HF 191

as introduced - 88th Legislature (2013 - 2014) Posted on 01/28/2013 01:41pm

A bill for an act
relating to energy; utilities; community-based energy development projects;
modifying tariff issues; adding an eligibility review; amending Minnesota
Statutes 2012, section 216B.1612, subdivisions 3, 7, by adding subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 216B.1612, subdivision 3, is amended to
read:

Subd. 3.

Tariff rate.

(a) The tariff described in subdivision 4 must provide for a rate
that is higher in the first ten years of the power purchase agreement than in the last ten years.

deleted text begin (b) The commission shall consider mechanisms to encourage the aggregation
of C-BED projects.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end The commission shall require that C-BED projects provide sufficient security
to secure performance under the power purchase agreement, and shall prohibit transfer of
a C-BED project during the initial term of a power purchase agreement if the transfer will
result in the project no longer qualifying under subdivision 2, paragraph (h).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2012, section 216B.1612, subdivision 7, is amended to read:

Subd. 7.

Other C-BED tariff issues.

(a) A community-based project developer
and a utility shall negotiate the rate and power purchase agreement terms consistent with
the tariff established under subdivision 4.

(b) At the discretion of the developer, a community-based project developer and a
utility may negotiate a power purchase agreement new text begin entered into before July 1, 2013, new text end with
terms different from the tariff established under subdivision 4.

(c) A C-BED project may be jointly developed with a non-C-BED project. However,
the terms of the C-BED tariff may only apply to the portion of the energy production of
the total project that is directly proportional to the energy produced by the C-BED project.
A project that is operating under a power purchase agreement under a C-BED tariff is not
eligible for net energy billing under section 216B.164, subdivision 3, or for production
incentives under section 216C.41.

(d) A public utility must receive commission approval of a power purchase
agreement for a C-BED tariffed project. The commission shall provide the utility's
ratepayers an opportunity to address the reasonableness of the proposed power purchase
agreement. Unless a party objects to a contract within 30 days of submission of the
contract to the commission the contract is deemed approved.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2012, section 216B.1612, is amended by adding a
subdivision to read:

new text begin Subd. 8a. new text end

new text begin Aggregation. new text end

new text begin The commission shall consider mechanisms to encourage
the aggregation of C-BED projects.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2012, section 216B.1612, is amended by adding a
subdivision to read:

new text begin Subd. 11. new text end

new text begin C-BED eligibility review. new text end

new text begin Beginning July 1, 2013, and each year
thereafter, a C-BED project that has received a determination of eligibility from the
commissioner must submit to the commission, on a form developed by the commission,
evidence that the project continues to meet all the qualifying criteria established under
subdivision 2, paragraph (h), clauses (1) and (2), and subdivision 3. If the commission,
after reviewing this information and any other information it deems relevant, determines
that a C-BED project no longer meets all the qualifying criteria established under
subdivision 2, paragraph (h), clauses (1) and (2), and subdivision 3, the commission shall
revoke the project's C-BED eligibility determination.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end