Bill Text: MN HF191 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Community-based energy development projects tariff issues modified, and eligibility review added.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2013-01-28 - Introduction and first reading, referred to Energy Policy [HF191 Detail]
Download: Minnesota-2013-HF191-Introduced.html
1.2relating to energy; utilities; community-based energy development projects;
1.3modifying tariff issues; adding an eligibility review;amending Minnesota
1.4Statutes 2012, section 216B.1612, subdivisions 3, 7, by adding subdivisions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 216B.1612, subdivision 3, is amended to
1.7read:
1.8 Subd. 3. Tariff rate. (a) The tariff described in subdivision 4 must provide for a rate
1.9that is higher in the first ten years of the power purchase agreement than in the last ten years.
1.10(b) The commission shall consider mechanisms to encourage the aggregation
1.11of C-BED projects.
1.12(c) (b) The commission shall require that C-BED projects provide sufficient security
1.13to secure performance under the power purchase agreement, and shall prohibit transfer of
1.14a C-BED project during the initial term of a power purchase agreement if the transfer will
1.15result in the project no longer qualifying under subdivision 2, paragraph (h).
1.16EFFECTIVE DATE.This section is effective the day following final enactment.
1.17 Sec. 2. Minnesota Statutes 2012, section 216B.1612, subdivision 7, is amended to read:
1.18 Subd. 7. Other C-BED tariff issues. (a) A community-based project developer
1.19and a utility shall negotiate the rate and power purchase agreement terms consistent with
1.20the tariff established under subdivision 4.
1.21 (b) At the discretion of the developer, a community-based project developer and a
1.22utility may negotiate a power purchase agreement entered into before July 1, 2013, with
1.23terms different from the tariff established under subdivision 4.
2.1 (c) A C-BED project may be jointly developed with a non-C-BED project. However,
2.2the terms of the C-BED tariff may only apply to the portion of the energy production of
2.3the total project that is directly proportional to the energy produced by the C-BED project.
2.4A project that is operating under a power purchase agreement under a C-BED tariff is not
2.5eligible for net energy billing under section216B.164, subdivision 3 , or for production
2.6incentives under section216C.41 .
2.7 (d) A public utility must receive commission approval of a power purchase
2.8agreement for a C-BED tariffed project. The commission shall provide the utility's
2.9ratepayers an opportunity to address the reasonableness of the proposed power purchase
2.10agreement. Unless a party objects to a contract within 30 days of submission of the
2.11contract to the commission the contract is deemed approved.
2.12EFFECTIVE DATE.This section is effective the day following final enactment.
2.13 Sec. 3. Minnesota Statutes 2012, section 216B.1612, is amended by adding a
2.14subdivision to read:
2.15 Subd. 8a. Aggregation. The commission shall consider mechanisms to encourage
2.16the aggregation of C-BED projects.
2.17EFFECTIVE DATE.This section is effective the day following final enactment.
2.18 Sec. 4. Minnesota Statutes 2012, section 216B.1612, is amended by adding a
2.19subdivision to read:
2.20 Subd. 11. C-BED eligibility review. Beginning July 1, 2013, and each year
2.21thereafter, a C-BED project that has received a determination of eligibility from the
2.22commissioner must submit to the commission, on a form developed by the commission,
2.23evidence that the project continues to meet all the qualifying criteria established under
2.24subdivision 2, paragraph (h), clauses (1) and (2), and subdivision 3. If the commission,
2.25after reviewing this information and any other information it deems relevant, determines
2.26that a C-BED project no longer meets all the qualifying criteria established under
2.27subdivision 2, paragraph (h), clauses (1) and (2), and subdivision 3, the commission shall
2.28revoke the project's C-BED eligibility determination.
2.29EFFECTIVE DATE.This section is effective the day following final enactment.
1.3modifying tariff issues; adding an eligibility review;amending Minnesota
1.4Statutes 2012, section 216B.1612, subdivisions 3, 7, by adding subdivisions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 216B.1612, subdivision 3, is amended to
1.7read:
1.8 Subd. 3. Tariff rate. (a) The tariff described in subdivision 4 must provide for a rate
1.9that is higher in the first ten years of the power purchase agreement than in the last ten years.
1.10
1.11
1.12
1.13to secure performance under the power purchase agreement, and shall prohibit transfer of
1.14a C-BED project during the initial term of a power purchase agreement if the transfer will
1.15result in the project no longer qualifying under subdivision 2, paragraph (h).
1.16EFFECTIVE DATE.This section is effective the day following final enactment.
1.17 Sec. 2. Minnesota Statutes 2012, section 216B.1612, subdivision 7, is amended to read:
1.18 Subd. 7. Other C-BED tariff issues. (a) A community-based project developer
1.19and a utility shall negotiate the rate and power purchase agreement terms consistent with
1.20the tariff established under subdivision 4.
1.21 (b) At the discretion of the developer, a community-based project developer and a
1.22utility may negotiate a power purchase agreement entered into before July 1, 2013, with
1.23terms different from the tariff established under subdivision 4.
2.1 (c) A C-BED project may be jointly developed with a non-C-BED project. However,
2.2the terms of the C-BED tariff may only apply to the portion of the energy production of
2.3the total project that is directly proportional to the energy produced by the C-BED project.
2.4A project that is operating under a power purchase agreement under a C-BED tariff is not
2.5eligible for net energy billing under section
2.6incentives under section
2.7 (d) A public utility must receive commission approval of a power purchase
2.8agreement for a C-BED tariffed project. The commission shall provide the utility's
2.9ratepayers an opportunity to address the reasonableness of the proposed power purchase
2.10agreement. Unless a party objects to a contract within 30 days of submission of the
2.11contract to the commission the contract is deemed approved.
2.12EFFECTIVE DATE.This section is effective the day following final enactment.
2.13 Sec. 3. Minnesota Statutes 2012, section 216B.1612, is amended by adding a
2.14subdivision to read:
2.15 Subd. 8a. Aggregation. The commission shall consider mechanisms to encourage
2.16the aggregation of C-BED projects.
2.17EFFECTIVE DATE.This section is effective the day following final enactment.
2.18 Sec. 4. Minnesota Statutes 2012, section 216B.1612, is amended by adding a
2.19subdivision to read:
2.20 Subd. 11. C-BED eligibility review. Beginning July 1, 2013, and each year
2.21thereafter, a C-BED project that has received a determination of eligibility from the
2.22commissioner must submit to the commission, on a form developed by the commission,
2.23evidence that the project continues to meet all the qualifying criteria established under
2.24subdivision 2, paragraph (h), clauses (1) and (2), and subdivision 3. If the commission,
2.25after reviewing this information and any other information it deems relevant, determines
2.26that a C-BED project no longer meets all the qualifying criteria established under
2.27subdivision 2, paragraph (h), clauses (1) and (2), and subdivision 3, the commission shall
2.28revoke the project's C-BED eligibility determination.
2.29EFFECTIVE DATE.This section is effective the day following final enactment.
