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HF 4402

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/17/2022 02:21pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/17/2022

Current Version - as introduced

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A bill for an act
relating to energy; extending the solar energy production incentive program;
establishing an energy storage incentive program; appropriating money; amending
Minnesota Statutes 2021 Supplement, section 116C.7792; 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 2021 Supplement, section 116C.7792, is amended to read:


116C.7792 SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM.

(a) 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.

(b) The program is funded by money withheld from transfer to the renewable development
account under section 116C.779, subdivision 1, paragraphs (b) and (e). Program funds must
be placed in a separate account for the purpose of the solar energy production incentive
program operated by the utility and not for any other program or purpose.

(c) Funds allocated to the solar energy production incentive program in 2019 and 2020
remain available to the solar energy production incentive program.

(d) The following amounts are allocated to the solar energy production incentive program:

(1) $10,000,000 in 2021;

(2) $10,000,000 in 2022;

(3) deleted text begin $5,000,000deleted text end new text begin $10,000,000new text end in 2023; deleted text begin and
deleted text end

(4) deleted text begin $5,000,000deleted text end new text begin $10,000,000new text end in 2024deleted text begin .deleted text end new text begin ;
new text end

new text begin (5) $10,000,000 in 2025; and
new text end

new text begin (6) $10,000,000 in 2026.
new text end

(e) Funds allocated to the solar energy production incentive program that have not been
committed to a specific project at the end of a program year remain available to the solar
energy production incentive program.

(f) Any unspent amount remaining on January 1, deleted text begin 2025deleted text end new text begin 2027new text end , must be transferred to the
renewable development account.

(g) A solar energy system receiving a production incentive under this section 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.

(h) 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [216C.377] ENERGY STORAGE INCENTIVE PROGRAM.
new text end

new text begin (a) The electric utility subject to section 116C.779 must develop and operate a program
to provide a lump-sum grant to customers to reduce the cost of purchasing and installing
an on-site energy storage system, as defined in section 216B.2422, subdivision 1, paragraph
(f). No later than October 1, 2022, the utility subject to this section must file a plan with the
commissioner to operate the program. The utility must not operate the program until the
program is approved by the commissioner. Any change to an operating program must be
approved by the commissioner.
new text end

new text begin (b) To be eligible to receive a grant under this section, an energy storage system must:
new text end

new text begin (1) have a capacity no greater than 50 kilowatt hours; and
new text end

new text begin (2) be located within the electric service area of the utility subject to this section.
new text end

new text begin (c) An owner of an energy storage system is eligible to receive a grant under this section
if:
new text end

new text begin (1) a solar energy generating system is operating at the same site as the proposed energy
storage system; or
new text end

new text begin (2) the owner has filed an application with the utility subject to this section to interconnect
a solar energy generating system at the same site as the proposed energy storage system.
new text end

new text begin (d) The commissioner must annually review, and may adjust, the amount of grants
awarded under this section but must not increase the amount over that awarded in previous
years unless the commissioner demonstrates in writing that an upward adjustment is
warranted by market conditions.
new text end

new text begin (e) A customer who receives a grant under this section is eligible to receive financial
assistance under programs operated by the state or the utility for the solar energy generating
system operating in conjunction with the energy storage system.
new text end

new text begin (f) For the purposes of this section, "solar energy generating system" has the meaning
given in section 216E.01, subdivision 9a.
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

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$10,000,000 in fiscal year 2023 is appropriated from the renewable development account
established in Minnesota Statutes, section 116C.779, to the commissioner of commerce to
award grants for the installation of energy storage systems under Minnesota Statutes, section
216C.377, and to pay the reasonable costs incurred by the department to administer
Minnesota Statutes, section 216C.377. This is a onetime appropriation and is available until
expended.
new text end