MN HF4676

Authorizes a public utility and the St. Paul district heating and cooling system cogeneration facility to jointly file a proposal by December 31, 2021 for a new power purchase agreement governing electricity sales from the facility.

Requires the cogeneration facility to continue using waste wood as its primary fuel source and establishes compliance requirements for waste wood from ash trees removed from emerald ash borer quarantine areas, including certification or chipping to one inch or less within the county of origin.

Sets electricity price comparability requirement: the public utility must pay per megawatt hour rates comparable to the average cost paid for refuse-derived fuel electricity purchased by the utility in Minnesota.

Mandates proposal must include an electrification project plan evaluating 30, 60, and 100 percent conversion of the district heating and cooling system to renewable energy technologies by December 31, 2027, with cost estimates, greenhouse gas emission reductions, and operational impacts.

Allows the Public Utilities Commission to approve the power purchase agreement and electrification project together only if they meet all conditions and serve the public interest, and permits the utility to recover prudently incurred electrification costs through an automatic cost recovery mechanism outside general rate cases.