1.1 A bill for an act 1.2 relating to energy; suspending implementation of carbon-free standards under 1.3 certain circumstances; amending Minnesota Statutes 2024, section 216B.1691, 1.4 subdivision 2b. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6 Section 1. Minnesota Statutes 2024, section 216B.1691, subdivision 2b, is amended to 1.7read: 1.8 Subd. 2b.Modification or delay of standard.(a) The commission shall modify or delay 1.9the implementation of a standard obligation under subdivision 2a, 2f, or 2g, in whole or in 1.10part, if the commission determines that modifying or delaying the standard obligation is in 1.11the public interest. The commission, when evaluating a request to modify or delay 1.12implementation of a standard, must consider: 1.13 (1) the impact of implementing the standard on its customers' utility costs, including the 1.14economic and competitive pressure on the utility's customers; 1.15 (2) the environmental costs that would be incurred as a result of a delay or modification, 1.16based on the full range of environmental cost values established in section 216B.2422, 1.17subdivision 3; 1.18 (3) the effects of implementing the standard on the reliability of the electric system; 1.19 (4) technical advances or technical concerns; 1.20 (5) delays in acquiring sites or routes due to rejection or delays of necessary siting or 1.21other permitting approvals; 1Section 1. 25-02276 as introduced01/28/25 REVISOR RSI/AD SENATE STATE OF MINNESOTA S.F. No. 1530NINETY-FOURTH SESSION (SENATE AUTHORS: MATHEWS, Gruenhagen, Johnson and Pratt) OFFICIAL STATUSD-PGDATE Introduction and first reading02/17/2025 Referred to Energy, Utilities, Environment, and Climate 2.1 (6) delays, cancellations, or nondelivery of necessary equipment for construction or 2.2commercial operation of an eligible energy technology facility; 2.3 (7) transmission constraints preventing the delivery of service that results in a lapse of 2.4utility service in an area; 2.5 (8) other statutory obligations imposed on the commission or a utility; 2.6 (9) impacts on environmental justice areas; and 2.7 (10) additional electric load from beneficial electrification and the greenhouse gas 2.8emissions savings associated with those loads as compared to serving the load with 2.9nonelectric energy sources. 2.10For the purposes of this paragraph, "beneficial electrification" means the substitution of 2.11electricity for a fossil fuel, provided that the substitution meets at least one of the following 2.12conditions without adversely affecting either of the other two, as determined by the 2.13commission: 2.14 (i) saves a consumer money over the long run compared with continued use of the fossil 2.15fuel; 2.16 (ii) enables an electric utility to better manage the electric utility's electric grid network; 2.17or 2.18 (iii) reduces negative environmental impacts of fuel use, including but not limited to 2.19statewide greenhouse gas emissions. 2.20 (b) The commission may modify or delay implementation of a standard obligation under 2.21paragraph (a), clauses (1) to (4), only if it finds implementation would cause significant rate 2.22impact, requires significant measures to address reliability, or raises significant technical 2.23issues. The commission may modify or delay implementation of a standard obligation under 2.24paragraph (a), clauses clause (5) to (7), only if it finds that the circumstances described in 2.25those clauses paragraph (a), clause (5), were due to circumstances beyond an electric utility's 2.26control and make compliance not feasible. The commission must delay the standard 2.27obligation under paragraph (a), clauses (6) and (7), for two years if the commission finds 2.28that the circumstances described in paragraph (a), clauses (6) and (7), are due to 2.29circumstances beyond an electric utility's control and make compliance infeasible. 2.30 (c) When evaluating transmission capacity constraints under paragraph (a), clause (7), 2.31the commission must consider whether the utility has: 2Section 1. 25-02276 as introduced01/28/25 REVISOR RSI/AD 3.1 (1) taken reasonable measures that are under the utility's control and consistent with the 3.2utility's obligations under local, state, and federal laws and regulations, and the utility's 3.3obligations as a member of a regional transmission organization or independent system 3.4operator, to acquire sites, necessary permit approvals, and necessary equipment to develop 3.5and construct new transmission lines or upgrade existing transmission lines to transmit 3.6electricity generated by eligible energy technologies; and 3.7 (2) taken all reasonable operational measures to maximize cost-effective electricity 3.8delivery from eligible energy technologies in advance of transmission availability. 3.9 (d) When considering whether to delay or modify implementation of a standard obligation, 3.10the commission must give due consideration to a preference for electric generation through 3.11use of eligible energy technology and to the achievement of the standards set by this section. 3.12 (e) An electric utility that requests a modification or delay to the implementation of a 3.13standard must file a plan to comply with the electric utility's standard obligation as part of 3.14the same proceeding in which the electric utility requests the modification or delay. 3Section 1. 25-02276 as introduced01/28/25 REVISOR RSI/AD