Legalectric

The Minnesota Public Utilities Commission rulemaking for Minn. R. Ch. 7849, Certificate of Need, and 7850, Routing and Siting, is slowly moving forward. Here are the final drafts up for review before they go to the Commission for a rubber stamp and release for general comment:

20173-129606-02_Draft 7849

20173-129606-03_Draft 7850

Final initial comments on drafts were due on Monday and here they are, in alphabetical order:

20175-131641-01_Commerce DER

20175-131640-01_Commerce EERA

20175-131687-01_Goodhue Wind Truth – Marie McNamara

20175-131650-01-1_Great River Energy

20175-131683_ITC Comments and Attachments

20175-131698-01_Just Change

20175-131686-01_NoCapX – U-CAN – NRG & GWT

20175-131675-01_Wisconsin Power & Light

20175-131688-01_Xcel Energy

Reply comments are due by 4:30 p.m. on May 31, 2017.  eFiling is preferred!  If you need to register to eFile, GO HERE!  It’s easy, quick, and makes filing a breeze.  Get to work — there’s a lot here to comment on!

Comments on the Minn. R. Ch. 7849 and 7850 rulemaking are due next Monday!  Are you making any progress? Info on who, what, where, why, when of filing comments is here:

20173-130158-01_Notice of Comment Period

What to comment on? Here are the latest draft rules:

February 2017 Draft 7849 February 2017 Draft 7850

Get to it!  

Yes, it’s been a long march.  We’ve been slogging through for years — this Public Utilities Commission rulemaking began in 2012. We’ve been going to these PUC sponsored Advisory Group meetings, holding our own small group and public meetings about these rules, reviewing and commenting, and by we, I’ve been joined by Suzanne Rohlfing, of North Route Group (CapX 2020 intervenor group in Hampton-La Crosse docket) and Marie McNamara, of Goodhue Wind Truth (intervenor group in Goodhue Wind/AWA docket) who have hung in there all these years.  So early next month, we’re going before the Commission with the draft rules.  Four plus years!  It’s about time!

We sorely needed rulemaking, there were major statutory changes in 2005 (2005 Session Laws Ch 97 – Transmission Omnibus Bill from Hell), and substantial holes in the process, which all came out in the CapX 2020 Certificate of Need and Routing dockets (CapX 2020 is why the 2005 statutory changes were rammed through, to facilitate Xcel’s transmission dream).  I’ve filed a few Petitions for Rulemaking to push these forward, the one below was 2011!

Overland – Petition 4 Rulemaking-7850

And we’ve been working on rules for Minn. Ch. 7849 and 7850 for over four years now.  The docket was opened and first Comments solicited in December 2012.  Finally, this Notice yesterday, that the drafts that will go to the Commission:

February 2017 Draft 7849

February 2017 Draft 7850

And notice of the Commission meeting issued today!

20172-129322-01_Notice of Commission Meeting

To look at the docket, go to the PUC SEARCH PAGE and search for docket 12-1246.  I’ve posted links to the drafts on this docket.  It’s important that the public be able to review what’s gone on over the last four years!

And after this, wind rules, Minn. Rules Ch. 7854, are next!  Yes, PUC, we will hold you to this!

Many thanks to the “little birdie” who brought this decades old report to my attention:

Rulemaking – Legislative Auditor-93-04-1

Yes, this is a report from the Minnesota Legislative Auditor from 1993, and if you read it, you’ll see little has changed is so many years…  The issues raised are issues we’ve been raising in the Public Utilities Commission rulemaking for Minn. R. Ch. 7849 and 7850 (Certificate of Need and Siting/Routing).  AAAAAAAAAAAACK!

For example, from the Summary:

• Encouraging agencies to negotiate rules before formally proposing them has made the formal public notice-and-comment process mandated by the APA less meaningful; and

• Since there are no requirements or guidelines governing the negotiation process, those people selected to help an agency draft rules have an unfair advantage over those who are not asked to participate.

One unintended consequence of negotiated rulemaking is that the public participation process mandated by the APA has become less important because the content of rules is largely decided during the negotiation phase. As a result, by the time a rule is formally published in the State Register with a request for public comments, an informal agreement between an agency and parties to the negotiation may already have been reached. Those groups and individuals not consulted often are left out. Nearly 70 percent of the affected parties who responded to our survey said they hear about rules too late for their input to make a difference. People who live outside the Twin Cities area were much more likely to feel unable to influence the rulemaking process and to express dissatisfaction with agency rulemaking performance generally.

For example, in the PUC Rulemaking for 7849 and 7850 (PUC Docket 12-1246), it’s been an over two-year-long process, and few are showing up anymore.  We weigh in, some things are taken into account in the drafts, and then that disappears from the next draft.  How can it feel like anything but a colossal waste of time?  Yet if we weren’t there, the utilities would get everything they want.  And as with the utility Certificate of Need and Siting/Routing processes, rulemaking has the same notice and public participation problems.  It’s all the same, deja vu all over again.

… and also from the report …

Furthermore, the rule negotiation process is not part of the official rulemaking record nor subject to statutory controls or legal review that would guarantee equal access. Therefore, it can easily be dominated by those groups and organizations with more resources. In the absence of formal guidelines or standards, agency practices vary, and some agencies are better than others at obtaining broad-based input.

We also conclude that:

• The formal public notice mechanisms may be inadequate to ensure timely notice and meaningful participation in rulemaking; and

• The prohibition of “substantial changes” after rules are proposed is often misunderstood by agency staff and may inhibit them from incorporating public comments made through official mechanisms.

Does this sound familiar?

Once more with feeling:  … the rule negotiation process is not part of the official rulemaking record nor subject to statutory controls or legal review that would guarantee equal access. Therefore, it can easily be dominated by those groups and organizations with more resources.

So what is the bottom line of this report?

Therefore, we recommend that:

The Legislature should consider amending the Administrative Procedure Act to require that a “notice of regulatory action” be published in the State Register and mailed to all affected parties when an agency begins drafting a rule.

We also recommend that:

• The Legislature should consider amending the Administrative Procedure Act to require that agencies maintain a “rulemaking docket” that contains an up-to-date listing of the status of existing rules and impending rulemaking actions, to be submitted annually to the Legislature.

The recommendations we make are designed to revitalize the formal rulemaking process, ensure more equitable access to agencies at a time when comments can reasonably be considered, and strengthen public accountability over agency rules. We think that replacing the current “notice to solicit outside opinion,” which is published for 62 percent of all rules, with a mandatory “notice of regulatory action” will not represent an undue burden on agencies. The current notice is not widely distributed and does not contain enough information to enable interested parties to respond. Therefore, we recommend that the new notice should contain more information about the rule and the process to be used in drafting it, and that it should receive wider distribution than the current notice. A mandatory rulemaking docket, to be submitted to the Legislature and made available to the public upon request, should help the Legislature monitor rulemaking and provide better oversight.

Also, we recommend the following additional changes to the Administrative Procedure Act:

• Rules not adopted within 18 months of their authorizing legislation should require reauthorization, which would replace the current requirement that new rules be published within 180 days;

• A single definition of “substantial change” should be incorporated into the APA;

• “Regulatory analyses” should be done on rules if requested by the Governor, the Legislative Commission to Review Administrative Rules, a political subdivision, another state agency, or 300 persons; and the current special rule justification requirements relating to agricultural land, small business, and fiscal impacts on local government should be eliminated;

• Agency efforts to notify all people potentially affected by a rule should be made part of the official rulemaking record and subject to external examination during the rules review process;

• Individuals requesting a public hearing should provide their address and phone number;

• Everyone who has requested a hearing should be notified when agencies negotiate to secure withdrawal of hearing requests, and agreements made in negotiations should be made a matter of public record and included in the official rulemaking record;

• Exempt rules should be reviewed for form, statutory authority, need and reasonableness, and consistency with legislative intent; and

• All rules should be reviewed by the Office of Administrative Hearings, thereby eliminating the Attorney General’s role in rules review.

… and …

In addition to changing the APA and other statutes that govern agency rulemaking, we recommend that:

• State agencies involved in rulemaking should make more efforts to broaden public participation in rulemaking.

For example, they should make a greater effort to educate the public about how to receive direct information about rulemaking actions and make greater use of agency-held public hearings or widely publicized public meetings early in the rulemaking process. They should also include circulation of rule drafts and “statements of need and reasonableness” earlier and more widely among all parties affected by rules. Finally, agencies should terminate the negotiation process when it fails to make progress toward resolving issues and either proceed more quickly to an official public hearing, employ the services of a professional negotiator or mediator, or return to the Legislature for guidance.

Adopting these recommendations should shorten the informal process, broaden public input in the early stages of rulemaking, and make rules more responsive to the Legislature.