1.1                          A bill for an act 
  1.2             relating to environment; capping mercury emissions 
  1.3             from electric generation facilities; prohibiting the 
  1.4             pollution control agency from allowing an increase in 
  1.5             the amount of mercury emitted from the generation of 
  1.6             electricity in the state; requiring a reduction in 
  1.7             mercury emissions from generation facilities in the 
  1.8             future; proposing coding for new law in Minnesota 
  1.9             Statutes, chapter 116.  
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [116.916] [MERCURY EMISSIONS FROM ELECTRICITY 
  1.12  GENERATION.] 
  1.13     Subdivision 1.  [DEFINITIONS.] (a) The following 
  1.14  definitions apply to this section. 
  1.15     (b) "Electricity generator" or "generator" means an entity 
  1.16  that owns and operates one or more facilities to generate 
  1.17  electricity in Minnesota, with more than ten megawatts of 
  1.18  capacity.  Electricity generator includes: 
  1.19     (1) an electric utility, as that term is defined in section 
  1.20  216B.38, subdivision 5; 
  1.21     (2) a generation and transmission cooperative electric 
  1.22  association, or municipal power agency, that owns and operates 
  1.23  facilities in the state; and 
  1.24     (3) an entity that generates electricity in the state for 
  1.25  its own use or for sale at wholesale. 
  1.26     (c) "Facility" means an electric generation facility 
  1.27  located in Minnesota that is owned by an electricity generator. 
  2.1      Subd. 2.  [EMISSIONS PER SECTOR AND PER GENERATOR 
  2.2   CAPPED.] (a) In the aggregate, facilities may not emit more than 
  2.3   1,555 pounds of mercury in a 12-month period. 
  2.4      (b) The public utilities commission, by order, shall 
  2.5   allocate to each generator the amount of mercury each generator 
  2.6   is allowed to emit in a 12-month period, based on the amount of 
  2.7   mercury the facilities owned by the generator emitted in the 
  2.8   year 2000, as recorded in the pollution control agency's 
  2.9   "Mercury Emissions Inventory for Minnesota" published in the 
  2.10  State Register on ...., 2003.  The commission shall by order, 
  2.11  establish the method of calculating a generator's mercury 
  2.12  emissions, and shall recalculate this allocation as needed, to 
  2.13  account for sales of facilities' registered reductions under 
  2.14  section 116.917 or other considerations. 
  2.15     Subd. 3.  [PERMITS.] (a) Except as provided in section 
  2.16  116.917, the agency may not approve a request to amend the 
  2.17  permit of a facility that is an existing source of mercury 
  2.18  emissions in the state or to issue a new permit for that 
  2.19  facility, if the amendment or issuance would have the effect of 
  2.20  increasing the amount of mercury emitted from that facility. 
  2.21     (b) The agency may only issue a permit for a proposed new 
  2.22  facility if the facility will emit no more than five pounds of 
  2.23  mercury in a 12-month period and the owner of the proposed 
  2.24  facility has purchased the requisite amount of mercury emissions 
  2.25  reduction credits under section 116.917.  
  2.26     Sec. 2.  [116.917] [MERCURY EMISSIONS REDUCTION CREDITS.] 
  2.27     Subdivision 1.  [EXCEEDANCE AUTHORIZED.] An electricity 
  2.28  generator may exceed its mercury emissions allowance specified 
  2.29  under section 116.916, subdivision 2, only as provided in this 
  2.30  section.  A generator seeking to exceed its mercury emissions 
  2.31  allowance, or an owner of a proposed new facility seeking to 
  2.32  obtain a permit for the facility, must first purchase mercury 
  2.33  emissions reduction credits from a generator in the state that 
  2.34  has registered its emissions reductions with the public 
  2.35  utilities commission.  The emissions reduction credits purchased 
  2.36  must equal twice the amount of emissions by which: 
  3.1      (1) the generator seeks to exceed its emissions allowance; 
  3.2   or 
  3.3      (2) the agency expects the proposed new facility to emit in 
  3.4   a 12-month period. 
  3.5      The details of a sale and purchase of mercury emissions 
  3.6   reduction credits must be provided to the public utilities 
  3.7   commission and the agency. 
  3.8      Subd. 2.  [REGISTRATION OF REDUCTIONS.] In order to be 
  3.9   issued credits for sale under section 116.916 or this section, a 
  3.10  generator must register its mercury emissions reductions with 
  3.11  the public utilities commission.  The commission shall, by 
  3.12  order, establish the criteria for registration.  Such criteria 
  3.13  shall ensure that the reductions are independently verified and 
  3.14  subject to audit.  Upon receiving sufficient information to 
  3.15  register the reductions, the commission shall issue the 
  3.16  generator an amount of mercury emissions reduction credits equal 
  3.17  to the registered reductions.  The commission shall assess any 
  3.18  state costs associated with the registration to the generator. 
  3.19     Sec. 3.  [116.918] [MERCURY EMISSIONS REDUCTIONS REQUIRED.] 
  3.20     (a) Each generator shall reduce the amount of mercury 
  3.21  emitted by facilities owned by the generator by: 
  3.22     (1) 20 percent of the generator's allocated mercury 
  3.23  emissions allowance under section 116.916, subdivision 2, by 
  3.24  July 1, 2008; and 
  3.25     (2) 50 percent of the generator's allocated mercury 
  3.26  emissions allowance under section 116.916, subdivision 2, by 
  3.27  July 1, 2013. 
  3.28     (b) Emissions reductions made pursuant to this section are 
  3.29  not eligible for registration under section 116.917.  
  3.30     Sec. 4.  [EFFECTIVE DATE.] 
  3.31     Sections 1 to 3 are effective July 1, 2003.