Minnesota Session Laws - 1995, Regular Session

                            CHAPTER 245-S.F.No. 1551 
                  An act relating to agricultural economics; providing 
                  loans and incentives for agricultural energy resources 
                  development for family farms and cooperatives; 
                  amending Minnesota Statutes 1994, sections 41B.02, 
                  subdivision 19; 41B.046, subdivision 1, and by adding 
                  a subdivision; and 216C.41, subdivisions 1, 2, 3, 4, 
                  and 5. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 41B.02, 
        subdivision 19, is amended to read: 
           Subd. 19.  [AGRICULTURAL IMPROVEMENTS.] "Agricultural 
        improvements" means improvements to a farm, including the 
        purchase and construction or installation of improvements to 
        land, buildings, and other permanent structures, including 
        equipment incorporated in or permanently affixed to the land, 
        buildings, or structures, which are useful for and intended to 
        be used for the purpose of farming.  "Agricultural improvements" 
        includes wind energy conversion facilities, as defined in 
        section 216C.06, subdivision 12, each with an output capacity of 
        one megawatt or less, as determined by the nameplate capacity.  
        "Agricultural improvements" does not include equipment not 
        affixed to real estate or improvements or additions to that 
        equipment. 
           Sec. 2.  Minnesota Statutes 1994, section 41B.046, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For purposes of this section:
           (1) "Agricultural product processing facility" means land, 
        buildings, structures, fixtures, and improvements located or to 
        be located in Minnesota and used or operated primarily for the 
        processing or production of marketable products from agriculture 
        crops or agricultural energy resources, including waste and 
        residues from agriculture crops, but not including livestock or 
        livestock products, poultry or poultry products, or wood or wood 
        products. 
           (2) "Value-added agricultural product" means a product 
        derived from agricultural crops or agricultural energy 
        resources, including waste and residues from agricultural crops, 
        but not including livestock or livestock products, poultry or 
        poultry products, or wood or wood products, which are processed 
        by an agricultural product processing facility. 
           (3) "Agricultural energy resources" means energy products 
        and resources available on and around agricultural land 
        including wind, solar, and biomass energy. 
           (4) "Farm-generated wind energy production facility" means 
        a wind energy conversion facility for the generation of 
        electricity and its support structure, base, switch gear, and 
        associated equipment installed on agricultural land. 
           Sec. 3.  Minnesota Statutes 1994, section 41B.046, is 
        amended by adding a subdivision to read: 
           Subd. 4b.  [FARM-GENERATED WIND ENERGY PRODUCTION 
        FACILITIES ELIGIBLE.] An applicant is eligible for a loan for a 
        farm-generated wind energy production facility under this 
        section if: 
           (1) the facility is owned and operated by a cooperative 
        organized under chapter 308A.  For purposes of this subdivision, 
        "owned and operated" includes a contractual arrangement with 
        another entity to provide management and operations services for 
        a facility owned by the cooperative; 
           (2) all shares and membership in the cooperative are held 
        by natural persons or estates, at least 51 percent of whom 
        reside in a county or contiguous to a county where 
        farm-generated wind energy production facilities of the 
        cooperative are located; and 
           (3) its farm-generated wind energy production facilities 
        are located entirely on agricultural property in Minnesota 
        principally used for farming as defined in section 500.24, 
        subdivision 2, paragraph (a), owned by the shareholders of the 
        cooperative, with no more than two megawatts of nameplate 
        capacity located on any one shareholder's agricultural property. 
           Sec. 4.  Minnesota Statutes 1994, section 216C.41, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For purposes of (a) The 
        definitions in this subdivision apply to this section, a: 
           (b) "Qualified hydroelectric facility" or "facility" means 
        a hydroelectric generating facility in this state that: 
           (1) is located at the site of a dam, if the dam was in 
        existence as of March 31, 1994; and 
           (2) begins generating electricity after July 1, 1994. 
           (c) "Qualified wind energy conversion facility" means a 
        wind energy conversion system that: 
           (1) is located within one county and owned by a natural 
        person who owns the land where the facility is sited, or is a 
        farm-generated wind energy production facility qualifying under 
        section 41B.046, subdivision 1; 
           (2) produces two megawatts or less of electricity as 
        measured by nameplate rating; and 
           (3) begins generating electricity after June 30, 1997.  
           Sec. 5.  Minnesota Statutes 1994, section 216C.41, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INCENTIVE PAYMENT.] Incentive payments shall be 
        made according to this section to the owner or operator of a 
        qualified hydropower facility or qualified wind energy 
        conversion facility for electric energy generated and sold by 
        the facility.  Payment may only be made upon receipt by the 
        commissioner of finance of an incentive payment application that 
        establishes that the applicant is eligible to receive an 
        incentive payment and that satisfies other requirements the 
        commissioner deems necessary.  The application shall be in a 
        form and submitted at a time the commissioner establishes.  
        There is annually appropriated from the general fund sums 
        sufficient to make the payments required under this section.  
           Sec. 6.  Minnesota Statutes 1994, section 216C.41, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBILITY WINDOW.] Payments may be made under 
        this section only for electricity generated: 
           (a) from a qualified hydroelectric facility that is 
        operational and generating electricity before January 1, 2001; 
        or 
           (b) from a qualified wind energy conversion facility that 
        is operational and generating electricity before January 1, 2005.
           Sec. 7.  Minnesota Statutes 1994, section 216C.41, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PAYMENT PERIOD.] A facility may receive payments 
        under this section for a ten-year period.  No payment under this 
        section may be made for electricity generated: 
           (a) by a qualified hydroelectric facility after December 
        31, 2010; or 
           (b) by a qualified wind energy conversion facility after 
        December 31, 2015.  
           The payment period begins and runs consecutively from the 
        first year in which electricity generated from the facility is 
        eligible for incentive payment. 
           Sec. 8.  Minnesota Statutes 1994, section 216C.41, 
        subdivision 5, is amended to read: 
           Subd. 5.  [AMOUNT OF PAYMENT.] An incentive payment is 
        based on the number of kilowatt hours of electricity generated. 
        The amount of the payment is 1.5 cents per kilowatt hour.  For 
        electricity generated by qualified wind energy conversion 
        facilities, the incentive payment under this section is limited 
        to no more than 100 megawatts of nameplate capacity.  During any 
        period in which qualifying claims for incentive payments exceed 
        100 megawatts of nameplate capacity, the payments must be made 
        to producers in the order in which the production capacity was 
        brought into production.  
           Sec. 9.  [ADDITIONAL LIMIT ON INCENTIVE PAYMENTS TO WIND 
        ENERGY CONVERSION FACILITIES.] 
           During the biennium ending June 30, 1999, incentive 
        payments for wind energy conversion facilities under Minnesota 
        Statutes, section 216C.41, are limited to no more than 7.5 
        megawatts of nameplate capacity.  During a period in which 
        qualifying claims for incentive payments exceed 7.5 megawatts of 
        nameplate capacity, the payments must be made to producers in 
        the order in which the production capacity was brought into 
        production. 
           Sec. 10.  [EFFECTIVE DATE.] 
           Sections 1 to 9 are effective the day after final enactment.
           Presented to the governor May 30, 1995 
           Signed by the governor June 1, 1995, 11:25 a.m.