SF 1244

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

A bill for an act
relating to energy; creating a rural wind energy development revolving loan
fund; providing for a rural wind development assistance program; appropriating
money; proposing coding for new law in Minnesota Statutes, chapter 116J.

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

Section 1.

new text begin [116J.9861] RURAL WIND ENERGY DEVELOPMENT REVOLVING
LOAN FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A rural wind energy development revolving loan
fund is established as an account in the special revenue fund in the state treasury. The
commissioner of finance shall credit to the account the amounts authorized under this
section and appropriations and transfers to the account. Earnings, such as interest,
dividends, and any other earnings arising from fund assets must be credited to the account.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The rural wind energy development revolving loan fund
is created to provide financial assistance, through partnership with local owners and
communities, in development of community wind energy projects as defined in sections
216B.1612 and 216B.2426.
new text end

new text begin Subd. 3. new text end

new text begin Expenditures. new text end

new text begin Money in the fund is appropriated to the commissioner of
commerce, and may be used to provide qualifying owners of community energy projects,
as defined in sections 216B.1612 and 216B.2426, with loans to assist in the funding of
wind studies and transmission interconnection studies. The loans shall be structured for
repayment within six months of operations of the project.
new text end

new text begin Subd. 4. new text end

new text begin Limitations. new text end

new text begin A loan may not be approved for an amount in excess of
$100,000. This limit covers all money paid to complete the same project, whether paid to
one or more qualifying owners and whether paid in one or more fiscal years.
new text end

new text begin Subd. 5. new text end

new text begin Eligible projects. new text end

new text begin Assistance to community wind energy projects must
be evaluated on the existence of the following conditions:
new text end

new text begin (1) the project can demonstrate substantial benefits to qualifying owners;
new text end

new text begin (2) the project can demonstrate likelihood of development of the community wind
energy project and the leveraging of private funds if assistance is provided; and
new text end

new text begin (3) the project can demonstrate that assistance is necessary for the development of
the community wind energy project.
new text end

Sec. 2. new text begin RURAL WIND ENERGY DEVELOPMENT PROGRAM.
new text end

new text begin (a) The Initiative for Renewable Energy and the Environment at the University
of Minnesota shall make a grant to a nonprofit organization with experience dealing
with energy and community wind issues to design and implement a rural wind energy
development assistance program. The program must be designed to maximize rural
economic development and stabilize rural community institutions, including hospitals and
schools, by increasing the income of local residents and increasing local tax revenues. The
grant may be disbursed in two installments. The program must provide assistance to rural
entities seeking to develop wind energy electric generation projects and to sell the energy
from the projects. Among other strategies, the program must consider combining rural
entities and others into groups with the size and market power necessary for planning and
developing significant rural wind energy projects.
new text end

new text begin (b) The program must provide assistance by, among other things:
new text end

new text begin (1) providing legal, engineering, and financial services;
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new text begin (2) identifying target communities with favorable wind resources, community
interest, and local political support;
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new text begin (3) providing assistance to reserve, obtain, and assure the maintenance over time of
wind turbines;
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new text begin (4) creating market opportunities for utilities to meet their renewable energy
obligations through purchases of rural community wind;
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new text begin (5) assisting in the negotiation of fair power purchase agreements;
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new text begin (6) facilitating transmission interconnection and delivery of energy from rural and
community wind projects; and
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new text begin (7) lowering the market risk facing potential wind investors by supporting local wind
development from start to finish.
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new text begin The grantee must demonstrate an ability to sustain program functions with ongoing
revenue from sources other than state funding and shall provide a 35 percent grant match.
The grant must be awarded on a competitive basis. The initiative shall use best practices
regarding grant management functions, including selection and monitoring of the grantee,
compliance review, and financial oversight. Grant management fees shall be limited to
2.5 percent of the grant.
new text end

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin (a) $1,000,000 in fiscal year 2008 and $1,000,000 in fiscal year 2009 are appropriated
from the general fund to the Board of Regents of the University of Minnesota for its
Initiative for Renewable Energy and the Environment for the purpose of making the
grant under section 2. This is a onetime appropriation and is not added to the agency's
budget base.
new text end

new text begin (b) $1,000,000 in fiscal year 2008 and $1,000,000 in fiscal year 2009 are
appropriated from the general fund to the Department of Commerce for deposit with the
rural wind energy development revolving loan fund created under section 1. This is a
onetime appropriation and is not added to the department's budget base.
new text end