SF 3389

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/10/2020 08:37am

A bill for an act
relating to energy; modifying the solar energy incentive program; appropriating
money to complete the remaining obligation for the "Made in Minnesota" solar
energy production incentive payments; amending Minnesota Statutes 2019
Supplement, section 116C.7792; repealing Minnesota Statutes 2018, section
216C.417.

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

Section 1.

Minnesota Statutes 2019 Supplement, section 116C.7792, is amended to read:

116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.

new text begin (a) new text end 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 aggregate
nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar
energy system installed before June 1, 2018, is eligible to receive a production incentive
under this section for any additional solar energy systems constructed at the same customer
location, provided that the aggregate capacity of all systems at the customer location does
not exceed 40 kilowatts.

new text begin (b) new text end The program deleted text begin 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 deleted text end new text begin is funded by money new text end withheld from transfer to the renewable development account
under section 116C.779, subdivision 1, paragraphs (b) and (e) deleted text begin , and deleted text end new text begin . Program funds must
be new text end placed in a separate account for the purpose of the solar production incentive program
operated by the utility and not for any other program or purpose.

new text begin (c) The following amounts are allocated for the solar production incentive program:
$17,000,000 in 2020; $15,000,000 in 2021; $15,000,000 in 2022; $10,000,000 in 2023; and
in 2024, any unspent amount remaining from program years 2020 through 2023. new text end Any unspent
amount allocated deleted text begin in the fifth deleted text end new text begin during a specific program new text end year is available deleted text begin until December 31
of the sixth year deleted text end new text begin for use during any subsequent program year new text end . Any unspent amount remaining
deleted text begin at the end of any other allocation year deleted text end new text begin on January 1, 2025, new text end must be transferred to the
renewable development account.

new text begin (d) new text end The solar system must be sized to less than 120 percent of the customer's on-site
annual energy consumption when combined with other distributed generation resources and
subscriptions provided under section 216B.1641 associated with the premise. The production
incentive must be paid for ten years commencing with the commissioning of the system.

new text begin (e) new text end 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.
A change to the program to include projects up to a nameplate capacity of 40 kilowatts or
less does not require the utility to file a plan with the commissioner. Any plan approved by
the commissioner of commerce must not provide an increased incentive scale over prior
years unless the commissioner demonstrates that changes in the market for solar energy
facilities require an increase.

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 REMAINING "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
PROGRAM INCENTIVE OBLIGATION; APPROPRIATION.
new text end

new text begin (a) On or before June 30, 2020, the commissioner of commerce must (1) determine the
total remaining obligation for the "Made in Minnesota" solar energy production incentive
program under Minnesota Statutes, section 216C.417, and (2) report the amount determined
under clause (1) to the commissioner of management and budget and the chairs and ranking
minority members of the house of representatives and senate committees with jurisdiction
over energy policy.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph
(j), the amount determined by the commissioner of commerce under paragraph (a) is
appropriated in equal amounts over four consecutive years beginning in fiscal year 2021
from the renewable development account under Minnesota Statutes, section 116C.779,
subdivision 1, paragraph (a), to the commissioner of commerce to make final payments for
"Made in Minnesota" obligations.
new text end

new text begin (c) By October 15, 2020, and by each October 15 until 2023, the commissioner of
commerce must use the amount appropriated in paragraph (b) to pay the total remaining
obligation for a "Made in Minnesota" solar energy production incentive approved by the
commissioner under Minnesota Statutes 2016, section 216C.415, to an owner whose
application was approved by the commissioner.
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 begin FINAL "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
PROGRAM ADMINISTRATION; APPROPRIATION.
new text end

new text begin $....... in fiscal year 2021 is appropriated from the renewable development account in
the special revenue fund established under Minnesota Statutes, section 116C.779, subdivision
1, to the commissioner of commerce to administer the final payments for remaining program
obligations under the "Made in Minnesota" solar energy production incentive program in
Minnesota Statutes, section 216C.417, as provided in section 2. This is a onetime
appropriation and is available until June 30, 2024. Any remaining unspent funds at the end
of fiscal year 2024 cancel to the renewable development account.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 216C.417, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 16, 2023.
new text end

APPENDIX

Repealed Minnesota Statutes: S3389-1

216C.417 PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVES.

Subdivision 1.

General provisions.

Payment of a "Made in Minnesota" solar energy production incentive to an owner whose application was approved by the commissioner of commerce under section 216C.415, by May 1, 2017, must be administered under the provisions of Minnesota Statutes 2016, sections 216C.411; 216C.413; 216C.414, subdivisions 1 to 3 and 5; and 216C.415. No incentive payments may be made under this section to an owner whose application was approved by the commissioner after May 1, 2017.

Subd. 2.

Appropriation.

(a) Unspent money remaining in the account established under Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to the renewable development account in the special revenue fund established under Minnesota Statutes, section 116C.779, subdivision 1.

(b) There is annually appropriated from the renewable development account in the special revenue fund established in Minnesota Statutes, section 116C.779, to the commissioner of commerce money sufficient to make the incentive payments required under Minnesota Statutes 2016, section 216C.415. Any funds appropriated under this paragraph that are unexpended at the end of a fiscal year cancel to the renewable development account.

(c) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none of this appropriation may be used for administrative costs.

Subd. 3.

Eligibility window; payment duration.

(a) Payments may be made under this subdivision only for solar photovoltaic module installations that meet the requirements of subdivision 1 and that first begin generating electricity between January 1, 2014, and October 31, 2018.

(b) The payment eligibility window of the incentive begins and runs consecutively from the date the solar photovoltaic modules first begins generating electricity.

(c) An owner of solar photovoltaic modules may receive payments under this section for a particular module for a period of ten years, provided that sufficient funds are available in the account.

(d) No payment may be made under this section for electricity generated after October 31, 2028.