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Power Plant Siting

The Minnesota Legislature has established a state policy to locate large electric power facilities in an orderly manner compatible with environmental preservation and the efficient use of resources. The Minnesota Public Utilities Commission has responsibility and authority for siting power plants over 50 megawatts. The legislature has directed the Commission to designate sites that minimize adverse human and environmental impact while ensuring continuing electric power system reliability and integrity and ensuring that electric energy needs are met and fulfilled in an orderly and timely fashion.

Background

Under the Power Plant Siting Act (Minnesota Statute 216E) a site permit from the Minnesota Public Utilities Commission (Commission) is required to build a large electric power generating plant (LEPGP). An LEPGP is a power plant and associated facilities capable of operating at a capacity of 50 megawatts or more. The rules for the administration of power plant site permits are found at Minnesota Rules Chapter 7850.

Full Review

Commission rules establish the requirements for submitting and processing a permit application. The applicant must identify in the application the preferred site for the power plant and one alternative site. As part of the permitting process, the Minnesota Department of Commerce, Office of Energy Security prepares an environmental impact statement (EIS) on the project, and a contested case hearing conducted by an administrative law judge is held. The Commission has up to one year from the time the application is accepted to complete the process and make a decision on the permit.  See Full Review Process diagram.

Alternative Review

An alternative permitting process is available for certain smaller-sized power plants identified in Minnesota Statute 216E.04. This alternative process does not require the preparation of an EIS (a shorter environmental assessment is required), the holding of a contested case hearing conducted by an administrative law judge (a public hearing is required), or the identification of an alternative site. This alternative process must be completed within six months from the time the application is accepted. See Alternative Review Process diagram.

Local Review

For certain projects, the applicant can elect to seek authorization from local units of government rather than from the Commission. Qualifying projects are identified in Minnesota Statute 216E.05.

Environmental Assessment Worksheet

New power plants under 50 megawatts but over 25 megawatts do not require a Commission site permit, but do require an Environmental Assessment Worksheet (EAW) under the Minnesota Environmental Policy Act (Minnesota Statute 116D) and Minnesota Rule 4410.4300.  The Environmental Quality Board oversees these EAWs.  New power plants under five megawatts are exempt from any state environmental review, and plants between five and 25 megawatts are subject to discretionary review.

Certificate of Need

With a few exceptions, a certificate of need from the Commission is required for a proposed LEPGP prior to the issuance of a site permit (Minnesota Statute 216B.243).