1.1                          A bill for an act 
  1.2             relating to utilities; exempting large electric power 
  1.3             generating plant from certificate of need proceeding 
  1.4             when selected by the public utilities commission from 
  1.5             a bidding process to select resources to meet the 
  1.6             utility's projected energy demand; ensuring that 
  1.7             photovoltaic devices and wind energy conversion 
  1.8             systems remain exempt from sales tax after June 30, 
  1.9             1996; amending Minnesota Statutes 1994, section 
  1.10            216B.2422, subdivision 5; and 216B.2423, subdivision 
  1.11            1; Laws 1992, chapter 511, article 8, section 39. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1994, section 216B.2422, 
  1.14  subdivision 5, is amended to read: 
  1.15     Subd. 5.  [BIDDING; EXEMPTION FROM CERTIFICATE OF NEED 
  1.16  PROCEEDING.] (a) A utility may select resources to meet its 
  1.17  projected energy demand through a bidding process approved or 
  1.18  established by the commission.  A utility shall use the 
  1.19  environmental cost estimates determined under subdivision 3 in 
  1.20  evaluating bids submitted in a process established under this 
  1.21  subdivision. 
  1.22     (b) Notwithstanding any other provision of this section, if 
  1.23  an electric power generating plant, as described in section 
  1.24  216B.2421, subdivision 2, paragraph (a), is selected in a 
  1.25  bidding process approved or established by the commission, a 
  1.26  certificate of need proceeding under section 216B.243 is not 
  1.27  required. 
  1.28     Sec. 2.  Minnesota Statutes 1994, section 216B.2423, 
  2.1   subdivision 1, is amended to read: 
  2.2      Subdivision 1.  [MANDATE.] (a) A public utility, as defined 
  2.3   in section 216B.02, subdivision 4, that operates a 
  2.4   nuclear-powered electric generating plant within this state must 
  2.5   construct and operate, purchase, or contract to construct and 
  2.6   operate:  (1) 225 megawatts of electric energy installed 
  2.7   capacity generated by wind energy conversion systems within the 
  2.8   state by December 31, 1998; and (2) an additional 200 megawatts 
  2.9   of installed capacity so generated within the state by December 
  2.10  31, 2002. 
  2.11     For the purpose of this section, "wind energy conversion 
  2.12  system" has the meaning given it in section 216C.06, subdivision 
  2.13  12. 
  2.14     (b) A utility that contracts for wind power pursuant to the 
  2.15  mandate to develop wind power contained in paragraph (a) may, 
  2.16  for the duration of the contract, include in the utility's 
  2.17  energy cost adjustment permitted under section 216B.16, 
  2.18  subdivision 7: 
  2.19     (1) all property taxes for which the utility is responsible 
  2.20  that are levied on wind conversion systems which generate wind 
  2.21  power pursuant to the contract; and 
  2.22     (2) all the utility's reasonable expenses incurred under 
  2.23  the contract, provided the contract has been previously approved 
  2.24  by the commission.  In approving the contract, the commission 
  2.25  must find: 
  2.26     (i) for contracts for 12 megawatts or more of wind energy 
  2.27  installed capacity, that the prices for wind power in the 
  2.28  contract are based on the results of a competitive bidding 
  2.29  process approved or established by the commission; or 
  2.30     (ii) for contracts for no more than 12 megawatts of wind 
  2.31  energy installed capacity, that the prices for the wind power 
  2.32  are otherwise approved by the commission. 
  2.33     This paragraph applies only to a contract for wind power 
  2.34  entered into pursuant to the wind power mandate of this 
  2.35  subdivision and shall not apply to any other contract. 
  2.36     Sec. 3.  Laws 1992, chapter 511, article 8, section 39, is 
  3.1   amended to read: 
  3.2      Sections 1, 2, 7, 8, 9, 11, 12, 24, and 28 are effective 
  3.3   the day after final enactment. 
  3.4      Sections 3 and 4 are effective for tax payments due for 
  3.5   sales made after September 30, 1992. 
  3.6      Sections 5 and 6 are effective July 1, 1992, and apply to 
  3.7   refunds filed after that date. 
  3.8      Sections 10, 13, 22, and 26 are effective for sales made 
  3.9   after June 30, 1992. 
  3.10     Sections 14, 15, and 18 are effective for sales made after 
  3.11  May 31, 1992. 
  3.12     Section 16 is effective retroactive for sales made after 
  3.13  June 30, 1991. 
  3.14     Section 19 is effective for all open tax years. 
  3.15     Sections 20 and 21 are effective for sales made after June 
  3.16  30, 1992, and before July 1, 1996. 
  3.17     Section 23 is effective for sales made on or after the date 
  3.18  of enactment, but prior to April 1, 1994. 
  3.19     Section 25 is effective for fiscal year 1993 and thereafter.
  3.20     Section 36 is effective the day following final enactment, 
  3.21  and upon approval by the governing body of the city of Duluth 
  3.22  pursuant to Minnesota Statutes, section 645.021. 
  3.23     Section 38 is effective for sales made after December 31, 
  3.24  1991.