HF 1561

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; establishing goal of wind power
usage at 20 percent by 2020; establishing wind energy
conversion system loan guarantee program; amending
Minnesota Statutes 2004, section 216B.1691,
subdivision 1, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapter 216C.

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

Section 1.

Minnesota Statutes 2004, section 216B.1691,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) Unless otherwise
specified in law, "eligible energy technology" means an energy
technology that:

(1) generates electricity from the following renewable
energy sources: solar; wind; hydroelectric with a capacity of
less than 60 megawatts; hydrogen, provided that after January 1,
2010, the hydrogen must be generated from the resources listed
in this clause; or biomass, which includes an energy recovery
facility used to capture the heat value of mixed municipal solid
waste or refuse-derived fuel from mixed municipal solid waste as
a primary fuel; and

(2) was not mandated by Laws 1994, chapter 641, or by
commission order issued pursuant to that chapter prior to August
1, 2001.

(b) "Electric utility" means a public utility providing
electric service, a generation and transmission cooperative
electric association, or a municipal power agency.

(c) "Total retail electric sales" means the kilowatt-hours
of electricity sold in a year by an electric utility to retail
customers of the electric utility or to a distribution utility
for distribution to the retail customers of the distribution
utility.

new text begin (d) "Wind energy conversion system" (WECS) has the meaning
given it in section 216C.09, subdivision 19, and also includes a
qualified wind energy conversion facility defined in section
216C.41, subdivision 1, paragraph (c), and any size WECS
described in section 272.029, subdivision 1, paragraph (a).
new text end

Sec. 2.

Minnesota Statutes 2004, section 216B.1691, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Wind energy objective: 20 percent by 2020;
credits. new text end

new text begin (a) Each electric utility shall make a good faith
effort to generate or procure sufficient electricity generated
by wind energy conversion system technology to provide
electricity to its retail consumers, or the retail customers of
a distribution utility to which the electric utility provides
wholesale electric service, so that by December 31, 2020, at
least 20 percent of the electric energy provided to retail
customers in Minnesota is generated through wind energy
conversion systems.
new text end

new text begin (b) By June 1, 2006, and as needed thereafter, the
commission shall issue an order detailing the criteria and
standards by which it will measure an electric utility's efforts
to meet the 20 percent by 2020 wind energy objective of this
subdivision to determine whether the utility is progressing and
making the required good faith effort. In this order, the
commission shall include criteria and standards that consider
technical and delivery feasibilities and that protect against
undesirable impacts on the reliability of the utility's system
and unreasonable economic impacts on the utility's ratepayers.
new text end

new text begin (c) To facilitate compliance with this subdivision, the
commission, by rule or order, shall establish a program for
tradable credits among Minnesota electric utilities for
electricity generated through wind energy conversion systems
located within Minnesota. In doing so, the commission shall
implement a system that constrains or limits the cost of
credits, taking care to ensure that such a system does not
undermine the market for those credits. In lieu of generating
or procuring energy directly to satisfy the 20 percent by 2020
objective of this subdivision, an electric utility may purchase
sufficient wind energy credits, issued pursuant to this
subdivision from another electric utility located in Minnesota,
to meet its objective. The commission may facilitate the
trading of wind energy credits only among electric utilities in
Minnesota.
new text end

Sec. 3.

new text begin [216C.42] WIND ENERGY LOAN GUARANTEE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Rules. new text end

new text begin The commissioner of commerce, in
consultation with the commissioner of finance and the Public
Utilities Commission and after any necessary coordination with
any related federal programs, shall adopt rules by June 1, 2006,
to implement and administer a wind energy loan guarantee program
to encourage the financing, construction, and operation in
Minnesota of wind energy conversion systems, as defined in
section 216B.1691, subdivision 1. At a minimum, the rules must:
new text end

new text begin (1) guarantee financial institutions that provide financing
for a wind energy conversion system that the state will
guarantee, in case of a borrower's default, up to 15 percent of
the value of the amount financed not to exceed $300,000 for each
system;
new text end

new text begin (2) allow the interest rate to be negotiable between the
financial institution and borrower, except that one percent on
the outstanding balance must be charged annually as a loan
guarantee fee and paid to the state and deposited in the account
established in subdivision 2;
new text end

new text begin (3) require that the financial institution making a loan
guaranteed pursuant to this section must be located in
Minnesota; and
new text end

new text begin (4) require that the wind energy conversion system for
which financing is requested, be located in Minnesota.
new text end

new text begin The rules must further define and set forth reasonable and
usual terms, conditions, eligibility requirements,
responsibilities, and procedures, as desirable or necessary, for
administering and for participating in this program and for
allocating the property interests of the parties following
default.
new text end

new text begin Subd. 2. new text end

new text begin Wind energy loan guarantee account. new text end

new text begin The wind
energy loan guarantee account is established as a separate
account in the special revenue fund. The account consists of
the proceeds of the loan guarantee fees collected annually, any
federal money that may be made available for this program, money
appropriated or donated to the account, and any interest earned
on investments of money in the account. Money in the account
must be disbursed as the first source for payment on default of
a loan made pursuant to rules adopted under subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 1 of this section is
effective the day following final enactment.
new text end