Bill Summary

• Reduces Minnesota's biomass electric energy mandate from 125 megawatts to 110 megawatts.

• Allows a 50-megawatt short-rotation woody crops biomass project to be reduced to 35 megawatts with an average energy price of $109.20 per megawatt-hour (increased from $104), and permits assignment to two municipal utilities north of Constitutional Route No. 8 that plan to retrofit existing coal-fueled facilities for biomass use.

• Adds a fuel cost adjustment clause allowing monthly reimbursement to the project owner for fuel costs exceeding $3.40 per million BTU, with annual reconciliation beginning in 2014.

• Requires Public Utilities Commission approval of a high-voltage transmission line (100+ kilovolts) in the metropolitan area based on clear and convincing evidence that no feasible distribution-level alternative exists.

• Suspends routing proceedings for the transmission line pending Commission determination of project need.