1.1                          A bill for an act 
  1.2             relating to renewable energy; requiring the public 
  1.3             utility that operates the Prairie Island nuclear 
  1.4             generating plant to prepare and present a plan and 
  1.5             criteria for making grants from the renewable 
  1.6             development account; amending Minnesota Statutes 1996, 
  1.7             section 116C.779. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 116C.779, is 
  1.10  amended to read: 
  1.11     116C.779 [FUNDING FOR RENEWABLE DEVELOPMENT.] 
  1.12     Subdivision 1.  [RENEWABLE DEVELOPMENT ACCOUNT.] (a) The 
  1.13  public utility that operates the Prairie Island nuclear 
  1.14  generating plant must transfer to a renewable development 
  1.15  account $500,000 each year for each dry cask containing spent 
  1.16  fuel that is located at the independent spent fuel storage 
  1.17  installation at Prairie Island after January 1, 1999.  The fund 
  1.18  transfer must be made if waste is stored in a cask for any part 
  1.19  of a year.  Funds in the account can only be expended for 
  1.20  development of renewable energy sources and shall be made 
  1.21  available for grants to renewable energy developers, including 
  1.22  the utility and other interested parties. 
  1.23     (b) Funds in the account may not be expended for any 
  1.24  project designated by the public utility to satisfy, in whole or 
  1.25  in part, either the wind power mandate of section 216B.2423 or 
  1.26  the biomass mandate of section 216B.2424. 
  2.1      Subd. 2.  [ACCOUNT PURPOSES.] Funds in the account may be 
  2.2   used to: 
  2.3      (1) provide financial assistance to develop renewable 
  2.4   energy technology including wind, biomass, photovoltaics, 
  2.5   low-head hydropower, but excluding ethanol; 
  2.6      (2) provide financial assistance to develop high efficiency 
  2.7   state of the art energy technology involving nonrenewable energy 
  2.8   resources if a proposal has high potential for energy savings 
  2.9   for the state; 
  2.10     (3) facilitate the transfer of technology from research to 
  2.11  the marketplace of projects that would be eligible for 
  2.12  assistance under clause (1) or (2); and 
  2.13     (4) assist in information and educational programs designed 
  2.14  to promote understanding and knowledge of projects that would be 
  2.15  eligible for assistance under clause (1) or (2). 
  2.16     Projects eligible for financial assistance must include a 
  2.17  pilot or demonstration program which utilizes innovative energy 
  2.18  technology. 
  2.19     Sec. 2.  [CRITERIA FOR USE OF FUNDS IN RENEWABLE 
  2.20  DEVELOPMENT ACCOUNT.] 
  2.21     The commissioner of public service shall contract with an 
  2.22  independent consultant to develop criteria for making renewable 
  2.23  development grants under Minnesota Statutes, section 116C.779. 
  2.24     Sec. 3.  [EFFECTIVE DATE.] 
  2.25     Sections 1 and 2 are effective the day following final 
  2.26  enactment.