SF3013 - Natural Gas Innovation Act

• Establishes the Natural Gas Innovation Act allowing natural gas utilities to file alternative resource plans with the Public Utilities Commission to develop renewable natural gas, biogas, power-to-hydrogen, and other non-fossil fuel resources.

• Limits total incremental costs for alternative resource plans to 5 percent of a utility's total annual revenue requirement excluding gas costs, with a 2.5 percent cap for the first plan from utilities serving over 800,000 customers.

• Requires alternative resource plans to include third-party analyses of lifecycle greenhouse gas intensity and emissions reductions, stakeholder engagement processes, and tracking systems to verify environmental attributes and prevent double-counting of benefits.

• Prohibits renewable natural gas or carbon capture technologies in residential or multifamily buildings, and requires large utilities to include pilot programs for industrial customers and cold climate heat pump installations with natural gas backups.

• Directs the Department of Commerce to develop by June 15, 2021 a comprehensive inventory of Minnesota's renewable gaseous fuel resources, including production potential, existing biogas sites, market viability assessments, and analysis of tradable thermal credits.