1.1 	A bill for an act
1.2 	relating to energy; abolishing 2025 renewable energy standards; making 
1.3 	clarifying changes;amending Minnesota Statutes 2012, sections 3.8851, 
1.4 	subdivision 3; 216B.1691, subdivisions 2d, 3, 4, 5, 7, 9; repealing Minnesota 
1.5 	Statutes 2012, section 216B.1691, subdivisions 2a, 2b, 2c.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2012, section 3.8851, subdivision 3, is amended to read:
1.8 		Subd. 3.Duties. (a) The commission shall continuously evaluate the energy policies 
1.9 	of this state and the degree to which they promote an environmentally and economically 
1.10 	sustainable energy future. The commission shall monitor the state's progress in achieving 
1.11 	its goals to develop renewable sources of electric energy under section 216B.1691, 
1.12 	subdivision 2a, and the progress of energy-related sectors in reducing greenhouse gas 
1.13 	emissions under the state's greenhouse gas emissions-reductions goals established in 
1.14 	section 216H.02, subdivision 1. The commission may review proposed energy legislation 
1.15 	and may recommend legislation. The commission shall when feasible solicit and consider 
1.16 	public testimony regarding the economic, environmental, and social implications of state 
1.17 	energy plans and policies. Notwithstanding any other law to the contrary the commission's 
1.18 	evaluations and reviews under this subdivision shall include new and existing technologies 
1.19 	for nuclear power.
1.20 	(b) The commission may study, analyze, hold hearings, and make legislative 
1.21 	recommendations regarding the following issues:
1.22 	(1) the generation, transmission, and distribution of electricity;
1.23 	(2) the reduction of greenhouse gas emissions;
1.24 	(3) the conservation of energy;
2.1 	(4) alternative energy sources available to replace dwindling fossil fuel and other 
2.2 	nonrenewable fuel sources;
2.3 	(5) the development of renewable energy supplies;
2.4 	(6) the economic development potential associated with issues described in clauses 
2.5 	(1) to (5); and
2.6 	(7) other energy-related subjects the commission finds significant.

2.7 	Sec. 2. Minnesota Statutes 2012, section 216B.1691, subdivision 2d, is amended to read:
2.8 		Subd. 2d.Commission order.  The commission shall issue necessary orders 
2.9 	detailing the criteria and standards by which it will measure an electric utility's efforts to 
2.10 	meet the renewable energy objectives of subdivision 2 this section to determine whether 
2.11 	the utility is making the required good-faith effort. In this order, the commission shall 
2.12 	include criteria and standards that protect against undesirable impacts on the reliability 
2.13 	of the utility's system and economic impacts on the utility's ratepayers and that consider 
2.14 	technical feasibility.

2.15 	Sec. 3. Minnesota Statutes 2012, section 216B.1691, subdivision 3, is amended to read:
2.16 		Subd. 3.Utility plans filed with commission. (a) Each electric utility shall report 
2.17 	on its plans, activities, and progress with regard to the good-faith objectives and standards
2.18 	 of this section in its filings under section 216B.2422 or in a separate report submitted 
2.19 	to the commission every two years, whichever is more frequent, demonstrating to the 
2.20 	commission the utility's good-faith effort to comply with this section generate or procure 
2.21 	electricity generated by an eligible energy technology. In its resource plan or a separate 
2.22 	report, each electric utility shall provide a description of:
2.23 	(1) the status of the utility's renewable energy mix relative to the good-faith 
2.24 	objective and standards;
2.25 	(2) efforts taken to meet the objective and standards;
2.26 	(3) any obstacles encountered or anticipated in meeting the objective or standards; and
2.27 	(4) potential solutions to the obstacles.
2.28 	(b) The commissioner shall compile the information provided to the commission 
2.29 	under paragraph (a), and report to the chairs of the house of representatives and senate 
2.30 	committees with jurisdiction over energy and environment policy issues as to the progress 
2.31 	of utilities in the state, including the progress of each individual electric utility, in increasing 
2.32 	the amount of renewable energy provided to retail customers, with any recommendations 
2.33 	for regulatory or legislative action, by January 15 of each odd-numbered year.

3.1 	Sec. 4. Minnesota Statutes 2012, section 216B.1691, subdivision 4, is amended to read:
3.2 		Subd. 4.Renewable energy credits. (a) To facilitate compliance with this section, 
3.3 	the commission, by rule or order, shall establish by January 1, 2008, a program for 
3.4 	tradable renewable energy credits for electricity generated by eligible energy technology. 
3.5 	The credits must represent energy produced by an eligible energy technology, as defined in 
3.6 	subdivision 1. Each kilowatt-hour of renewable energy credits must be treated the same as 
3.7 	a kilowatt-hour of eligible energy technology generated or procured by an electric utility if 
3.8 	it is produced by an eligible energy technology. The program must permit a credit to be 
3.9 	used only once. The program must treat all eligible energy technology equally and shall 
3.10 	not give more or less credit to energy based on the state where the energy was generated or 
3.11 	the technology with which the energy was generated. The commission must determine the 
3.12 	period in which the credits may be used for purposes of the program.
3.13 	(b) In lieu of generating or procuring energy directly to satisfy the eligible energy 
3.14 	technology objective or standard of this section, an electric utility may utilize renewable 
3.15 	energy credits allowed under the program to satisfy the objective or standard.
3.16 	(c) The commission shall facilitate the trading of renewable energy credits between 
3.17 	states.
3.18 	(d) The commission shall require all electric utilities to participate in a 
3.19 	commission-approved credit-tracking system or systems. Once a credit-tracking system is 
3.20 	in operation, the commission shall issue an order establishing protocols for trading credits.
3.21 	(e) An electric utility subject to subdivision 2a, paragraph (b), may not sell renewable 
3.22 	energy credits to an electric utility subject to subdivision 2a, paragraph (a), until 2021.

3.23 	Sec. 5. Minnesota Statutes 2012, section 216B.1691, subdivision 5, is amended to read:
3.24 		Subd. 5.Technology based on fuel combustion. (a) Electricity produced by fuel 
3.25 	combustion through fuel blending or co-firing under paragraph (b) may only count toward 
3.26 	a utility's objectives or standards if the generation facility:
3.27 	(1) was constructed in compliance with new source performance standards 
3.28 	promulgated under the federal Clean Air Act, United States Code, title 42, section 7401 et 
3.29 	seq., for a generation facility of that type; or
3.30 	(2) employs the maximum achievable or best available control technology available 
3.31 	for a generation facility of that type.
3.32 	(b) An eligible energy technology may blend or co-fire a fuel listed in subdivision 1, 
3.33 	paragraph (a), clause (5), with other fuels in the generation facility, but only the percentage 
3.34 	of electricity that is attributable to a fuel listed in that clause can be counted toward an 
3.35 	electric utility's renewable energy objectives.

4.1 	Sec. 6. Minnesota Statutes 2012, section 216B.1691, subdivision 7, is amended to read:
4.2 		Subd. 7.Compliance. The commission must regularly investigate whether an 
4.3 	electric utility is in compliance with its good-faith objective under subdivision 2 and 
4.4 	standard obligation under subdivision 2a. If the commission finds noncompliance, it may 
4.5 	order the electric utility to construct facilities, purchase energy generated by eligible 
4.6 	energy technology, purchase renewable energy credits, or engage in other activities 
4.7 	to achieve compliance. If an electric utility fails to comply with an order under this 
4.8 	subdivision, the commission may impose a financial penalty on the electric utility in an 
4.9 	amount not to exceed the estimated cost of the electric utility to achieve compliance. The 
4.10 	penalty may not exceed the lesser of the cost of constructing facilities or purchasing 
4.11 	credits. The commission must deposit financial penalties imposed under this subdivision 
4.12 	in the energy and conservation account established in the special revenue fund under 
4.13 	section 216B.241, subdivision 2a. This subdivision is in addition to and does not limit any 
4.14 	other authority of the commission to enforce this section.

4.15 	Sec. 7. Minnesota Statutes 2012, section 216B.1691, subdivision 9, is amended to read:
4.16 		Subd. 9.Local benefits. The commission shall take all reasonable actions within 
4.17 	its statutory authority to ensure this section is implemented to maximize benefits to 
4.18 	Minnesota citizens, balancing factors such as local ownership of or participation in 
4.19 	energy production, development and ownership of eligible energy technology facilities by 
4.20 	independent power producers, Minnesota utility ownership of eligible energy technology 
4.21 	facilities, the costs of energy generation to satisfy the renewable standard good-faith 
4.22 	objective, and the reliability of electric service to Minnesotans.

4.23 	Sec. 8.  REPEALER.
 4.24 	Minnesota Statutes 2012, section 216B.1691, subdivisions 2a, 2b, and 2c, are 
4.25 	repealed.