Minnesota 2025-2026 Regular Session

Minnesota House Bill HF3229 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to energy; requiring spent fuel located at Prairie Island to be transferred
3	3	1.3 to another site for storage; authorizing additional storage to be constructed at the
4	4	1.4 Monticello nuclear generating plant; authorizing the public utility to withhold
5	5	1.5 money from the renewable development account to pay for the cost to transport
6	6	1.6 spent fuel; amending Minnesota Statutes 2024, sections 116C.771; 116C.777;
7	7	1.7 116C.779, subdivision 1, by adding a subdivision; repealing Minnesota Statutes
8	8	1.8 2024, sections 116C.779, subdivision 2; 216C.41.
9	9	1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
10	10	1.10 Section 1. Minnesota Statutes 2024, section 116C.771, is amended to read:
11	11	1.11 116C.771 ADDITIONAL CASK LIMITATIONS.
12	12	1.12 (a) Five casks may be filled and used at Prairie Island on May 11, 1994.
13	13	1.13 (b) An additional four casks may be filled and used at Prairie Island if the Environmental
14	14	1.14Quality Board determines that, by December 31, 1996, the public utility operating the Prairie
15	15	1.15Island plant has filed a license application with the United States Nuclear Regulatory
16	16	1.16Commission for a spent nuclear fuel storage facility off of Prairie Island in Goodhue County,
17	17	1.17is continuing to make a good faith effort to implement the site, and has constructed,
18	18	1.18contracted for construction and operation, or purchased installed capacity of 100 megawatts
19	19	1.19of wind power in addition to wind power under construction or contract on May 11, 1994.
20	20	1.20 (c)(1) An additional eight casks may be filled and placed at Prairie Island if the legislature
21	21	1.21has not revoked the authorization under clause (2) or the public utility has satisfied the wind
22	22	1.22power and biomass mandate requirements in sections 216B.2423, subdivision 1, paragraph
23	23	1.23(a), clause (1), and 216B.2424, subdivision 5, paragraph (a), clause (1), and the alternative
24	24	1.24site in Goodhue County is operational or under construction.
25	25	1Section 1.
26	26	REVISOR RSI/CH 25-0513703/27/25
27	27	State of Minnesota
28	28	This Document can be made available
29	29	in alternative formats upon request
30	30	HOUSE OF REPRESENTATIVES
31	31	H. F. No. 3229
32	32	NINETY-FOURTH SESSION
33	33	Authored by Rarick and Igo04/23/2025
34	34	The bill was read for the first time and referred to the Committee on Energy Finance and Policy 2.1 (2) If the site is not under construction or operational or the wind mandates are not
35	35	2.2satisfied, the legislature may revoke the authorization for the additional eight casks by a
36	36	2.3law enacted prior to June 1, 1999.
37	37	2.4 (d) Except as provided under paragraph (e), dry cask storage capacity for high-level
38	38	2.5nuclear waste within the state may not be increased beyond the casks authorized by section
39	39	2.6116C.77 or their equivalent storage capacity.
40	40	2.7 (e) (d) This section does not prohibit a public utility from applying for or the Public
41	41	2.8Utilities Commission from granting a certificate of need for dry cask storage to accommodate
42	42	2.9the decommissioning of a nuclear power plant within this state.
43	43	2.10 (e) An additional spent fuel storage facility must be constructed at the Monticello nuclear
44	44	2.11generating plant to store spent nuclear fuel transferred from the Prairie Island nuclear
45	45	2.12generating plant.
46	46	2.13 Sec. 2. Minnesota Statutes 2024, section 116C.777, is amended to read:
47	47	2.14 116C.777 SITE.
48	48	2.15 By January 1, 2028, the spent fuel contents of dry casks located on Prairie Island must
49	49	2.16be moved immediately upon the availability of another site for storage of the spent fuel that
50	50	2.17is not located on Prairie Island or at Monticello.
51	51	2.18 Sec. 3. Minnesota Statutes 2024, section 116C.779, subdivision 1, is amended to read:
52	52	2.19 Subdivision 1.Renewable development account.(a) The renewable development
53	53	2.20account is established as a separate account in the special revenue fund in the state treasury.
54	54	2.21Appropriations and transfers to the account shall be credited to the account. Earnings, such
55	55	2.22as interest, dividends, and any other earnings arising from assets of the account, shall be
56	56	2.23credited to the account. Funds remaining in the account at the end of a fiscal year are not
57	57	2.24canceled to the general fund but remain in the account until expended. The account shall
58	58	2.25be administered by the commissioner of management and budget as provided under this
59	59	2.26section.
60	60	2.27 (b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
61	61	2.28plant must transfer all funds in the renewable development account previously established
62	62	2.29under this subdivision and managed by the public utility to the renewable development
63	63	2.30account established in paragraph (a). Funds awarded to grantees in previous grant cycles
64	64	2.31that have not yet been expended and unencumbered funds required to be paid in calendar
65	65	2Sec. 3.
66	66	REVISOR RSI/CH 25-0513703/27/25 3.1year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject
67	67	3.2to transfer under this paragraph.
68	68	3.3 (c) (b) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
69	69	3.4each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
70	70	3.5plant must transfer to the renewable development account $500,000 each year for each dry
71	71	3.6cask containing spent fuel that is located at the Prairie Island power plant for each year the
72	72	3.7plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by
73	73	3.8the commission pursuant to paragraph (i) (e). The fund transfer must be made if nuclear
74	74	3.9waste is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island
75	75	3.10for any part of a year. The total amount transferred annually under this paragraph must be
76	76	3.11reduced by $3,750,000.
77	77	3.12 (d) (c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
78	78	3.13each January 15 thereafter until January 15, 2028, the public utility that owns the Monticello
79	79	3.14nuclear generating plant must transfer to the renewable development account $350,000 each
80	80	3.15year for each dry cask containing spent fuel that is located at the Monticello nuclear power
81	81	3.16plant for each year the plant is in operation, and $5,250,000 each year the plant is not in
82	82	3.17operation if ordered by the commission pursuant to paragraph (i) (e). The fund transfer must
83	83	3.18be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility
84	84	3.19at Monticello for any part of a year.
85	85	3.20 (e) (d) Each year, the public utility shall withhold from the funds transferred to the
86	86	3.21renewable development account under paragraphs (b) and (c) and (d) the amount necessary
87	87	3.22to pay its obligations under paragraphs (f) and (g), and sections section 116C.7792 and
88	88	3.23216C.41, for that calendar year.
89	89	3.24 (f) If the commission approves a new or amended power purchase agreement, the
90	90	3.25termination of a power purchase agreement, or the purchase and closure of a facility under
91	91	3.26section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
92	92	3.27the public utility subject to this section shall enter into a contract with the city in which the
93	93	3.28poultry litter plant is located to provide grants to the city for the purposes of economic
94	94	3.29development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
95	95	3.30fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
96	96	3.31by the public utility from funds withheld from the transfer to the renewable development
97	97	3.32account, as provided in paragraphs (b) and (e).
98	98	3.33 (g) If the commission approves a new or amended power purchase agreement, or the
99	99	3.34termination of a power purchase agreement under section 216B.2424, subdivision 9, with
100	100	3Sec. 3.
101	101	REVISOR RSI/CH 25-0513703/27/25 4.1an entity owned or controlled, directly or indirectly, by two municipal utilities located north
102	102	4.2of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
103	103	4.3section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
104	104	4.4grant contract with such entity to provide $6,800,000 per year for five years, commencing
105	105	4.530 days after the commission approves the new or amended power purchase agreement, or
106	106	4.6the termination of the power purchase agreement, and on each June 1 thereafter through
107	107	4.72021, to assist the transition required by the new, amended, or terminated power purchase
108	108	4.8agreement. The grant shall be paid by the public utility from funds withheld from the transfer
109	109	4.9to the renewable development account as provided in paragraphs (b) and (e).
110	110	4.10 (h) The collective amount paid under the grant contracts awarded under paragraphs (f)
111	111	4.11and (g) is limited to the amount deposited into the renewable development account, and its
112	112	4.12predecessor, the renewable development account, established under this section, that was
113	113	4.13not required to be deposited into the account under Laws 1994, chapter 641, article 1, section
114	114	4.1410.
115	115	4.15 (i) (e) After discontinuation of operation of the Prairie Island nuclear plant or the
116	116	4.16Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
117	117	4.17discontinued facility, the commission shall require the public utility to pay $7,500,000 for
118	118	4.18the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
119	119	4.19facility for any year in which the commission finds, by the preponderance of the evidence,
120	120	4.20that the public utility did not make a good faith effort to remove the spent nuclear fuel stored
121	121	4.21at the facility to a permanent or interim storage site out of the state. This determination shall
122	122	4.22be made at least every two years.
123	123	4.23 (j) (f) Funds in the account may be expended only for any of the following purposes:
124	124	4.24 (1) to stimulate research and development of renewable electric energy technologies;
125	125	4.25 (2) to encourage grid modernization, including, but not limited to, projects that implement
126	126	4.26electricity storage, load control, and smart meter technology; and
127	127	4.27 (3) to stimulate other innovative energy projects that reduce demand and increase system
128	128	4.28efficiency and flexibility.
129	129	4.29Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
130	130	4.30from the utility that owns a nuclear-powered electric generating plant in this state or the
131	131	4.31Prairie Island Indian community or its members.
132	132	4.32The utility that owns a nuclear generating plant is eligible to apply for grants under this
133	133	4.33subdivision.
134	134	4Sec. 3.
135	135	REVISOR RSI/CH 25-0513703/27/25 5.1 (k) (g) For the purposes of paragraph (j) (f), the following terms have the meanings
136	136	5.2given:
137	137	5.3 (1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
138	138	5.4(c), clauses (1), (2), (4), and (5); and
139	139	5.5 (2) "grid modernization" means:
140	140	5.6 (i) enhancing the reliability of the electrical grid;
141	141	5.7 (ii) improving the security of the electrical grid against cyberthreats and physical threats;
142	142	5.8and
143	143	5.9 (iii) increasing energy conservation opportunities by facilitating communication between
144	144	5.10the utility and its customers through the use of two-way meters, control technologies, energy
145	145	5.11storage and microgrids, technologies to enable demand response, and other innovative
146	146	5.12technologies.
147	147	5.13 (l) A renewable development account advisory group that includes, among others,
148	148	5.14representatives of the public utility and its ratepayers, and includes at least one representative
149	149	5.15of the Prairie Island Indian community appointed by that community's tribal council, shall
150	150	5.16develop recommendations on account expenditures. The advisory group must design a
151	151	5.17request for proposal and evaluate projects submitted in response to a request for proposals.
152	152	5.18The advisory group must utilize an independent third-party expert to evaluate proposals
153	153	5.19submitted in response to a request for proposal, including all proposals made by the public
154	154	5.20utility. A request for proposal for research and development under paragraph (j), clause (1),
155	155	5.21may be limited to or include a request to higher education institutions located in Minnesota
156	156	5.22for multiple projects authorized under paragraph (j), clause (1). The request for multiple
157	157	5.23projects may include a provision that exempts the projects from the third-party expert review
158	158	5.24and instead provides for project evaluation and selection by a merit peer review grant system.
159	159	5.25In the process of determining request for proposal scope and subject and in evaluating
160	160	5.26responses to request for proposals, the advisory group must strongly consider, where
161	161	5.27reasonable:
162	162	5.28 (1) potential benefit to Minnesota citizens and businesses and the utility's ratepayers;
163	163	5.29and
164	164	5.30 (2) the proposer's commitment to increasing the diversity of the proposer's workforce
165	165	5.31and vendors.
166	166	5.32 (m) The advisory group shall submit funding recommendations to the public utility,
167	167	5.33which has full and sole authority to determine which expenditures shall be submitted by
168	168	5Sec. 3.
169	169	REVISOR RSI/CH 25-0513703/27/25 6.1the advisory group to the legislature. The commission may approve proposed expenditures,
170	170	6.2may disapprove proposed expenditures that it finds not to be in compliance with this
171	171	6.3subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,
172	172	6.4modify proposed expenditures. The commission shall, by order, submit its funding
173	173	6.5recommendations to the legislature as provided under paragraph (n).
174	174	6.6 (n) The commission shall present its recommended appropriations from the account to
175	175	6.7the senate and house of representatives committees with jurisdiction over energy policy and
176	176	6.8finance annually by February 15. Expenditures from the account must be appropriated by
177	177	6.9law. In enacting appropriations from the account, the legislature:
178	178	6.10 (1) may approve or disapprove, but may not modify, the amount of an appropriation for
179	179	6.11a project recommended by the commission; and
180	180	6.12 (2) may not appropriate money for a project the commission has not recommended
181	181	6.13funding.
182	182	6.14 (o) A request for proposal for renewable energy generation projects must, when feasible
183	183	6.15and reasonable, give preference to projects that are most cost-effective for a particular energy
184	184	6.16source.
185	185	6.17 (p) The advisory group must annually, by February 15, report to the chairs and ranking
186	186	6.18minority members of the legislative committees with jurisdiction over energy policy on
187	187	6.19projects funded by the account for the prior year and all previous years. The report must,
188	188	6.20to the extent possible and reasonable, itemize the actual and projected financial benefit to
189	189	6.21the public utility's ratepayers of each project.
190	190	6.22 (q) (h) A project receiving funds from the account must produce a written final report
191	191	6.23that includes sufficient detail for technical readers and a clearly written summary for
192	192	6.24nontechnical readers. The report must include an evaluation of the project's financial,
193	193	6.25environmental, and other benefits to the state and the public utility's ratepayers. A project
194	194	6.26receiving funds from the account must submit a report that meets the requirements of section
195	195	6.27216C.51, subdivisions 3 and 4, each year the project funded by the account is in progress.
196	196	6.28 (r) (i) Final reports, any mid-project status reports, and renewable development account
197	197	6.29financial reports must be posted online on a public website designated by the commissioner
198	198	6.30of commerce.
199	199	6.31 (s) (j) All final reports must acknowledge that the project was made possible in whole
200	200	6.32or part by the Minnesota renewable development account, noting that the account is financed
201	201	6.33by the public utility's ratepayers.
202	202	6Sec. 3.
203	203	REVISOR RSI/CH 25-0513703/27/25 7.1 (t) (k) Of the amount in the renewable development account, priority must be given to
204	204	7.2making the payments required under section 216C.417.
205	205	7.3 (u) (l) Construction projects receiving funds from this account are subject to the
206	206	7.4requirement to pay the prevailing wage rate, as defined in section 177.42 and the requirements
207	207	7.5and enforcement provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and
208	208	7.6177.45.
209	209	7.7 Sec. 4. Minnesota Statutes 2024, section 116C.779, is amended by adding a subdivision
210	210	7.8to read:
211	211	7.9 Subd. 4.Costs to transport spent nuclear fuel.Each year, the public utility that owns
212	212	7.10the Prairie Island nuclear generating plant must withhold from the money transferred to the
213	213	7.11renewable development account under subdivision 1, paragraphs (b) and (c), the amount
214	214	7.12necessary to pay for the costs to transport spent nuclear fuel, including the spent nuclear
215	215	7.13fuel stored in casks under sections 116C.77 and 116C.771, from the Prairie Island nuclear
216	216	7.14generating plant to the Monticello nuclear generating plant.
217	217	7.15 Sec. 5. REPEALER.
218	218	7.16 Minnesota Statutes 2024, sections 116C.779, subdivision 2; and 216C.41, are repealed.
219	219	7Sec. 5.
220	220	REVISOR RSI/CH 25-0513703/27/25 116C.779 FUNDING FOR RENEWABLE DEVELOPMENT .
221	221	Subd. 2.Renewable energy production incentive.(a) Until January 1, 2021, $10,900,000
222	222	annually must be allocated from available funds in the account to fund renewable energy production
223	223	incentives. $9,400,000 of this annual amount is for incentives for electricity generated by wind
224	224	energy conversion systems that are eligible for the incentives under section 216C.41 or Laws 2005,
225	225	chapter 40.
226	226	(b) The balance of this amount, up to $1,500,000 annually, may be used for production incentives
227	227	for on-farm biogas recovery facilities and hydroelectric facilities that are eligible for the incentive
228	228	under section 216C.41 or for production incentives for other renewables, to be provided in the same
229	229	manner as under section 216C.41.
230	230	(c) Any portion of the $10,900,000 not expended in any calendar year for the incentive is
231	231	available for other spending purposes under subdivision 1. This subdivision does not create an
232	232	obligation to contribute funds to the account.
233	233	(d) The Department of Commerce shall determine eligibility of projects under section 216C.41
234	234	for the purposes of this subdivision. At least quarterly, the Department of Commerce shall notify
235	235	the public utility of the name and address of each eligible project owner and the amount due to each
236	236	project under section 216C.41. The public utility shall make payments within 15 working days after
237	237	receipt of notification of payments due.
238	238	216C.41 RENEWABLE ENERGY PRODUCTION INCENTIVE.
239	239	Subdivision 1.Definitions.(a) The definitions in this subdivision apply to this section.
240	240	(b) "Qualified hydroelectric facility" means a hydroelectric generating facility in this state that:
241	241	(1) is located at the site of a dam, if the dam was in existence as of March 31, 1994; and
242	242	(2) begins generating electricity after July 1, 1994, or generates electricity after substantial
243	243	refurbishing of a facility that begins after July 1, 2001.
244	244	(c) "Qualified wind energy conversion facility" means a wind energy conversion system in this
245	245	state that:
246	246	(1) produces two megawatts or less of electricity as measured by nameplate rating and begins
247	247	generating electricity after December 31, 1996, and before July 1, 1999;
248	248	(2) begins generating electricity after June 30, 1999, produces two megawatts or less of electricity
249	249	as measured by nameplate rating, and is:
250	250	(i) owned by a resident of Minnesota or an entity that is organized under the laws of this state,
251	251	is not prohibited from owning agricultural land under section 500.24, and owns the land where the
252	252	facility is sited;
253	253	(ii) owned by a Minnesota small business as defined in section 645.445;
254	254	(iii) owned by a Minnesota nonprofit organization;
255	255	(iv) owned by a tribal council if the facility is located within the boundaries of the reservation;
256	256	(v) owned by a Minnesota municipal utility or a Minnesota cooperative electric association; or
257	257	(vi) owned by a Minnesota political subdivision or local government, including, but not limited
258	258	to, a county, statutory or home rule charter city, town, school district, or any other local or regional
259	259	governmental organization such as a board, commission, or association; or
260	260	(3) begins generating electricity after June 30, 1999, produces seven megawatts or less of
261	261	electricity as measured by nameplate rating, and:
262	262	(i) is owned by a cooperative organized under chapter 308A other than a Minnesota cooperative
263	263	electric association; and
264	264	(ii) all shares and membership in the cooperative are held by an entity that is not prohibited
265	265	from owning agricultural land under section 500.24.
266	266	(d) "Qualified on-farm biogas recovery facility" means an anaerobic digester system that:
267	267	(1) is located at the site of an agricultural operation; and
268	268	1R
269	269	APPENDIX
270	270	Repealed Minnesota Statutes: 25-05137 (2) is owned by an entity that is not prohibited from owning agricultural land under section
271	271	500.24 and that owns or rents the land where the facility is located.
272	272	(e) "Anaerobic digester system" means a system of components that processes animal waste
273	273	based on the absence of oxygen and produces gas used to generate electricity.
274	274	Subd. 2.Incentive payment; appropriation.(a) Incentive payments must be made according
275	275	to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner or operator of a
276	276	qualified hydropower facility or qualified wind energy conversion facility for electric energy
277	277	generated and sold by the facility, (3) a publicly owned hydropower facility for electric energy that
278	278	is generated by the facility and used by the owner of the facility outside the facility, or (4) the owner
279	279	of a publicly owned dam that is in need of substantial repair, for electric energy that is generated
280	280	by a hydropower facility at the dam and the annual incentive payments will be used to fund the
281	281	structural repairs and replacement of structural components of the dam, or to retire debt incurred
282	282	to fund those repairs.
283	283	(b) Payment may only be made upon receipt by the commissioner of commerce of an incentive
284	284	payment application that establishes that the applicant is eligible to receive an incentive payment
285	285	and that satisfies other requirements the commissioner deems necessary. The application must be
286	286	in a form and submitted at a time the commissioner establishes.
287	287	(c) There is annually appropriated from the renewable development account under section
288	288	116C.779 to the commissioner of commerce sums sufficient to make the payments required under
289	289	this section, in addition to the amounts funded by the renewable development account as specified
290	290	in subdivision 5a.
291	291	Subd. 3.Eligibility window.Payments may be made under this section only for:
292	292	(a) electricity generated from:
293	293	(1) a qualified hydroelectric facility that is operational and generating electricity before December
294	294	31, 2011;
295	295	(2) a qualified wind energy conversion facility that is operational and generating electricity
296	296	before January 1, 2008; or
297	297	(3) a qualified on-farm biogas recovery facility from July 1, 2001, through December 31, 2017;
298	298	and
299	299	(b) gas generated from a qualified on-farm biogas recovery facility from July 1, 2007, through
300	300	December 31, 2017.
301	301	Subd. 4.Payment period.(a) A facility may receive payments under this section for a ten-year
302	302	period. No payment under this section may be made for electricity generated:
303	303	(1) by a qualified hydroelectric facility after December 31, 2021;
304	304	(2) by a qualified wind energy conversion facility after December 31, 2018; or
305	305	(3) by a qualified on-farm biogas recovery facility after December 31, 2017.
306	306	(b) The payment period begins and runs consecutively from the date the facility begins generating
307	307	electricity or, in the case of refurbishment of a hydropower facility, after substantial repairs to the
308	308	hydropower facility dam funded by the incentive payments are initiated.
309	309	Subd. 5.Amount of payment; wind facilities limit.(a) An incentive payment is based on the
310	310	number of kilowatt-hours of electricity generated. The amount of the payment is:
311	311	(1) for a facility described under subdivision 2, paragraph (a), clause (4), 1.0 cent per
312	312	kilowatt-hour; and
313	313	(2) for all other facilities, 1.5 cents per kilowatt-hour.
314	314	For electricity generated by qualified wind energy conversion facilities, the incentive payment
315	315	under this section is limited to no more than 200 megawatts of nameplate capacity.
316	316	(b) For wind energy conversion systems installed and contracted for after January 1, 2002, the
317	317	total size of a wind energy conversion system under this section must be determined according to
318	318	this paragraph. Unless the systems are interconnected with different distribution systems, the
319	319	nameplate capacity of one wind energy conversion system must be combined with the nameplate
320	320	capacity of any other wind energy conversion system that is:
321	321	2R
322	322	APPENDIX
323	323	Repealed Minnesota Statutes: 25-05137 (1) located within five miles of the wind energy conversion system;
324	324	(2) constructed within the same calendar year as the wind energy conversion system; and
325	325	(3) under common ownership.
326	326	In the case of a dispute, the commissioner of commerce shall determine the total size of the
327	327	system, and shall draw all reasonable inferences in favor of combining the systems.
328	328	(c) In making a determination under paragraph (b), the commissioner of commerce may determine
329	329	that two wind energy conversion systems are under common ownership when the underlying
330	330	ownership structure contains similar persons or entities, even if the ownership shares differ between
331	331	the two systems. Wind energy conversion systems are not under common ownership solely because
332	332	the same person or entity provided equity financing for the systems.
333	333	Subd. 5a.Renewable development account.The Department of Commerce shall authorize
334	334	payment of the renewable energy production incentive to wind energy conversion systems that are
335	335	eligible under this section or Laws 2005, chapter 40, to on-farm biogas recovery facilities, and to
336	336	hydroelectric facilities. Payment of the incentive shall be made from the renewable energy
337	337	development account as provided under section 116C.779, subdivision 2.
338	338	Subd. 6.Ownership; financing; cure.(a) For the purposes of subdivision 1, paragraph (c),
339	339	clause (2), a wind energy conversion facility qualifies if it is owned at least 51 percent by one or
340	340	more of any combination of the entities listed in that clause.
341	341	(b) A subsequent owner of a qualified facility may continue to receive the incentive payment
342	342	for the duration of the original payment period if the subsequent owner qualifies for the incentive
343	343	under subdivision 1.
344	344	(c) Nothing in this section may be construed to deny incentive payment to an otherwise qualified
345	345	facility that has obtained debt or equity financing for construction or operation as long as the
346	346	ownership requirements of subdivision 1 and this subdivision are met. If, during the incentive
347	347	payment period for a qualified facility, the owner of the facility is in default of a lending agreement
348	348	and the lender takes possession of and operates the facility and makes reasonable efforts to transfer
349	349	ownership of the facility to an entity other than the lender, the lender may continue to receive the
350	350	incentive payment for electricity generated and sold by the facility for a period not to exceed 18
351	351	months. A lender who takes possession of a facility shall notify the commissioner immediately on
352	352	taking possession and, at least quarterly, document efforts to transfer ownership of the facility.
353	353	(d) If, during the incentive payment period, a qualified facility loses the right to receive the
354	354	incentive because of changes in ownership, the facility may regain the right to receive the incentive
355	355	upon cure of the ownership structure that resulted in the loss of eligibility and may reapply for the
356	356	incentive, but in no case may the payment period be extended beyond the original ten-year limit.
357	357	(e) A subsequent or requalifying owner under paragraph (b) or (d) retains the facility's original
358	358	priority order for incentive payments as long as the ownership structure requalifies within two years
359	359	from the date the facility became unqualified or two years from the date a lender takes possession.
360	360	Subd. 7.Eligibility process.(a) A qualifying project is eligible for the incentive on the date
361	361	the commissioner receives:
362	362	(1) an application for payment of the incentive;
363	363	(2) one of the following:
364	364	(i) a copy of a signed power purchase agreement;
365	365	(ii) a copy of a binding agreement other than a power purchase agreement to sell electricity
366	366	generated by the project to a third person; or
367	367	(iii) if the project developer or owner will sell electricity to its own members or customers, a
368	368	copy of the purchase order for equipment to construct the project with a delivery date and a copy
369	369	of a signed receipt for a nonrefundable deposit; and
370	370	(3) any other information the commissioner deems necessary to determine whether the proposed
371	371	project qualifies for the incentive under this section.
372	372	(b) The commissioner shall determine whether a project qualifies for the incentive and respond
373	373	in writing to the applicant approving or denying the application within 15 working days of receipt
374	374	of the information required in paragraph (a). A project that is not operational within 18 months of
375	375	receipt of a letter of approval is no longer approved for the incentive. The commissioner shall notify
376	376	3R
377	377	APPENDIX
378	378	Repealed Minnesota Statutes: 25-05137 an applicant of potential loss of approval not less than 60 days prior to the end of the 18-month
379	379	period. Eligibility for a project that loses approval may be reestablished as of the date the
380	380	commissioner receives a new completed application.
381	381	4R
382	382	APPENDIX
383	383	Repealed Minnesota Statutes: 25-05137