1.1 	A bill for an act
1.2 	relating to energy; regulating tariffs for certain
1.3 	community-based wind energy developments; proposing
1.4 	coding for new law in Minnesota Statutes, chapter 216B.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [216B.1612] COMMUNITY-BASED WIND ENERGY
1.7 	DEVELOPMENT; TARIFF.
1.8 		Subdivision 1.Tariff establishment. The commission
1.9 	shall establish a community-based wind energy development tariff.
1.10 	The tariff must be designed to optimize local, regional, and
1.11 	state rural agricultural resource economic development benefits
1.12 	from wind energy development, and to facilitate widespread
1.13 	development of community-based wind energy projects throughout
1.14 	Minnesota.
1.15 		Subd. 2.Tariff rate. The tariff must have a rate
1.16 	schedule with a net present value rate over the 20-year life of
1.17 	the contract that is at least equal to the utility's avoided
1.18 	cost as determined by its most recently filed avoided cost
1.19 	filing under section 216B.164 at the time of the execution of
1.20 	the power purchase contract or as determined by the commission
1.21 	if there is no available filing.  The tariff must provide for a
1.22 	rate that is higher in the first ten years of the contract than
1.23 	in the last ten years to accelerate recovery of capital costs.
1.24 	The discount rate required to calculate the net present value
1.25 	must be the utility's normal discount rate used for other
2.1 	business purposes.
2.2 		Subd. 3.Application of tariff. (a) The tariff applies
2.3 	to wind energy conversion system projects described in this
2.4 	subdivision regardless of project nameplate rating that have an
2.5 	ownership that satisfies an ownership requirement of section
2.6 	216C.41, subdivision 1, paragraph (c), clause (2) or (3).
2.7 	(b) The tariff applies to:
2.8 	(1) projects that meet an energy need identified in a
2.9 	resource plan filed under section 216B.2422;
2.10 	(2) community-based wind energy projects to satisfy an
2.11 	order of the commission;
2.12 	(3) projects to satisfy a statutory mandate; or 
2.13 	(4) projects to satisfy section 216B.1691.
2.14 	(c) The tariff applies to all load-serving electric
2.15 	utilities in Minnesota.
2.16 		Subd. 4.Priority for tariff-eligible projects. If the
2.17 	utility system is capable of accepting the project using
2.18 	standard reliability criteria, a project eligible for the tariff
2.19 	required by subdivision 1 must be granted a preference over
2.20 	other projects.
2.21 		Subd. 5.Election by project developer. At the
2.22 	discretion of the developer, a community-based project developer
2.23 	and a utility may negotiate a different rate and power purchase
2.24 	agreement with terms different from the tariff established under
2.25 	subdivision 1.
2.26 	
EFFECTIVE DATE. This section is effective the day
2.27 	following final enactment.

2.28 	Sec. 2. TRANSITIONAL REQUIREMENT.
 2.29 	The Public Utilities Commission shall expedite the
2.30 	establishment of the tariff under section 1 to provide that
2.31 	tariffs are available for use for all load-serving utilities no
2.32 	later than September 1, 2005.