NOTE: Subdivision 2 was also amended by Laws 2016, chapter 135, article 4, section 9, to read as follows:
(a) The terms used in this section have the meanings given them in this subdivision.
(b) "C-BED tariff" or "tariff" means a community-based energy development tariff.
(c) "Qualifying beneficiary" means:
(1) a Minnesota resident individually or as a member of a Minnesota limited liability company organized under chapter 322B or 322C and formed for the purpose of developing a C-BED project;
(2) a Minnesota nonprofit organization organized under chapter 317A;
(3) a Minnesota cooperative association organized under chapter 308A or 308B, including a rural electric cooperative association or a generation and transmission cooperative on behalf of and at the request of a member distribution utility;
(4) a Minnesota political subdivision or local government including, but not limited to, a municipal electric utility, or a municipal power agency on behalf of and at the request of a member distribution utility; the office of the commissioner of Iron Range resources and rehabilitation; a county, statutory or home rule charter city, town, school district, or public or private higher education institution; or any other local or regional governmental organization such as a board, commission, or association;
(5) a tribal council; or
(6) a legal entity (i) formed for a purpose other than to participate in C-BED projects; (ii) whose principal place of business or principal executive office is located in Minnesota; and (iii) that provides labor, services, equipment, components, or debt financing to a C-BED project.
A public utility, as defined in section 216B.02, subdivision 4, is not a qualifying beneficiary.
(d) "Qualifying revenue" includes, but is not limited to:
(1) royalties, distributions, dividends, and other payments flowing directly or indirectly to individuals who are qualifying beneficiaries;
(2) reasonable fees for consulting, development, professional, construction, and operations and maintenance services paid to qualifying beneficiaries;
(3) interest and fees paid to financial institutions that are qualifying beneficiaries;
(4) the value-added portion of payments for goods manufactured in Minnesota; and
(5) production taxes.
(e) "Discount rate" means the ten-year United States Treasury Yield as quoted in the Wall Street Journal as of the date of application for determination under subdivision 10, plus five percent; except that the discount rate applicable to any qualifying revenues contingent upon an equity investor earning a specified internal rate of return is the ten-year United States Treasury Yield, plus eight percent.
(f) "Standard reliability criteria" means:
(1) can be safely integrated into and operated within the utility's grid without causing any adverse or unsafe consequences; and
(2) is consistent with the utility's resource needs as identified in its most recent resource plan submitted under section 216B.2422.
(g) "Renewable" refers to a technology listed in section 216B.1691, subdivision 1, paragraph (a).
(h) "Community-based energy development project" or "C-BED project" means a new renewable energy project that either as a stand-alone project or part of a partnership under subdivision 8:
(1) has no single qualifying beneficiary, including any parent company or subsidiary of the qualifying beneficiary, owning more than 15 percent of a C-BED wind energy project unless: (i) the C-BED wind energy project consists of only one or two turbines; or (ii) the qualifying beneficiary is a public entity listed under paragraph (c), clause (4);
(2) demonstrates that at least 51 percent of the net present value of the gross revenues from a power purchase agreement over the life of the project are qualifying revenues; and
(3) has a resolution of support adopted by the county board of each county in which the project is to be located, or in the case of a project located within the boundaries of a reservation, the tribal council for that reservation.
(i) "Value-added portion" means the difference between the total sales price and the total cost of components, materials, and services purchased from or provided outside of Minnesota."
Official Publication of the State of Minnesota
Revisor of Statutes