1.1A bill for an act1.2relating to energy; modifying fee for storage of spent nuclear fuel; establishing 1.3rebate program for solar photovoltaic modules; appropriating money;amending 1.4Minnesota Statutes 2008, section 116C.779, subdivision 1; proposing coding for 1.5new law in Minnesota Statutes, chapter 116C.1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.7    Section 1. Minnesota Statutes 2008, section 116C.779, subdivision 1, is amended to 1.8read:1.9    Subdivision 1. Renewable development account. (a) The public utility that owns 1.10the Prairie Island nuclear generating plant must transfer to a renewable development 1.11account $16,000,000 annually$500,000 each year for each dry cask containing spent fuel 1.12that is located at the Prairie Island power plant for each year the plant is in operation, and 1.13$7,500,000 each year the plant is not in operation if ordered by the commission pursuant 1.14to paragraph (d). The fund transfer must be made if nuclear waste is stored in a dry cask at 1.15the independent spent-fuel storage facility at Prairie Island for any part of a year. Funds 1.16in the account may be expended only for development of renewable energy sources. 1.17Preference must be given to development of renewable energy source projects located 1.18within the state. The utility that owns a nuclear generating plant is eligible to apply for 1.19renewable development fund grants. The utility's proposals must be evaluated by the 1.20renewable development fund board in a manner consistent with that used to evaluate other 1.21renewable development fund project proposals.1.22    (b) The public utility that owns the Monticello nuclear generating plant must transfer 1.23to the renewable development account $350,000 each year for each dry cask containing 1.24spent fuel that is located at the Monticello nuclear power plant for each year the plant is 1.25in operation, and $5,250,000 each year the plant is not in operation if ordered by the 2.1commission pursuant to paragraph (d). The fund transfer must be made if nuclear waste 2.2is stored in a dry cask at the independent spent-fuel storage facility at Monticello for 2.3any part of a year.2.4     (c) Expenditures from the account may only be made after approval by order of the 2.5Public Utilities Commission upon a petition by the public utility.2.6     (d) After discontinuation of operation of the Prairie Island nuclear plant or the 2.7Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 2.8discontinued facility, the commission shall require the public utility to pay $7,500,000 for 2.9the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello 2.10facility for any year in which the commission finds, by the preponderance of the evidence, 2.11that the public utility did not make a good faith effort to remove the spent nuclear 2.12fuel stored at  the facility to a permanent or interim storage site out of the state. This 2.13determination shall be made at least every two years.2.14EFFECTIVE DATE.This section is effective when 32 dry casks containing spent 2.15fuel are located at the Prairie Island nuclear plant.2.16    Sec. 2. [116C.7791] REBATES FOR SOLAR PHOTOVOLTAIC MODULES.2.17    Subdivision 1.Definitions.For the purpose of this section, the following terms 2.18have the meanings given.2.19(a) "Installation" means an array of solar photovoltaic modules attached to a building 2.20that will use the electricity generated by the solar photovoltaic modules or placed on a 2.21facility or property proximate to that building.2.22(b) "Manufactured" means:2.23(1) the material production of solar photovoltaic modules, including the tabbing, 2.24stringing, and lamination processes; or2.25(2) the production of interconnections of low-voltage photoactive elements that 2.26produce the final useful photovoltaic output by a manufacturer operating in this state on 2.27the effective date of this section.2.28(c) "Qualified owner" means an owner of a qualified property, but does not include 2.29an entity engaged in the business of generating or selling electricity at retail, or an 2.30unregulated subsidiary of such an entity.2.31(d) "Qualified property" means a residence, multifamily residence, business, or 2.32publicly owned building located in the assigned service area of the utility subject to 2.33section 116C.779.3.1(e) "Solar photovoltaic module" means the smallest, nondivisible, self-contained 3.2physical structure housing interconnected photovoltaic cells and providing a single direct 3.3current of electrical output.3.4    Subd. 2.Establishment.The commissioner of commerce shall establish a program 3.5to provide rebates to an owner of a qualified property for installing solar photovoltaic 3.6modules manufactured in Minnesota after December 31, 2009.3.7    Subd. 3.Rebate eligibility.(a) To be eligible for a rebate under this section, a 3.8solar photovoltaic module:3.9(1) must be manufactured in Minnesota;3.10(2) must be installed on a qualified property as part of a system whose generating 3.11capacity does not exceed 40 kilowatts;3.12(3) must be certified by Underwriters Laboratory, must have received the ETL 3.13listed mark from Intertek, or must have an equivalent certification from an independent 3.14testing agency;3.15(4) may or may not be connected to a utility grid;3.16(5) must be installed by a person certified as a solar photovoltaic installer by the 3.17North American Board of Certified Energy Practitioners; and3.18(6) may not be used to sell, transmit, or distribute the electrical energy at retail, 3.19nor to provide end-use electricity to an offsite facility of the electrical energy generator. 3.20On-site generation is allowed to the extent provided for in section 216B.1611.3.21(b) To be eligible for a rebate under this section, an applicant must have applied for 3.22and been awarded a rebate or other form of financial assistance available exclusively to 3.23owners of properties on which solar photovoltaic modules are installed that is offered by:3.24(1) the utility serving the property on which the solar photovoltaic modules are to 3.25be installed; or3.26(2) this state, under an authority other than this section.3.27(c) An applicant who is otherwise ineligible for a rebate under paragraph (b) is 3.28eligible if the applicant's failure to secure a rebate or other form of financial assistance is 3.29due solely to a lack of available funds on the part of a utility or this state.3.30    Subd. 4.Rebate amount and payment.(a) The amount of a rebate under this 3.31section is the difference between the sum of all rebates described in subdivision 3, 3.32paragraph (b), awarded to the applicant and $5 per watt of installed generating capacity.3.33(b) Notwithstanding paragraph (a), the amount of all rebates or other forms of 3.34financial assistance awarded to an applicant by a utility and the state, including any rebate 3.35paid under this section, net of applicable federal income taxes applied at the highest 4.1applicable income tax rates, must not exceed 60 percent of the total installed cost of 4.2the solar photovoltaic modules.4.3(c) Rebates must be awarded to eligible applicants beginning July 1, 2010.4.4(d) The rebate must be paid out proportionately in five consecutive annual 4.5installments.4.6EFFECTIVE DATE.This section is effective the day following final enactment.4.7    Sec. 3. APPROPRIATION.4.8(a) The utility subject to Minnesota Statutes, section 116C.779, shall transfer 4.9$2,000,000 in fiscal year 2011; $4,000,000 in fiscal year 2012; $5,000,000 in fiscal year 4.102013; $5,000,000 in fiscal year 2014; and $5,000,000 in fiscal year 2015, from the account 4.11established under that section to the commissioner of commerce. The commissioner of 4.12commerce must place the funds in the special revenue fund.4.13(b) $2,000,000 in fiscal year 2011; $4,000,000 in fiscal year 2012; $5,000,000 in 4.14fiscal year 2013; $5,000,000 in fiscal year 2014; and $5,000,000 in fiscal year 2015, is 4.15appropriated from the special revenue fund to the commissioner of commerce for awarding 4.16rebates for solar photovoltaic modules as specified in section 2. This appropriation does 4.17not cancel, and remains available until the money is expended.4.18EFFECTIVE DATE.This section is effective the day following final enactment.