Bill Text: MN HF2650 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Renewable development account regulated. [Track Bill]
Status: 2012-03-30 - HF indefinitely postponed [HF2650 Detail]
Download: Minnesota-2011-HF2650-Engrossed.html
1.2relating to energy; regulating the renewable development account; amending
1.3Minnesota Statutes 2010, section 116C.779, subdivision 2; Minnesota Statutes
1.42011 Supplement, section 116C.779, subdivision 1; repealing Laws 2003, First
1.5Special Session chapter 11, article 2, section 17.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2011 Supplement, section 116C.779, subdivision 1,
1.8is amended to read:
1.9 Subdivision 1. Renewable development account. (a) The public utility that owns
1.10the Prairie Island nuclear generating plant must transfer to a renewable development
1.11account $500,000 each year for each dry cask containing spent fuel that is located at the
1.12Prairie Island power plant for each year the plant is in operation, and $7,500,000 each year
1.13the plant is not in operation if ordered by the commission pursuant to paragraph(d) (c).
1.14The fund transfer must be made if nuclear waste is stored in a dry cask at the independent
1.15spent-fuel storage facility at Prairie Island for any part of a year.Funds in the account
1.16may be expended only for development of renewable energy sources. Preference must be
1.17given to development of renewable energy source projects located within the state. The
1.18utility that owns a nuclear generating plant is eligible to apply for renewable development
1.19fund grants. The utility's proposals must be evaluated by the renewable development fund
1.20board in a manner consistent with that used to evaluate other renewable development fund
1.21project proposals.
1.22 (b) The public utility that owns the Monticello nuclear generating plant must transfer
1.23to the renewable development account $350,000 each year for each dry cask containing
1.24spent fuel that is located at the Monticello nuclear power plant for each year the plant is
1.25in operation, and $5,250,000 each year the plant is not in operation if ordered by the
2.1commission pursuant to paragraph(d) (c). The fund transfer must be made if nuclear
2.2waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
2.3any part of a year.
2.4(c) Expenditures authorized by this subdivision from the account may only be made
2.5after approval by order of the Public Utilities Commission upon a petition by the public
2.6utility. Commission approval is not required for expenditures required under subdivisions
2.72 and 3, section
116C.7791, or other law.
2.8(d) (c) After discontinuation of operation of the Prairie Island nuclear plant or the
2.9Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
2.10discontinued facility, the commission shall require the public utility to pay $7,500,000 for
2.11the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
2.12facility for any year in which the commission finds, by the preponderance of the evidence,
2.13that the public utility did not make a good faith effort to remove the spent nuclear
2.14fuel stored at the facility to a permanent or interim storage site out of the state. This
2.15determination shall be made at least every two years.
2.16(d) Funds in the account may be expended only for any of the following purposes:
2.17(1) to increase the market penetration within the state of renewable electric energy
2.18resources at reasonable costs;
2.19(2) to promote the start-up, expansion, and attraction of renewable electric energy
2.20projects and companies within the state;
2.21(3) to stimulate research and development within the state into renewable electric
2.22energy technologies; and
2.23(4) to develop near-commercial and demonstration scale renewable electric or
2.24near-commercial and demonstration scale electric infrastructure efficiency projects
2.25beneficial to the public utility's ratepayers.
2.26The utility that owns a nuclear generating plant is eligible to apply for renewable
2.27development account grants.
2.28(e) Expenditures authorized by this subdivision from the account may only be made
2.29after approval by order of the Public Utilities Commission upon a petition by the public
2.30utility. The commission may approve proposed expenditures, may disapprove proposed
2.31expenditures that it finds not to be in compliance with this subdivision or otherwise
2.32not in the public interest, and may, if agreed to by the public utility, modify proposed
2.33expenditures. The commission may approve reasonable and necessary expenditures
2.34for administering the account in an amount not to exceed five percent of expenditures.
2.35Commission approval is not required for expenditures required under subdivisions 2 and
2.363, section116C.7791 , or other law.
3.1(f) The account shall be managed by the public utility but the public utility must
3.2consult about account expenditures with an advisory group that includes, among others,
3.3representatives of its ratepayers. The commission may require that other interests be
3.4represented on the advisory group. The advisory group must be consulted with respect to
3.5the general scope of expenditures in designing a request for proposal and in evaluating
3.6projects submitted in response to a request for proposals. In addition to consulting with
3.7the advisory group, the public utility must utilize an independent third-party expert to
3.8evaluate proposals submitted in response to a request for proposal, including all proposals
3.9made by the public utility. The utility should attempt to reach agreement with the advisory
3.10group after consulting with it but the utility has full and sole authority to determine which
3.11expenditures shall be submitted to the commission for commission approval. In the
3.12process of determining request for proposal scope and subject and in evaluating responses
3.13to request for proposals, the public utility must strongly consider, where reasonable,
3.14potential benefit to Minnesota citizens and businesses and the utility's ratepayers.
3.15(g) Funds in the account may not be directly appropriated by the legislature by a
3.16law enacted after January 1, 2012, and unless appropriated by a law enacted prior to
3.17that date may only be expended pursuant to an order of the commission according to
3.18this subdivision.
3.19(h) A request for proposal for renewable energy generation projects must, when
3.20feasible and reasonable, give preference to projects that are most cost-effective for a
3.21particular energy source.
3.22(i) The public utility must annually, by February 15, report to the chair and ranking
3.23minority member of the legislative committees with jurisdiction over energy policy on
3.24projects funded by the account for the prior year and all previous years. The report must,
3.25to the extent possible and reasonable, itemize the actual and projected financial benefit to
3.26the public utility's ratepayers of each project.
3.27(j) A project receiving funds from the account must produce a written final report
3.28that includes sufficient detail for technical readers and a clearly written summary for
3.29nontechnical readers. The report must include an evaluation of the project's financial,
3.30environmental, and other benefits to the state and the public utility's ratepayers.
3.31(k) Final reports and any mid-project status reports, and renewable development
3.32account financial reports must be posted online on a public Web site designated by the
3.33commission.
3.34(l) All final reports must acknowledge that the project was made possible in whole
3.35or part by the Minnesota renewable development fund, noting that the fund is financed
3.36by the public utility's ratepayers.
4.1EFFECTIVE DATE.This section is effective July 1, 2012.
4.2 Sec. 2. Minnesota Statutes 2010, section 116C.779, subdivision 2, is amended to read:
4.3 Subd. 2. Renewable energy production incentive. (a) Until January 1, 2021,
4.4$10,900,000 annually must be allocated from available funds in the account to fund
4.5renewable energy production incentives. $9,400,000 of this annual amount is for
4.6incentives for electricity generated by wind energy conversion systems that are eligible for
4.7the incentives under section216C.41 or Laws 2005, chapter 40.
4.8(b) The balance of this amount, up to $1,500,000 annually, may be used for
4.9production incentives for on-farm biogas recovery facilities and hydroelectric facilities
4.10that are eligible for the incentive under section216C.41 or for production incentives for
4.11other renewables, to be provided in the same manner as under section216C.41 .
4.12(c) Any portion of the $10,900,000 not expended in any calendar year for the
4.13incentive is available for other spending purposes underthis section subdivision 1. This
4.14subdivision does not create an obligation to contribute funds to the account.
4.15(d) The Department of Commerce shall determine eligibility of projects under
4.16section216C.41 for the purposes of this subdivision. At least quarterly, the Department of
4.17Commerce shall notify the public utility of the name and address of each eligible project
4.18owner and the amount due to each project under section216C.41 . The public utility shall
4.19make payments within 15 working days after receipt of notification of payments due.
4.20EFFECTIVE DATE.This section is effective July 1, 2012.
4.21 Sec. 3. REPEALER.
4.22Laws 2003, First Special Session chapter 11, article 2, section 17, is repealed.
4.23EFFECTIVE DATE.This section is effective the day following final enactment.
1.3Minnesota Statutes 2010, section 116C.779, subdivision 2; Minnesota Statutes
1.42011 Supplement, section 116C.779, subdivision 1; repealing Laws 2003, First
1.5Special Session chapter 11, article 2, section 17.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2011 Supplement, section 116C.779, subdivision 1,
1.8is amended to read:
1.9 Subdivision 1. Renewable development account. (a) The public utility that owns
1.10the Prairie Island nuclear generating plant must transfer to a renewable development
1.11account $500,000 each year for each dry cask containing spent fuel that is located at the
1.12Prairie Island power plant for each year the plant is in operation, and $7,500,000 each year
1.13the plant is not in operation if ordered by the commission pursuant to paragraph
1.14The fund transfer must be made if nuclear waste is stored in a dry cask at the independent
1.15spent-fuel storage facility at Prairie Island for any part of a year.
1.16
1.17
1.18
1.19
1.20
1.21
1.22 (b) The public utility that owns the Monticello nuclear generating plant must transfer
1.23to the renewable development account $350,000 each year for each dry cask containing
1.24spent fuel that is located at the Monticello nuclear power plant for each year the plant is
1.25in operation, and $5,250,000 each year the plant is not in operation if ordered by the
2.1commission pursuant to paragraph
2.2waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
2.3any part of a year.
2.4
2.5
2.6
2.7
2.8
2.9Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
2.10discontinued facility, the commission shall require the public utility to pay $7,500,000 for
2.11the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
2.12facility for any year in which the commission finds, by the preponderance of the evidence,
2.13that the public utility did not make a good faith effort to remove the spent nuclear
2.14fuel stored at the facility to a permanent or interim storage site out of the state. This
2.15determination shall be made at least every two years.
2.16(d) Funds in the account may be expended only for any of the following purposes:
2.17(1) to increase the market penetration within the state of renewable electric energy
2.18resources at reasonable costs;
2.19(2) to promote the start-up, expansion, and attraction of renewable electric energy
2.20projects and companies within the state;
2.21(3) to stimulate research and development within the state into renewable electric
2.22energy technologies; and
2.23(4) to develop near-commercial and demonstration scale renewable electric or
2.24near-commercial and demonstration scale electric infrastructure efficiency projects
2.25beneficial to the public utility's ratepayers.
2.26The utility that owns a nuclear generating plant is eligible to apply for renewable
2.27development account grants.
2.28(e) Expenditures authorized by this subdivision from the account may only be made
2.29after approval by order of the Public Utilities Commission upon a petition by the public
2.30utility. The commission may approve proposed expenditures, may disapprove proposed
2.31expenditures that it finds not to be in compliance with this subdivision or otherwise
2.32not in the public interest, and may, if agreed to by the public utility, modify proposed
2.33expenditures. The commission may approve reasonable and necessary expenditures
2.34for administering the account in an amount not to exceed five percent of expenditures.
2.35Commission approval is not required for expenditures required under subdivisions 2 and
2.363, section
3.1(f) The account shall be managed by the public utility but the public utility must
3.2consult about account expenditures with an advisory group that includes, among others,
3.3representatives of its ratepayers. The commission may require that other interests be
3.4represented on the advisory group. The advisory group must be consulted with respect to
3.5the general scope of expenditures in designing a request for proposal and in evaluating
3.6projects submitted in response to a request for proposals. In addition to consulting with
3.7the advisory group, the public utility must utilize an independent third-party expert to
3.8evaluate proposals submitted in response to a request for proposal, including all proposals
3.9made by the public utility. The utility should attempt to reach agreement with the advisory
3.10group after consulting with it but the utility has full and sole authority to determine which
3.11expenditures shall be submitted to the commission for commission approval. In the
3.12process of determining request for proposal scope and subject and in evaluating responses
3.13to request for proposals, the public utility must strongly consider, where reasonable,
3.14potential benefit to Minnesota citizens and businesses and the utility's ratepayers.
3.15(g) Funds in the account may not be directly appropriated by the legislature by a
3.16law enacted after January 1, 2012, and unless appropriated by a law enacted prior to
3.17that date may only be expended pursuant to an order of the commission according to
3.18this subdivision.
3.19(h) A request for proposal for renewable energy generation projects must, when
3.20feasible and reasonable, give preference to projects that are most cost-effective for a
3.21particular energy source.
3.22(i) The public utility must annually, by February 15, report to the chair and ranking
3.23minority member of the legislative committees with jurisdiction over energy policy on
3.24projects funded by the account for the prior year and all previous years. The report must,
3.25to the extent possible and reasonable, itemize the actual and projected financial benefit to
3.26the public utility's ratepayers of each project.
3.27(j) A project receiving funds from the account must produce a written final report
3.28that includes sufficient detail for technical readers and a clearly written summary for
3.29nontechnical readers. The report must include an evaluation of the project's financial,
3.30environmental, and other benefits to the state and the public utility's ratepayers.
3.31(k) Final reports and any mid-project status reports, and renewable development
3.32account financial reports must be posted online on a public Web site designated by the
3.33commission.
3.34(l) All final reports must acknowledge that the project was made possible in whole
3.35or part by the Minnesota renewable development fund, noting that the fund is financed
3.36by the public utility's ratepayers.
4.1EFFECTIVE DATE.This section is effective July 1, 2012.
4.2 Sec. 2. Minnesota Statutes 2010, section 116C.779, subdivision 2, is amended to read:
4.3 Subd. 2. Renewable energy production incentive. (a) Until January 1, 2021,
4.4$10,900,000 annually must be allocated from available funds in the account to fund
4.5renewable energy production incentives. $9,400,000 of this annual amount is for
4.6incentives for electricity generated by wind energy conversion systems that are eligible for
4.7the incentives under section
4.8(b) The balance of this amount, up to $1,500,000 annually, may be used for
4.9production incentives for on-farm biogas recovery facilities and hydroelectric facilities
4.10that are eligible for the incentive under section
4.11other renewables, to be provided in the same manner as under section
4.12(c) Any portion of the $10,900,000 not expended in any calendar year for the
4.13incentive is available for other spending purposes under
4.14subdivision does not create an obligation to contribute funds to the account.
4.15(d) The Department of Commerce shall determine eligibility of projects under
4.16section
4.17Commerce shall notify the public utility of the name and address of each eligible project
4.18owner and the amount due to each project under section
4.19make payments within 15 working days after receipt of notification of payments due.
4.20EFFECTIVE DATE.This section is effective July 1, 2012.
4.21 Sec. 3. REPEALER.
4.22Laws 2003, First Special Session chapter 11, article 2, section 17, is repealed.
4.23EFFECTIVE DATE.This section is effective the day following final enactment.
