1.1                          A bill for an act 
  1.2             relating to energy; modifying provisions relating to 
  1.3             wind power; amending Minnesota Statutes 1998, sections 
  1.4             116C.692; 216B.1645; and 216B.243, subdivision 8. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1998, section 116C.692, is 
  1.7   amended to read: 
  1.8      116C.692 [EXEMPTIONS.] 
  1.9      (a) The requirements of sections 116C.51 to 116C.69 do not 
  1.10  apply to the siting of LWECS, except for sections 116C.52; 
  1.11  ~~116C.57, subdivision 4; 116C.59;~~ 116C.62; 116C.63; 116C.645; 
  1.12  116C.65; 116C.68; and 116C.69, subdivision 3, which do 
  1.13  apply.  For any LWECS and SWECS to be constructed in accordance 
  1.14  with section 216B.2423, the associated substation, transmission, 
  1.15  and distribution facilities are included under this exemption. 
  1.16     (b) Any person may construct an SWECS without complying 
  1.17  with sections 116C.51 to 116C.69 and 116C.691 to 116C.697. 
  1.18     (c) Nothing in sections 116C.691 to 116C.697 shall preclude 
  1.19  a local governmental unit from establishing requirements for the 
  1.20  siting and construction of SWECS. 
  1.21     Sec. 2.  Minnesota Statutes 1998, section 216B.1645, is 
  1.22  amended to read: 
  1.23     216B.1645 [POWER PURCHASE CONTRACT OR INVESTMENT.] 
  1.24     Upon the petition of a public utility, the public utilities 
  1.25  commission shall approve or disapprove power purchase contracts 
  2.1   or investments, including but not limited to those necessary for 
  2.2   generation, transmission, distribution, and substations, entered 
  2.3   into or made by the utility to satisfy the wind and biomass 
  2.4   mandates contained in sections 216B.2423 and 216B.2424.  The 
  2.5   expenses incurred by the utility over the duration of the 
  2.6   approved contract or useful life of the investment shall be 
  2.7   recoverable from the ratepayers of the utility, to the extent 
  2.8   they are not offset by utility revenues attributable to the 
  2.9   contracts or investments.  Upon petition by a public utility, 
  2.10  the commission shall approve or approve as modified a rate 
  2.11  schedule providing for the automatic adjustment of charges to 
  2.12  recover the expenses or costs approved by the commission.  
  2.13  Nothing in this section shall be construed to determine the 
  2.14  manner or extent to which revenues derived from other generation 
  2.15  facilities of the utility may be considered in determining the 
  2.16  recovery of the approved cost or expenses associated with the 
  2.17  mandated contracts or investments in the event there is retail 
  2.18  competition for electric energy. 
  2.19     Sec. 3.  Minnesota Statutes 1998, section 216B.243, 
  2.20  subdivision 8, is amended to read: 
  2.21     Subd. 8.  [EXEMPTIONS.] This section does not apply to 
  2.22  cogeneration or small power production facilities as defined in 
  2.23  the Federal Power Act, United States Code, title 16, sections 
  2.24  796(18)(A) and 796(17)(A), and having a combined capacity at a 
  2.25  single site of less than 80,000 kilowatts ~~or~~, to plants or 
  2.26  facilities for the production of ethanol or fuel alcohol, to 
  2.27  plants or facilities built in conjunction with section 
  2.28  216B.2423, nor in any case where the commission shall determine 
  2.29  after being advised by the attorney general that its application 
  2.30  has been preempted by federal law.