Minnesota Session Laws - 1997, Regular Session

                            CHAPTER 176-S.F.No. 1328 
                  An act relating to renewable energy; providing for 
                  action by the public utilities commission on purchases 
                  of wind and biomass power; exempting certain plants 
                  from certificate of need proceedings; requiring a 
                  study; amending Minnesota Statutes 1996, section 
                  216B.2422, subdivision 5; proposing coding for new law 
                  in Minnesota Statutes, chapter 216B. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [216B.1645] [POWER PURCHASE CONTRACTS OR 
        INVESTMENTS.] 
           Upon the petition of a public utility, the public utilities 
        commission shall approve or disapprove power purchase contracts 
        or investments entered into or made by the utility to satisfy 
        the wind and biomass mandates contained in sections 216B.2423 
        and 216B.2424.  The expenses incurred in accordance with the 
        contract and the reasonable investments made by a public utility 
        with the approval of the commission shall be included by the 
        commission in its determination of just and reasonable rates.  
        Upon petition by a public utility, the commission shall approve 
        or approve as modified a rate schedule providing for the 
        automatic adjustment of charges to recover the expenses or costs 
        approved by the commission. 
           Sec. 2.  Minnesota Statutes 1996, section 216B.2422, 
        subdivision 5, is amended to read: 
           Subd. 5.  [BIDDING; EXEMPTION FROM CERTIFICATE OF NEED 
        PROCEEDING.] (a) A utility may select resources to meet its 
        projected energy demand through a bidding process approved or 
        established by the commission.  A utility shall use the 
        environmental cost estimates determined under subdivision 3 in 
        evaluating bids submitted in a process established under this 
        subdivision. 
           (b) A certificate of need proceeding is not required for an 
        electric power generating plant that has been selected in a 
        bidding process approved or established by the commission, or 
        such other selection process approved by the commission, to 
        satisfy, in whole or in part, the wind power mandate of section 
        216B.2423 or the biomass mandate of section 216B.2424. 
           Sec. 3.  [EVALUATION OF BIOMASS FACILITIES.] 
           The commissioner of agriculture shall evaluate alternative 
        financing mechanisms by which the cost of financing biomass 
        energy projects can be reduced to improve the financial 
        viability of such projects and produce savings for electric 
        energy consumers in the state. 
           The analysis must include the extent to which financial 
        participation of public and private institutions can achieve 
        interest savings for the incremental development of biomass 
        energy projects.  Financing options to be reviewed must include: 
           (1) use of the bonding capacity of existing public 
        financing authorities; 
           (2) private financing options for biomass energy 
        facilities; 
           (3) establishment of a new development authority to 
        facilitate public financial participation in biomass energy 
        projects; 
           (4) issuance of tax exempt or taxable state general 
        obligation bonds to produce interest savings for development of 
        biomass energy facilities; and 
           (5) production credit payments for biomass energy 
        production. 
           In conducting this analysis, the commissioner shall work 
        with the commissioners of finance, public service, and trade and 
        economic development and with stakeholders involved in 
        farm-grown, closed-loop biomass energy projects.  The analysis 
        with recommendations must be submitted to the legislature by 
        January 15, 1998. 
           Presented to the governor May 17, 1997 
           Signed by the governor May 19, 1997, 7:12 p.m.