A+ Energy Act established.

A bill for an act

relating to energy; establishing the A+ Energy Act; amending Minnesota Statutes

2024, sections 216B.01; 216B.1691, subdivisions 1, 2e; 216B.243, subdivisions

3b, 8.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.
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SHORT TITLE.
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This act may be cited as the "A+ Energy Act."

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 2.

Minnesota Statutes 2024, section 216B.01, is amended to read:

216B.01 LEGISLATIVE FINDINGS.

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It is the policy of this state to preserve a safe, reliable, and affordable energy system that

facilitates the use of all available energy options.
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It is hereby declared to be in the public

interest that public utilities be regulated as hereinafter provided in order to provide the retail

consumers of natural gas and electric service in this state with adequate and reliable services

at reasonable rates, consistent with the financial and economic requirements of public utilities

and their need to construct facilities to provide such services or to otherwise obtain energy

supplies, to avoid unnecessary duplication of facilities which increase the cost of service

to the consumer and to minimize disputes between public utilities which may result in

inconvenience or diminish efficiency in service to the consumers. Because municipal utilities

are presently effectively regulated by the residents of the municipalities which own and

operate them, and cooperative electric associations are presently effectively regulated and

controlled by the membership under the provisions of chapter 308A, it is deemed unnecessary

to subject such utilities to regulation under this chapter except as specifically provided

herein.

Sec. 3.

Minnesota Statutes 2024, section 216B.1691, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have

the meaning given them.

(b) "Carbon-free" means a technology that generates electricity without emitting carbon

dioxide.

(c) Unless otherwise specified in law, "eligible energy technology" means an energy

technology that generates electricity from the following renewable energy sources:

(1) solar;

(2) wind;

(3) hydroelectric
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with a capacity of: (i) less than 100 megawatts; or (ii) 100 megawatts

or more, provided that the facility is in operation as of February 8, 2023
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;

(4) hydrogen generated from the resources listed in this paragraph;
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or
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(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester

system; the predominantly organic components of wastewater effluent, sludge, or related

by-products from publicly owned treatment works, but not including incineration of

wastewater sludge to produce electricity; and, except as provided in subdivision 1a, an

energy recovery facility used to capture the heat value of mixed municipal solid waste or

refuse-derived fuel from mixed municipal solid waste as a primary fuel
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.
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; or
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(6) nuclear.

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(d) "Electric utility" means: (1) a public utility providing electric service; (2) a generation

and transmission cooperative electric association; (3) a municipal power agency; (4) a power

district; or (5) a cooperative electric association or municipal utility providing electric service

that is not a member of an entity in clauses (2) to (4).

(e) "Environmental justice area" means an area in Minnesota that, based on the most

recent data published by the United States Census Bureau, meets one or more of the following

criteria:

(1) 40 percent or more of the area's total population is nonwhite;

(2) 35 percent or more of households in the area have an income that is at or below 200

percent of the federal poverty level;

(3) 40 percent or more of the area's residents over the age of five have limited English

proficiency; or

(4) the area is located within Indian country, as defined in United State Code, title 18,

section 1151.

(f) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year by

an electric utility to retail customers of the electric utility or to a distribution utility for

distribution to the retail customers of the distribution utility.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 4.

Minnesota Statutes 2024, section 216B.1691, subdivision 2e, is amended to read:

Subd. 2e.

Rate impact of standard compliance; report.

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(a)
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Each electric utility must

submit to the commission and the legislative committees with primary jurisdiction over

energy policy a report containing an estimation of the rate impact of activities of the electric

utility necessary to comply with this section. In consultation with the Department of

Commerce, the commission shall determine a uniform reporting system to ensure that

individual utility reports are consistent and comparable, and shall, by order, require each

electric utility subject to this section to use that reporting system. The rate impact estimate

must be for wholesale rates and, if the electric utility makes retail sales, the estimate shall

also be for the impact on the electric utility's retail rates. Those activities include, without

limitation, energy purchases, generation facility acquisition and construction, and

transmission improvements. A report must be updated and submitted as part of each

integrated resource plan or plan modification filed by the electric utility under section

216B.2422
. The reporting obligation of an electric utility under this subdivision expires

December 31, 2040.

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(b) A report submitted under this subdivision must include an explanation detailing the

electric utility's efforts to reduce carbon dioxide emissions and increase the use of renewable

energy in the electric utility's operations in a manner that does not adversely affect customer

costs or the reliability of electric service to Minnesotans.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 5.

Minnesota Statutes 2024, section 216B.243, subdivision 3b, is amended to read:

Subd. 3b.

Nuclear power plant;
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new construction prohibited;
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relicensing.

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(a) The

commission may not issue a certificate of need for the construction of a new nuclear-powered

electric generating plant.

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(b)
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Any certificate of need for additional storage of spent nuclear fuel for a facility

seeking a license extension shall address the impacts of continued operations over the period

for which approval is sought.

Sec. 6.

Minnesota Statutes 2024, section 216B.243, subdivision 8, is amended to read:

Subd. 8.

Exemptions.

(a) This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power

Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and

paragraph (18), subparagraph (A), and having a combined capacity at a single site of less

than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or

any case where the commission has determined after being advised by the attorney general

that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to serve

the demand of a single customer at a single location, unless the applicant opts to request

that the commission determine need under this section or section
216B.2425
;

(3) the upgrade to a higher voltage of an existing transmission line that serves the demand

of a single customer that primarily uses existing rights-of-way, unless the applicant opts to

request that the commission determine need under this section or section
216B.2425
;

(4) a high-voltage transmission line of one mile or less required to connect a new or

upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using natural

gas;

(6) the modification of an existing electric generating plant to increase efficiency, as

long as the capacity of the plant is not increased more than ten percent or more than 100

megawatts, whichever is greater;

(7) a large wind energy conversion system, as defined in section
216I.02, subdivision

12
, or a solar energy generating system, as defined in section
216I.02, subdivision 18
, for

which a site permit application is submitted by an independent power producer under chapter

216I;

(8) a large wind energy conversion system, as defined in section
216I.02, subdivision

12
, or a solar energy generating system, as defined in section
216I.02, subdivision 18
,

engaging in a repowering project that:

(i) will not result in the system exceeding the nameplate capacity under its most recent

interconnection agreement; or

(ii) will result in the system exceeding the nameplate capacity under its most recent

interconnection agreement, provided that the Midcontinent Independent System Operator

has provided a signed generator interconnection agreement that reflects the expected net

power increase;

(9) energy storage systems, as defined in section
216I.02, subdivision 6
;

(10) transmission lines that directly interconnect large wind energy conversion systems,

solar energy generating systems, or energy storage systems to the transmission system;
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or
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(11) relocation of an existing high voltage transmission line to new right-of-way, provided

that any new structures that are installed are not designed for and capable of operation at

higher voltage
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.
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;
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(12) a nuclear-powered electric generating plant;

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(13) a hydroelectric generating facility; or

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(14) a biomass electric generating facility.

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(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating system

that is a large energy facility to increase its efficiency without increasing its nameplate

capacity;

(2) replacing turbines in a large wind energy conversion system without increasing the

nameplate capacity of the system; or

(3) increasing the nameplate capacity of a large wind energy conversion system.

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(c) The exemptions under paragraph (a), clauses (12) to (14), do not apply if the

commission determines that the exemption is not in the public interest.

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EFFECTIVE DATE.

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This section is effective the day following final enactment and

applies to a large wind energy conversion system, a solar energy generating system, a

nuclear-powered electric generating plant, a hydroelectric generating facility, or a biomass

electric generating facility whose owner has filed an application for a certificate of need

with the Public Utilities Commission on or after that date.

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