1.2relating to energy; modifying provisions regarding power plant carbon dioxide
1.3emissions;amending Minnesota Statutes 2012, section 216H.03, subdivisions 2,
1.43, 4.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 216H.03, subdivision 2, is amended to read:
1.7 Subd. 2.
Definition; statewide power sector carbon dioxide emissions. For the
1.8purpose of this section, "statewide power sector carbon dioxide emissions" means the total
1.9annual emissions of carbon dioxide from the generation of electricity within the state and
1.10all emissions of carbon dioxide from the generation of electricity
imported from outside
1.11the state
and consumed in that is procured by a retail supplier of electricity for distribution
1.12and sale to Minnesota
retail customers. Emissions of carbon dioxide associated with
1.13transmission and distribution line losses are included in this definition. Carbon dioxide that
1.14is injected into geological formations to prevent its release to the atmosphere in compliance
1.15with applicable laws, and emissions of carbon dioxide associated with the combustion of
1.16biomass, as defined in section
216B.2411, subdivision 2, paragraph (c), clauses (1) to (4),
1.17are not counted as contributing to statewide power sector carbon dioxide emissions.
1.18EFFECTIVE DATE.This section is effective the day following final enactment.
1.19 Sec. 2. Minnesota Statutes 2012, section 216H.03, subdivision 3, is amended to read:
1.20 Subd. 3.
Long-term increased emissions from power plants prohibited. Unless
1.21preempted by federal law, until a comprehensive and enforceable state law or rule
1.22pertaining to greenhouse gases that directly limits and substantially reduces, over time,
2.1statewide power sector carbon dioxide emissions is enacted and in effect, and except as
2.2allowed in subdivisions 4 to 7, on and after August 1, 2009, no person shall:
2.3 (1) construct within the state a new large energy facility that would contribute to
2.4statewide power sector carbon dioxide emissions;
2.5 (2)
import or commit to import from outside the state sell power
, other than through
2.6tariffed energy purchases from a regional transmission organization, to Minnesota retail
2.7customers from a new large energy facility that would contribute to statewide power
2.8sector carbon dioxide emissions; or
2.9 (3) enter into a new long-term power purchase agreement that would increase
2.10statewide power sector carbon dioxide emissions. For purposes of this section, a long-term
2.11power purchase agreement means an agreement to purchase 50 megawatts of capacity
2.12or more for a term exceeding five years.
2.13EFFECTIVE DATE.This section is effective the day following final enactment.
2.14 Sec. 3. Minnesota Statutes 2012, section 216H.03, subdivision 4, is amended to read:
2.15 Subd. 4.
Exception for facilities that offset emissions. (a) The prohibitions in
2.16subdivision 3 do not apply if the project proponent
or retail supplier of electricity to
2.17Minnesota retail customers demonstrates to the Public Utilities Commission's satisfaction
2.18that it will offset the new contribution to statewide power sector carbon dioxide emissions
2.19with a carbon dioxide reduction project identified in paragraph (b) and in compliance
2.20with paragraph (c).
2.21 (b) A project proponent
or retail supplier of electricity to Minnesota retail customers
2.22may offset in an amount equal to or greater than the proposed new contribution to
2.23statewide power sector carbon dioxide emissions in either, or a combination of both, of
2.24the following ways:
2.25 (1) by reducing an existing facility's contribution to statewide power sector carbon
2.26dioxide emissions; or
2.27 (2) by purchasing carbon dioxide allowances from a state or group of states that has a
2.28carbon dioxide cap and trade system in place that produces verifiable emissions reductions.
2.29 (c) The Public Utilities Commission shall not find that a proposed carbon dioxide
2.30reduction project identified in paragraph (b)
, clause (1), acceptably offsets a new
2.31contribution to statewide power sector carbon dioxide emissions unless the proposed
2.32offsets are permanent, quantifiable, verifiable, enforceable, and would not have otherwise
2.33occurred. This section does not exempt emissions that have been offset under this
2.34subdivision and emissions exempted under subdivisions 5 to 7 from a cap and trade
2.35system if adopted by the state.
3.1EFFECTIVE DATE.This section is effective the day following final enactment.