1.1 	A bill for an act
1.2 	relating to energy; creating a rural wind energy development revolving loan 
1.3 	fund; providing for a rural wind development assistance program; appropriating 
1.4 	money;proposing coding for new law in Minnesota Statutes, chapter 116J.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [116J.9861] RURAL WIND ENERGY DEVELOPMENT REVOLVING 
1.7 	LOAN FUND.
1.8 		Subdivision 1.Establishment. A rural wind energy development revolving loan 
1.9 	fund is established as an account in the special revenue fund in the state treasury. The 
1.10 	commissioner of finance shall credit to the account the amounts authorized under this 
1.11 	section and appropriations and transfers to the account. Earnings, such as interest, 
1.12 	dividends, and any other earnings arising from fund assets must be credited to the account.
1.13 		Subd. 2.Purpose. The rural wind energy development revolving loan fund 
1.14 	is created to provide financial assistance, through partnership with local owners and 
1.15 	communities, in development of community wind energy projects as defined in sections 
1.16 	216B.1612 and 216B.2426.
1.17 		Subd. 3.Expenditures. Money in the fund is appropriated to the commissioner of 
1.18 	commerce, and may be used to provide qualifying owners of community energy projects, 
1.19 	as defined in sections 216B.1612 and 216B.2426, with loans to assist in the funding of 
1.20 	wind studies and transmission interconnection studies. The loans shall be structured for 
1.21 	repayment within six months of operations of the project.
1.22 		Subd. 4.Limitations. A loan may not be approved for an amount in excess of 
1.23 	$100,000. This limit covers all money paid to complete the same project, whether paid to 
1.24 	one or more qualifying owners and whether paid in one or more fiscal years.
2.1 		Subd. 5.Eligible projects. Assistance to community wind energy projects must 
2.2 	be evaluated on the existence of the following conditions:
2.3 	(1) the project can demonstrate substantial benefits to qualifying owners;
2.4 	(2) the project can demonstrate likelihood of development of the community wind 
2.5 	energy project and the leveraging of private funds if assistance is provided; and
2.6 	(3) the project can demonstrate that assistance is necessary for the development of 
2.7 	the community wind energy project.

2.8 	Sec. 2. RURAL WIND ENERGY DEVELOPMENT PROGRAM.
 2.9 	(a) The Initiative for Renewable Energy and the Environment at the University 
2.10 	of Minnesota shall make a grant to a nonprofit organization with experience dealing 
2.11 	with energy and community wind issues to design and implement a rural wind energy 
2.12 	development assistance program. The program must be designed to maximize rural 
2.13 	economic development and stabilize rural community institutions, including hospitals and 
2.14 	schools, by increasing the income of local residents and increasing local tax revenues. The 
2.15 	grant may be disbursed in two installments. The program must provide assistance to rural 
2.16 	entities seeking to develop wind energy electric generation projects and to sell the energy 
2.17 	from the projects. Among other strategies, the program must consider combining rural 
2.18 	entities and others into groups with the size and market power necessary for planning and 
2.19 	developing significant rural wind energy projects.
2.20 	(b) The program must provide assistance by, among other things:
2.21 	(1) providing legal, engineering, and financial services;
2.22 	(2) identifying target communities with favorable wind resources, community 
2.23 	interest, and local political support;
2.24 	(3) providing assistance to reserve, obtain, and assure the maintenance over time of 
2.25 	wind turbines;
2.26 	(4) creating market opportunities for utilities to meet their renewable energy 
2.27 	obligations through purchases of rural community wind;
2.28 	(5) assisting in the negotiation of fair power purchase agreements;
2.29 	(6) facilitating transmission interconnection and delivery of energy from rural and 
2.30 	community wind projects; and 
2.31 	(7) lowering the market risk facing potential wind investors by supporting local wind 
2.32 	development from start to finish.
2.33 	The grantee must demonstrate an ability to sustain program functions with ongoing 
2.34 	revenue from sources other than state funding and shall provide a 35 percent grant match. 
2.35 	The grant must be awarded on a competitive basis. The initiative shall use best practices 
3.1 	regarding grant management functions, including selection and monitoring of the grantee, 
3.2 	compliance review, and financial oversight. Grant management fees shall be limited to 
3.3 	2.5 percent of the grant.

3.4 	Sec. 3. APPROPRIATION.
 3.5 	(a) $1,000,000 in fiscal year 2008 and $1,000,000 in fiscal year 2009 are appropriated 
3.6 	from the general fund to the Board of Regents of the University of Minnesota for its 
3.7 	Initiative for Renewable Energy and the Environment for the purpose of making the 
3.8 	grant under section 2. This is a onetime appropriation and is not added to the agency's 
3.9 	budget base.
3.10 	(b) $1,000,000 in fiscal year 2008 and $1,000,000 in fiscal year 2009 are 
3.11 	appropriated from the general fund to the Department of Commerce for deposit with the 
3.12 	rural wind energy development revolving loan fund created under section 1. This is a 
3.13 	onetime appropriation and is not added to the department's budget base.