1.2relating to energy; revising the annual fee transferred to the renewable
1.3development account for each cask of spent nuclear fuel stored in this state;
1.4amending Minnesota Statutes 2012, section 116C.779, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2012, section 116C.779, subdivision 1, is amended to
1.7read:
1.8    Subdivision 1. Renewable development account. (a) The public utility that owns
1.9the Prairie Island nuclear generating plant must transfer to a renewable development
1.10account $500,000 $3,000,000 each year for each dry cask containing spent fuel that is
1.11located at the Prairie Island power plant for each year the plant is in operation, and
1.12$7,500,000 each year the plant is not in operation if ordered by the commission pursuant
1.13to paragraph (c). The fund transfer must be made if nuclear waste is stored in a dry cask at
1.14the independent spent-fuel storage facility at Prairie Island for any part of a year.
1.15    (b) The public utility that owns the Monticello nuclear generating plant must transfer
1.16to the renewable development account $350,000 $3,000,000 each year for each dry
1.17cask containing spent fuel that is located at the Monticello nuclear power plant for each
1.18year the plant is in operation, and $5,250,000 each year the plant is not in operation if
1.19ordered by the commission pursuant to paragraph (c). The fund transfer must be made
1.20if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at
1.21Monticello for any part of a year.
1.22     (c) After discontinuation of operation of the Prairie Island nuclear plant or the
1.23Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
1.24discontinued facility, the commission shall require the public utility to pay $7,500,000 for
2.1the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
2.2facility for any year in which the commission finds, by the preponderance of the evidence,
2.3that the public utility did not make a good faith effort to remove the spent nuclear
2.4fuel stored at the facility to a permanent or interim storage site out of the state. This
2.5determination shall be made at least every two years.
2.6(d) Funds in the account may be expended only for any of the following purposes:
2.7(1) to increase the market penetration within the state of renewable electric energy
2.8resources at reasonable costs;
2.9(2) to promote the start-up, expansion, and attraction of renewable electric energy
2.10projects and companies within the state;
2.11(3) to stimulate research and development within the state into renewable electric
2.12energy technologies; and
2.13(4) to develop near-commercial and demonstration scale renewable electric projects
2.14or near-commercial and demonstration scale electric infrastructure delivery projects if
2.15those delivery projects enhance the delivery of renewable electric energy.
2.16The utility that owns a nuclear generating plant is eligible to apply for renewable
2.17development account grants.
2.18(e) Expenditures authorized by this subdivision from the account may be made only
2.19after approval by order of the Public Utilities Commission upon a petition by the public
2.20utility. The commission may approve proposed expenditures, may disapprove proposed
2.21expenditures that it finds to be not in compliance with this subdivision or otherwise
2.22not in the public interest, and may, if agreed to by the public utility, modify proposed
2.23expenditures. The commission may approve reasonable and necessary expenditures
2.24for administering the account in an amount not to exceed five percent of expenditures.
2.25Commission approval is not required for expenditures required under subdivisions 2
2.26and 3, section 116C.7791, or other law.
2.27(f) The account shall be managed by the public utility but the public utility must
2.28consult about account expenditures with an advisory group that includes, among others,
2.29representatives of its ratepayers. The commission may require that other interests be
2.30represented on the advisory group. The advisory group must be consulted with respect to
2.31the general scope of expenditures in designing a request for proposal and in evaluating
2.32projects submitted in response to a request for proposals. In addition to consulting with the
2.33advisory group, the public utility must utilize an independent third-party expert to evaluate
2.34proposals submitted in response to a request for proposal, including all proposals made by
2.35the public utility. A request for proposal for research and development under paragraph (d),
2.36clause (3), may be limited to or include a request to higher education institutions located in
3.1Minnesota for multiple projects authorized under paragraph (d), clause (3). The request for
3.2multiple projects may include a provision that exempts the projects from the third-party
3.3expert review and instead provides for project evaluation and selection by a merit peer
3.4review grant system. The utility should attempt to reach agreement with the advisory
3.5group after consulting with it but the utility has full and sole authority to determine which
3.6expenditures shall be submitted to the commission for commission approval. In the
3.7process of determining request for proposal scope and subject and in evaluating responses
3.8to request for proposals, the public utility must strongly consider, where reasonable,
3.9potential benefit to Minnesota citizens and businesses and the utility's ratepayers.
3.10(g) Funds in the account may not be directly appropriated by the legislature by a law
3.11enacted after January 1, 2012, and unless appropriated by a law enacted prior to that date
3.12may be expended only pursuant to an order of the commission according to this subdivision.
3.13(h) A request for proposal for renewable energy generation projects must, when
3.14feasible and reasonable, give preference to projects that are most cost-effective for a
3.15particular energy source.
3.16(i) The public utility must annually, by February 15, report to the chairs and ranking
3.17minority members of the legislative committees with jurisdiction over energy policy on
3.18projects funded by the account for the prior year and all previous years. The report must,
3.19to the extent possible and reasonable, itemize the actual and projected financial benefit to
3.20the public utility's ratepayers of each project.
3.21(j) A project receiving funds from the account must produce a written final report
3.22that includes sufficient detail for technical readers and a clearly written summary for
3.23nontechnical readers. The report must include an evaluation of the project's financial,
3.24environmental, and other benefits to the state and the public utility's ratepayers.
3.25(k) Final reports, any mid-project status reports, and renewable development account
3.26financial reports must be posted online on a public Web site designated by the commission.
3.27(l) All final reports must acknowledge that the project was made possible in whole
3.28or part by the Minnesota renewable development fund, noting that the fund is financed
3.29by the public utility's ratepayers.
3.30(m) Any fees imposed on a public utility under this subdivision may not be recovered
3.31in utility rates paid by Minnesota ratepayers, but must be paid by the utility's shareholders.
3.32EFFECTIVE DATE.This section is effective the day following final enactment.