1999 Minnesota Statutes

     216C.41 Renewable energy production incentive. 

    Subdivision 1.    Definitions.  (a) The definitions in 
 this subdivision apply to this section. 

    (b) "Qualified hydroelectric 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) produces two megawatts or less of electricity as 
 measured by nameplate rating and begins generating electricity 
 after June 30, 1997, and before July 1, 1999; 

    (2) begins generating electricity after June 30, 1999, 
 produces two megawatts or less of electricity as measured by 
 nameplate rating, and is: 

    (i) located within one county and owned by a natural person 
 who owns the land where the facility is sited; 

    (ii) owned by a Minnesota small business as defined in 
 section 645.445; 

    (iii) owned by a nonprofit organization; or 

    (iv) owned by a tribal council if the facility is located 
 within the boundaries of the reservation; or 

    (3) begins generating electricity after June 30, 1999, 
 produces seven megawatts or less of electricity as measured by 
 nameplate rating, and: 

    (i) is owned by a cooperative organized under chapter 308A; 
 and 

    (ii) 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 the wind 
 energy production facilities of the cooperative are located. 

    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 or, for a publicly owned hydropower facility, for 
 electric energy that is generated by the facility and used by 
 the owner of the facility outside 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.  

    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.

    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. 

    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.  

    HIST: 1994 c 643 s 71; 1995 c 245 s 4-8; 1997 c 216 s 124; 
 1999 c 223 art 2 s 34,35