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Minnesota Legislature

Office of the Revisor of Statutes

SF 2019

as introduced - 91st Legislature (2019 - 2020) Posted on 04/09/2019 01:30pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to energy; establishing a revolving loan fund to facilitate the dredging of
lakes to improve water flow for hydroelectric projects; requiring a report;
appropriating money; proposing coding for new law in Minnesota Statutes, chapter
216C.

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

Section 1.

new text begin [216C.391] DEFINITIONS.
new text end

new text begin (a) For the purposes of section 216C.392, the following terms have the meanings given
them.
new text end

new text begin (b) "Small hydroelectric project" means a project that:
new text end

new text begin (1) generates electricity from the force of falling water from a lake located in Minnesota
as of the effective date of this act; and
new text end

new text begin (2) has a capacity of less than 100 megawatts.
new text end

new text begin (c) "Dredge" means to remove or excavate sedimentary material, including silt, gravel,
and rocks, from a lake bed.
new text end

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.

new text begin [216C.392] HYDROELECTRIC REVITALIZATION REVOLVING LOAN
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Loan program established. new text end

new text begin A hydroelectric revitalization revolving
loan program account is established in the special revenue fund. Money in the account is
appropriated to the commissioner of commerce to make loans to owners of small
hydroelectric projects under this section and to pay reasonable and actual costs incurred to
administer the loan program. The commissioner of management and budget must credit to
the account all interest and investment income earned on money in the account and all loan
principal repayments. Money in the account at the end of a fiscal year does not cancel to
the general fund but remains in the account.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The hydroelectric revitalization revolving loan program is created to
provide financial assistance to owners of small hydroelectric projects. Loan funds may be
used to dredge lakes where small hydroelectric projects operate to increase water flow,
increase the amount of electricity generated, and extend the project's life.
new text end

new text begin Subd. 3. new text end

new text begin Applications. new text end

new text begin (a) An owner of a small hydroelectric project applying for a loan
under this section must submit an application to the commissioner of commerce, in the
manner and on forms prescribed by the commissioner.
new text end

new text begin (b) As part of the application, an applicant must submit to the commissioner:
new text end

new text begin (1) the name and address of the small hydroelectric project owner and contact information
for the person responsible for loan administration and project implementation;
new text end

new text begin (2) a description of the activities proposed to be carried out with the loan funds;
new text end

new text begin (3) a map depicting where dredging will occur and an estimate of the volume of material
that will be dredged;
new text end

new text begin (4) an estimate of the project's total cost;
new text end

new text begin (5) the source and amount of any additional funds the applicant intends to use for the
project;
new text end

new text begin (6) a history of the amount of electricity generated by the project in past years;
new text end

new text begin (7) an estimate of the increase in electric generation that will result from completion of
the project;
new text end

new text begin (8) a description of how and where the dredged material will be disposed of; and
new text end

new text begin (9) any additional information requested by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Program administration. new text end

new text begin The Department of Commerce must administer the
hydroelectric revitalization revolving loan project. The commissioner of commerce must
make loans on a first-come, first-served basis.
new text end

new text begin Subd. 5. new text end

new text begin Loan conditions. new text end

new text begin A loan made under this section must:
new text end

new text begin (1) carry an interest rate of zero; and
new text end

new text begin (2) have a repayment term no longer than 20 years.
new text end

new text begin Subd. 6. new text end

new text begin Loan repayment. new text end

new text begin (a) An applicant receiving a loan under this section must
agree to repay the full amount of the loan as provided under paragraph (b).
new text end

new text begin (b) A loan received under this section must be repaid at the rate of 1.5 cents for each
kilowatt-hour of electricity produced by the small hydroelectric project after the project
activities funded by the loan are completed. Payments must be made quarterly to the
commissioner of commerce until the full loan amount is repaid. The commissioner of
commerce must deposit loan repayments in the account created under subdivision 1.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin By February 1 of each odd-numbered year, the commissioner of
commerce must report to the chairs and ranking minority members of the legislative
committees with primary jurisdiction over energy policy and finance. The report must
identify the small hydroelectric projects that received loans under the program, the amount
of the loans, the total project costs, the amount of loans repaid, an estimate of the increase
in electricity generation realized as a result of the projects, if possible, and any other
information the commissioner of commerce determines is useful to the legislature.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3. new text beginHYDROELECTRIC REVITALIZATION REVOLVING LOAN PROGRAM;
TRANSFER; APPROPRIATION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
beginning July 1, 2019, and continuing through July 1, 2022, the public utility that contributes
to the account established under Minnesota Statutes, section 116C.779, must transfer
$5,000,000 from the account to the commissioner of commerce for the hydroelectric
revitalization revolving loan program under Minnesota Statutes, section 216C.392. The
commissioner of commerce must deposit the transferred funds in the account established
under Minnesota Statutes, section 216C.392, subdivision 1.
new text end

new text begin (b) An amount necessary to pay the full costs of the hydroelectric revitalization revolving
loan program created under Minnesota Statutes, section 216C.392, is annually appropriated
to the commissioner of commerce.
new text end

new text begin EFFECTIVE DATE. new text end

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