HF 3585

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; describing powers of qualifying owner of community-based
energy development project; authorizing Metropolitan Council and counties
to enter into contracts and to finance the purchase of energy and interests
in renewable energy projects; amending Minnesota Statutes 2006, sections
216B.1612, by adding a subdivision; 473.1293, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapter 373.

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

Section 1.

Minnesota Statutes 2006, section 216B.1612, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Powers. new text end

new text begin A Minnesota political subdivision or local government may plan,
develop, purchase, acquire, construct, or own a C-BED project and may sell output from
that project as provided for in this section. A qualifying owner may operate, maintain,
improve, and expand the C-BED project subject to any restrictions in this section.
new text end

Sec. 2.

new text begin [373.48] FINANCING ENERGY PURCHASE CONTRACTS AND
PARTICIPATION IN GENERATION AND TRANSMISSION PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin "Project" means a facility that generates electricity from
renewable energy, as defined in section 216B.2422, subdivision 1, paragraph (c).
new text end

new text begin Subd. 2. new text end

new text begin Energy purchase contracts; generation projects. new text end

new text begin (a) A county may,
for itself or in cooperation with other counties, enter into agreements for purchasing
electrical energy from one or more projects, and may enter into agreements with a utility
for purchasing and selling the electrical energy. The agreements may be for a term of one
year or may be multiyear agreements, the term of which must not exceed 20 years. A
county may also acquire an ownership interest in a project and may enter into agreements
for purchasing and selling electrical energy produced.
new text end

new text begin (b) Notwithstanding paragraph (a), a county (1) may not sell, transmit, or distribute
the electrical energy at retail and (2) may not provide for end use of the electrical energy
from an off-site facility by any county. On-site generation is allowed to the extent
provided for in section 216B.1611.
new text end

new text begin (c) The energy to be purchased by a county under agreements entered into under this
section and the energy produced by the county's interest in projects must not exceed in any
year the total amount of energy used by the county for its own facilities in the immediately
preceding year, regardless of the source from which the energy was obtained.
new text end

new text begin (d) This section does not modify the exclusive service territories or exclusive right
to serve as provided in sections 216B.37 to 216B.43.
new text end

new text begin Subd. 3. new text end

new text begin Financing joint energy purchases and generation project acquisitions.
new text end

new text begin A county may enter into agreements under section 471.59 with other counties for jointly
purchasing energy or jointly acquiring interests in projects. A county may annually
levy an ad valorem tax for paying the cost of energy purchased or interests in projects
acquired in an amount not exceeding 0.015 percent of the market value of taxable property
in the county. A county that enters into a multiyear agreement for purchasing energy
or acquiring an interest in a project may finance the estimated cost of the energy to be
purchased during the term of the agreement or the cost to the county of the interest in the
project by issuing general obligation bonds of the county; provided that, the annual debt
service on all bonds issued under this section, together with the amounts to be paid by the
county in any year for purchasing energy under agreements entered into under this section,
do not exceed the amount of taxes authorized by this section. An agreement entered into
under section 471.59 as contemplated by this section may provide that each county issue
bonds to pay its respective share of the cost of the projects, or that one of the counties
issue bonds to pay the full cost of the project, and that the other participating counties
levy the tax authorized under this subdivision and pledge the collections of the tax to the
county that issues the bonds. Bonds issued under this section may be issued without an
election and do not constitute net debt of any participating county.
new text end

Sec. 3.

new text begin [373.49] WIND ENERGY CONVERSION SYSTEM.
new text end

new text begin (a) A county or the Metropolitan Council may own, construct, acquire, purchase,
issue bonds and certificates of indebtedness for, maintain, and operate a wind energy
conversion system, or a portion of a wind energy conversion system, and may only
purchase and sell electricity from a wind energy conversion system at wholesale on terms
and conditions the county board or the Metropolitan Council deems is in the best interests
of the public.
new text end

new text begin (b) With respect to any wind energy conversion system, or any portion of a wind
energy conversion system, a county or the Metropolitan Council may exercise the powers
granted to a municipal power agency and to a city under sections 453.52, subdivisions 1,
6, and 9; 453.54, subdivision 10; 453.58, subdivision 4; and 453.59; provided that, output
from that wind energy conversion system may not be sold, transmitted, or distributed at
retail, or provided for end use from an off-site facility, by the county or the Metropolitan
Council. On-site generation is allowed to the extent provided for in section 216B.1611.
new text end

new text begin (c) This section does not modify the exclusive service territories or exclusive right to
serve as provided in sections 216B.37 to 216B.43.
new text end

Sec. 4.

Minnesota Statutes 2006, section 473.1293, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Energy purchase contracts. new text end

new text begin (a) In addition to the powers granted in this
section, the Metropolitan Council may exercise all of the powers granted to a county under
section 373.48; provided that, bonds may be issued by the Metropolitan Council for the
purposes of section 373.48 only under its sewer bond authority in section 473.541.
new text end

new text begin (b) Notwithstanding paragraph (a), the Metropolitan Council (1) may not sell,
transmit, or distribute the electrical energy at retail and (2) may not provide for end use
from an off-site facility by the Metropolitan Council of the electrical energy as set forth
in section 373.48, subdivision 2. On-site generation is allowed to the extent provided
for in section 216B.1611.
new text end

new text begin (c) This section does not modify the exclusive service territories or exclusive right to
serve as provided in sections 216B.37 to 216B.43.
new text end