Bill Text: MN HF306 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Renewable energy standards for 2025 abolished, and clarifying changes made.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2013-04-17 - Author added Gruenhagen [HF306 Detail]
Download: Minnesota-2013-HF306-Introduced.html
1.2relating to energy; abolishing 2025 renewable energy standards; making
1.3clarifying changes;amending Minnesota Statutes 2012, sections 3.8851,
1.4subdivision 3; 216B.1691, subdivisions 2d, 3, 4, 5, 7, 9; repealing Minnesota
1.5Statutes 2012, section 216B.1691, subdivisions 2a, 2b, 2c.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 3.8851, subdivision 3, is amended to read:
1.8 Subd. 3. Duties. (a) The commission shall continuously evaluate the energy policies
1.9of this state and the degree to which they promote an environmentally and economically
1.10sustainable energy future. The commission shall monitor the state's progress in achieving
1.11its goals to develop renewable sources of electric energy under section 216B.1691,
1.12subdivision 2a, and the progress of energy-related sectors in reducing greenhouse gas
1.13emissions under the state's greenhouse gas emissions-reductions goals established in
1.14section216H.02, subdivision 1 . The commission may review proposed energy legislation
1.15and may recommend legislation. The commission shall when feasible solicit and consider
1.16public testimony regarding the economic, environmental, and social implications of state
1.17energy plans and policies. Notwithstanding any other law to the contrary the commission's
1.18evaluations and reviews under this subdivision shall include new and existing technologies
1.19for nuclear power.
1.20 (b) The commission may study, analyze, hold hearings, and make legislative
1.21recommendations regarding the following issues:
1.22 (1) the generation, transmission, and distribution of electricity;
1.23 (2) the reduction of greenhouse gas emissions;
1.24 (3) the conservation of energy;
2.1 (4) alternative energy sources available to replace dwindling fossil fuel and other
2.2nonrenewable fuel sources;
2.3 (5) the development of renewable energy supplies;
2.4 (6) the economic development potential associated with issues described in clauses
2.5(1) to (5); and
2.6 (7) other energy-related subjects the commission finds significant.
2.7 Sec. 2. Minnesota Statutes 2012, section 216B.1691, subdivision 2d, is amended to read:
2.8 Subd. 2d. Commission order. The commission shall issue necessary orders
2.9detailing the criteriaand standards by which it will measure an electric utility's efforts to
2.10meet the renewable energy objectives ofsubdivision 2 this section to determine whether
2.11the utility is making the required good-faith effort. In this order, the commission shall
2.12include criteriaand standards that protect against undesirable impacts on the reliability
2.13of the utility's system and economic impacts on the utility's ratepayers and that consider
2.14technical feasibility.
2.15 Sec. 3. Minnesota Statutes 2012, section 216B.1691, subdivision 3, is amended to read:
2.16 Subd. 3. Utility plans filed with commission. (a) Each electric utility shall report
2.17on its plans, activities, and progress with regard to the good-faith objectivesand standards
2.18 of this section in its filings under section216B.2422 or in a separate report submitted
2.19to the commission every two years, whichever is more frequent, demonstrating to the
2.20commission the utility's good-faith effort tocomply with this section generate or procure
2.21electricity generated by an eligible energy technology. In its resource plan or a separate
2.22report, each electric utility shall provide a description of:
2.23 (1) the status of the utility's renewable energy mix relative to the good-faith
2.24objectiveand standards;
2.25 (2) efforts taken to meet the objectiveand standards;
2.26 (3) any obstacles encountered or anticipated in meeting the objectiveor standards; and
2.27 (4) potential solutions to the obstacles.
2.28 (b) The commissioner shall compile the information provided to the commission
2.29under paragraph (a), and report to the chairs of the house of representatives and senate
2.30committees with jurisdiction over energy and environment policy issues as to the progress
2.31of utilities in the state, including the progress of each individual electric utility, in increasing
2.32the amount of renewable energy provided to retail customers, with any recommendations
2.33for regulatory or legislative action, by January 15 of each odd-numbered year.
3.1 Sec. 4. Minnesota Statutes 2012, section 216B.1691, subdivision 4, is amended to read:
3.2 Subd. 4. Renewable energy credits. (a) To facilitate compliance with this section,
3.3the commission, by rule or order, shall establish by January 1, 2008, a program for
3.4tradable renewable energy credits for electricity generated by eligible energy technology.
3.5The credits must represent energy produced by an eligible energy technology, as defined in
3.6subdivision 1. Each kilowatt-hour of renewable energy credits must be treated the same as
3.7a kilowatt-hour of eligible energy technology generated or procured by an electric utility if
3.8it is produced by an eligible energy technology. The program must permit a credit to be
3.9used only once. The program must treat all eligible energy technology equally and shall
3.10not give more or less credit to energy based on the state where the energy was generated or
3.11the technology with which the energy was generated. The commission must determine the
3.12period in which the credits may be used for purposes of the program.
3.13 (b) In lieu of generating or procuring energy directly to satisfy the eligible energy
3.14technology objectiveor standard of this section, an electric utility may utilize renewable
3.15energy credits allowed under the program to satisfy the objectiveor standard.
3.16 (c) The commission shall facilitate the trading of renewable energy credits between
3.17states.
3.18 (d) The commission shall require all electric utilities to participate in a
3.19commission-approved credit-tracking system or systems. Once a credit-tracking system is
3.20in operation, the commission shall issue an order establishing protocols for trading credits.
3.21(e) An electric utility subject to subdivision 2a, paragraph (b), may not sell renewable
3.22energy credits to an electric utility subject to subdivision 2a, paragraph (a), until 2021.
3.23 Sec. 5. Minnesota Statutes 2012, section 216B.1691, subdivision 5, is amended to read:
3.24 Subd. 5. Technology based on fuel combustion. (a) Electricity produced by fuel
3.25combustion through fuel blending or co-firing under paragraph (b) may only count toward
3.26a utility's objectivesor standards if the generation facility:
3.27 (1) was constructed in compliance with new source performance standards
3.28promulgated under the federal Clean Air Act, United States Code, title 42, section 7401 et
3.29seq., for a generation facility of that type; or
3.30 (2) employs the maximum achievable or best available control technology available
3.31for a generation facility of that type.
3.32 (b) An eligible energy technology may blend or co-fire a fuel listed in subdivision 1,
3.33paragraph (a), clause (5), with other fuels in the generation facility, but only the percentage
3.34of electricity that is attributable to a fuel listed in that clause can be counted toward an
3.35electric utility's renewable energy objectives.
4.1 Sec. 6. Minnesota Statutes 2012, section 216B.1691, subdivision 7, is amended to read:
4.2 Subd. 7. Compliance. The commission must regularly investigate whether an
4.3electric utility is in compliance with its good-faith objective under subdivision 2and
4.4standard obligation under subdivision 2a. If the commission finds noncompliance, it may
4.5order the electric utility to construct facilities, purchase energy generated by eligible
4.6energy technology, purchase renewable energy credits, or engage in other activities
4.7to achieve compliance. If an electric utility fails to comply with an order under this
4.8subdivision, the commission may impose a financial penalty on the electric utility in an
4.9amount not to exceed the estimated cost of the electric utility to achieve compliance. The
4.10penalty may not exceed the lesser of the cost of constructing facilities or purchasing
4.11credits. The commission must deposit financial penalties imposed under this subdivision
4.12in the energy and conservation account established in the special revenue fund under
4.13section216B.241, subdivision 2a . This subdivision is in addition to and does not limit any
4.14other authority of the commission to enforce this section.
4.15 Sec. 7. Minnesota Statutes 2012, section 216B.1691, subdivision 9, is amended to read:
4.16 Subd. 9. Local benefits. The commission shall take all reasonable actions within
4.17its statutory authority to ensure this section is implemented to maximize benefits to
4.18Minnesota citizens, balancing factors such as local ownership of or participation in
4.19energy production, development and ownership of eligible energy technology facilities by
4.20independent power producers, Minnesota utility ownership of eligible energy technology
4.21facilities, the costs of energy generation to satisfy therenewable standard good-faith
4.22objective, and the reliability of electric service to Minnesotans.
4.23 Sec. 8. REPEALER.
4.24Minnesota Statutes 2012, section 216B.1691, subdivisions 2a, 2b, and 2c, are
4.25repealed.
1.3clarifying changes;amending Minnesota Statutes 2012, sections 3.8851,
1.4subdivision 3; 216B.1691, subdivisions 2d, 3, 4, 5, 7, 9; repealing Minnesota
1.5Statutes 2012, section 216B.1691, subdivisions 2a, 2b, 2c.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 3.8851, subdivision 3, is amended to read:
1.8 Subd. 3. Duties. (a) The commission shall continuously evaluate the energy policies
1.9of this state and the degree to which they promote an environmentally and economically
1.10sustainable energy future. The commission shall monitor the state's progress in achieving
1.11its goals to develop renewable sources of electric energy under section 216B.1691,
1.12
1.13emissions under the state's greenhouse gas emissions-reductions goals established in
1.14section
1.15and may recommend legislation. The commission shall when feasible solicit and consider
1.16public testimony regarding the economic, environmental, and social implications of state
1.17energy plans and policies. Notwithstanding any other law to the contrary the commission's
1.18evaluations and reviews under this subdivision shall include new and existing technologies
1.19for nuclear power.
1.20 (b) The commission may study, analyze, hold hearings, and make legislative
1.21recommendations regarding the following issues:
1.22 (1) the generation, transmission, and distribution of electricity;
1.23 (2) the reduction of greenhouse gas emissions;
1.24 (3) the conservation of energy;
2.1 (4) alternative energy sources available to replace dwindling fossil fuel and other
2.2nonrenewable fuel sources;
2.3 (5) the development of renewable energy supplies;
2.4 (6) the economic development potential associated with issues described in clauses
2.5(1) to (5); and
2.6 (7) other energy-related subjects the commission finds significant.
2.7 Sec. 2. Minnesota Statutes 2012, section 216B.1691, subdivision 2d, is amended to read:
2.8 Subd. 2d. Commission order. The commission shall issue necessary orders
2.9detailing the criteria
2.10meet the renewable energy objectives of
2.11the utility is making the required good-faith effort. In this order, the commission shall
2.12include criteria
2.13of the utility's system and economic impacts on the utility's ratepayers and that consider
2.14technical feasibility.
2.15 Sec. 3. Minnesota Statutes 2012, section 216B.1691, subdivision 3, is amended to read:
2.16 Subd. 3. Utility plans filed with commission. (a) Each electric utility shall report
2.17on its plans, activities, and progress with regard to the good-faith objectives
2.18 of this section in its filings under section
2.19to the commission every two years, whichever is more frequent, demonstrating to the
2.20commission the utility's good-faith effort to
2.21electricity generated by an eligible energy technology. In its resource plan or a separate
2.22report, each electric utility shall provide a description of:
2.23 (1) the status of the utility's renewable energy mix relative to the good-faith
2.24objective
2.25 (2) efforts taken to meet the objective
2.26 (3) any obstacles encountered or anticipated in meeting the objective
2.27 (4) potential solutions to the obstacles.
2.28 (b) The commissioner shall compile the information provided to the commission
2.29under paragraph (a), and report to the chairs of the house of representatives and senate
2.30committees with jurisdiction over energy and environment policy issues as to the progress
2.31of utilities in the state, including the progress of each individual electric utility, in increasing
2.32the amount of renewable energy provided to retail customers, with any recommendations
2.33for regulatory or legislative action, by January 15 of each odd-numbered year.
3.1 Sec. 4. Minnesota Statutes 2012, section 216B.1691, subdivision 4, is amended to read:
3.2 Subd. 4. Renewable energy credits. (a) To facilitate compliance with this section,
3.3the commission, by rule or order, shall establish by January 1, 2008, a program for
3.4tradable renewable energy credits for electricity generated by eligible energy technology.
3.5The credits must represent energy produced by an eligible energy technology, as defined in
3.6subdivision 1. Each kilowatt-hour of renewable energy credits must be treated the same as
3.7a kilowatt-hour of eligible energy technology generated or procured by an electric utility if
3.8it is produced by an eligible energy technology. The program must permit a credit to be
3.9used only once. The program must treat all eligible energy technology equally and shall
3.10not give more or less credit to energy based on the state where the energy was generated or
3.11the technology with which the energy was generated. The commission must determine the
3.12period in which the credits may be used for purposes of the program.
3.13 (b) In lieu of generating or procuring energy directly to satisfy the eligible energy
3.14technology objective
3.15energy credits allowed under the program to satisfy the objective
3.16 (c) The commission shall facilitate the trading of renewable energy credits between
3.17states.
3.18 (d) The commission shall require all electric utilities to participate in a
3.19commission-approved credit-tracking system or systems. Once a credit-tracking system is
3.20in operation, the commission shall issue an order establishing protocols for trading credits.
3.21
3.22
3.23 Sec. 5. Minnesota Statutes 2012, section 216B.1691, subdivision 5, is amended to read:
3.24 Subd. 5. Technology based on fuel combustion. (a) Electricity produced by fuel
3.25combustion through fuel blending or co-firing under paragraph (b) may only count toward
3.26a utility's objectives
3.27 (1) was constructed in compliance with new source performance standards
3.28promulgated under the federal Clean Air Act, United States Code, title 42, section 7401 et
3.29seq., for a generation facility of that type; or
3.30 (2) employs the maximum achievable or best available control technology available
3.31for a generation facility of that type.
3.32 (b) An eligible energy technology may blend or co-fire a fuel listed in subdivision 1,
3.33paragraph (a), clause (5), with other fuels in the generation facility, but only the percentage
3.34of electricity that is attributable to a fuel listed in that clause can be counted toward an
3.35electric utility's renewable energy objectives.
4.1 Sec. 6. Minnesota Statutes 2012, section 216B.1691, subdivision 7, is amended to read:
4.2 Subd. 7. Compliance. The commission must regularly investigate whether an
4.3electric utility is in compliance with its good-faith objective under subdivision 2
4.4
4.5order the electric utility to construct facilities, purchase energy generated by eligible
4.6energy technology, purchase renewable energy credits, or engage in other activities
4.7to achieve compliance. If an electric utility fails to comply with an order under this
4.8subdivision, the commission may impose a financial penalty on the electric utility in an
4.9amount not to exceed the estimated cost of the electric utility to achieve compliance. The
4.10penalty may not exceed the lesser of the cost of constructing facilities or purchasing
4.11credits. The commission must deposit financial penalties imposed under this subdivision
4.12in the energy and conservation account established in the special revenue fund under
4.13section
4.14other authority of the commission to enforce this section.
4.15 Sec. 7. Minnesota Statutes 2012, section 216B.1691, subdivision 9, is amended to read:
4.16 Subd. 9. Local benefits. The commission shall take all reasonable actions within
4.17its statutory authority to ensure this section is implemented to maximize benefits to
4.18Minnesota citizens, balancing factors such as local ownership of or participation in
4.19energy production, development and ownership of eligible energy technology facilities by
4.20independent power producers, Minnesota utility ownership of eligible energy technology
4.21facilities, the costs of energy generation to satisfy the
4.22objective, and the reliability of electric service to Minnesotans.
4.23 Sec. 8. REPEALER.
4.24Minnesota Statutes 2012, section 216B.1691, subdivisions 2a, 2b, and 2c, are
4.25repealed.
