Minnesota Legislature
HF 4257
as introduced - 90th Legislature (2017 - 2018) Posted on 03/28/2018 10:46am
Current Version - as introduced
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A bill for an act
relating to energy; amending the utility's annual contribution to the renewable
development account; amending Minnesota Statutes 2017 Supplement, sections
116C.779, subdivision 1; 116C.7792.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2017 Supplement, section 116C.779, subdivision 1, is
amended to read:
Subdivision 1.
Renewable development account.
(a) The renewable development
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account shall be credited to the account. Earnings, such
as interest, dividends, and any other earnings arising from assets of the account, shall be
credited to the account. Funds remaining in the account at the end of a fiscal year are not
canceled to the general fund but remain in the account until expended. The account shall
be administered by the commissioner of management and budget as provided under this
section.
(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the renewable development
account established in paragraph (a). Funds awarded to grantees in previous grant cycles
that have not yet been expended and unencumbered funds required to be paid in calendar
year 2017 under paragraphs deleted text begin (f)deleted text end new text begin (e)new text end and deleted text begin (g)deleted text end new text begin (f)new text end , and sections 116C.7792 and 216C.41, are
not subject to transfer under this paragraph.
(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Prairie Island new text begin and Monticello
new text end nuclear generating deleted text begin plantdeleted text end new text begin plantsnew text end must transfer to the renewable development account deleted text begin $500,000
each year for each dry cask containing spent fuel that is located at the Prairie Island power
plant fordeleted text end new text begin $16,000,000 new text end each year deleted text begin thedeleted text end new text begin eithernew text end plant is in operation, and deleted text begin $7,500,000 each year
the plant is not in operationdeleted text end new text begin ,new text end if ordered by the commission pursuant to paragraph deleted text begin (i)deleted text end new text begin (h),
$7,5000,000 each year the Prairie Island plant is not in operation and $5,250,000 each year
the Monticello plant is not in operationnew text end . The fund transfer must be made if nuclear waste is
stored in a dry cask at the independent spent-fuel storage facility at Prairie Island new text begin or
Monticello new text end for any part of a year.
deleted text begin
(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Monticello nuclear generating
plant must transfer to the renewable development account $350,000 each year for each dry
cask containing spent fuel that is located at the Monticello nuclear power plant for each
year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.
deleted text end
deleted text begin (e)deleted text end new text begin (d)new text end Each year, the public utility shall withhold from the funds transferred to the
renewable development account under deleted text begin paragraphsdeleted text end new text begin paragraphnew text end (c) deleted text begin and (d)deleted text end the amount necessary
to pay its obligations under paragraphs deleted text begin (f)deleted text end new text begin (e)new text end and deleted text begin (g)deleted text end new text begin (f)new text end , and sections 116C.7792 and
216C.41, for that calendar year.
deleted text begin (f)deleted text end new text begin (e)new text end If the commission approves a new or amended power purchase agreement, the
termination of a power purchase agreement, or the purchase and closure of a facility under
section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
the public utility subject to this section shall enter into a contract with the city in which the
poultry litter plant is located to provide grants to the city for the purposes of economic
development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
by the public utility from funds withheld from the transfer to the renewable development
account, as provided in paragraphs (b) and deleted text begin (e)deleted text end new text begin (d)new text end .
deleted text begin (g)deleted text end new text begin (f)new text end If the commission approves a new or amended power purchase agreement, or the
termination of a power purchase agreement under section 216B.2424, subdivision 9, with
an entity owned or controlled, directly or indirectly, by two municipal utilities located north
of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
grant contract with such entity to provide $6,800,000 per year for five years, commencing
30 days after the commission approves the new or amended power purchase agreement, or
the termination of the power purchase agreement, and on each June 1 thereafter through
2021, to assist the transition required by the new, amended, or terminated power purchase
agreement. The grant shall be paid by the public utility from funds withheld from the transfer
to the renewable development account as provided in paragraphs (b) and deleted text begin (e)deleted text end new text begin (d)new text end .
deleted text begin (h)deleted text end new text begin (g)new text end The collective amount paid under the grant contracts awarded under paragraphs
deleted text begin (f)deleted text end new text begin (e)new text end and deleted text begin (g)deleted text end new text begin (f)new text end is limited to the amount deposited into the renewable development account,
and its predecessor, the renewable development account, established under this section, that
was not required to be deposited into the account under Laws 1994, chapter 641, article 1,
section 10.
deleted text begin (i)deleted text end new text begin (h)new text end After discontinuation of operation of the Prairie Island nuclear plant or the
Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
discontinued facility, the commission shall require the public utility to pay $7,500,000 for
the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
facility for any year in which the commission finds, by the preponderance of the evidence,
that the public utility did not make a good faith effort to remove the spent nuclear fuel stored
at the facility to a permanent or interim storage site out of the state. This determination shall
be made at least every two years.
deleted text begin (j)deleted text end new text begin (i)new text end Funds in the account may be expended only for any of the following purposes:
(1) to stimulate research and development of renewable electric energy technologies;
(2) to encourage grid modernization, including, but not limited to, projects that implement
electricity storage, load control, and smart meter technology; and
(3) to stimulate other innovative energy projects that reduce demand and increase system
efficiency and flexibility.
Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
from the utility that owns a nuclear-powered electric generating plant in this state or the
Prairie Island Indian community or its members.
The utility that owns a nuclear generating plant is eligible to apply for grants under this
subdivision.
deleted text begin (k)deleted text end new text begin (j)new text end For the purposes of paragraph deleted text begin (j)deleted text end new text begin (i)new text end , the following terms have the meanings given:
(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
(c), clauses (1), (2), (4), and (5); and
(2) "grid modernization" means:
(i) enhancing the reliability of the electrical grid;
(ii) improving the security of the electrical grid against cyberthreats and physical threats;
and
(iii) increasing energy conservation opportunities by facilitating communication between
the utility and its customers through the use of two-way meters, control technologies, energy
storage and microgrids, technologies to enable demand response, and other innovative
technologies.
deleted text begin (l)deleted text end new text begin (k)new text end A renewable development account advisory group that includes, among others,
representatives of the public utility and its ratepayers, and includes at least one representative
of the Prairie Island Indian community appointed by that community's tribal council, shall
develop recommendations on account expenditures. The advisory group must design a
request for proposal and evaluate projects submitted in response to a request for proposals.
The advisory group must utilize an independent third-party expert to evaluate proposals
submitted in response to a request for proposal, including all proposals made by the public
utility. A request for proposal for research and development under paragraph deleted text begin (j)deleted text end new text begin (i)new text end , clause
(1), may be limited to or include a request to higher education institutions located in
Minnesota for multiple projects authorized under paragraph deleted text begin (j)deleted text end new text begin (i)new text end , clause (1). The request
for multiple projects may include a provision that exempts the projects from the third-party
expert review and instead provides for project evaluation and selection by a merit peer
review grant system. In the process of determining request for proposal scope and subject
and in evaluating responses to request for proposals, the advisory group must strongly
consider, where reasonable, potential benefit to Minnesota citizens and businesses and the
utility's ratepayers.
deleted text begin (m)deleted text end new text begin (l)new text end The advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted by
the advisory group to the legislature. The commission may approve proposed expenditures,
may disapprove proposed expenditures that it finds not to be in compliance with this
subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,
modify proposed expenditures. The commission shall, by order, submit its funding
recommendations to the legislature as provided under paragraph deleted text begin (n)deleted text end new text begin (m)new text end .
deleted text begin (n)deleted text end new text begin (m)new text end The commission shall present its recommended appropriations from the account
to the senate and house of representatives committees with jurisdiction over energy policy
and finance annually by February 15. Expenditures from the account must be appropriated
by law. In enacting appropriations from the account, the legislature:
(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and
(2) may not appropriate money for a project the commission has not recommended
funding.
deleted text begin (o)deleted text end new text begin (n)new text end A request for proposal for renewable energy generation projects must, when
feasible and reasonable, give preference to projects that are most cost-effective for a particular
energy source.
deleted text begin (p)deleted text end new text begin (o)new text end The advisory group must annually, by February 15, report to the chairs and
ranking minority members of the legislative committees with jurisdiction over energy policy
on projects funded by the account for the prior year and all previous years. The report must,
to the extent possible and reasonable, itemize the actual and projected financial benefit to
the public utility's ratepayers of each project.
deleted text begin (q)deleted text end new text begin (p)new text end By February 1, 2018, and each February 1 thereafter, the commissioner of
management and budget shall submit a written report regarding the availability of funds in
and obligations of the account to the chairs and ranking minority members of the senate
and house committees with jurisdiction over energy policy and finance, the public utility,
and the advisory group.
deleted text begin (r)deleted text end new text begin (q)new text end A project receiving funds from the account must produce a written final report
that includes sufficient detail for technical readers and a clearly written summary for
nontechnical readers. The report must include an evaluation of the project's financial,
environmental, and other benefits to the state and the public utility's ratepayers.
deleted text begin (s)deleted text end new text begin (r)new text end Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public Web site designated by the commissioner
of commerce.
deleted text begin (t)deleted text end new text begin (s)new text end All final reports must acknowledge that the project was made possible in whole
or part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.
deleted text begin (u)deleted text end new text begin (t)new text end Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.
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 2017 Supplement, section 116C.7792, is amended to read:
116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
The utility subject to section 116C.779 shall operate a program to provide solar energy
production incentives for solar energy systems of no more than a total nameplate capacity
of 20 kilowatts direct current. The program shall be operated for eight consecutive calendar
years commencing in 2014. $5,000,000 shall be allocated in each of the first four years,
$15,000,000 in the fifth year, $10,000,000 in each of the sixth and seventh years, and
$5,000,000 in the eighth year from funds withheld from transfer to the renewable
development account under section 116C.779, subdivision 1, deleted text begin paragraphs (b) and (e)deleted text end new text begin paragraph
(d)new text end , and placed in a separate account for the purpose of the solar production incentive
program. The solar system must be sized to less than 120 percent of the customer's on-site
annual energy consumption. The production incentive must be paid for ten years commencing
with the commissioning of the system. The utility must file a plan to operate the program
with the commissioner of commerce. The utility may not operate the program until it is
approved by the commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end