HF 4588

as introduced - 91st Legislature (2019 - 2020) Posted on 05/05/2020 06:28pm

A bill for an act
relating to energy; establishing a net zero emissions project; requiring a report;
modifying the solar energy incentive program; providing for a utility ratepayer
relief bill credit; appropriating money; amending Minnesota Statutes 2019
Supplement, section 116C.7792.

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

Section 1.

Minnesota Statutes 2019 Supplement, section 116C.7792, is amended to read:

116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.

The utility subject to section 116C.779 shall operate a program to provide solar energy
production incentives for solar energy systems of no more than a total aggregate nameplate
capacity of 40 kilowatts alternating current per premise. The owner of a solar energy system
installed before June 1, 2018, is eligible to receive a production incentive under this section
for any additional solar energy systems constructed at the same customer location, provided
that the aggregate capacity of all systems at the customer location does not exceed 40
kilowatts. The program shall be operated for eight consecutive calendar years commencing
in 2014. $5,000,000 shall be allocated in each of the first four years, $15,000,000 in the
fifth year, $10,000,000 in each of the sixth and seventh years, deleted text begin and deleted text end $5,000,000 in the eighth
year new text begin , and $10,000,000 in the ninth year new text end from funds withheld from transfer to the renewable
development account under section 116C.779, subdivision 1, paragraphs (b) and (e), and
placed in a separate account for the purpose of the solar production incentive program
operated by the utility and not for any other program or purpose. Any unspent amount
allocated in the fifth year is available until December 31 of the sixth year. Any unspent
amount remaining at the end of any other allocation year must be transferred to the renewable
development account. The solar system must be sized to less than 120 percent of the
customer's on-site annual energy consumption when combined with other distributed
generation resources and subscriptions provided under section 216B.1641 associated with
the premise. The production incentive must be paid for ten years commencing with the
commissioning of the system. The utility must file a plan to operate the program with the
commissioner of commerce. The utility may not operate the program until it is approved
by the commissioner. A change to the program to include projects up to a nameplate capacity
of 40 kilowatts or less does not require the utility to file a plan with the commissioner. Any
plan approved by the commissioner of commerce must not provide an increased incentive
scale over prior years unless the commissioner demonstrates that changes in the market for
solar energy facilities require an increase.

Sec. 2.

new text begin PRAIRIE ISLAND NET ZERO PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The Prairie Island Net Zero Project is established
with the goal of the Prairie Island Indian Community developing an energy system that
results in net zero emissions.
new text end

new text begin Subd. 2. new text end

new text begin Grant. new text end

new text begin The commissioner of commerce must enter into a grant contract with
the Prairie Island Indian Community to provide the amount appropriated under section 3 to
stimulate research, development, and implementation of renewable energy projects benefiting
the Prairie Island Indian Community or its members and to provide public education. Any
examination conducted by the commissioner of commerce to determine the sufficiency of
the financial stability and capacity of the Prairie Island Indian Community to carry out the
purposes of this grant is limited to the Community Services Department of the Prairie Island
Indian Community.
new text end

new text begin Subd. 3. new text end

new text begin Plan; report. new text end

new text begin (a) The Prairie Island Indian Community must file a
comprehensive project plan with the commissioner of commerce and the legislative
committees with jurisdiction over energy policy no later than July 1, 2021, describing the
Prairie Island Net Zero Project elements and implementation strategy, including the total
cost and timelines for project completion.
new text end

new text begin (b) The Prairie Island Indian Community must file a report with the commissioner of
commerce and the legislative committees with jurisdiction over energy policy on July 1,
2022, and each July 1 thereafter until the project is complete, describing the progress made
in implementing the project and the uses of expended funds. A final report must be completed
within 90 days of the date the project is complete.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2020.
new text end

Sec. 3. new text begin APPROPRIATION; UNSPENT FUNDS.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$10,000,000 in fiscal year 2021; $15,000,000 in fiscal years 2022 and 2023; and $6,200,000
in fiscal year 2024 are appropriated from the renewable development account under
Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce for
a grant to the Prairie Island Indian Community to establish the Net Zero Project under
section 2. This is a onetime appropriation and is available until the date specified in paragraph
(b).
new text end

new text begin (b) No later than 30 days after the final report under section 2, subdivision 3, paragraph
(b), is submitted, the Prairie Island Indian Community must return any unspent funds from
the appropriations under paragraph (a) to the commissioner of management and budget.
The commissioner of management and budget must deposit the unspent funds received in
the renewable development account under Minnesota Statutes, section 116C.779, subdivision
1.
new text end

Sec. 4. new text begin APPROPRIATION; UTILITY RATEPAYER RELIEF BILL CREDIT.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$65,000,000 in fiscal year 2020 is appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
for transfer to the utility subject to Minnesota Statutes, section 116C.779, to provide bill
credits to the utility's customers as provided under paragraph (b). This is a onetime
appropriation.
new text end

new text begin (b) In order to provide immediate relief to residential, commercial, and industrial
customers, beginning with the first bill cycle after the date the transfer under paragraph (a)
occurs, the utility subject to Minnesota Statutes, section 116C.779, must provide a bill credit
to each existing customer of the utility. The bill credit amount must be determined by the
utility based on the amount the customer contributed to the amounts collected by the utility
under Minnesota Statutes, section 116C.779, subdivision 1, over the previous 12 months.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end