Purpose

• To amend Minnesota’s exemptions from the certificate of need (CON) requirement for certain energy projects. The bill changes which projects must obtain CON approval from the Minnesota Public Utilities Commission (PUC) and under what conditions.

Main provisions and what the bill seeks to accomplish

• Cogeneration or small power production facilities: Projects at a single site with a combined capacity under 80,000 kilowatts (kW) are not exempt from the CON process, meaning they would require CON review.
• High-voltage transmission lines serving a single customer (or upgrades for such lines): These are no longer automatically exempt. The applicant may choose to have the PUC determine need under CON, rather than automatically being exempt.
• Short, one-mile or less high-voltage connections: Lines that connect a new or upgraded substation to an existing line are not automatically exempt and may require CON review.
• Fuel-switching to natural gas: Upgrading an existing plant to switch its fuel to natural gas is not exempt from CON review.
• Efficiency upgrades that increase capacity: If an efficiency upgrade would increase a plant’s capacity by more than 10% or by more than 100 megawatts (MW), whichever is greater, the project is no longer exempt and would require CON review.
• Large wind or solar energy projects: Large wind (WECS) and solar energy systems that are the subject of a site permit from an independent power producer (IPP) under chapter 216I are affected; these projects are no longer automatically exempt and may require CON review.
• Repowering projects: Repowering of large wind or solar energy systems is addressed. If repowering will not increase nameplate capacity, it may be exempt; if it will increase capacity, the project must have a signed generator interconnection agreement with MISO reflecting the expected net power increase.
• Energy storage systems: Energy storage projects are not automatically exempt and would be subject to CON review.
• Transmission lines that directly interconnect WECS, solar systems, or energy storage to the transmission system: These lines would not be exempt.
• Relocation of an existing high-voltage line to a new right-of-way: If new structures are installed and are not designed for higher voltage, this would not be exempt.
• Upgrading/rebuilding lines from under 100 kV to 115 kV on existing rights of way: These upgrades are not exempt and require CON review.
• Definitions related to repowering: The bill defines repowering for large WECS or solar energy systems to include specific scenarios that increase efficiency or nameplate capacity, clarifying what counts as repowering for the CON process.

How this changes existing law

• Expands CON review requirements to cover more energy projects that were previously exempt.
• Introduces specific thresholds (capacity percentages, MW, kV) that determine whether a project remains exempt or must undergo CON review.
• Ties repowering more closely to interconnection agreements with MISO when determining CON applicability.
• Adds clarity on what constitutes repowering for large wind and solar facilities.

Significant changes to thresholds and terms

• Capacity threshold for cogeneration/small power facilities: 80,000 kW per site.
• Efficiency upgrade trigger: more than 10% capacity increase or more than 100 MW increase (whichever is greater).
• Voltage and interconnection specifics: steps up CON review for certain 100+ kV to 115 kV upgrades and lines directly interconnecting major energy facilities; requires MISO interconnection considerations for repowering.

Practical impact and who is affected

• Projects that were previously exempt may now need CON review, potentially affecting timelines and regulatory requirements.
• Developers of cogeneration, small power, wind/solar repowering, energy storage, and significant transmission upgrades should anticipate potential CON processes unless they meet the new thresholds.
• The bill emphasizes coordination with MISO for interconnection and net power increases in repowering scenarios.

Definitions and key terms to understand

• Certificate of Need (CON): A regulatory review process to determine whether a proposed energy project should be approved.
• Cogeneration / small power production facilities
• High-voltage transmission line
• Single customer
• Interconnection agreement (MISO)
• Midcontinent Independent System Operator (MISO)
• Wind energy conversion system (WECS)
• Solar energy generating system
• Energy storage systems
• Repowering
• Independent power producer (IPP)
• Site permit (under chapter 216I)

Potential implementation notes

• Projects will need to assess whether they fall under the new thresholds to determine if CON review is required.
• For repowering and larger renewable projects, securing or updating MISO interconnection agreements may be necessary to qualify or disqualify under the new rules.

Relevant Terms - certificate of need - exemptions - Minnesota Statutes 216B.243 subdivision 8 - cogeneration - small power production - Federal Power Act - high-voltage transmission line - single customer - interconnection agreement - Midcontinent Independent System Operator (MISO) - wind energy conversion system (WECS) - solar energy generating system - energy storage systems - repowering - site permit - independent power producer (IPP) - kilowatts (kW) - megawatts (MW) - kilovolts (kV)