HF 1973

as introduced - 87th Legislature (2011 - 2012) Posted on 02/02/2012 10:05am

A bill for an act
relating to energy; renewable energy; repealing provisions related to
community-based energy development programs; amending Minnesota Statutes
2010, sections 216B.1691, subdivision 10; 216B.243, subdivision 9; 373.48,
subdivision 3; repealing Minnesota Statutes 2010, sections 216B.1612;
216B.1691, subdivision 9; 216C.39.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 216B.1691, subdivision 10, is amended to
read:

Subd. 10.

Utility acquisition of resources.

A competitive resource acquisition
process established by the commission prior to June 1, 2007, shall not apply to a utility
for the construction, ownership, and operation of generation facilities used to satisfy the
requirements of this section unless, upon a finding that it is in the public interest, the
commission issues an order on or after June 1, 2007, that requires compliance by a utility
with a competitive resource acquisition process. A utility that owns a nuclear generation
facility and intends to construct, own, or operate facilities under this section shall file with
the commission on or before March 1, 2008, a renewable energy plan setting forth the
manner in which the utility proposes to meet the requirements of this section deleted text begin , including
a proposed schedule for purchasing renewable energy from C-BED and non-C-BED
projects deleted text end . The utility shall update the plan as necessary in its filing under section
216B.2422. The commission shall approve the plan unless it determines, after public
hearing and comment, that the plan is not in the public interest. deleted text begin As part of its determination
of public interest, the commission shall consider the plan's allocation of projects among
C-BED, non-C-BED, and utility-owned projects, balancing the state's interest in:
deleted text end

deleted text begin (1) promoting the policy of economic development in rural areas through the
development of renewable energy projects, as expressed in subdivision 9;
deleted text end

deleted text begin (2) maintaining the reliability of the state's electric power grid; and
deleted text end

deleted text begin (3) minimizing cost impacts on ratepayers.
deleted text end

Sec. 2.

Minnesota Statutes 2010, section 216B.243, subdivision 9, is amended to read:

Subd. 9.

Renewable energy standard facilities.

This section does not apply to
a wind energy conversion system or a solar electric generation facility that is intended
to be used to meet the obligations of section 216B.1691; provided that, after notice and
comment, the commission determines that the facility is a reasonable and prudent approach
to meeting a utility's obligations under that section. When making this determination,
the commission must consider:

(1) the size of the facility relative to a utility's total need for renewable resources;

(2) alternative approaches for supplying the renewable energy to be supplied by
the proposed facility;

(3) the facility's ability to promote economic development deleted text begin , as required under section
216B.1691, subdivision 9 deleted text end ;

(4) the facility's ability to maintain electric system reliability;

(5) impacts on ratepayers; and

(6) other criteria as the commission may determine are relevant.

Sec. 3.

Minnesota Statutes 2010, section 373.48, subdivision 3, is amended to read:

Subd. 3.

Joint purchase of energy and acquisition of generation projects;
financing.

(a) A county may enter into agreements under section 471.59 with other
counties for joint purchase of energy or joint acquisition of interests in projects. A county
that enters into a multiyear agreement for purchase of energy or acquires an interest in
a project deleted text begin , including C-BED projects pursuant to section 216B.1612, subdivision 9, deleted text end may
finance the estimated cost of the energy to be purchased during the term of the agreement
or the cost to the county of the interest in the project by the issuance of revenue bonds of
the county, including clean renewable energy revenue bonds, provided that the annual debt
service on all bonds issued under this section, together with the amounts to be paid by the
county in any year for the purchase of energy under agreements entered into under this
section, must not exceed the estimated revenues of the project.

(b) An agreement entered into under section 471.59 as provided by this section
may provide that:

(1) each county issues bonds to pay their respective shares of the cost of the projects;

(2) one of the counties issues bonds to pay the full costs of the project and that the
other participating counties pay any available revenues of the project and pledge the
revenues to the county that issues the bonds; or

(3) the joint powers board issues revenue bonds to pay the full costs of the project
and that the participating counties pay any available revenues of the project under this
subdivision and pledge the revenues to the joint powers entity for payment of the revenue
bonds.

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, sections 216B.1612; 216B.1691, subdivision 9; and
216C.39, new text end new text begin are repealed.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective the day following final enactment.
new text end