1.1.................... moves to amend H.F. No. 956, the delete everything amendment
1.2(H0956DE3), as follows:
1.3Page 14, after line 34, insert:

1.4    "Sec. 18. Minnesota Statutes 2012, section 216B.1692, subdivision 1, is amended to
1.5read:
1.6    Subdivision 1. Qualifying projects. (a) Projects that may be approved for the
1.7emissions reduction-rate rider allowed in this section must:
1.8(1) be installed on existing large electric generating power plants, as defined in
1.9section 216B.2421, subdivision 2, clause (1), that are located in the state and that are
1.10currently not subject to emissions limitations for new power plants under the federal Clean
1.11Air Act, United States Code, title 42, section 7401 et seq.;
1.12(2) not increase the capacity of the existing electric generating power plant more
1.13than ten percent or more than 100 megawatts, whichever is greater; and
1.14(3) result in the existing plant either:
1.15(i) complying with applicable new source review standards under the federal Clean
1.16Air Act; or
1.17(ii) emitting air contaminants at levels substantially lower than allowed for new
1.18facilities by the applicable new source performance standards under the federal Clean
1.19Air Act; or
1.20(iii) reducing emissions from current levels at a unit to the lowest cost-effective level
1.21when, due to the age or condition of the generating unit, the public utility demonstrates
1.22that it would not be cost-effective to reduce emissions to the levels in item (i) or (ii).
1.23(b) Notwithstanding paragraph (a), a project may be approved for the emission
1.24reduction rate rider allowed in this section if the project is to be installed on existing
1.25large electric generating power plants, as defined in section 216B.2421, subdivision 2,
1.26clause (1), that are located outside the state and are needed to comply with state or federal
2.1air quality standards, but only if the project has received an advance determination of
2.2prudence from the commission under section 216B.1695.

2.3    Sec. 19. Minnesota Statutes 2012, section 216B.1692, is amended by adding a
2.4subdivision to read:
2.5    Subd. 1a. Exemption. Subdivisions 2, 4, and 5, paragraph (c), clause (1), do not
2.6apply to projects qualifying under subdivision 1, paragraph (b).

2.7    Sec. 20. Minnesota Statutes 2012, section 216B.1692, subdivision 8, is amended to read:
2.8    Subd. 8. Sunset. This section is effective until December 31, 2015 2020, and
2.9applies to plans, projects, and riders approved before that date and modifications made to
2.10them after that date.

2.11    Sec. 21. Minnesota Statutes 2012, section 216B.1695, subdivision 5, is amended to read:
2.12    Subd. 5. Cost recovery. The utility may begin recovery of costs that have been
2.13incurred by the utility in connection with implementation of the project in the next rate
2.14case following an advance determination of prudence or in a rider approved under section
2.15216B.1692. The commission shall review the costs incurred by the utility for the project.
2.16The utility must show that the project costs are reasonable and necessary, and demonstrate
2.17its efforts to ensure the lowest reasonable project costs. Notwithstanding the commission's
2.18prior determination of prudence, it may accept, modify, or reject any of the project costs.
2.19The commission may determine whether to require an allowance for funds used during
2.20construction offset.

2.21    Sec. 22. Minnesota Statutes 2012, section 216B.1695, is amended by adding a
2.22subdivision to read:
2.23    Subd. 5a. Rate of return. The return on investment in the rider shall be at the
2.24level approved by the commission in the public utility's last general rate case, unless the
2.25commission determines that a different rate of return is in the public interest."
2.26Renumber the sections in sequence and correct the internal references
2.27Amend the title accordingly