SF 3698

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; allowing utilities to make conservation improvement
expenditures for certain solar energy projects; amending Minnesota Statutes
2006, section 216B.2411, subdivision 2; Minnesota Statutes 2007 Supplement,
sections 216B.241, by adding a subdivision; 216B.2411, subdivision 1.

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

Section 1.

Minnesota Statutes 2007 Supplement, section 216B.241, is amended by
adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Qualifying solar energy project. new text end

new text begin (a) A utility or association may include
in its conservation plan programs for the installation of qualifying solar energy projects as
defined by section 216B.2411 to the extent of the spending allowed for generation projects
by section 216B.2411. The cost-effectiveness of a qualifying solar energy project may
be determined by a different standard than for other energy conservation improvements
under this section if the commissioner determines it is in the public interest to do so to
encourage solar energy projects. Energy savings from qualifying solar energy projects
may not be counted toward the minimum energy savings goal of at least one percent
for energy conservation improvements required under subdivision 1c, but may, if the
conservation plan is approved:
new text end

new text begin (1) be counted toward energy savings above that minimum percentage; and
new text end

new text begin (2) be considered when establishing performance incentives under section 216B.241,
subdivision 2c.
new text end

new text begin (b) Qualifying solar energy projects may not be considered when establishing
demand-side management targets under sections 216B.2422, 216B.243, or any other
section of this chapter.
new text end

Sec. 2.

Minnesota Statutes 2007 Supplement, section 216B.2411, subdivision 1,
is amended to read:

Subdivision 1.

Generation projects.

(a) Any municipality or rural electric
association providing electric service and subject to section 216B.241 deleted text begin that is meeting the
objectives under section 216B.1691 deleted text end may, and each public utility may, use five percent
of the total amount to be spent on energy conservation improvements under section
216B.241, on:

(1) projects in Minnesota to construct an electric generating facility that utilizes
eligible renewable energy sources as defined in subdivision 2, such as methane or other
combustible gases derived from the processing of plant or animal wastes, biomass fuels
such as short-rotation woody or fibrous agricultural crops, or other renewable fuel, as its
primary fuel source; deleted text begin or
deleted text end

(2) projects in Minnesota to install a distributed generation facility of ten megawatts
or less of interconnected capacity that is fueled by natural gas, renewable fuels, or another
similarly clean fuel deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) projects in Minnesota to install a qualifying solar energy project as defined in
subdivision 2.
new text end

(b) For public utilities, as defined under section 216B.02, subdivision 4, projects
under this section must be considered energy conservation improvements as defined in
section 216B.241. For cooperative electric associations and municipal utilities, projects
under this section must be considered load-management activities described in section
216B.241, subdivision 1.

Sec. 3.

Minnesota Statutes 2006, section 216B.2411, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision and section 216B.241, subdivision 1, have the meanings given them.

(b) "Eligible renewable energy sources" means fuels and technologies to generate
electricity through the use of any of the resources listed in section 216B.1691, subdivision
1, paragraph (a), clause (1), except that deleted text begin the term deleted text end "biomass" has the meaning provided
under paragraph (c) new text begin , and "solar" must be from a qualified solar energy project as defined in
paragraph (d) new text end .

(c) "Biomass" includes:

(1) methane or other combustible gases derived from the processing of plant or
animal material;

(2) alternative fuels derived from soybean and other agricultural plant oils or animal
fats;

(3) combustion of barley hulls, corn, soy-based products, or other agricultural
products;

(4) wood residue from the wood products industry in Minnesota or other wood
products such as short-rotation woody or fibrous agricultural crops; and

(5) landfill gas, mixed municipal solid waste, and refuse-derived fuel from mixed
municipal solid waste.

new text begin (d) "Qualifying solar energy project" means a qualifying solar thermal project or
qualifying solar electric project.
new text end

new text begin (e) "Qualifying solar thermal project" means a flat plate or evacuated tube that meets
the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant
energy and transfers it to a storage medium for distribution as energy to heat or cool air or
water, but does not include equipment used to heat water at a residential property (1) for
domestic use if less than one-half of the energy used for that purpose is derived from the
sun or (2) for use in a hot tub or swimming pool.
new text end

new text begin (f) "Qualifying solar electric project" means solar electric equipment that meets the
requirements of section 216C.25 with a total peak generating capacity of 100 kilowatts
or less used for generating electricity primarily for use in a residential property or small
business to reduce the effective electric load for that residence or small business.
new text end

new text begin (g) "Residential property" means the principal residence of a homeowner at the time
the solar equipment is placed in service.
new text end

new text begin (h) "Small business" has the meaning given to it in section 645.445.
new text end

Sec. 4. new text begin SOLAR RATING AND CERTIFICATION LABORATORY.
new text end

new text begin The director of the office of energy security shall convene technical stakeholders
who are expert in the design, manufacture, installation, and operation of solar energy
systems to develop criteria and characteristics for a Minnesota-based solar rating and
certification laboratory. The criteria shall include, but not be limited to, consideration of
durability, cold-weather operations, and indoor air quality. The director shall develop and,
by September 15, 2008, issue a request for proposals for the development of a plan, based
on the criteria and characteristics developed by the stakeholder group, for a solar rating
and certification laboratory in the state, including cost estimates. By January 15, 2009,
the director shall submit a report to the chairs of the house and senate committees with
jurisdiction over energy finance issues, detailing the responses to the request and making
recommendations, including draft legislation.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective the day following final enactment.
new text end