1.1    .................... moves to amend H. F. No. 375, the first engrossment, as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 216B.243, subdivision 2, is amended to
1.4read:
1.5    Subd. 2. Certificate required. (a) No large energy facility shall may be sited or
1.6constructed in Minnesota and no nonrenewable resource power purchase agreement may
1.7be entered into by an electric utility, without the issuance of a certificate of need by the
1.8commission pursuant to sections 216C.05 to 216C.30 and this section and consistent
1.9with the criteria for assessment of need.
1.10    (b) For the purposes of this section:
1.11    (1) "nonrenewable resource power purchase agreement" means power purchase
1.12agreement for 50 megawatts of capacity or more with a term exceeding five years from
1.13a generation facility powered by nonrenewable fuel; and
1.14    (2) "electric utility" has the meaning given to it in section 216B.38, subdivision 5.
1.15EFFECTIVE DATE.This section is effective the day following final enactment
1.16and applies to proposals pending as of that date.

1.17    Sec. 2. Minnesota Statutes 2006, section 216B.243, subdivision 3a, is amended to read:
1.18    Subd. 3a. Use of renewable resource. (a) The commission may not issue a
1.19certificate of need under this section for:
1.20    (1) a large energy facility that:
1.21    (i) generates electric power by means of a nonrenewable energy source,; or that
1.22    (ii) transmits electric power generated by means of a nonrenewable energy source; or
1.23    (2) a nonrenewable resource power purchase agreement, unless the applicant for the
1.24certificate has demonstrated to the commission's satisfaction that:
1.25    (i) the applicant has arranged to offset the carbon dioxide and other greenhouse gas
1.26emissions from the nonrenewable resource through:
2.1    (A) capture and geologic sequestration of those emissions;
2.2    (B) the purchase of greenhouse gas emission-reduction credits issued by a tracking
2.3and crediting organization approved by the commission; or
2.4    (C) another method approved by the commission after notice and opportunity to
2.5comment; and
2.6    (ii) it has explored the possibility of generating power by means of renewable energy
2.7sources and has demonstrated that the alternative selected is less expensive (, including
2.8environmental costs) and the costs of compliance with item (i), than power generated by a
2.9renewable energy source.
2.10    (b) For purposes of this subdivision, "renewable energy source" includes hydro,
2.11wind, solar, and geothermal energy and the use of trees or other vegetation as fuel.
2.12EFFECTIVE DATE.This section is effective the day following final enactment
2.13and applies to proposals pending as of that date.

2.14    Sec. 3. Minnesota Statutes 2006, section 216B.243, subdivision 5, is amended to read:
2.15    Subd. 5. Approval, denial, or modification. (a) Within 12 months of the
2.16submission of an application, the commission shall approve or deny a certificate of need
2.17for the facility or power purchase agreement. Approval or denial of the certificate shall be
2.18accompanied by a statement of the reasons for the decision. Issuance of the certificate may
2.19be made contingent upon modifications required by the commission. If the commission
2.20has not issued an order on the application within the 12 months provided, the commission
2.21may extend the time period upon receiving the consent of the parties or on its own motion,
2.22for good cause, by issuing an order explaining the good cause justification for extension.
2.23    (b) The commission may modify proposals for nonrenewable projects or
2.24nonrenewable resource power purchase agreements applied for under this section to
2.25order the implementation of technically feasible, cost-effective energy conservation or
2.26renewable energy projects, including community energy projects, as determined under
2.27section 216B.2426, that are identified in the application review process.
2.28EFFECTIVE DATE.This section is effective the day following final enactment
2.29and applies to proposals pending as of that date.

2.30    Sec. 4. [216C.03] CLIMATE CHANGE; ENERGY PRODUCTION AND USE.
2.31    Subdivision 1. Climate change action plan. The commissioner of commerce, on
2.32behalf of the executive branch and in coordination with the Pollution Control Agency and
2.33Departments of Natural Resources, Agriculture, Employment and Economic Development,
2.34and Transportation, shall identify and invite a nationally recognized independent expert
2.35entity to conduct a structured, broadly inclusive stakeholder-based review of potential
3.1policies and initiatives that can be implemented in Minnesota to reduce greenhouse gas
3.2emissions from activities in this state. The purpose of this effort is to identify, develop, and
3.3integrate a full range of state-level energy efficiency, renewable energy, and other climate
3.4change actions, across all economic sectors, regions, and energy uses in the state and
3.5develop a comprehensive climate action plan that also can provide substantial energy and
3.6emissions savings and related benefits for Minnesota's citizens. The end product of this
3.7technical, cost-benefit analysis should be a final report that includes a thorough inventory
3.8and forecast of Minnesota's greenhouse gas emissions, a series of individual policy
3.9recommendations across all sectors and types of activities, and recommended statewide
3.10goals for implementation. The commissioner of commerce shall coordinate the activities
3.11of the executive branch participation with this stakeholder process, and shall issue a
3.12Minnesota climate change action plan to the Minnesota Legislature by February 1, 2008.
3.13    Subd. 2. Regional activities. It shall be an executive branch responsibility to work
3.14with other states in the Midwest region to develop and implement a regional approach
3.15to reducing greenhouse gas emissions from activities in the region. The commissioner
3.16of commerce shall coordinate Minnesota's regional activities under this subdivision
3.17and report by February 1 of each year on the progress made and recommendations for
3.18further action.
3.19EFFECTIVE DATE.This section is effective the day following final enactment."
3.20Amend the title accordingly