HF 2103

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 03:07pm

A bill for an act
relating to energy; requiring certain electric cooperatives and municipal electric
utilities to contribute funding for incentives to consumers installing solar
modules manufactured in Minnesota; making all electric customers eligible
to receive incentive payments for installing solar modules manufactured in
Minnesota; amending Minnesota Statutes 2013 Supplement, sections 216C.412,
subdivision 2; 216C.415, subdivision 5.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 216C.412, subdivision 2,
is amended to read:

Subd. 2.

Payments from public utilities.

(a) Beginning January 1, 2014, and
each January 1 thereafter, through 2023, for a total of ten years, each electric deleted text begin public
deleted text end utility subject to section 216B.241 must annually pay to the commissioner of commerce
five percent of the minimum amount it is required to spend on energy conservation
improvements under section 216B.241, subdivision 1a. Payments under this subdivision
must be included in the calculation of whether a utility's other spending on generation
exceeds the limits authorized for spending on generation under section 216B.2411,
subdivision 1, for investments proposed for commissioner of commerce approval after
July 1, 2013. The limits on spending in section 216B.2411 do not limit or apply to
payments required by this subdivision. Payments made under this paragraph count toward
satisfying expenditure obligations of a deleted text begin public deleted text end utility under section 216B.241, subdivision
1a new text begin or 1b, as applicable new text end . The commissioner shall, upon receipt of the funds, deposit them in
the account established in subdivision 1. A public utility subject to this paragraph must be
credited energy savings for the purpose of satisfying its energy savings requirement under
section 216B.241, subdivision 1c, based on its payment to the commissioner.

(b) Notwithstanding section 116C.779, subdivision 1, paragraph (g), beginning
January 1, 2014, and continuing through January 1, 2023, for a total of ten years, the
public utility that manages the account under section 116C.779 must annually pay from
that account to the commissioner an amount that, when added to the total amount paid to
the commissioner of commerce under paragraph (a), totals $15,000,000 annually. The
commissioner shall, upon receipt of the payment, deposit it in the account established in
subdivision 1.

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 2013 Supplement, section 216C.415, subdivision 5, is
amended to read:

Subd. 5.

Allocation of payments.

(a) If there are sufficient applications,
approximately 50 percent of the incentive payment shall be for owners of eligible solar
photovoltaic modules installed on residential property, and approximately 50 percent shall
be for owners of eligible solar photovoltaic modules installed on commercial property.

(b) deleted text begin The commissioner shall endeavor to distribute incentives paid under this section
to owners of solar photovoltaic modules installed in a manner so that the amount of
payments received in an area of the state reasonably approximates the amount of payments
made by a utility serving that area.
deleted text end

deleted text begin (c) deleted text end For purposes of this subdivision:

(1) "residential property" means residential real estate that is occupied and used as a
homestead by its owner or by a renter and includes "multifamily housing development"
as defined in section 462C.02, subdivision 5, except that residential property on which
solar photovoltaic modules (i) whose capacity exceeds 10 kilowatts is installed; or (ii)
connected to a utility's distribution system and whose electricity is purchased by several
residents, each of whom own a share of the electricity generated, shall be deemed
commercial property; and

(2) "commercial property" means real property on which is located a business,
government, or nonprofit establishment.

new text begin EFFECTIVE DATE. new text end

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