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On May 19th, Governor Pawlenty signed Minnesota Law 2009, Chapter 110, which is the Omnibus Energy Policy Bill from the 2009 legislative session.  Chapter 110 was the combination of Senate File 550, authored by Senator Yvonne Prettner Solon, and House File 863,  authored by Representative Bill Hilty.  The following is a summary of Chapter 110.


 

Section 1 - Extends the renewable energy production incentives and broadens it to include hydroelectric facilities
Section 2 – Provides funding from the Renewable Development Fund to University of Minnesota to research various issues related to renewable energy and energy conservation. To be done under the Initiative for Renewable Energy and the Environment (IREE).
Section 3 - Increases the cap on fee awards in cases of eminent domain; establishes with a special higher rate for transmission lines.
Section 4 – A PUC initiative to allow for electronic recording of Commission proceedings
Section 5 – A PUC initiative to authorize the PUC to arrange for court reporter services when needed.
Section 6 – A PUC initiative to authorize the PUC to extend the rate case due date.
Section 7 - Modifies the criteria the PUC can consider in setting incentives for energy conservation. Adds language that makes implementation of cost-effective conservation “a preferred choice” while taking into account the impact of conservation on earnings.
Section 8 – Included in a PUC initiative; it is a Revisor’s technical correction to ensure the language reads properly.
Section 9 - This establishes a Central Corridor utility zone provision; i.e., a special zone around the proposed Light Rail Transit corridor between Minneapolis and St. Paul. It authorizes the PUC to approve advanced technologies for use in the zone. It also provides for an automatic cost recovery mechanism for associated costs.
Section 10 -Requires utilities to file with the PUC a standardized contract for Power Purchase Agreements (PPA) from generation projects of 5 MW or less and the PUC to approve those contracts for each utility.
Section 11 - Requires energy facilities that are not subject to resource planning or certificate of need approval but are part of a utility’s effort to meet the renewable energy standard to seek a determination from the PUC as to their eligibility for cost recovery before seeking that recovery. Also, the language expands eligibility to include projects relating to energy storage.
Section 12 – Extends and modifies the “Green Pricing” options. Repeal of sunset on Green Pricing options in Section 38.
Section 13 - Makes solar energy facilities eligible for the inclusion in meeting the renewable energy standards and sets a 1% cap on the amount of solar that may be used to satisfy the RES.
Section 14 – A PUC initiative authorizing the PUC to order refund of unauthorized revenues obtained under certain circumstances.
Section 15 - Allows utilities to carry forward a certain amount of energy savings to future years in their efforts to meet energy savings mandates.
Section 16 - Makes energy savings resulting from solar projects eligible for performance incentives. It bases the amount of the incentive on the cost effectiveness of other solar projects available to the utility (i.e., apples to apples).
Section 17 - Authorizes inclusion of purchases of biomethane as part of a natural gas utility’s conservation plan under the Conservation Improvement Plan (CIP). Establishes standards governing how energy savings from such purchases are to be counted.
Section 18 - Modifies building performance standards.
Section 19 - Authorizes utilities to exceed 5% limit on solar projects under CIP, establishing certain criteria.
Section 20 - Modifies definitions used for eligible Distributed Generation projects to include equipment for storage of certain qualified solar projects.
Section 21 - Clarifies statutory language to indicate that the PUC may establish criteria and standards for decoupling in a separate proceeding or in the context of a rate case or other proceeding.
Section 22 - This modifies language governing the PPA between Xcel and the Laurentian Energy Authority (cities of Hibbing and Virginia). It allows the parties to renegotiate the agreement and bring a new PPA to the PUC for approval. The Commission must act within 90 days of filing of any such agreement.
Section 23 - Eliminates the exemption from certificate of need for certain wind generation projects. It eliminates duplicative statutory language. See Section 24
Section 24 - Modifies language exempting from C of N for certain renewable energy facilities. This language requires the PUC to consider the listed criteria in determining prudence of a given project; i.e., changing a “may” to “must.”
Section 25 – Language that accommodates the PUC’s audit investigation fund, which is included in Section 27.
Section 26 – Language that accommodates the PUC’s audit investigation fund, which is included in Section 27.
Section 27 – A PUC initiative that would establish a line of credit for the Department of Commerce (DOC) to be used when specialized expertise is needed to complete or clarify the record on technical issues.
Section 28 - Requires the DOC, after consultation with the PUC, to report on the adequacy of the transmission infrastructure.
Section 29 - Requires DOC and the Pollution Control Agency to report on the role of solar and biomass resources in producing thermal energy.
Section 30 – This is a DOC housekeeping initiative to correct language in §216C relating to the Cold Weather Rule.
Section 31 - Modifies language relating to payment of renewable energy production incentives; includes hydroelectric facilities.
Section 32 - This authorizes the Commissioner of Commerce to approve a CIP plan that includes certain new provisions.
Section 33 - This calls for a study of automatic cost recovery mechanisms by the PUC.
Section 34 - Special language for the Mountain Iron Economic Development Authority.
Section 35 - Requires the cities of St. Paul and Minneapolis to report to the Legislative Energy Commission on strategies for the use of solar technologies.
Section 36 - Modifies an appropriation to the DOC concerning renewable energy research, and adds requirements for how the money is to be sued
Section 37 – A PUC initiative to clarify language dealing with the Cold Weather Rule.
Section 38 - Repeals sunset on “Green Pricing” Options. See Section 12