HF 2783

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/09/2023 12:50pm

A bill for an act
relating to energy; providing for decommissioning of certain wind energy
conversion systems; proposing coding for new law in Minnesota Statutes, chapter
216F.

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

Section 1.

new text begin [216F.10] LEGACY WIND CONTRACTS; DECOMMISSIONING.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Decommission" means to dismantle and remove from a site the machinery,
equipment, structures, or improvements that are part of a wind energy conversion system,
and to restore the site to the condition that existed before the wind energy conversion system
was installed.
new text end

new text begin (c) "Decommissioning account" means a separate account established under a power
purchase agreement and into which an eligible owner deposits revenue from a power purchase
agreement to decommission a wind energy conversion system.
new text end

new text begin (d) "Eligible owner" means an owner of a wind energy conversion system that:
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new text begin (1) has a nameplate capacity of two megawatts or less;
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new text begin (2) generated electricity sold to an electric utility located in Minnesota under a power
purchase agreement that (1) was entered into between ......., 1996, and ......., 2013, and (2)
did not require a decommissioning account to be established; and
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new text begin (3) has a current interconnection agreement or rights.
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new text begin Subd. 2. new text end

new text begin Revised agreement. new text end

new text begin (a) No later than six months after the effective date of this
section, a utility that entered into a power purchase agreement with an eligible owner must
file with the commission a new proposed power purchase agreement or an amended active
power purchase agreement with the eligible owner. The new proposed power purchase
agreement or amended active power purchase agreement must:
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new text begin (1) require the eligible owner to establish a decommissioning account that meets the
requirements of paragraph (b);
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new text begin (2) contain a contract term that, at a minimum, is adequate to ensure sufficient money
is accrued to pay the full estimated cost required to decommission the wind energy conversion
system; and
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new text begin (3) require the utility to pay the eligible owner at least $33 per megawatt-hour for all
electricity generated under the new or amended power purchase agreement.
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new text begin (b) An eligible owner must deposit into a decommissioning account established under
paragraph (a) $2 per megawatt-hour of the revenue received from the power purchase
agreement. Revenue from the power purchase agreement must be deposited into the
decommissioning account as the revenue is received. The amount deposited into the
decommissioning account, including the estimated accrued interest on the account, must
be sufficient over the term of the power purchase agreement to pay the full estimated cost
required to decommission the wind energy conversion system at the end of the wind energy
conversion system's useful life. Money in the decommissioning account must be expended
only to decommission the wind energy conversion system.
new text end

new text begin Subd. 3. new text end

new text begin Commission approval. new text end

new text begin The commission must review and approve any power
purchase agreement entered into or amended under subdivision 2, and is prohibited from
approving a power purchase agreement that does not meet all of the requirements under
subdivision 2.
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new text begin EFFECTIVE DATE. new text end

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