1.1.................... moves to amend H.F. No. 3640 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. [216B.1695] ENVIRONMENTAL PROJECTS; ADVANCE
1.4DETERMINATION OF PRUDENCE.
1.5    Subdivision 1. Qualifying project. A public utility may petition the commission for
1.6an advance determination of prudence for a project undertaken to comply with federal
1.7or state air quality standards of states in which the utility's electric generation facilities
1.8are located, if the project has an expected jurisdictional cost to Minnesota ratepayers of
1.9at least $10,000,000. A project is undertaken to comply with federal or state air quality
1.10standards if it is required:
1.11(1) by the state in which the generation facility is located in a state implementation
1.12plan, permit, or order; or
1.13(2) to comply with section 111 or 112 of the federal Clean Air Act, United States
1.14Code, title 42, section 7411 or 7412.
1.15    Subd. 2. Regulatory cost assessments and reports. A utility requesting an advance
1.16determination under subdivision 1 must, as part of the evidence required when filing a
1.17petition under subdivision 3, provide to the commission and the Pollution Control Agency
1.18an assessment of all anticipated state and federal environmental regulations related to
1.19the production of electricity from the utility's facility subject to the filing, including
1.20regulations relating to:
1.21(1) air pollution by nitrogen oxide and sulfur dioxide, including an assumption that
1.22Minnesota will be included in the federal Clean Air Interstate Rule region, hazardous air
1.23pollutants, carbon dioxide, particulates, and ozone;
1.24(2) coal waste; and
1.25(3) water consumption and water pollution.
1.26In addition, the utility shall provide an assessment of the financial and operational
1.27impacts of these pending regulations applicable to the generating facility that is subject
2.1to the filing and analyze a range of regulatory response scenarios that include, but are
2.2not limited to:
2.3(1) the installation of pollution control equipment;
2.4(2) the benefits of the retirement or repowering of the plant that is the subject of
2.5the filing with cleaner fuels considering the costs of complying with state and federal
2.6environmental regulations; and
2.7(3) the use of pollution allowances to achieve compliance.
2.8The utility shall consult with interested stakeholders in establishing the scope of the
2.9regulatory, financial, and operational assessments prior to or during the 60-day period of
2.10the notice under subdivision 4.
2.11    Subd. 3. Petition. A petition filed under this section must include a description of
2.12the project, evidence supporting the project's reasonableness, a discussion of project
2.13alternatives, a project implementation schedule, a cost estimate and support for the
2.14reasonableness of the estimated cost, and a description of the public utility's efforts to
2.15ensure the lowest reasonable costs. Following receipt of the Pollution Control Agency's
2.16verification under subdivision 4, the commission shall allow opportunity for oral and
2.17written comment on the petition. The commission shall make a final determination on
2.18the petition within ten months of its filing date. The commission must make findings
2.19in support of its determination.
2.20    Subd. 4. Verification. At least 60 days prior to filing a petition to the commission
2.21under subdivision 3, the utility shall file notice with the Pollution Control Agency that
2.22describes the project and how it qualifies under subdivision 1. The Pollution Control
2.23Agency shall, within 60 days of receipt of the notice, verify that the project qualifies under
2.24subdivision 1, and shall forward written verification to the commission.
2.25    Subd. 5. Cost recovery. The utility may begin recovery of costs that have been
2.26incurred by the utility in connection with implementation of the project in the next rate
2.27case following an advance determination of prudence. The commission shall review the
2.28costs incurred by the utility for the project. The utility must show that the project costs
2.29are reasonable and necessary, and demonstrate its efforts to ensure the lowest reasonable
2.30project costs. Notwithstanding the commission's prior determination of prudence, it may
2.31accept, modify, or reject any of the project costs. The commission may determine whether
2.32to require an allowance for funds used during construction offset.
2.33    Subd. 6. Expiration. A petition for an advance determination of prudence may not
2.34be filed after December 31, 2015.
2.35EFFECTIVE DATE.This section is effective the day following final enactment."
2.36Delete the title and insert:
3.2relating to relating to energy; allowing for advance determination of prudence
3.3determination by Public Utilities Commission for certain environmental projects
3.4of a public utility;proposing coding for new law in Minnesota Statutes, chapter
3.5216B."