H.F. No. 21 Summary

• Amends Minnesota Statutes section 216B.2424 to authorize a new power purchase agreement between a public utility and the St. Paul district heating and cooling system cogeneration facility, effective through December 31, 2023, with extension options to 2027.

• Requires the cogeneration facility to continue using waste wood as its primary fuel source and establishes compliance requirements for ash tree waste from quarantined emerald ash borer areas, including chipping to one inch or less or obtaining transportation certificates.

• Mandates the agreement include an electrification project proposal evaluating conversion of the St. Paul district heating and cooling system to renewable energy technologies at 30, 60, and 100 percent levels by December 31, 2027, with cost and emissions impact analysis.

• Prohibits the Public Utilities Commission from approving the agreement unless electricity pricing is comparable to refuse-derived fuel costs, does not increase ratepayer costs, and provides net benefit to utility customers or the state.

• Allows the commission to recover prudently incurred electrification project costs through an automatic cost recovery mechanism limited to Minnesota electric service customers and permits a reasonable return on capital invested.