1.1 	A bill for an act
1.2 	relating to environment; imposing limits on mercury emissions for coal-fired 
1.3 	electric generating facilities; modifying emissions report requirements; 
1.4 	modifying the emissions reduction-rate rider;amending Minnesota Statutes 
1.5 	2004, sections 116.925, subdivision 2; 216B.1692, subdivisions 1, 8; proposing 
1.6 	coding for new law in Minnesota Statutes, chapter 116.
1.7 	 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1.  [116.922] MERCURY EMISSIONS REDUCTION AT ELECTRIC 
1.9 	GENERATING PLANTS.
1.10 		Subdivision 1.Application. This section applies to any coal-fired steam electric 
1.11 	generating unit located in Minnesota that is constructed for the purpose of supplying 
1.12 	more than one-third of its potential electric output capacity and 25 megawatts or more 
1.13 	of electrical output to any utility power distribution system for sale.  Any steam supplied 
1.14 	to a steam distribution system for the purpose of providing steam to a steam-electric 
1.15 	generator that would produce electrical energy for sale is also considered in determining 
1.16 	the electrical energy output capacity of the unit.  For purposes of this section, "electric 
1.17 	generating unit" means a coal-fired steam electric generating unit. 
1.18 		Subd. 2.Emissions limit. (a) After December 31, 2011, an owner or operator of 
1.19 	an electric generating unit utilizing wet scrubbers to control emissions of particulate 
1.20 	matter shall operate the electric generating unit so that emissions of mercury are, on an 
1.21 	annual basis, the lesser of: 
1.22 	 (1) 6.9 x 10 -6 pounds per megawatt-hour of electricity generated; or 
1.23 	 (2) 90 percent less than total mercury emissions reported for the electric generating 
1.24 	unit in calendar year 1999 in the report submitted under section 116.925, subdivisions 
1.25 	1 and 2. 
2.1 	 (b) After December 31, 2009, an owner or operator of an electric generating unit not 
2.2 	included in paragraph (a) shall operate the electric generating unit so that emissions of 
2.3 	mercury are, on an annual basis, the lesser of: 
2.4 	 (1) 6.9 x 10-6 pounds per megawatt-hour of electricity generated; or 
2.5 	 (2) 90 percent less than total mercury emissions reported for the electric generating 
2.6 	unit in calendar year 1999 in the report submitted under section 116.925, subdivisions 
2.7 	1 and 2. 
2.8 	 (c) An owner or operator of two or more electric generating units at the same facility 
2.9 	may request the agency to approve a plan in which the weighted average amount of 
2.10 	mercury emissions meets the applicable mercury emissions limit under this subdivision, 
2.11 	but which does not require that each electric generating unit meet that limit.  The agency 
2.12 	may approve an averaging plan only if the owner or operator of the electric generating 
2.13 	units included in the plan enters into an enforceable agreement with the agency requiring 
2.14 	the weighted average of mercury emissions from the electric generating units at the facility 
2.15 	to meet the applicable mercury emissions limit under this subdivision. 
2.16 		Subd. 3.Compliance plan and report. (a) By January 1, 2007, an owner or 
2.17 	operator of an electric generating unit shall submit to the commissioner a compliance 
2.18 	plan demonstrating the steps the owner or operator will take to ensure that the electric 
2.19 	generating unit will meet the applicable mercury emissions limit of subdivision 2.  The 
2.20 	plan shall include, at a minimum, the following information: 
2.21 	 (1) a list of each electric generating unit on which mercury emissions control 
2.22 	equipment will be installed; 
2.23 	 (2) a list of each electric generating unit whose coal input will be switched to a 
2.24 	lower mercury-content coal; and 
2.25 	 (3) a description of any plans to improve the combustion efficiency of an electric 
2.26 	generating unit to meet the applicable mercury emissions limit of subdivision 2. 
2.27 	 (b) By January 1, 2009, an owner or operator of an electric generating unit shall 
2.28 	submit to the commissioner an updated plan describing any changes made to the 
2.29 	compliance plan submitted under paragraph (a). 
2.30 	 (c) By March 1 of the year following the effective date of the applicable mercury 
2.31 	emission limits in subdivision 2, and no later than March 1 of each following year, an 
2.32 	owner or operator shall submit a compliance certification report to the commissioner 
2.33 	certifying that, during the preceding calendar year, each electric generating unit or, if an 
2.34 	averaging plan has been approved by the commissioner under subdivision 2, paragraph 
2.35 	(c), the weighted average of the electric generating units, was in compliance with the 
2.36 	applicable mercury emissions limit under subdivision 2, based on the determination made 
3.1 	under subdivision 4.  If the mercury emissions exceed the applicable mercury emissions 
3.2 	limit under subdivision 2, the compliance certification report must include the following 
3.3 	information: 
3.4 	 (1) a determination of the amount and cause of the excess mercury emissions; and 
3.5 	 (2) a description of actions the owner or operator has taken and will take to ensure 
3.6 	that the applicable mercury emissions limit under subdivision 2 will be met in subsequent 
3.7 	years. 
3.8 		Subd. 4.Compliance determination. (a) After the effective date of the applicable 
3.9 	mercury emission limits set forth in subdivision 2, an owner or operator of an electric 
3.10 	generating unit shall conduct performance tests of the unit twice within a 12-month period, 
3.11 	measuring, simultaneously, the amount of mercury in the gas stream at the inlet and the 
3.12 	exit of the air pollution control equipment serving each electric generating unit.  The 
3.13 	performance tests must be conducted according to Minnesota Rules, chapter 7017. 
3.14 	 (b) Any owner or operator who achieves and maintains compliance with the 
3.15 	applicable mercury emissions limit under subdivision 2 for two consecutive years for an 
3.16 	electric generating unit may thereafter conduct performance tests annually.  However, if 
3.17 	an annual performance test fails to demonstrate compliance with the applicable mercury 
3.18 	emissions limit under subdivision 2, the frequency of performance testing shall revert to 
3.19 	that established in paragraph (a). 
3.20 	 (c) When a federal performance specification for a mercury continuous emissions 
3.21 	monitoring system is published in the Federal Register, and a system capable of meeting 
3.22 	the federal performance specification is available, an owner or operator of an electric 
3.23 	generating unit may request approval from the agency to install a mercury continuous 
3.24 	emissions monitoring system to determine compliance with the applicable mercury 
3.25 	emissions limit set forth in subdivision 2.  The owner or operator of an electric generating 
3.26 	unit must demonstrate to the agency that the mercury continuous emissions monitoring 
3.27 	system that it proposes to install complies with the quality assurance requirements in the 
3.28 	federal specification.  If the agency approves the installation of a mercury continuous 
3.29 	emissions monitoring system, performance testing under paragraph (a) is no longer 
3.30 	required, so long as the mercury continuous emissions monitoring system continues to 
3.31 	comply with the quality assurance requirements in the federal specification and meet the 
3.32 	specifications in Minnesota Rules, chapter 7017. 

3.33 	Sec. 2. Minnesota Statutes 2004, section 116.925, subdivision 2, is amended to read:
3.34 		 Subd. 2.Contents of report.  (a) A report must include:
4.1 	 (1) a list of all generation facilities owned or operated by the utility or person 
4.2 	subject to subdivision 1;
4.3 	 (2) all readily available information regarding the amount of electricity purchased by 
4.4 	the utility or person subject to subdivision 1, for use in the state; and
4.5 	 (3) information for each facility and each electric generating unit owned or operated 
4.6 	by the utility or person subject to subdivision 1, stating:  (i) the amount of electricity 
4.7 	generated at the facility for use or for sale in this state at retail or wholesale; (ii) the 
4.8 	amount, rank, grade, and mercury content of fuel coal used to generate that electricity at 
4.9 	the facility; and (iii) the amount of mercury emitted in generating that electricity in the 
4.10 	previous calendar year, based on emission factors, stack performance tests, fuel analysis, 
4.11 	or other methods approved by the commissioner conducted under section 116.922. The 
4.12 	report must include the mercury content of the fuel if it is determined in conjunction 
4.13 	with a stack test. 
4.14 	 (b) The following are de minimis standards for small and little-used generation 
4.15 	facilities:
4.16 	 (1) less than 240 hours of operation by the combustion unit per year;
4.17 	 (2) a fuel capacity input at the combustion unit of less than 150,000,000 British 
4.18 	thermal units per hour; or
4.19 	 (3) an electrical generation unit with maximum output of less than or equal to 15 
4.20 	megawatts.
4.21 	 A utility or person subject to this section who owns or operates a combustion unit 
4.22 	that qualifies under one of these de minimis standards is not required to provide the 
4.23 	information described in paragraph (a) for that combustion unit.
4.24 	 (c) A report need not be filed for a combustion device for a year in which the device 
4.25 	has documented mercury emissions of three pounds or less.

4.26 	Sec. 3. Minnesota Statutes 2004, section 216B.1692, subdivision 1, is amended to read:
4.27 		 Subdivision 1.Qualifying projects.  Projects that may be approved for the 
4.28 	emissions reduction-rate rider allowed in this section must:
4.29 	 (1) be installed on existing large electric generating power plants, as defined in 
4.30 	section 216B.2421, subdivision 2, clause (1), that are located in the state and that are 
4.31 	currently not subject to emissions limitations for new power plants under the federal 
4.32 	Clean Air Act;
4.33 	 (2) not increase the capacity of the existing electric generating power plant more 
4.34 	than ten percent or more than 100 megawatts, whichever is greater; and 
4.35 	 (3) result in the existing plant either:
5.1 	 (i) complying with applicable new source review standards under the federal Clean 
5.2 	Air Act; or
5.3 	 (ii) emitting air contaminants at levels substantially lower than allowed for new 
5.4 	facilities by the applicable new source performance standards under the federal Clean 
5.5 	Air Act; or
5.6 	 (iii) reducing emissions from current levels at a unit to the lowest cost-effective level 
5.7 	when, due to the age or condition of the generating unit, the public utility demonstrates 
5.8 	that it would not be cost-effective to reduce emissions to the levels in item (i) or (ii); and 
5.9 	(4) be designed to reduce emissions of several pollutants simultaneously, including, 
5.10 	but not limited to, mercury, sulfur oxides, and particulate matter.

5.11 	Sec. 4. Minnesota Statutes 2004, section 216B.1692, subdivision 8, is amended to read:
5.12 		 Subd. 8.Sunset.  This section is effective until June 30, 2006 expires December 
5.13 	31, 2009.