new text begin [216B.2427] NATURAL GAS UTILITY INNOVATION PLANS.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given.
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new text begin (b) "Biogas" means gas created by the anaerobic digestion of biomass, gasification of
biomass, or other effective conversion processes.
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new text begin (c) "Carbon capture and utilization" means the capture of greenhouse gases that would
otherwise be released into the atmosphere and the use of the captured greenhouse gases to
create industrial or commercial products for sale.
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new text begin (d) "District energy" means a network of hot- and cold-water pipes used to provide
thermal energy to multiple buildings.
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new text begin (e) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f). Energy efficiency does not include energy conservation investments the
commission determines could reasonably be included in the natural gas utility's conservation
improvement program under section 216B.241.
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new text begin (f) "Innovative resource" means biogas, renewable natural gas, power-to-hydrogen
power-to-ammonia, carbon capture and utilization, strategic electrification, district energy
systems, and energy efficiency.
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new text begin (g) "Lifecycle greenhouse gas emissions" means the emissions of an energy resource
associated with the production, processing, transmission, and consumption of energy
associated with the energy resource.
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new text begin (h) "Natural gas utility" or "utility" means a public utility, as defined in section 216B.02,
subdivision 4, that provides natural gas sales or transportation services to customers in
Minnesota.
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new text begin (i) "Power-to-ammonia" means the creation of ammonia from hydrogen created via
power-to-hydrogen using a process that has lower lifecycle greenhouse gas intensity than
conventional geologic natural gas.
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new text begin (j) "Power-to-hydrogen" means the use of electricity generated by (1) an eligible energy
technology, as defined in section 216B.1691, subdivision 1, paragraph (a), or (2) renewable
energy, as defined in section 216B.2422, subdivision 1, to create hydrogen.
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new text begin (k) "Renewable natural gas" means biogas that has been processed so that it (1) is
interchangeable with conventional natural gas, and (2) has lower lifecycle greenhouse gas
intensity than conventional geologic natural gas.
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new text begin (l) "Strategic electrification" means the installation of electric end-use equipment,
provided the installation (1) results in a net reduction in statewide greenhouse gas emissions,
as defined in section 216H.241, subdivision 2, over the life of the equipment as compared
to the most efficient commercially available natural gas alternative, and (2) is installed and
operated in a manner that improves the customer's electric utility's load factor.
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new text begin (m) "Total incremental cost" means:
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new text begin (1) the sum of:
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new text begin (i) capital investments in infrastructure for the production, processing, pipeline
interconnection, storage, and distribution of innovative resources included in a utility
innovation plan approved under subdivision 2;
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new text begin (ii) net operating costs associated with capital investments in infrastructure for the
production, processing, pipeline interconnection, storage, and distribution of innovative
resources included in a utility innovation plan approved under subdivision 2;
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new text begin (iii) the incremental cost to procure innovative resources from third parties; and
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new text begin (iv) the incremental costs to administer programs included in a utility innovation plan
approved under subdivision 2;
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new text begin (2) less the sum of:
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new text begin (i) any value received by the natural gas utility upon the resale of the innovative resources
or the innovative resource's by-products, including any environmental credits included with
the resale of the renewable gaseous fuels or value received by the natural gas utility when
innovative resources are used as vehicle fuel; and
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new text begin (ii) any cost savings achieved through avoidance of conventional natural gas purchases,
including but not limited to any avoided commodity purchases or avoided pipeline costs.
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new text begin Subd. 2. new text end

new text begin Innovation plans. new text end

new text begin (a) A natural gas utility may file an innovation plan with
the commission. The utility's recommended plan must describe or include, as applicable,
the following components:
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new text begin (1) the recommended innovative resource or resources the utility plans to implement to
advance the state's goals established in sections 216C.05, subdivision 2, clause (3), and
216H.02, subdivision 1, within the requirements and limitations set forth in this section;
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new text begin (2) the total greenhouse gas emissions the natural gas utility expects to reduce or avoid
pursuant to the plan;
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new text begin (3) the natural gas utility's estimate of how avoided or reduced emissions resulting from
the use of the innovative resource compare to total emissions from natural gas use by the
natural gas utility's customers in 2005;
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new text begin (4) any pilot program proposed by the natural gas utility related to the development or
provision of innovative resources, including an estimate of the total incremental costs to
implement the pilot program;
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new text begin (5) any program previously approved as a pilot program which the utility proposes to
continue as a pilot program or make permanent;
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new text begin (6) the cost effectiveness of the proposed innovative resources from the perspective of
the natural gas utility, society, and participating customers as compared to other innovative
resources that could be deployed to reduce or avoid the same greenhouse gas emissions
targeted by the utility's proposed resource;
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new text begin (7) a third-party analysis of the lifecycle greenhouse gas intensity of any innovative
resources included in the plan;
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new text begin (8) a third-party analysis of the forecasted lifecycle greenhouse gas emissions reductions
achieved or the lifecycle greenhouse gas emissions avoided if the proposed programs are
implemented, including any:
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new text begin (i) avoided emissions attributable to utility operations;
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new text begin (ii) avoided emissions from the production, processing, and transmission of fuels prior
to receipt by the utility; and
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new text begin (iii) avoided emissions at the point of end use;
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new text begin (9) the process used to develop the lifecycle greenhouse gas accounting methodology
used consistently throughout the plan, including descriptions of how the utility engaged
interested stakeholders and ensured the plan reflects consistency with applicable current
scientific knowledge;
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new text begin (10) whether the recommended plan supports the development and use of alternative
agricultural products, waste reduction, reuse, or anaerobic digestion of organic waste, and
the recovery of energy from wastewater, and if so a description of where those benefits are
realized;
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new text begin (11) a description of third-party systems and processes the utility plans to use to:
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new text begin (i) track the proposed innovative resources included in the plan so that environmental
benefits are used only for the natural gas innovation plan and not claimed for any other
program; and
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new text begin (ii) verify the environmental attributes and greenhouse gas intensity of proposed
innovative resources included in the plan;
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new text begin (12) a description of known local job impacts and the steps the utility and the utility's
energy suppliers and contractors are taking to maximize the availability of construction
employment opportunities for local workers; and
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