Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF3363 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	25-05137 as introduced03/27/25 REVISOR RSI/CH
27	27	SENATE
28	28	STATE OF MINNESOTA
29	29	S.F. No. 3363NINETY-FOURTH SESSION
30	30	(SENATE AUTHORS: DRAZKOWSKI, Mathews and Anderson)
31	31	OFFICIAL STATUSD-PGDATE
32	32	Introduction and first reading04/09/2025
33	33	Referred to Energy, Utilities, Environment, and Climate 2.1 (2) If the site is not under construction or operational or the wind mandates are not
34	34	2.2satisfied, the legislature may revoke the authorization for the additional eight casks by a
35	35	2.3law enacted prior to June 1, 1999.
36	36	2.4 (d) Except as provided under paragraph (e), dry cask storage capacity for high-level
37	37	2.5nuclear waste within the state may not be increased beyond the casks authorized by section
38	38	2.6116C.77 or their equivalent storage capacity.
39	39	2.7 (e) (d) This section does not prohibit a public utility from applying for or the Public
40	40	2.8Utilities Commission from granting a certificate of need for dry cask storage to accommodate
41	41	2.9the decommissioning of a nuclear power plant within this state.
42	42	2.10 (e) An additional spent fuel storage facility must be constructed at the Monticello nuclear
43	43	2.11generating plant to store spent nuclear fuel transferred from the Prairie Island nuclear
44	44	2.12generating plant.
45	45	2.13 Sec. 2. Minnesota Statutes 2024, section 116C.777, is amended to read:
46	46	2.14 116C.777 SITE.
47	47	2.15 By January 1, 2028, the spent fuel contents of dry casks located on Prairie Island must
48	48	2.16be moved immediately upon the availability of another site for storage of the spent fuel that
49	49	2.17is not located on Prairie Island or at Monticello.
50	50	2.18 Sec. 3. Minnesota Statutes 2024, section 116C.779, subdivision 1, is amended to read:
51	51	2.19 Subdivision 1.Renewable development account.(a) The renewable development
52	52	2.20account is established as a separate account in the special revenue fund in the state treasury.
53	53	2.21Appropriations and transfers to the account shall be credited to the account. Earnings, such
54	54	2.22as interest, dividends, and any other earnings arising from assets of the account, shall be
55	55	2.23credited to the account. Funds remaining in the account at the end of a fiscal year are not
56	56	2.24canceled to the general fund but remain in the account until expended. The account shall
57	57	2.25be administered by the commissioner of management and budget as provided under this
58	58	2.26section.
59	59	2.27 (b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
60	60	2.28plant must transfer all funds in the renewable development account previously established
61	61	2.29under this subdivision and managed by the public utility to the renewable development
62	62	2.30account established in paragraph (a). Funds awarded to grantees in previous grant cycles
63	63	2.31that have not yet been expended and unencumbered funds required to be paid in calendar
64	64	2Sec. 3.
65	65	25-05137 as introduced03/27/25 REVISOR RSI/CH 3.1year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject
66	66	3.2to transfer under this paragraph.
67	67	3.3 (c) (b) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
68	68	3.4each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
69	69	3.5plant must transfer to the renewable development account $500,000 each year for each dry
70	70	3.6cask containing spent fuel that is located at the Prairie Island power plant for each year the
71	71	3.7plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by
72	72	3.8the commission pursuant to paragraph (i) (e). The fund transfer must be made if nuclear
73	73	3.9waste is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island
74	74	3.10for any part of a year. The total amount transferred annually under this paragraph must be
75	75	3.11reduced by $3,750,000.
76	76	3.12 (d) (c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
77	77	3.13each January 15 thereafter until January 15, 2028, the public utility that owns the Monticello
78	78	3.14nuclear generating plant must transfer to the renewable development account $350,000 each
79	79	3.15year for each dry cask containing spent fuel that is located at the Monticello nuclear power
80	80	3.16plant for each year the plant is in operation, and $5,250,000 each year the plant is not in
81	81	3.17operation if ordered by the commission pursuant to paragraph (i) (e). The fund transfer must
82	82	3.18be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility
83	83	3.19at Monticello for any part of a year.
84	84	3.20 (e) (d) Each year, the public utility shall withhold from the funds transferred to the
85	85	3.21renewable development account under paragraphs (b) and (c) and (d) the amount necessary
86	86	3.22to pay its obligations under paragraphs (f) and (g), and sections section 116C.7792 and
87	87	3.23216C.41, for that calendar year.
88	88	3.24 (f) If the commission approves a new or amended power purchase agreement, the
89	89	3.25termination of a power purchase agreement, or the purchase and closure of a facility under
90	90	3.26section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
91	91	3.27the public utility subject to this section shall enter into a contract with the city in which the
92	92	3.28poultry litter plant is located to provide grants to the city for the purposes of economic
93	93	3.29development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
94	94	3.30fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
95	95	3.31by the public utility from funds withheld from the transfer to the renewable development
96	96	3.32account, as provided in paragraphs (b) and (e).
97	97	3.33 (g) If the commission approves a new or amended power purchase agreement, or the
98	98	3.34termination of a power purchase agreement under section 216B.2424, subdivision 9, with
99	99	3Sec. 3.
100	100	25-05137 as introduced03/27/25 REVISOR RSI/CH 4.1an entity owned or controlled, directly or indirectly, by two municipal utilities located north
101	101	4.2of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
102	102	4.3section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
103	103	4.4grant contract with such entity to provide $6,800,000 per year for five years, commencing
104	104	4.530 days after the commission approves the new or amended power purchase agreement, or
105	105	4.6the termination of the power purchase agreement, and on each June 1 thereafter through
106	106	4.72021, to assist the transition required by the new, amended, or terminated power purchase
107	107	4.8agreement. The grant shall be paid by the public utility from funds withheld from the transfer
108	108	4.9to the renewable development account as provided in paragraphs (b) and (e).
109	109	4.10 (h) The collective amount paid under the grant contracts awarded under paragraphs (f)
110	110	4.11and (g) is limited to the amount deposited into the renewable development account, and its
111	111	4.12predecessor, the renewable development account, established under this section, that was
112	112	4.13not required to be deposited into the account under Laws 1994, chapter 641, article 1, section
113	113	4.1410.
114	114	4.15 (i) (e) After discontinuation of operation of the Prairie Island nuclear plant or the
115	115	4.16Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
116	116	4.17discontinued facility, the commission shall require the public utility to pay $7,500,000 for
117	117	4.18the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
118	118	4.19facility for any year in which the commission finds, by the preponderance of the evidence,
119	119	4.20that the public utility did not make a good faith effort to remove the spent nuclear fuel stored
120	120	4.21at the facility to a permanent or interim storage site out of the state. This determination shall
121	121	4.22be made at least every two years.
122	122	4.23 (j) (f) Funds in the account may be expended only for any of the following purposes:
123	123	4.24 (1) to stimulate research and development of renewable electric energy technologies;
124	124	4.25 (2) to encourage grid modernization, including, but not limited to, projects that implement
125	125	4.26electricity storage, load control, and smart meter technology; and
126	126	4.27 (3) to stimulate other innovative energy projects that reduce demand and increase system
127	127	4.28efficiency and flexibility.
128	128	4.29Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
129	129	4.30from the utility that owns a nuclear-powered electric generating plant in this state or the
130	130	4.31Prairie Island Indian community or its members.
131	131	4.32The utility that owns a nuclear generating plant is eligible to apply for grants under this
132	132	4.33subdivision.
133	133	4Sec. 3.
134	134	25-05137 as introduced03/27/25 REVISOR RSI/CH 5.1 (k) (g) For the purposes of paragraph (j) (f), the following terms have the meanings
135	135	5.2given:
136	136	5.3 (1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
137	137	5.4(c), clauses (1), (2), (4), and (5); and
138	138	5.5 (2) "grid modernization" means:
139	139	5.6 (i) enhancing the reliability of the electrical grid;
140	140	5.7 (ii) improving the security of the electrical grid against cyberthreats and physical threats;
141	141	5.8and
142	142	5.9 (iii) increasing energy conservation opportunities by facilitating communication between
143	143	5.10the utility and its customers through the use of two-way meters, control technologies, energy
144	144	5.11storage and microgrids, technologies to enable demand response, and other innovative
145	145	5.12technologies.
146	146	5.13 (l) A renewable development account advisory group that includes, among others,
147	147	5.14representatives of the public utility and its ratepayers, and includes at least one representative
148	148	5.15of the Prairie Island Indian community appointed by that community's tribal council, shall
149	149	5.16develop recommendations on account expenditures. The advisory group must design a
150	150	5.17request for proposal and evaluate projects submitted in response to a request for proposals.
151	151	5.18The advisory group must utilize an independent third-party expert to evaluate proposals
152	152	5.19submitted in response to a request for proposal, including all proposals made by the public
153	153	5.20utility. A request for proposal for research and development under paragraph (j), clause (1),
154	154	5.21may be limited to or include a request to higher education institutions located in Minnesota
155	155	5.22for multiple projects authorized under paragraph (j), clause (1). The request for multiple
156	156	5.23projects may include a provision that exempts the projects from the third-party expert review
157	157	5.24and instead provides for project evaluation and selection by a merit peer review grant system.
158	158	5.25In the process of determining request for proposal scope and subject and in evaluating
159	159	5.26responses to request for proposals, the advisory group must strongly consider, where
160	160	5.27reasonable:
161	161	5.28 (1) potential benefit to Minnesota citizens and businesses and the utility's ratepayers;
162	162	5.29and
163	163	5.30 (2) the proposer's commitment to increasing the diversity of the proposer's workforce
164	164	5.31and vendors.
165	165	5.32 (m) The advisory group shall submit funding recommendations to the public utility,
166	166	5.33which has full and sole authority to determine which expenditures shall be submitted by
167	167	5Sec. 3.
168	168	25-05137 as introduced03/27/25 REVISOR RSI/CH 6.1the advisory group to the legislature. The commission may approve proposed expenditures,
169	169	6.2may disapprove proposed expenditures that it finds not to be in compliance with this
170	170	6.3subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,
171	171	6.4modify proposed expenditures. The commission shall, by order, submit its funding
172	172	6.5recommendations to the legislature as provided under paragraph (n).
173	173	6.6 (n) The commission shall present its recommended appropriations from the account to
174	174	6.7the senate and house of representatives committees with jurisdiction over energy policy and
175	175	6.8finance annually by February 15. Expenditures from the account must be appropriated by
176	176	6.9law. In enacting appropriations from the account, the legislature:
177	177	6.10 (1) may approve or disapprove, but may not modify, the amount of an appropriation for
178	178	6.11a project recommended by the commission; and
179	179	6.12 (2) may not appropriate money for a project the commission has not recommended
180	180	6.13funding.
181	181	6.14 (o) A request for proposal for renewable energy generation projects must, when feasible
182	182	6.15and reasonable, give preference to projects that are most cost-effective for a particular energy
183	183	6.16source.
184	184	6.17 (p) The advisory group must annually, by February 15, report to the chairs and ranking
185	185	6.18minority members of the legislative committees with jurisdiction over energy policy on
186	186	6.19projects funded by the account for the prior year and all previous years. The report must,
187	187	6.20to the extent possible and reasonable, itemize the actual and projected financial benefit to
188	188	6.21the public utility's ratepayers of each project.
189	189	6.22 (q) (h) A project receiving funds from the account must produce a written final report
190	190	6.23that includes sufficient detail for technical readers and a clearly written summary for
191	191	6.24nontechnical readers. The report must include an evaluation of the project's financial,
192	192	6.25environmental, and other benefits to the state and the public utility's ratepayers. A project
193	193	6.26receiving funds from the account must submit a report that meets the requirements of section
194	194	6.27216C.51, subdivisions 3 and 4, each year the project funded by the account is in progress.
195	195	6.28 (r) (i) Final reports, any mid-project status reports, and renewable development account
196	196	6.29financial reports must be posted online on a public website designated by the commissioner
197	197	6.30of commerce.
198	198	6.31 (s) (j) All final reports must acknowledge that the project was made possible in whole
199	199	6.32or part by the Minnesota renewable development account, noting that the account is financed
200	200	6.33by the public utility's ratepayers.
201	201	6Sec. 3.
202	202	25-05137 as introduced03/27/25 REVISOR RSI/CH 7.1 (t) (k) Of the amount in the renewable development account, priority must be given to
203	203	7.2making the payments required under section 216C.417.
204	204	7.3 (u) (l) Construction projects receiving funds from this account are subject to the
205	205	7.4requirement to pay the prevailing wage rate, as defined in section 177.42 and the requirements
206	206	7.5and enforcement provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and
207	207	7.6177.45.
208	208	7.7 Sec. 4. Minnesota Statutes 2024, section 116C.779, is amended by adding a subdivision
209	209	7.8to read:
210	210	7.9 Subd. 4.Costs to transport spent nuclear fuel.Each year, the public utility that owns
211	211	7.10the Prairie Island nuclear generating plant must withhold from the money transferred to the
212	212	7.11renewable development account under subdivision 1, paragraphs (b) and (c), the amount
213	213	7.12necessary to pay for the costs to transport spent nuclear fuel, including the spent nuclear
214	214	7.13fuel stored in casks under sections 116C.77 and 116C.771, from the Prairie Island nuclear
215	215	7.14generating plant to the Monticello nuclear generating plant.
216	216	7.15 Sec. 5. REPEALER.
217	217	7.16 Minnesota Statutes 2024, sections 116C.779, subdivision 2; and 216C.41, are repealed.
218	218	7Sec. 5.
219	219	25-05137 as introduced03/27/25 REVISOR RSI/CH 116C.779 FUNDING FOR RENEWABLE DEVELOPMENT .
220	220	Subd. 2.Renewable energy production incentive.(a) Until January 1, 2021, $10,900,000
221	221	annually must be allocated from available funds in the account to fund renewable energy production
222	222	incentives. $9,400,000 of this annual amount is for incentives for electricity generated by wind
223	223	energy conversion systems that are eligible for the incentives under section 216C.41 or Laws 2005,
224	224	chapter 40.
225	225	(b) The balance of this amount, up to $1,500,000 annually, may be used for production incentives
226	226	for on-farm biogas recovery facilities and hydroelectric facilities that are eligible for the incentive
227	227	under section 216C.41 or for production incentives for other renewables, to be provided in the same
228	228	manner as under section 216C.41.
229	229	(c) Any portion of the $10,900,000 not expended in any calendar year for the incentive is
230	230	available for other spending purposes under subdivision 1. This subdivision does not create an
231	231	obligation to contribute funds to the account.
232	232	(d) The Department of Commerce shall determine eligibility of projects under section 216C.41
233	233	for the purposes of this subdivision. At least quarterly, the Department of Commerce shall notify
234	234	the public utility of the name and address of each eligible project owner and the amount due to each
235	235	project under section 216C.41. The public utility shall make payments within 15 working days after
236	236	receipt of notification of payments due.
237	237	216C.41 RENEWABLE ENERGY PRODUCTION INCENTIVE.
238	238	Subdivision 1.Definitions.(a) The definitions in this subdivision apply to this section.
239	239	(b) "Qualified hydroelectric facility" means a hydroelectric generating facility in this state that:
240	240	(1) is located at the site of a dam, if the dam was in existence as of March 31, 1994; and
241	241	(2) begins generating electricity after July 1, 1994, or generates electricity after substantial
242	242	refurbishing of a facility that begins after July 1, 2001.
243	243	(c) "Qualified wind energy conversion facility" means a wind energy conversion system in this
244	244	state that:
245	245	(1) produces two megawatts or less of electricity as measured by nameplate rating and begins
246	246	generating electricity after December 31, 1996, and before July 1, 1999;
247	247	(2) begins generating electricity after June 30, 1999, produces two megawatts or less of electricity
248	248	as measured by nameplate rating, and is:
249	249	(i) owned by a resident of Minnesota or an entity that is organized under the laws of this state,
250	250	is not prohibited from owning agricultural land under section 500.24, and owns the land where the
251	251	facility is sited;
252	252	(ii) owned by a Minnesota small business as defined in section 645.445;
253	253	(iii) owned by a Minnesota nonprofit organization;
254	254	(iv) owned by a tribal council if the facility is located within the boundaries of the reservation;
255	255	(v) owned by a Minnesota municipal utility or a Minnesota cooperative electric association; or
256	256	(vi) owned by a Minnesota political subdivision or local government, including, but not limited
257	257	to, a county, statutory or home rule charter city, town, school district, or any other local or regional
258	258	governmental organization such as a board, commission, or association; or
259	259	(3) begins generating electricity after June 30, 1999, produces seven megawatts or less of
260	260	electricity as measured by nameplate rating, and:
261	261	(i) is owned by a cooperative organized under chapter 308A other than a Minnesota cooperative
262	262	electric association; and
263	263	(ii) all shares and membership in the cooperative are held by an entity that is not prohibited
264	264	from owning agricultural land under section 500.24.
265	265	(d) "Qualified on-farm biogas recovery facility" means an anaerobic digester system that:
266	266	(1) is located at the site of an agricultural operation; and
267	267	1R
268	268	APPENDIX
269	269	Repealed Minnesota Statutes: 25-05137 (2) is owned by an entity that is not prohibited from owning agricultural land under section
270	270	500.24 and that owns or rents the land where the facility is located.
271	271	(e) "Anaerobic digester system" means a system of components that processes animal waste
272	272	based on the absence of oxygen and produces gas used to generate electricity.
273	273	Subd. 2.Incentive payment; appropriation.(a) Incentive payments must be made according
274	274	to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner or operator of a
275	275	qualified hydropower facility or qualified wind energy conversion facility for electric energy
276	276	generated and sold by the facility, (3) a publicly owned hydropower facility for electric energy that
277	277	is generated by the facility and used by the owner of the facility outside the facility, or (4) the owner
278	278	of a publicly owned dam that is in need of substantial repair, for electric energy that is generated
279	279	by a hydropower facility at the dam and the annual incentive payments will be used to fund the
280	280	structural repairs and replacement of structural components of the dam, or to retire debt incurred
281	281	to fund those repairs.
282	282	(b) Payment may only be made upon receipt by the commissioner of commerce of an incentive
283	283	payment application that establishes that the applicant is eligible to receive an incentive payment
284	284	and that satisfies other requirements the commissioner deems necessary. The application must be
285	285	in a form and submitted at a time the commissioner establishes.
286	286	(c) There is annually appropriated from the renewable development account under section
287	287	116C.779 to the commissioner of commerce sums sufficient to make the payments required under
288	288	this section, in addition to the amounts funded by the renewable development account as specified
289	289	in subdivision 5a.
290	290	Subd. 3.Eligibility window.Payments may be made under this section only for:
291	291	(a) electricity generated from:
292	292	(1) a qualified hydroelectric facility that is operational and generating electricity before December
293	293	31, 2011;
294	294	(2) a qualified wind energy conversion facility that is operational and generating electricity
295	295	before January 1, 2008; or
296	296	(3) a qualified on-farm biogas recovery facility from July 1, 2001, through December 31, 2017;
297	297	and
298	298	(b) gas generated from a qualified on-farm biogas recovery facility from July 1, 2007, through
299	299	December 31, 2017.
300	300	Subd. 4.Payment period.(a) A facility may receive payments under this section for a ten-year
301	301	period. No payment under this section may be made for electricity generated:
302	302	(1) by a qualified hydroelectric facility after December 31, 2021;
303	303	(2) by a qualified wind energy conversion facility after December 31, 2018; or
304	304	(3) by a qualified on-farm biogas recovery facility after December 31, 2017.
305	305	(b) The payment period begins and runs consecutively from the date the facility begins generating
306	306	electricity or, in the case of refurbishment of a hydropower facility, after substantial repairs to the
307	307	hydropower facility dam funded by the incentive payments are initiated.
308	308	Subd. 5.Amount of payment; wind facilities limit.(a) An incentive payment is based on the
309	309	number of kilowatt-hours of electricity generated. The amount of the payment is:
310	310	(1) for a facility described under subdivision 2, paragraph (a), clause (4), 1.0 cent per
311	311	kilowatt-hour; and
312	312	(2) for all other facilities, 1.5 cents per kilowatt-hour.
313	313	For electricity generated by qualified wind energy conversion facilities, the incentive payment
314	314	under this section is limited to no more than 200 megawatts of nameplate capacity.
315	315	(b) For wind energy conversion systems installed and contracted for after January 1, 2002, the
316	316	total size of a wind energy conversion system under this section must be determined according to
317	317	this paragraph. Unless the systems are interconnected with different distribution systems, the
318	318	nameplate capacity of one wind energy conversion system must be combined with the nameplate
319	319	capacity of any other wind energy conversion system that is:
320	320	2R
321	321	APPENDIX
322	322	Repealed Minnesota Statutes: 25-05137 (1) located within five miles of the wind energy conversion system;
323	323	(2) constructed within the same calendar year as the wind energy conversion system; and
324	324	(3) under common ownership.
325	325	In the case of a dispute, the commissioner of commerce shall determine the total size of the
326	326	system, and shall draw all reasonable inferences in favor of combining the systems.
327	327	(c) In making a determination under paragraph (b), the commissioner of commerce may determine
328	328	that two wind energy conversion systems are under common ownership when the underlying
329	329	ownership structure contains similar persons or entities, even if the ownership shares differ between
330	330	the two systems. Wind energy conversion systems are not under common ownership solely because
331	331	the same person or entity provided equity financing for the systems.
332	332	Subd. 5a.Renewable development account.The Department of Commerce shall authorize
333	333	payment of the renewable energy production incentive to wind energy conversion systems that are
334	334	eligible under this section or Laws 2005, chapter 40, to on-farm biogas recovery facilities, and to
335	335	hydroelectric facilities. Payment of the incentive shall be made from the renewable energy
336	336	development account as provided under section 116C.779, subdivision 2.
337	337	Subd. 6.Ownership; financing; cure.(a) For the purposes of subdivision 1, paragraph (c),
338	338	clause (2), a wind energy conversion facility qualifies if it is owned at least 51 percent by one or
339	339	more of any combination of the entities listed in that clause.
340	340	(b) A subsequent owner of a qualified facility may continue to receive the incentive payment
341	341	for the duration of the original payment period if the subsequent owner qualifies for the incentive
342	342	under subdivision 1.
343	343	(c) Nothing in this section may be construed to deny incentive payment to an otherwise qualified
344	344	facility that has obtained debt or equity financing for construction or operation as long as the
345	345	ownership requirements of subdivision 1 and this subdivision are met. If, during the incentive
346	346	payment period for a qualified facility, the owner of the facility is in default of a lending agreement
347	347	and the lender takes possession of and operates the facility and makes reasonable efforts to transfer
348	348	ownership of the facility to an entity other than the lender, the lender may continue to receive the
349	349	incentive payment for electricity generated and sold by the facility for a period not to exceed 18
350	350	months. A lender who takes possession of a facility shall notify the commissioner immediately on
351	351	taking possession and, at least quarterly, document efforts to transfer ownership of the facility.
352	352	(d) If, during the incentive payment period, a qualified facility loses the right to receive the
353	353	incentive because of changes in ownership, the facility may regain the right to receive the incentive
354	354	upon cure of the ownership structure that resulted in the loss of eligibility and may reapply for the
355	355	incentive, but in no case may the payment period be extended beyond the original ten-year limit.
356	356	(e) A subsequent or requalifying owner under paragraph (b) or (d) retains the facility's original
357	357	priority order for incentive payments as long as the ownership structure requalifies within two years
358	358	from the date the facility became unqualified or two years from the date a lender takes possession.
359	359	Subd. 7.Eligibility process.(a) A qualifying project is eligible for the incentive on the date
360	360	the commissioner receives:
361	361	(1) an application for payment of the incentive;
362	362	(2) one of the following:
363	363	(i) a copy of a signed power purchase agreement;
364	364	(ii) a copy of a binding agreement other than a power purchase agreement to sell electricity
365	365	generated by the project to a third person; or
366	366	(iii) if the project developer or owner will sell electricity to its own members or customers, a
367	367	copy of the purchase order for equipment to construct the project with a delivery date and a copy
368	368	of a signed receipt for a nonrefundable deposit; and
369	369	(3) any other information the commissioner deems necessary to determine whether the proposed
370	370	project qualifies for the incentive under this section.
371	371	(b) The commissioner shall determine whether a project qualifies for the incentive and respond
372	372	in writing to the applicant approving or denying the application within 15 working days of receipt
373	373	of the information required in paragraph (a). A project that is not operational within 18 months of
374	374	receipt of a letter of approval is no longer approved for the incentive. The commissioner shall notify
375	375	3R
376	376	APPENDIX
377	377	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
378	378	period. Eligibility for a project that loses approval may be reestablished as of the date the
379	379	commissioner receives a new completed application.
380	380	4R
381	381	APPENDIX
382	382	Repealed Minnesota Statutes: 25-05137