Bill Text: MN SF1070 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Community based-energy development (C-BED) project definition modification
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-30 - Referred to Energy, Utilities and Telecommunications [SF1070 Detail]
Download: Minnesota-2011-SF1070-Introduced.html
1.2relating to energy; amending definition of community-based energy development
1.3project;amending Minnesota Statutes 2010, section 216B.1612, subdivision 2.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 216B.1612, subdivision 2, is amended to
1.6read:
1.7 Subd. 2. Definitions. (a) The terms used in this section have the meanings given
1.8them in this subdivision.
1.9 (b) "C-BED tariff" or "tariff" means a community-based energy development tariff.
1.10 (c) "Qualifying beneficiary" means:
1.11 (1) a Minnesota resident individually or as a member of a Minnesota limited liability
1.12company organized under chapter 322B and formed for the purpose of developing a
1.13C-BED project;
1.14 (2) a Minnesota nonprofit organization organized under chapter 317A;
1.15 (3) a Minnesota cooperative association organized under chapter 308A or 308B,
1.16including a rural electric cooperative association or a generation and transmission
1.17cooperative on behalf of and at the request of a member distribution utility;
1.18 (4) a Minnesota political subdivision or local government including, but not limited
1.19to, a municipal electric utility, or a municipal power agency on behalf of and at the request
1.20of a member distribution utility; the office of the commissioner of Iron Range resources
1.21and rehabilitation; a county, statutory or home rule charter city, town, school district, or
1.22public or private higher education institution; or any other local or regional governmental
1.23organization such as a board, commission, or association;
1.24 (5) a tribal council; or
2.1(6) a legal entity (i) formed for a purpose other than to participate in C-BED
2.2projects; (ii) whose principal place of business or principal executive office is located
2.3in Minnesota; and (iii) that provides labor, services, equipment, components, or debt
2.4financing to a C-BED project.
2.5A public utility, as defined in section216B.02, subdivision 4 , is not a qualifying
2.6beneficiary.
2.7 (d) "Qualifying revenue" includes, but is not limited to:
2.8(1) royalties, distributions, dividends, and other payments flowing directly or
2.9indirectly to individuals who are qualifying beneficiaries;
2.10(2) reasonable fees for consulting, development, professional, construction, and
2.11operations and maintenance services paid to qualifying beneficiaries;
2.12(3) interest and fees paid to financial institutions that are qualifying beneficiaries;
2.13(4) the value-added portion of payments for goods manufactured in Minnesota; and
2.14(5) production taxes.
2.15(e) "Discount rate" means the ten-year United States Treasury Yield as quoted in
2.16the Wall Street Journal as of the date of application for determination under subdivision
2.1710, plus five percent; except that the discount rate applicable to any qualifying revenues
2.18contingent upon an equity investor earning a specified internal rate of return is the ten-year
2.19United States Treasury Yield, plus eight percent.
2.20 (f) "Standard reliability criteria" means:
2.21 (1) can be safely integrated into and operated within the utility's grid without causing
2.22any adverse or unsafe consequences; and
2.23 (2) is consistent with the utility's resource needs as identified in its most recent
2.24resource plan submitted under section216B.2422 .
2.25 (g) "Renewable" refers to a technology listed in section216B.1691, subdivision 1 ,
2.26paragraph (a).
2.27 (h) "Community-based energy development project" or "C-BED project" means a
2.28new renewable energy project that either as a stand-alone project or part of a partnership
2.29under subdivision 8:
2.30 (1) has no single qualifying beneficiary, including any parent company or subsidiary
2.31of the qualifying beneficiary, owning more than 15 percent of a C-BED wind energy
2.32project unless: (i) the C-BED wind energy project consists of only one or two turbines; or
2.33(ii) the qualifying beneficiary is a public entity listed under paragraph (c), clause (4);
2.34 (2) demonstrates that at least 51 percent of the net present value of the gross revenues
2.35from a power purchase agreement over the life of the project are qualifying revenues;and
3.1 (3) has a resolution of support adopted by the county board of each county in which
3.2the project is to be located, or in the case of a project located within the boundaries of
3.3a reservation, the tribal council for that reservation; and
3.4(4) has a nameplate capacity of 25 megawatts or less.
3.5(i) "Value-added portion" means the difference between the total sales price and the
3.6total cost of components, materials, and services purchased from or provided outside
3.7of Minnesota.
3.8EFFECTIVE DATE.This section is effective the day following final enactment
3.9and applies to C-BED projects that file an application with the commissioner of commerce
3.10for a predetermination or determination of C-BED eligibility after that date.
1.3project;amending Minnesota Statutes 2010, section 216B.1612, subdivision 2.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 216B.1612, subdivision 2, is amended to
1.6read:
1.7 Subd. 2. Definitions. (a) The terms used in this section have the meanings given
1.8them in this subdivision.
1.9 (b) "C-BED tariff" or "tariff" means a community-based energy development tariff.
1.10 (c) "Qualifying beneficiary" means:
1.11 (1) a Minnesota resident individually or as a member of a Minnesota limited liability
1.12company organized under chapter 322B and formed for the purpose of developing a
1.13C-BED project;
1.14 (2) a Minnesota nonprofit organization organized under chapter 317A;
1.15 (3) a Minnesota cooperative association organized under chapter 308A or 308B,
1.16including a rural electric cooperative association or a generation and transmission
1.17cooperative on behalf of and at the request of a member distribution utility;
1.18 (4) a Minnesota political subdivision or local government including, but not limited
1.19to, a municipal electric utility, or a municipal power agency on behalf of and at the request
1.20of a member distribution utility; the office of the commissioner of Iron Range resources
1.21and rehabilitation; a county, statutory or home rule charter city, town, school district, or
1.22public or private higher education institution; or any other local or regional governmental
1.23organization such as a board, commission, or association;
1.24 (5) a tribal council; or
2.1(6) a legal entity (i) formed for a purpose other than to participate in C-BED
2.2projects; (ii) whose principal place of business or principal executive office is located
2.3in Minnesota; and (iii) that provides labor, services, equipment, components, or debt
2.4financing to a C-BED project.
2.5A public utility, as defined in section
2.6beneficiary.
2.7 (d) "Qualifying revenue" includes, but is not limited to:
2.8(1) royalties, distributions, dividends, and other payments flowing directly or
2.9indirectly to individuals who are qualifying beneficiaries;
2.10(2) reasonable fees for consulting, development, professional, construction, and
2.11operations and maintenance services paid to qualifying beneficiaries;
2.12(3) interest and fees paid to financial institutions that are qualifying beneficiaries;
2.13(4) the value-added portion of payments for goods manufactured in Minnesota; and
2.14(5) production taxes.
2.15(e) "Discount rate" means the ten-year United States Treasury Yield as quoted in
2.16the Wall Street Journal as of the date of application for determination under subdivision
2.1710, plus five percent; except that the discount rate applicable to any qualifying revenues
2.18contingent upon an equity investor earning a specified internal rate of return is the ten-year
2.19United States Treasury Yield, plus eight percent.
2.20 (f) "Standard reliability criteria" means:
2.21 (1) can be safely integrated into and operated within the utility's grid without causing
2.22any adverse or unsafe consequences; and
2.23 (2) is consistent with the utility's resource needs as identified in its most recent
2.24resource plan submitted under section
2.25 (g) "Renewable" refers to a technology listed in section
2.26paragraph (a).
2.27 (h) "Community-based energy development project" or "C-BED project" means a
2.28new renewable energy project that either as a stand-alone project or part of a partnership
2.29under subdivision 8:
2.30 (1) has no single qualifying beneficiary, including any parent company or subsidiary
2.31of the qualifying beneficiary, owning more than 15 percent of a C-BED wind energy
2.32project unless: (i) the C-BED wind energy project consists of only one or two turbines; or
2.33(ii) the qualifying beneficiary is a public entity listed under paragraph (c), clause (4);
2.34 (2) demonstrates that at least 51 percent of the net present value of the gross revenues
2.35from a power purchase agreement over the life of the project are qualifying revenues;
3.1 (3) has a resolution of support adopted by the county board of each county in which
3.2the project is to be located, or in the case of a project located within the boundaries of
3.3a reservation, the tribal council for that reservation; and
3.4(4) has a nameplate capacity of 25 megawatts or less.
3.5(i) "Value-added portion" means the difference between the total sales price and the
3.6total cost of components, materials, and services purchased from or provided outside
3.7of Minnesota.
3.8EFFECTIVE DATE.This section is effective the day following final enactment
3.9and applies to C-BED projects that file an application with the commissioner of commerce
3.10for a predetermination or determination of C-BED eligibility after that date.
