The bill HF787 First Engrossment amends Minnesota Statutes Section 216B.1691, Subdivision 2g, which pertains to the state's carbon-free electricity standards.

Key Provisions:

1. Exemption for Out-of-State Electricity

   • The bill exempts electricity generated outside of Minnesota from the state's requirement that a certain percentage of retail electricity must come from carbon-free sources by specific dates.

2. Carbon-Free Standards Remain for In-State Generation

   • Utilities must still comply with Minnesota’s carbon-free electricity mandates, but only for electricity generated within the state.
   • The current law mandates increasing percentages of carbon-free electricity:
     • 80% by 2030 (for public utilities, 60% for other utilities).
     • 90% by 2035 (for all utilities).
     • 100% by 2040 (for all utilities).

3. Impact on Electric Utilities

   • Minnesota-based utilities would not need to ensure that imported electricity meets the state's carbon-free requirements.
   • They would still need to meet the carbon-free goals for power generated within Minnesota.

Potential Implications:

• This amendment could allow utilities to purchase non-carbon-free electricity from other states without violating Minnesota’s clean energy mandates.
• It might reduce compliance costs for utilities but could also slow the transition to carbon-free energy in Minnesota.
• The bill may face opposition from clean energy advocates who seek stricter emissions standards.

This legislation modifies Minnesota's clean energy transition by limiting the carbon-free requirement to in-state electricity generation, potentially altering how utilities achieve compliance with state energy policies.