HF 2413

as introduced - 87th Legislature (2011 - 2012) Posted on 03/27/2012 12:46pm

A bill for an act
relating to energy; distributed energy resources and funding for renewable
development; providing for energy conservation improvement funds and
renewable development account funds for qualifying solar energy projects
on public buildings; amending Minnesota Statutes 2010, sections 116C.779,
subdivision 2; 216B.2411, subdivision 1.

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

Section 1.

Minnesota Statutes 2010, section 116C.779, subdivision 2, is amended to
read:

Subd. 2.

Renewable energy production incentive.

(a) Until January 1, 2021,
$10,900,000 annually must be allocated from available funds in the account to fund
renewable energy production incentives. new text begin Up to new text end $9,400,000 of this annual amount is for
incentives for electricity generated by wind energy conversion systems that are eligible for
the incentives under section 216C.41 or Laws 2005, chapter 40.

(b) deleted text begin The balance of this amount, up to deleted text end new text begin At least new text end $1,500,000 deleted text begin annually, may deleted text end new text begin of the
amount specified in paragraph (a) must new text end be used for production incentives for on-farm
biogas recovery facilities and hydroelectric facilities that are eligible for the incentive
under section 216C.41 or for production incentives for other renewables, deleted text begin to deleted text end new text begin including
qualifying solar energy projects as defined by section 216B.2411. The incentives must new text end
be provided in the same manner as under section 216C.41 new text begin , with at least $1,000,000
annually being used for production incentives for qualifying solar energy projects on
public buildings within the public utility's service territory new text end .

(c) Any portion of the $10,900,000 not expended in any calendar year for the
incentive is available for other spending purposes under this section. This subdivision
does not create an obligation to contribute funds to the account.

(d) The Department of Commerce shall determine eligibility of projects under
section 216C.41 for the purposes of this subdivision. At least quarterly, the Department of
Commerce shall notify the public utility of the name and address of each eligible project
owner and the amount due to each project under section 216C.41. The public utility shall
make payments within 15 working days after receipt of notification of payments due.

Sec. 2.

Minnesota Statutes 2010, section 216B.2411, subdivision 1, is amended to read:

Subdivision 1.

Generation projects.

(a) Any municipality or rural electric
association providing electric service and subject to section 216B.241 may, and each
public utility may, use five percent of the total amount to be spent on energy conservation
improvements under section 216B.241, on:

(1) projects in Minnesota to construct an electric generating facility that utilizes
eligible renewable energy sources as defined in subdivision 2, such as methane or other
combustible gases derived from the processing of plant or animal wastes, biomass fuels
such as short-rotation woody or fibrous agricultural crops, or other renewable fuel, as
its primary fuel source;

(2) projects in Minnesota to install a distributed generation facility of ten megawatts
or less of interconnected capacity that is fueled by natural gas, renewable fuels, or another
similarly clean fuel; or

(3) projects in Minnesota to install a qualifying solar energy project as defined in
subdivision 2.

(b) A municipality, rural electric association, or public utility that offers a program
to customers to promote installing qualifying solar energy projects may request authority
from the commissioner to exceed the five percent limit in paragraph (a), but not to exceed
ten percent, to meet customer demand for installation of qualifying solar energy projects.
In considering this request, the commissioner shall consider customer interest in qualifying
solar energy and the impact on other customers new text begin , and whether at least 50 percent of the
additional funds are being spent on qualifying solar energy projects on public buildings new text end . A
municipality, rural electric association, or public utility may not participate in a qualifying
solar energy project on a property unless it is provided evidence that all reasonable
cost-effective conservation investments have previously been made to the property.

(c) For a municipality, rural electric association, or public utility, projects under
this section must be considered energy conservation improvements as defined in section
216B.241.