MN SF3126

Allows public utilities to petition the Public Utilities Commission for advance determination of prudence for environmental compliance projects costing at least $10,000,000 in Minnesota ratepayer costs.

Requires utilities to submit assessments of anticipated state and federal environmental regulations covering air pollution (nitrogen oxide, sulfur dioxide, hazardous air pollutants, carbon dioxide, particulates, ozone), coal waste, and water consumption/pollution.

Mandates utilities provide a range of regulatory response scenarios including pollution control equipment installation, plant retirement or repowering with cleaner fuels, and use of pollution allowances for compliance.

Requires utilities to consult with interested stakeholders during a 60-day notice period and file notice with the Pollution Control Agency, which must verify project qualification within 60 days.

Allows utilities to begin cost recovery in the next rate case following advance prudence determination, but the Commission retains authority to review, accept, modify, or reject project costs and must verify reasonableness and necessity.

Expires on December 31, 2015, prohibiting new petitions after that date.