Bill Text: MN SF417 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Innovative energy projects provisions modification and clarification
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-02-21 - Referred to Energy, Utilities and Telecommunications [SF417 Detail]
Download: Minnesota-2011-SF417-Introduced.html
1.2relating to energy; modifying and clarifying provisions related to innovative
1.3energy projects;amending Minnesota Statutes 2010, section 216B.1694.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 216B.1694, is amended to read:
1.6216B.1694 INNOVATIVE ENERGY PROJECT.
1.7 Subdivision 1. Definition. For the purposes of this section, the term "innovative
1.8energy project" means a proposed energy-generation facility or group of facilities, which
1.9may be located on up to three sites:
1.10(1) that makes use ofan innovative combustion turbine generation technology
1.11utilizing natural gas or synthesis gas derived from coal or other hydrocarbon resources
1.12as a primary fuel in a highly efficient combined-cycle configuration with significantly
1.13reduced sulfur dioxide, nitrogen oxide, particulate, and mercury emissions from those of
1.14traditional coal combustion technologies; and
1.15(2)that the project developer or owner certifies is a project capable of offering a
1.16long-term supply contract at a hedged, predictable cost; and
1.17(3) that is designated by the commissioner of the Iron Range Resources and
1.18Rehabilitation Board as a project that is located in the taconite tax relief area on a site that
1.19has substantial real property with adequate infrastructure to support new or expanded
1.20development and that has received prior financial and other support from the board.
1.21 Subd. 2. Regulatory incentives.(a) An innovative energy project:
1.22(1) is exempted from the requirements for a certificate of need under section
1.23216B.243
, for the generation facilities, and transmission infrastructure associated with the
2.1generation facilities, but is subject to all applicable environmental review and permitting
2.2procedures of chapter 216E; provided that:
2.3(i) site and route permits issued to an innovative energy project proposing to use
2.4coal as a primary fuel are deemed valid for an innovative energy project using natural gas
2.5as a primary fuel;
2.6(ii) all site and route permits issued to an innovative energy project are valid for
2.7a period of four years from the date the last state or federal preconstruction permit is
2.8issued; and
2.9(iii) following issuance of a final state or federal environmental impact statement
2.10that was a subject of contested case proceedings before an administrative law judge, all
2.11air, water, and other state permits necessary for the construction of an innovative energy
2.12project must be issued within 180 days of filing the permit applications with state agencies,
2.13and agency permit decisions are not subject to additional contested case hearings;
2.14(2) once permitted and constructed, is eligible to increase the capacity of the
2.15associated transmission facilities without additional state review upon filing notice with
2.16the commission;
2.17(3)(i) has the power of eminent domain, whichshall be is limited to the sites and
2.18routes approved by theEnvironmental Quality Board commission for the project facilities.
2.19The project shall be, (ii) is considered a utility as defined in section
216E.01, subdivision
2.2010 , for the limited purpose of section
216E.12 . The project shall, and (iii) must report any
2.21intent to exercise eminent domain authority to theboard commission;
2.22(4)shall qualify that uses coal as a primary fuel qualifies as a "clean energy
2.23technology" as defined in section216B.1693 ;
2.24(5)shall that uses coal as a primary fuel, prior to the approval by the commission of
2.25any arrangement to build or expand a fossil-fuel-fired generation facility, or to enter into
2.26an agreement to purchase capacity or energy from such a facility for a term exceeding
2.27five years, must be considered as a supply option for the generation facility, and the
2.28commission shall ensure such consideration and take any action with respect tosuch the
2.29supply proposal that it deems to be in the best interest of ratepayers;
2.30(6) that uses coal as a primary fuel shall make a good faith effort to secure funding
2.31from the United States Department of Energy and the United States Department of
2.32Agriculture to conduct a demonstration project at the facility for either geologic or
2.33terrestrial carbon sequestration projects to achieve reductions in facility emissions or
2.34carbon dioxide;
2.35(7)shall be that uses coal as a primary fuel is entitled to enter into a contract with a
2.36public utility that owns a nuclear generation facility in the state to provide 450 megawatts
3.1of base-load capacity and energy under a long-term contract, subject to the approval of the
3.2terms and conditions of the contract by the commission. The commission may approve,
3.3disapprove, amend, or modify the contract in making its public interest determination,
3.4taking into consideration the project's economic development benefits to the state; the use
3.5of abundant domestic fuel sources; the stability of the price of the output from the project;
3.6the project's potential to contribute to a transition to hydrogen as a fuel resource; and the
3.7emissions reductions achieved compared to other solid fuel base-load technologies; and
3.8(8)shall be that uses coal as a primary fuel is eligible for a grant from the renewable
3.9development account, subject to the approval of the entity administering that account, of
3.10$2,000,000 a year for five years for development and engineering costs, including those
3.11costs related to mercury-removal technology; thermal efficiency optimization and emission
3.12minimization; environmental impact statement preparation and licensing; development of
3.13hydrogen production capabilities; and fuel cell development and utilization.
3.14(b) This subdivision does not apply to nor affect a proposal to add utility-owned
3.15resources that is pending on May 29, 2003, before the Public Utilities Commission or to
3.16competitive bid solicitations to provide capacity or energy that is scheduled to be on line
3.17by December 31, 2006.
3.18EFFECTIVE DATE.This section is effective the day following final enactment.
1.3energy projects;amending Minnesota Statutes 2010, section 216B.1694.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 216B.1694, is amended to read:
1.6216B.1694 INNOVATIVE ENERGY PROJECT.
1.7 Subdivision 1. Definition. For the purposes of this section, the term "innovative
1.8energy project" means a proposed energy-generation facility or group of facilities, which
1.9may be located on up to three sites:
1.10(1) that makes use of
1.11utilizing natural gas or synthesis gas derived from coal or other hydrocarbon resources
1.12as a primary fuel in a highly efficient combined-cycle configuration with significantly
1.13reduced sulfur dioxide, nitrogen oxide, particulate, and mercury emissions from those of
1.14traditional coal combustion technologies; and
1.15(2)
1.16
1.17
1.18Rehabilitation Board as a project that is located in the taconite tax relief area on a site that
1.19has substantial real property with adequate infrastructure to support new or expanded
1.20development and that has received prior financial and other support from the board.
1.21 Subd. 2. Regulatory incentives.
1.22(1) is exempted from the requirements for a certificate of need under section
2.1generation facilities, but is subject to all applicable environmental review and permitting
2.2procedures of chapter 216E; provided that:
2.3(i) site and route permits issued to an innovative energy project proposing to use
2.4coal as a primary fuel are deemed valid for an innovative energy project using natural gas
2.5as a primary fuel;
2.6(ii) all site and route permits issued to an innovative energy project are valid for
2.7a period of four years from the date the last state or federal preconstruction permit is
2.8issued; and
2.9(iii) following issuance of a final state or federal environmental impact statement
2.10that was a subject of contested case proceedings before an administrative law judge, all
2.11air, water, and other state permits necessary for the construction of an innovative energy
2.12project must be issued within 180 days of filing the permit applications with state agencies,
2.13and agency permit decisions are not subject to additional contested case hearings;
2.14(2) once permitted and constructed, is eligible to increase the capacity of the
2.15associated transmission facilities without additional state review upon filing notice with
2.16the commission;
2.17(3)(i) has the power of eminent domain, which
2.18routes approved by the
2.19
2.2010
2.21intent to exercise eminent domain authority to the
2.22(4)
2.23technology" as defined in section
2.24(5)
2.25any arrangement to build or expand a fossil-fuel-fired generation facility
2.26an agreement to purchase capacity or energy from such a facility for a term exceeding
2.27five years, must be considered as a supply option for the generation facility, and the
2.28commission shall ensure such consideration and take any action with respect to
2.29supply proposal that it deems to be in the best interest of ratepayers;
2.30(6) that uses coal as a primary fuel shall make a good faith effort to secure funding
2.31from the United States Department of Energy and the United States Department of
2.32Agriculture to conduct a demonstration project at the facility for either geologic or
2.33terrestrial carbon sequestration projects to achieve reductions in facility emissions or
2.34carbon dioxide;
2.35(7)
2.36public utility that owns a nuclear generation facility in the state to provide 450 megawatts
3.1of base-load capacity and energy under a long-term contract, subject to the approval of the
3.2terms and conditions of the contract by the commission. The commission may approve,
3.3disapprove, amend, or modify the contract in making its public interest determination,
3.4taking into consideration the project's economic development benefits to the state; the use
3.5of abundant domestic fuel sources; the stability of the price of the output from the project;
3.6the project's potential to contribute to a transition to hydrogen as a fuel resource; and the
3.7emissions reductions achieved compared to other solid fuel base-load technologies; and
3.8(8)
3.9development account, subject to the approval of the entity administering that account, of
3.10$2,000,000 a year for five years for development and engineering costs, including those
3.11costs related to mercury-removal technology; thermal efficiency optimization and emission
3.12minimization; environmental impact statement preparation and licensing; development of
3.13hydrogen production capabilities; and fuel cell development and utilization.
3.14
3.15
3.16
3.17
3.18EFFECTIVE DATE.This section is effective the day following final enactment.
