1.1                          A bill for an act 
  1.2             relating to renewable energy; providing for action by 
  1.3             the public utilities commission on purchases of wind 
  1.4             and biomass power; requiring a study; proposing coding 
  1.5             for new law in Minnesota Statutes, chapter 216B. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [216B.1645] [POWER PURCHASE CONTRACTS OR 
  1.8   INVESTMENTS.] 
  1.9      Upon the petition of a public utility, the public utilities 
  1.10  commission shall approve or disapprove power purchase contracts 
  1.11  or investments entered into or made by the utility to satisfy 
  1.12  the wind and biomass mandates contained in sections 216B.2423 
  1.13  and 216B.2424.  The contract expenses incurred and investments 
  1.14  made by a public utility with the approval of the commission 
  1.15  must be included by the commission in its determination of just 
  1.16  and reasonable rates.  The commission shall permit a public 
  1.17  utility to file rate schedules providing for recovery of the 
  1.18  costs of the wind and biomass mandates. 
  1.19     Sec. 2.  [EVALUATION OF BIOMASS FACILITIES.] 
  1.20     The commissioners of finance, agriculture, public service, 
  1.21  and trade and economic development shall evaluate alternative 
  1.22  financing mechanisms for the incremental development and 
  1.23  construction of alfalfa processing facilities and farm grown 
  1.24  closed-loop biomass energy facilities. 
  1.25     The analysis must include, at a minimum, the following: 
  2.1      (1) state financing of biomass energy facilities; 
  2.2      (2) private financing of biomass energy facilities; and 
  2.3      (3) production credit payments for biomass energy 
  2.4   production. 
  2.5      The analysis with recommendations must be submitted to the 
  2.6   legislature by November 15, 1997.