21case following an advance determination of prudence or in a rider approved under section
2.22216B.1692. The commission shall review the costs incurred by the utility for the project.
2.23The utility must show that the project costs are reasonable and necessary, and demonstrate
2.24its efforts to ensure the lowest reasonable project costs. Notwithstanding the commission's
2.25prior determination of prudence, it may accept, modify, or reject any of the project costs.
2.26The commission may determine whether to require an allowance for funds used during
2.27construction offset.
2.28 Sec. 5. Minnesota Statutes 2012, section 216B.241, subdivision 1e, is amended to read:
2.29 Subd. 1e. Applied research and development grants. (a) The commissioner
2.30may, by order, approve and make grants for applied research and development projects
2.31of general applicability that identify new technologies or strategies to maximize energy
2.32savings, improve the effectiveness of energy conservation programs, or document
3.1the carbon dioxide reductions from energy conservation programs. When approving
3.2projects, the commissioner shall consider proposals and comments from utilities and
3.3other interested parties. The commissioner may assess up to $3,600,000 annually for the
3.4purposes of this subdivision. The assessments must be deposited in the state treasury
3.5and credited to the energy and conservation account created under subdivision 2a. An
3.6assessment made under this subdivision is not subject to the cap on assessments provided
3.7by section216B.62 , or any other law.
3.8 (b) The commissioner, as part of the assessment authorized under paragraph (a),
3.9shall annually assess and grant up to $500,000 for the purpose of subdivision 9.
3.10(c) The commissioner, as part of the assessment authorized under paragraph (a),
3.11shall annually assess $500,000 for a grant to the partnership created by section 216C.385,
3.12subdivision 2. The grant must be used to exercise the powers and perform the duties
3.13specified in section 216C.385, subdivision 3.
3.14(d) By February 15 annually, the commissioner shall report to the chairs and ranking
3.15minority members of the committees of the legislature with primary jurisdiction over
3.16energy policy and energy finance on the assessments made under this subdivision for the
3.17previous calendar year and the use of the assessment. The report must clearly describe the
3.18activities supported by the assessment and the parties that engaged in those activities.
3.19EFFECTIVE DATE.Paragraph (b) is effective for assessments for state fiscal years
3.20commencing after June 30, 2013.
1.3projects; requiring the commissioner of commerce to make assessments to
1.4fund clean energy resource teams;amending Minnesota Statutes 2012, sections
1.5216B.1692, subdivisions 1, 8, by adding a subdivision; 216B.1695, subdivision
1.65; 216B.241, subdivision 1e.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 216B.1692, subdivision 1, is amended to
1.9read:
1.10 Subdivision 1. Qualifying projects. (a) Projects that may be approved for the
1.11emissions reduction-rate rider allowed in this section must:
1.12(1) be installed on existing large electric generating power plants, as defined in
1.13section
1.14currently not subject to emissions limitations for new power plants under the federal Clean
1.15Air Act, United States Code, title 42, section 7401 et seq.;
1.16(2) not increase the capacity of the existing electric generating power plant more
1.17than ten percent or more than 100 megawatts, whichever is greater; and
1.18(3) result in the existing plant either:
1.19(i) complying with applicable new source review standards under the federal Clean
1.20Air Act; or
1.21(ii) emitting air contaminants at levels substantially lower than allowed for new
1.22facilities by the applicable new source performance standards under the federal Clean
1.23Air Act; or
2.1(iii) reducing emissions from current levels at a unit to the lowest cost-effective level
2.2when, due to the age or condition of the generating unit, the public utility demonstrates
2.3that it would not be cost-effective to reduce emissions to the levels in item (i) or (ii).
2.4(b) Notwithstanding paragraph (a), a project may be approved for the emission
2.5reduction rate rider allowed in this section if the project is to be installed on existing
2.6large electric generating power plants, as defined in section 216B.2421, subdivision 2,
2.7clause (1), that are located outside the state and are needed to comply with state or federal
2.8air quality standards, but only if the project has received an advance determination of
2.9prudence from the commission under section 216B.1695.
2.10 Sec. 2. Minnesota Statutes 2012, section 216B.1692, is amended by adding a
2.11subdivision to read:
2.12 Subd. 1a. Exemption. Subdivisions 2, 4, and 5, paragraph (c), clause (1), do not
2.13apply to projects qualifying under subdivision 1, paragraph (b).
2.14 Sec. 3. Minnesota Statutes 2012, section 216B.1692, subdivision 8, is amended to read:
2.15 Subd. 8. Sunset. This section is effective until December 31,
2.16applies to plans, projects, and riders approved before that date and modifications made to
2.17them after that date.
2.18 Sec. 4. Minnesota Statutes 2012, section 216B.1695, subdivision 5, is amended to read:
2.19 Subd. 5. Cost recovery. The utility may begin recovery of costs that have been
2.20incurred by the utility in connection with implementation of the project in the next rate
2.21case following an advance determination of prudence or in a rider approved under section
2.22216B.1692. The commission shall review the costs incurred by the utility for the project.
2.23The utility must show that the project costs are reasonable and necessary, and demonstrate
2.24its efforts to ensure the lowest reasonable project costs. Notwithstanding the commission's
2.25prior determination of prudence, it may accept, modify, or reject any of the project costs.
2.26The commission may determine whether to require an allowance for funds used during
2.27construction offset.
2.28 Sec. 5. Minnesota Statutes 2012, section 216B.241, subdivision 1e, is amended to read:
2.29 Subd. 1e. Applied research and development grants. (a) The commissioner
2.30may, by order, approve and make grants for applied research and development projects
2.31of general applicability that identify new technologies or strategies to maximize energy
2.32savings, improve the effectiveness of energy conservation programs, or document
3.1the carbon dioxide reductions from energy conservation programs. When approving
3.2projects, the commissioner shall consider proposals and comments from utilities and
3.3other interested parties. The commissioner may assess up to $3,600,000 annually for the
3.4purposes of this subdivision. The assessments must be deposited in the state treasury
3.5and credited to the energy and conservation account created under subdivision 2a. An
3.6assessment made under this subdivision is not subject to the cap on assessments provided
3.7by section
3.8 (b) The commissioner, as part of the assessment authorized under paragraph (a),
3.9shall annually assess and grant up to $500,000 for the purpose of subdivision 9.
3.10(c) The commissioner, as part of the assessment authorized under paragraph (a),
3.11shall annually assess $500,000 for a grant to the partnership created by section 216C.385,
3.12subdivision 2. The grant must be used to exercise the powers and perform the duties
3.13specified in section 216C.385, subdivision 3.
3.14(d) By February 15 annually, the commissioner shall report to the chairs and ranking
3.15minority members of the committees of the legislature with primary jurisdiction over
3.16energy policy and energy finance on the assessments made under this subdivision for the
3.17previous calendar year and the use of the assessment. The report must clearly describe the
3.18activities supported by the assessment and the parties that engaged in those activities.
3.19EFFECTIVE DATE.Paragraph (b) is effective for assessments for state fiscal years
3.20commencing after June 30, 2013.
