1.1 	A bill for an act
1.2 	relating to public utilities; transferring power plant
1.3 	siting and routing, wind energy conversion system, and
1.4 	pipeline authority from the Environmental Quality
1.5 	Board to the Public Utilities Commission; amending
1.6 	Minnesota Statutes 2004, sections 116C.52, subdivision
1.7 	2; 116C.53, subdivision 2; 116C.57, subdivisions 1,
1.8 	2c, by adding a subdivision; 116C.575, subdivision 5;
1.9 	116C.577; 116C.58; 116C.69, subdivisions 2, 2a;
1.10 	216B.243, subdivisions 4, 5; 216C.052.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2004, section 116C.52,
1.13 	subdivision 2, is amended to read:
1.14 		Subd. 2.board commission.  " Board Commission " shall
1.15 	mean the Minnesota Environmental Quality Board means the Public
1.16 	Utilities Commission.

1.17 	Sec. 2. Minnesota Statutes 2004, section 116C.53,
1.18 	subdivision 2, is amended to read:
1.19 		Subd. 2.Jurisdiction.  The board commission is hereby
1.20 	given the authority to provide for site and route selection for
1.21 	large electric power facilities.  The board commission shall
1.22 	issue permits for large electric power facilities in a timely
1.23 	fashion.  When the Public Utilities Commission has determined
1.24 	the and in a manner consistent with the overall determination of 
1.25 	need for the project under section 216B.243 or 216B.2425,.
1.26 	Questions of need, including size, type, and timing; alternative
1.27 	system configurations; and voltage are not within the board's
1.28 	siting and routing authority and must not be included in the
2.1 	scope of environmental review conducted under sections 116C.51
2.2 	to 116C.69.

2.3 	Sec. 3. Minnesota Statutes 2004, section 116C.57,
2.4 	subdivision 1, is amended to read:
2.5 		Subdivision 1.Site permit.  No person may construct a
2.6 	large electric generating plant without a site permit from the
2.7 	board commission.  A large electric generating plant may be
2.8 	constructed only on a site approved by the board commission.
2.9 	The board commission must incorporate into one proceeding the
2.10 	route selection for a high voltage transmission line that is
2.11 	directly associated with and necessary to interconnect the large
2.12 	electric generating plant to the transmission system and whose
2.13 	need is certified as part of the generating plant project by the
2.14 	Public Utilities Commission under section 216B.243.

2.15 	Sec. 4. Minnesota Statutes 2004, section 116C.57,
2.16 	subdivision 2c, is amended to read:
2.17 		Subd. 2c.Environmental review.  The board commissioner
2.18 	of the Pollution Control Agency shall prepare for the commission 
2.19 	an environmental impact statement on each proposed large
2.20 	electric generating plant or high voltage transmission line for
2.21 	which a complete application has been submitted. For any
2.22 	project that has obtained a certificate of need from the Public
2.23 	Utilities Commission, the board The commissioner shall not
2.24 	consider whether or not the project is needed.  No other state
2.25 	environmental review documents shall be required.  The board 
2.26 	commissioner shall study and evaluate any site or route proposed
2.27 	by an applicant and any other site or route the board commission 
2.28 	deems necessary that was proposed in a manner consistent with
2.29 	rules adopted by the board concerning the form, content, and
2.30 	timeliness of proposals for alternate sites or routes.

2.31 	Sec. 5. Minnesota Statutes 2004, section 116C.57, is
2.32 	amended by adding a subdivision to read:
2.33 		Subd. 9.Pollution control agency to provide technical
2.34 	expertise and other assistance. The commissioner of the
2.35 	Pollution Control Agency shall provide technical expertise and
2.36 	other assistance to the commission for activities and
3.1 	proceedings under this section, sections 116C.51 to 116C.697,
3.2 	and chapter 116I.  The commissioner shall periodically report to
3.3 	the commission concerning the Pollution Control Agency's costs
3.4 	of providing assistance.  The report shall conform to the
3.5 	schedule and include the required contents specified by the
3.6 	commission.  The commission shall include the costs of the
3.7 	assistance in assessments for activities and proceedings under
3.8 	those sections and reimburse the special revenue fund for those
3.9 	costs.

3.10 	Sec. 6. Minnesota Statutes 2004, section 116C.575,
3.11 	subdivision 5, is amended to read:
3.12 		Subd. 5.Environmental review.  For the projects
3.13 	identified in subdivision 2 and following these procedures, the
3.14 	board commissioner of the Pollution Control Agency shall prepare
3.15 	for the commission an environmental assessment.  The
3.16 	environmental assessment shall contain information on the human
3.17 	and environmental impacts of the proposed project and other
3.18 	sites or routes identified by the board commission and shall
3.19 	address mitigating measures for all of the sites or routes
3.20 	considered.  The environmental assessment shall be the only
3.21 	state environmental review document required to be prepared on
3.22 	the project.

3.23 	Sec. 7. Minnesota Statutes 2004, section 116C.577, is
3.24 	amended to read:
3.25 	116C.577 EMERGENCY PERMIT.
3.26 	(a) Any utility whose electric power system requires the
3.27 	immediate construction of a large electric power generating
3.28 	plant or high voltage transmission line due to a major
3.29 	unforeseen event may apply to the board commission for an
3.30 	emergency permit after providing .  The application shall provide 
3.31 	notice in writing to the Public Utilities Commission of the
3.32 	major unforeseen event and the need for immediate construction.
3.33 	The permit must be issued in a timely manner, no later than 195
3.34 	days after the board's commission's acceptance of the
3.35 	application and upon a finding by the board commission that (1)
3.36 	a demonstrable emergency exists, (2) the emergency requires
4.1 	immediate construction, and (3) adherence to the procedures and
4.2 	time schedules specified in section 116C.57 would jeopardize the
4.3 	utility's electric power system or would jeopardize the
4.4 	utility's ability to meet the electric needs of its customers in
4.5 	an orderly and timely manner.
4.6 	(b) A public hearing to determine if an emergency exists
4.7 	must be held within 90 days of the application.  The
4.8 	board commission, after notice and hearing, shall adopt rules
4.9 	specifying the criteria for emergency certification.

4.10 	Sec. 8. Minnesota Statutes 2004, section 116C.58, is
4.11 	amended to read:
4.12 	116C.58 ANNUAL HEARING.
4.13 	The board commission shall hold an annual public hearing at
4.14 	a time and place prescribed by rule in order to afford
4.15 	interested persons an opportunity to be heard regarding any
4.16 	matters relating to the siting of large electric generating
4.17 	power plants and routing of high voltage transmission lines.  At
4.18 	the meeting, the board commission shall advise the public of the
4.19 	permits issued by the board commission in the past year.
4.20 	The board commission shall provide at least ten days but no more
4.21 	than 45 days' notice of the annual meeting by mailing notice to
4.22 	those persons who have requested notice and by publication in
4.23 	the EQB Monitor and the commission's weekly calendar.

4.24 	Sec. 9. Minnesota Statutes 2004, section 116C.69,
4.25 	subdivision 2, is amended to read:
4.26 		Subd. 2.Site application fee.  Every applicant for a
4.27 	site permit shall pay to the board commission a fee in an amount
4.28 	equal to $500 for each $1,000,000 of production plant investment
4.29 	in the proposed installation as defined in the Federal Power
4.30 	Commission Uniform System of Accounts.  The board shall specify
4.31 	the time and manner of payment of the fee.  If any single
4.32 	payment requested by the board is in excess of 25 percent of the
4.33 	total estimated fee, the board shall show that the excess is
4.34 	reasonably necessary.  The applicant shall pay within 30 days of
4.35 	notification any additional fees reasonably necessary for
4.36 	completion of the site evaluation and designation process by the
5.1 	board.  In no event shall the total fees required of the
5.2 	applicant under this subdivision exceed an amount equal to 0.001
5.3 	of said production plant investment ($1,000 for each
5.4 	$1,000,000).to cover the necessary and reasonable costs
5.5 	incurred by the commission in acting on the permit application
5.6 	and carrying out the requirements of sections 116C.51 to
5.7 	116C.69.  The commission may adopt rules providing for the
5.8 	payment of the fee.All money received pursuant to this
5.9 	subdivision shall be deposited in a special account.  Money in
5.10 	the account is appropriated to the board commission to pay
5.11 	expenses incurred in processing applications for site permits in
5.12 	accordance with sections 116C.51 to 116C.69 and in the event the
5.13 	expenses are less than the fee paid, to refund the excess to the
5.14 	applicant.

5.15 	Sec. 10. Minnesota Statutes 2004, section 116C.69,
5.16 	subdivision 2a, is amended to read:
5.17 		Subd. 2a.Route application fee.  Every applicant for a
5.18 	transmission line route permit shall pay to the board commission 
5.19 	a base fee of $35,000 plus a fee in an amount equal to $1,000
5.20 	per mile length of the longest proposed route.  The board shall
5.21 	specify the time and manner of payment of the fee.  If any
5.22 	single payment requested by the board is in excess of 25 percent
5.23 	of the total estimated fee, the board shall show that the excess
5.24 	is reasonably necessary.  In the event the actual cost of
5.25 	processing an application up to the board's final decision to
5.26 	designate a route exceeds the above fee schedule, the board may
5.27 	assess the applicant any additional fees necessary to cover the
5.28 	actual costs, not to exceed an amount equal to $500 per mile
5.29 	length of the longest proposed route.fee to cover the
5.30 	necessary and reasonable costs incurred by the commission in
5.31 	acting on the permit application and carrying out the
5.32 	requirements of sections 116C.51 to 116C.69.  The commission may
5.33 	adopt rules providing for the payment of the fee.All money
5.34 	received pursuant to this subdivision shall be deposited in a
5.35 	special account.  Money in the account is appropriated to
5.36 	the board commission to pay expenses incurred in processing
6.1 	applications for route permits in accordance with sections
6.2 	116C.51 to 116C.69 and in the event the expenses are less than
6.3 	the fee paid, to refund the excess to the applicant.

6.4 	Sec. 11. Minnesota Statutes 2004, section 216B.243,
6.5 	subdivision 4, is amended to read:
6.6 		Subd. 4.Application for certificate; hearing.  Any
6.7 	person proposing to construct a large energy facility shall
6.8 	apply for a certificate of need prior to applying and for a site
6.9 	or route permit under sections 116C.51 to 116C.69 or
6.10 	construction of the facility.  The application shall be on forms
6.11 	and in a manner established by the commission.  In reviewing
6.12 	each application the commission shall hold at least one public
6.13 	hearing pursuant to chapter 14.  The public hearing shall be
6.14 	held at a location and hour reasonably calculated to be
6.15 	convenient for the public.  An objective of the public hearing
6.16 	shall be to obtain public opinion on the necessity of granting a
6.17 	certificate of need and, if a joint hearing is held, a site or
6.18 	route permit.  The commission shall designate a commission
6.19 	employee whose duty shall be to facilitate citizen participation
6.20 	in the hearing process. If Unless the commission and the
6.21 	Environmental Quality Board determine determines that a joint
6.22 	hearing on siting and need under this subdivision and section
6.23 	116C.57, subdivision 2d, is not feasible,or more efficient, and
6.24 	may further or otherwise not in the public interest, a joint
6.25 	hearing under those subdivisions may shall be held.

6.26 	Sec. 12. Minnesota Statutes 2004, section 216B.243,
6.27 	subdivision 5, is amended to read:
6.28 		Subd. 5.Approval, denial, or modification.  Within
6.29 	six 12 months of the submission of an application, the
6.30 	commission shall approve or deny a certificate of need for the
6.31 	facility.  Approval or denial of the certificate shall be
6.32 	accompanied by a statement of the reasons for the decision.
6.33 	Issuance of the certificate may be made contingent upon
6.34 	modifications required by the commission.

6.35 	Sec. 13. Minnesota Statutes 2004, section 216C.052, is
6.36 	amended to read:
7.1 	216C.052 RELIABILITY ADMINISTRATOR.
7.2 		Subdivision 1.Responsibilities. (a) There is
7.3 	established the position of reliability administrator in the
7.4 	Department of Commerce Public Utilities Commission.  The
7.5 	administrator shall act as a source of independent expertise and
7.6 	a technical advisor to the commissioner, the commission, the
7.7 	public, and the Legislative Electric Energy Task Force on issues
7.8 	related to the reliability of the electric system.  In
7.9 	conducting its work, the administrator shall:
7.10 	(1) model and monitor the use and operation of the energy
7.11 	infrastructure in the state, including generation facilities,
7.12 	transmission lines, natural gas pipelines, and other energy
7.13 	infrastructure;
7.14 	(2) develop and present to the commission and parties
7.15 	technical analyses of proposed infrastructure projects, and
7.16 	provide technical advice to the commission;
7.17 	(3) present independent, factual, expert, and technical
7.18 	information on infrastructure proposals and reliability issues
7.19 	at public meetings hosted by the task force, the Environmental
7.20 	Quality Board, the department, or the commission.
7.21 	(b) Upon request and subject to resource constraints, the
7.22 	administrator shall provide technical assistance regarding
7.23 	matters unrelated to applications for infrastructure
7.24 	improvements to the task force, the department, or the
7.25 	commission.
7.26 	(c) The administrator may not advocate for any particular
7.27 	outcome in a commission proceeding, but may give technical
7.28 	advice to the commission as to the impact on the reliability of
7.29 	the energy system of a particular project or projects.  The
7.30 	administrator must not be considered a party or a participant in
7.31 	any proceeding before the commission.
7.32 		Subd. 2.Administrative issues. (a) The
7.33 	commissioner commission may select the administrator who shall
7.34 	serve for a four-year term.  The administrator may not have been
7.35 	a party or a participant in a commission energy proceeding for
7.36 	at least one year prior to selection by the commissioner 
8.1 	commission.  The commissioner commission shall oversee and
8.2 	direct the work of the administrator, annually review the
8.3 	expenses of the administrator, and annually approve the budget
8.4 	of the administrator.  The administrator may hire staff and may
8.5 	contract for technical expertise in performing duties when
8.6 	existing state resources are required for other state
8.7 	responsibilities or when special expertise is required.  The
8.8 	salary of the administrator is governed by section 15A.0815,
8.9 	subdivision 2.
8.10 	(b) Costs relating to a specific proceeding, analysis, or
8.11 	project are not general administrative costs.  For purposes of
8.12 	this section, "energy utility" means public utilities,
8.13 	generation and transmission cooperative electric associations,
8.14 	and municipal power agencies providing natural gas or electric
8.15 	service in the state.
8.16 	(c) The Department of Commerce commission shall pay:
8.17 	(1) the general administrative costs of the administrator,
8.18 	not to exceed $1,000,000 in a fiscal year, and shall assess
8.19 	energy utilities for those administrative costs.  These costs
8.20 	must be consistent with the budget approved by the
8.21 	commissioner commission under paragraph (a).  The department 
8.22 	commission shall apportion the costs among all energy utilities
8.23 	in proportion to their respective gross operating revenues from
8.24 	sales of gas or electric service within the state during the
8.25 	last calendar year, and shall then render a bill to each utility
8.26 	on a regular basis; and
8.27 	(2) costs relating to a specific proceeding analysis or
8.28 	project and shall render a bill to the specific energy utility
8.29 	or utilities participating in the proceeding, analysis, or
8.30 	project directly, either at the conclusion of a particular
8.31 	proceeding, analysis, or project, or from time to time during
8.32 	the course of the proceeding, analysis, or project.
8.33 	(d) For purposes of administrative efficiency, the
8.34 	department commission shall assess energy utilities and issue
8.35 	bills in accordance with the billing and assessment procedures
8.36 	provided in section 216B.62, to the extent that these procedures
9.1 	do not conflict with this subdivision.  The amount of the bills
9.2 	rendered by the department commission under paragraph (c) must
9.3 	be paid by the energy utility into an account in the special
9.4 	revenue fund in the state treasury within 30 days from the date
9.5 	of billing and is appropriated to the commissioner commission 
9.6 	for the purposes provided in this section.  The commission shall
9.7 	approve or approve as modified a rate schedule providing for the
9.8 	automatic adjustment of charges to recover amounts paid by
9.9 	utilities under this section.  All amounts assessed under this
9.10 	section are in addition to amounts appropriated to the
9.11 	commission and the department by other law.
9.12 		Subd. 3.Assessment and appropriation. In addition to
9.13 	the amount noted in subdivision 2, the commissioner commission 
9.14 	may assess utilities, using the mechanism specified in that
9.15 	subdivision, up to an additional $500,000 annually through June
9.16 	30, 2006.  The amounts assessed under this subdivision are
9.17 	appropriated to the commissioner commission, and some or all of
9.18 	the amounts assessed may be transferred to the commissioner of
9.19 	administration, for the purposes specified in section 16B.325
9.20 	and Laws 2001, chapter 212, article 1, section 3, as needed to
9.21 	implement those sections.
9.22 		Subd. 4.Expiration. This section expires June 30,
9.23 	2006 2007.

9.24 	Sec. 14. TRANSFERRING POWER PLANT SITING
9.25 	RESPONSIBILITIES.
 9.26 	All responsibilities, as defined in Minnesota Statutes,
9.27 	section 15.039, subdivision 1, held by the Environmental Quality
9.28 	Board relating to power plant siting and routing under Minnesota
9.29 	Statutes, sections 116C.51 to 116C.69; wind energy conversion
9.30 	systems under Minnesota Statutes, sections 116C.691 to 116C.697;
9.31 	pipelines under Minnesota Statutes, chapter 116I; and rules
9.32 	associated with those sections are transferred to the Public
9.33 	Utilities Commission under Minnesota Statutes, section 15.039,
9.34 	except that the responsibilities of the Environmental Quality
9.35 	Board under Minnesota Statutes, section 116C.83, subdivision 6,
9.36 	and Minnesota Rules, parts 4400.1700, 4400.2750, and 4410.7010
10.1 	to 4410.7070, are transferred to the commissioner of the
10.2 	Pollution Control Agency.

10.3 	Sec. 15. TRANSFERRING RELIABILITY ADMINISTRATOR
10.4 	RESPONSIBILITIES.
 10.5 	All responsibilities, as defined in Minnesota Statutes
10.6 	2004, section 15.039, subdivision 1, held by the Minnesota
10.7 	Department of Commerce relating the reliability administrator
10.8 	under Minnesota Statutes 2004, section 216C.052, are transferred
10.9 	to the Minnesota Public Utilities Commission under Minnesota
10.10 	Statutes 2004, section 15.039.

10.11 	Sec. 16. REVISOR'S INSTRUCTION.
 10.12 	(a) The revisor of statutes shall change the words
10.13 	"Environmental Quality Board," "board," "chair of the board,"
10.14 	"chair," "board's," and similar terms, when they refer to the
10.15 	Environmental Quality Board or chair of the Environmental
10.16 	Quality Board, to the term "Public Utilities Commission,"
10.17 	"commission," or "commission's," as appropriate, where they
10.18 	appear in Minnesota Statutes, sections 13.741, subdivision 3,
10.19 	116C.51 to 116C.697, and chapter 116I.  The revisor shall also
10.20 	make those changes in Minnesota Rules, chapters 4400, 4401, and
10.21 	4415, except as specified in paragraph (b).
10.22 	(b) The revisor of statutes shall change the words
10.23 	"Environmental Quality Board," "board," "chair of the board,"
10.24 	"chair," "board's," and similar terms, when they refer to the
10.25 	Environmental Quality Board or chair of the Environmental
10.26 	Quality Board, to the term "commissioner of the Pollution
10.27 	Control Agency," "commissioner," or "commissioner's," as
10.28 	appropriate, where they appear in Minnesota Statutes, section
10.29 	116C.83, subdivision 6; and Minnesota Rules, parts 4400.1700,
10.30 	subparts 1 to 9, 11, and 12; 4400.2750; and 4410.7010 to
10.31 	4410.7070.

10.32 	Sec. 17. EFFECTIVE DATE.
 10.33 	Sections 1 to 16 are effective July 1, 2005.