Bill Text: MN HF1167 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Renewable development account funds allocated, "Made in Minnesota" solar energy production incentive account created, and financial incentives provided for photovoltaic modules manufactured in Minnesota.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2013-03-04 - Introduction and first reading, referred to Energy Policy [HF1167 Detail]
Download: Minnesota-2013-HF1167-Introduced.html
1.2relating to energy; allocating certain funds from the renewable development
1.3account; creating an account; providing for financial incentives for solar
1.4photovoltaic modules manufactured in Minnesota; requiring studies;
1.5appropriating money;amending Minnesota Statutes 2012, section 116C.779,
1.6subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 216C.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 116C.779, subdivision 2, is amended to
1.9read:
1.10 Subd. 2. Renewable energy production incentive. (a) Until January 1, 2021,
1.11$10,900,000 annually must be allocated from available funds in the account to fund
1.12renewable energy production incentives. $9,400,000 of this annual amount is for
1.13incentives for electricity generated by wind energy conversion systems that are eligible for
1.14the incentives under section216C.41 or Laws 2005, chapter 40.
1.15(b) The balance of this amount, up to $1,500,000 annually, may be used for
1.16production incentives for on-farm biogas recovery facilities and hydroelectric facilities
1.17that are eligible for the incentive under section216C.41 or for production incentives for
1.18other renewables, to be provided in the same manner as under section216C.41 .
1.19(c) Any portion of the $10,900,000 not expended in any calendar year for the
1.20incentive isavailable for other spending purposes under subdivision 1 transferred to
1.21the commissioner for deposit in the "Made in Minnesota" solar energy production
1.22incentive account established under section 216C.412. This subdivision does not create an
1.23obligation to contribute funds to the account.
1.24(d) The Department of Commerce shall determine eligibility of projects under
1.25section216C.41 for the purposes of this subdivision. At least quarterly, the Department of
2.1Commerce shall notify the public utility of the name and address of each eligible project
2.2owner and the amount due to each project under section216C.41 . The public utility shall
2.3make payments within 15 working days after receipt of notification of payments due.
2.4EFFECTIVE DATE.This section is effective the day following final enactment.
2.5 Sec. 2. [216C.411] DEFINITIONS.
2.6For the purposes of sections 216C.411 to 216C.414, the following terms have the
2.7meanings given.
2.8(a) "Made in Minnesota" means the manufacture in this state of solar photovoltaic
2.9modules:
2.10(1) at a manufacturing facility located in Minnesota that is registered and authorized
2.11to manufacture and apply the UL 1703 certification mark to solar photovoltaic modules by
2.12Underwriters Laboratory (UL), CSA International, Intertek, or an equivalent UL-approved
2.13independent certification agency;
2.14(2) that bear UL 1703 certification marks from UL, CSA International, Intertek, or
2.15an equivalent UL-approved independent certification agency, which must be physically
2.16applied to the modules at a manufacturing facility described in clause (1); and
2.17(3) that are manufactured in Minnesota:
2.18(i) via manufacturing processes that must include tabbing, stringing, and lamination;
2.19or
2.20(ii) by interconnecting low-voltage direct current photovoltaic elements that produce
2.21the final useful photovoltaic output of the modules.
2.22A solar photovoltaic module that is manufactured by attaching microinverters, direct
2.23current optimizers, or other power electronics to a laminate or solar photovoltaic
2.24module that has received UL 1703 certification marks outside Minnesota from UL, CSA
2.25International, Intertek, or an equivalent UL-approved independent certification agency is
2.26not "Made in Minnesota" under this paragraph.
2.27 (b) "Solar photovoltaic module" has the meaning given in section 116C.7791,
2.28subdivision 1, paragraph (e).
2.29EFFECTIVE DATE.This section is effective the day following final enactment.
2.30 Sec. 3. [216C.412] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
2.31INCENTIVE ACCOUNT.
2.32 Subdivision 1. Account established; account management. A "Made in
2.33Minnesota" solar energy production incentive account is established as a separate account
3.1in the special revenue fund in the state treasury. The commissioner of management
3.2and budget shall credit to the account the amounts authorized under this section and
3.3appropriations and transfers to the account. Earnings, such as interest, dividends, and
3.4any other earnings arising from account assets, must be credited to the account. Funds
3.5remaining in the account at the end of a fiscal year do not cancel to the general fund but
3.6remain in the account. The commissioner shall manage the account.
3.7 Subd. 2. Purpose. The purpose of the account is to pay the "Made in Minnesota"
3.8solar renewable energy production incentive to owners of solar photovoltaic modules that
3.9have received a "Made in Minnesota" certificate from the commissioner under section
3.10216C.413.
3.11 Subd. 3. Allocations; deposit. (a) Beginning January 1, 2014, and each January 1
3.12thereafter through 2024, each public utility, rural electric association, and municipality
3.13subject to section 216B.241 must annually transfer to the commissioner five percent of the
3.14total amount spent by the utility the previous year on energy conservation improvements
3.15under section 216B.241 for the purposes of this section. The commissioner shall, upon
3.16receipt of the funds, deposit them in the account established in subdivision 1.
3.17(b) Notwithstanding section 116C.779, subdivision 1, paragraph (g), beginning
3.18January 1, 2014, and continuing each January 1 until 2024, the utility that manages
3.19the account under section 116C.779 must annually transfer from that account to the
3.20commissioner an amount that, when added to the amount transferred to the commissioner
3.21under paragraph (a), totals $20,000,000 for the purposes of this section. The commissioner
3.22shall, upon receipt of the funds, deposit them in the account established in subdivision 1.
3.23EFFECTIVE DATE.This section is effective the day following final enactment.
3.24 Sec. 4. [216C.413] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
3.25INCENTIVE; QUALIFICATION.
3.26 Subdivision 1. Application. A manufacturer of solar photovoltaic modules seeking
3.27to qualify those modules as eligible to receive the "Made in Minnesota" solar energy
3.28production incentive must submit an application to the commissioner on a form prescribed
3.29by the commissioner. The application must contain:
3.30(1) a technical description of the solar photovoltaic module and the processes used
3.31to manufacture it, excluding proprietary details;
3.32(2) documentation that the solar photovoltaic module meets all the required
3.33applicable parts of the "Made in Minnesota" definition in section 216C.411, including
3.34evidence of the UL 1703 right to mark for all solar photovoltaic modules seeking to
3.35qualify as "Made in Minnesota";
4.1(3) documentation, including, but not limited to, purchase orders, invoices, and
4.2shipping documents, establishing:
4.3(i) the origin of components used to manufacture the solar photovoltaic modules;
4.4(ii) the costs of raw materials, direct manufacturing labor in Minnesota, and
4.5overhead to manufacture the solar photovoltaic module; and
4.6(iii) the total costs of manufacturing the solar photovoltaic module, expressed in
4.7dollars per watts-peak governed by Standard Test Conditions under UL 1703;
4.8(4) any additional information requested by the commissioner of commerce; and
4.9(5) certification signed by the chief executive officer of the manufacturing company
4.10attesting to the truthfulness of the contents of the application and supporting materials
4.11under penalty of perjury.
4.12 Subd. 2. Plant inspection. After reviewing the application materials submitted
4.13under subdivision 1, the commissioner, or the commissioner's designee, shall physically
4.14inspect the manufacturer's Minnesota plant to verify that the manufacturing processes
4.15meet the requirements of subdivision 1. The Department of Commerce shall contract with
4.16an independent technical advisor with expertise in the manufacture of solar photovoltaic
4.17modules to accompany the commissioner, or the commissioner's designee, on the
4.18inspection. The Department of Commerce may assess a fee on the manufacturer that is
4.19equal to the costs billed by the contractor for the contractor's services with respect to the
4.20inspection, including review of the application and the writing of a postinspection report.
4.21 Subd. 3. Certification. If the commissioner determines that a manufacturer's solar
4.22photovoltaic module meets the definition of "Made in Minnesota" in section 216C.411, the
4.23commissioner shall issue the manufacturer a "Made in Minnesota" certificate containing
4.24the name and model numbers of the certified solar photovoltaic modules and the date of
4.25certification. A copy of the certificate must be provided to each purchaser of the solar
4.26photovoltaic module.
4.27 Subd. 4. Reinspection. The commissioner may reinspect the manufacturing facility
4.28of a manufacturer who has received certification under subdivision 3 at any time, but
4.29must do so at least every two years.
4.30 Subd. 5. Notice of change; certification review. A manufacturer that has received
4.31a "Made in Minnesota" certificate under subdivision 3 must notify the commissioner
4.32of commerce at least 60 days in advance of any changes in the components used
4.33in production, manufacturing processes, or any other changes that could affect the
4.34manufacturer's solar photovoltaic modules' certification as "Made in Minnesota," and
4.35must submit to the commissioner detailed information describing and documenting the
4.36changes. The commissioner shall, after reviewing the submitted material and, if necessary,
5.1conducting a reinspection of the manufacturer's manufacturing facility, determine
5.2whether the proposed changes warrant revoking the manufacturer's "Made in Minnesota"
5.3certification. Within ten days of making a determination under this subdivision, the
5.4commissioner shall inform the manufacturer of the determination in writing.
5.5 Subd. 6. Data. Any data submitted as part of an application under subdivision 1 or
5.6collected as a result of an inspection under subdivision 2 or 4 is trade secret information
5.7under section 13.37 and is classified as nonpublic data.
5.8EFFECTIVE DATE.This section is effective the day following final enactment.
5.9 Sec. 5. [216C.414] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
5.10INCENTIVE; CALCULATION.
5.11 Subdivision 1. Components. (a) By October 1, 2013, the Department of Commerce
5.12shall calculate a "Made in Minnesota" solar energy production incentive for each solar
5.13photovoltaic module that has received certification under section 216C.413 as being
5.14manufactured in Minnesota. The "Made in Minnesota" solar energy production incentive
5.15is a performance-based financial incentive expressed as a per kilowatt-hour amount that,
5.16when added to the amount paid by a utility to the owner of a solar photovoltaic module
5.17under section 216B.164 or other rate approved by the commission, reduces the payback of
5.18the owner's investment in the solar photovoltaic modules to a period of ten years. The
5.19Department of Commerce shall calculate the "Made in Minnesota" solar energy production
5.20incentive by utilizing a financial model composed of the following components:
5.21(1) an estimate of the installed cost per kilowatt-direct current, based on the cost data
5.22supplied by manufacturers in the application submitted under section 216C.413, and an
5.23estimate of the average installation cost based on a representative sample of Minnesota
5.24solar photovoltaic projects installed by installers certified by the North American Board of
5.25Certified Energy Practitioners and the Minnesota Joint Apprenticeship Training Committee;
5.26(2) the average insolation rate in Minnesota;
5.27(3) an estimate of the decline in the generation efficiency of the solar photovoltaic
5.28modules over time;
5.29(4) the rate paid by utilities to owners of solar photovoltaic modules under section
5.30216B.164 or other law;
5.31(5) applicable federal tax incentives for installing solar photovoltaic modules;
5.32(6) the maximum amount of debt the project can support based on current
5.33commercial borrowing rates and a ten-year term; and
5.34(7) the estimated levelized cost per kilowatt-hour generated.
6.1(b) In determining the amount of the incentive, the Department of Commerce shall
6.2consider, after consulting with Minnesota solar photovoltaic manufacturers, the degree to
6.3which solar photovoltaic modules contain components manufactured in Minnesota; the
6.4solar photovoltaic modules' estimated length of life, taking into account design, quality of
6.5materials used, and independent testing results; UL 1703 or equivalent fire safety ratings
6.6and additional integrated safety features; and the ability to use the solar photovoltaic
6.7modules in innovative applications, including for purposes other than solely electric
6.8generation.
6.9(c) "Made in Minnesota" solar photovoltaic modules shall receive:
6.10(1) 100 percent of the incentive calculated in paragraph (a) if they are manufactured
6.11under the process described in section 216C.411, paragraph (a), clause (3), item (i); or
6.12(2) 65 percent of the incentive calculated in paragraph (a) if they are manufactured
6.13under the process described in section 216C.411, paragraph (a), clause (3), item (ii).
6.14 Subd. 2. Notice; recalculation. A manufacturer that has received a "Made in
6.15Minnesota" certificate under section 216C.413 must notify the commissioner of commerce
6.16at least 60 days in advance of any changes in the parameters listed in subdivision 1
6.17that may affect the department's calculation of the "Made in Minnesota" solar energy
6.18production incentive, and must submit to the commissioner detailed information
6.19describing and documenting the changes. The commissioner of commerce, after reviewing
6.20the submitted material, shall determine whether the changes warrant recalculation of
6.21the "Made in Minnesota" solar energy production incentive for the manufacturer's
6.22solar photovoltaic modules and, if so, shall conduct the recalculation. Within ten days
6.23of recalculating the incentive, the commissioner shall inform the manufacturer of the
6.24recalculation in writing. A recalculated incentive is effective 90 days after the first day of
6.25the first month following the date of notice of the recalculation.
6.26 Subd. 3. Annual review. Unless a review of the calculation of the "Made in
6.27Minnesota" solar energy production incentive has been conducted under subdivision 2
6.28in a calendar year, the commissioner of commerce shall annually review the calculation
6.29of the "Made in Minnesota" solar energy production incentive for each manufacturer
6.30receiving the incentive. As part of the review, the commissioner of commerce may
6.31require the manufacturer to submit current information to support the calculation of the
6.32"Made in Minnesota" solar energy production incentive. A manufacturer shall submit the
6.33information requested by the commissioner of commerce in a timely fashion.
6.34EFFECTIVE DATE.This section is effective the day following final enactment.
7.1 Sec. 6. [216C.415] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
7.2INCENTIVE; PAYMENT.
7.3 Subdivision 1. Incentive payment. Incentive payments may be made under this
7.4section only to an owner of solar photovoltaic modules with a total nameplate capacity
7.5below 100 kilowatts who:
7.6(1) has submitted to the commissioner, on a form established by the commissioner,
7.7an application to receive the incentive;
7.8(2) has received from the commissioner a "Made in Minnesota" certificate under
7.9section 216C.413; and
7.10(3) has installed on or adjacent to residential or commercial property solar
7.11photovoltaic modules that are generating electricity and has received a "Made in
7.12Minnesota" certificate under section 216C.413.
7.13 Subd. 2. Eligibility window; payment duration. (a) Payments may be made
7.14under this section only for electricity generated from solar photovoltaic modules that are
7.15operational and generating electricity from January 1, 2014, through December 31, 2034.
7.16(b) Payment of the incentive begins and runs consecutively from the date the solar
7.17photovoltaic modules begin generating electricity.
7.18(c) An owner of solar photovoltaic modules shall receive payments under this
7.19section for a period of ten years.
7.20(d) No payment may be made under this section for electricity generated after
7.21December 31, 2034.
7.22(e) No owner of solar photovoltaic modules may first begin to receive payments
7.23under this section after December 31, 2024.
7.24 Subd. 3. Amount of payment. (a) An incentive payment is based on the number
7.25of kilowatt-hours of electricity generated by the solar photovoltaic modules installed at
7.26a single property, except as provided in paragraph (b). The per-kilowatt amount of the
7.27payment is the "Made in Minnesota" solar energy production incentive for those modules
7.28determined by the commissioner of commerce under section 216C.414.
7.29(b) The owner of solar photovoltaic modules eligible to receive incentives under this
7.30section and whose total nameplate capacity exceeds 40 kilowatts DC but is less than 100
7.31kilowatts DC shall be paid an incentive according to the formula:
7.32I = (M) x [(P kWh AC) ÷ (C kW DC)] x (40 kW DC), where:
7.33(1) I equals the incentive paid to an owner of solar photovoltaic modules whose
7.34nameplate capacity exceeds 40 kilowatts DC, but is less than 100 kilowatts DC;
7.35(2) M equals the "Made in Minnesota" solar energy production incentive calculated
7.36under section 216C.414;
8.1(3) P equals the number of kilowatt-hours AC generated by the solar photovoltaic
8.2modules whose nameplate capacity exceeds 40 kilowatts DC, but is less than 100
8.3kilowatts DC; and
8.4(4) C equals the nameplate capacity of the solar photovoltaic modules whose
8.5nameplate capacity exceeds 40 kilowatts DC, but is less than 100 kilowatts DC.
8.6(c) For purposes of this subdivision, (i) "AC" means alternating current; (ii) "DC"
8.7means direct current; (iii) "kWh" means kilowatt-hours; and (iv) "kW" means kilowatts.
8.8 Subd. 4. Allocation of payments. (a) Fifty percent of the funds deposited in the
8.9account established in section 216C.412 available each year to pay incentives shall be for
8.10owners of eligible solar photovoltaic modules installed on residential property, and 50
8.11percent shall be for owners of eligible solar photovoltaic modules installed on commercial
8.12property.
8.13(b) The commissioner may not award more than 25 percent of the annual
8.14contribution made by the public utility that owns a nuclear generating plant in this state
8.15to the account established in section 216C.412 to owners of solar photovoltaic modules
8.16that are installed in buildings located outside the area where that public utility provides
8.17electric service in this state.
8.18(c) The commissioner shall endeavor to geographically distribute incentives paid
8.19under this section to owners of solar photovoltaic modules installed throughout the state.
8.20(d) For purposes of this subdivision:
8.21(1) "residential property" means residential real estate that is occupied and used as a
8.22homestead by its owner or by a renter and includes "multifamily housing development" as
8.23defined in section 462C.02, subdivision 5, except that residential property on which solar
8.24photovoltaic modules (i) whose capacity exceed 10 kilowatts is installed; or (ii) connected
8.25to a utility's distribution system and whose electricity is purchased by several residents,
8.26each of whom own a share of the electricity generated, shall be deemed commercial
8.27property; and
8.28(2) "commercial property" means real property on which is located a business
8.29establishment classified under the North American Industrial Classification System as
8.30codes 42, 44, or 45.
8.31 Subd. 5. Limitation. An owner receiving an incentive payment under this section
8.32may not receive a rebate under section 116C.7791 for the same solar photovoltaic modules.
8.33 Subd. 6. Appropriation. There is annually appropriated from the "Made in
8.34Minnesota" solar energy production incentive account established under section 216C.412
8.35an amount to the commissioner of commerce sufficient to make the payments required
9.1under this section and to reimburse the Department of Commerce for actual and reasonable
9.2costs of administering the incentive program under sections 216C.411 to 216C.415.
9.3EFFECTIVE DATE.This section is effective the day following final enactment.
9.4 Sec. 7. VALUE OF ON-SITE ENERGY STORAGE STUDY.
9.5(a) The commissioner of commerce shall contract with an independent consultant
9.6selected through a request for proposal process to produce a report analyzing the potential
9.7costs and benefits of installing utility-managed energy storage modules in residential and
9.8commercial buildings in this state. The study must:
9.9(1) estimate the potential value of on-site energy storage modules as a
9.10load-management tool to reduce costs for individual customers and for the utility,
9.11including, but not limited to, reductions in energy, particularly peaking, costs, and
9.12capacity costs;
9.13(2) examine the interaction of energy storage modules with on-site solar photovoltaic
9.14modules; and
9.15(3) analyze existing barriers to the installation of on-site energy storage modules
9.16by utilities, and examine strategies and design potential economic incentives, including
9.17using utility funds expended under Minnesota Statutes, section 216B.241, to overcome
9.18those barriers.
9.19By January 1, 2014, the commissioner of commerce shall submit the study to the chairs
9.20and ranking minority members of the legislative committees with jurisdiction over energy
9.21policy and finance.
9.22(b) The commissioner of commerce shall assess an amount necessary under
9.23Minnesota Statutes, section 216B.241, subdivision 1e, for the purpose of completing the
9.24study described in this section.
9.25EFFECTIVE DATE.This section is effective the day following final enactment.
9.26 Sec. 8. VALUE OF SOLAR THERMAL STUDY.
9.27(a) The commissioner of commerce shall contract with an independent consultant
9.28selected through a request for proposal process to produce a report analyzing the potential
9.29costs and benefits of expanding the installation of solar thermal projects, as defined in
9.30Minnesota Statutes, section 216B.2411, subdivision 2, in residential and commercial
9.31buildings in this state. The study must examine the potential for solar thermal projects to
9.32reduce heating and cooling costs for individual customers and to reduce utilities' costs.
9.33The study must also analyze existing barriers to the installation of solar thermal projects
10.1by utilities, and examine strategies and design potential economic incentives, including
10.2using utility funds expended under Minnesota Statutes, section 216B.241, to overcome
10.3those barriers. By January 1, 2014, the commissioner of commerce shall submit the study
10.4to the chairs and ranking minority members of the legislative committees with jurisdiction
10.5over energy policy and finance.
10.6(b) The commissioner of commerce shall assess an amount necessary under
10.7Minnesota Statutes, section 216B.241, subdivision 1e, for the purpose of completing the
10.8study described in this section.
10.9EFFECTIVE DATE.This section is effective the day following final enactment.
1.3account; creating an account; providing for financial incentives for solar
1.4photovoltaic modules manufactured in Minnesota; requiring studies;
1.5appropriating money;amending Minnesota Statutes 2012, section 116C.779,
1.6subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 216C.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 116C.779, subdivision 2, is amended to
1.9read:
1.10 Subd. 2. Renewable energy production incentive. (a) Until January 1, 2021,
1.11$10,900,000 annually must be allocated from available funds in the account to fund
1.12renewable energy production incentives. $9,400,000 of this annual amount is for
1.13incentives for electricity generated by wind energy conversion systems that are eligible for
1.14the incentives under section
1.15(b) The balance of this amount, up to $1,500,000 annually, may be used for
1.16production incentives for on-farm biogas recovery facilities and hydroelectric facilities
1.17that are eligible for the incentive under section
1.18other renewables, to be provided in the same manner as under section
1.19(c) Any portion of the $10,900,000 not expended in any calendar year for the
1.20incentive is
1.21the commissioner for deposit in the "Made in Minnesota" solar energy production
1.22incentive account established under section 216C.412. This subdivision does not create an
1.23obligation to contribute funds to the account.
1.24(d) The Department of Commerce shall determine eligibility of projects under
1.25section
2.1Commerce shall notify the public utility of the name and address of each eligible project
2.2owner and the amount due to each project under section
2.3make payments within 15 working days after receipt of notification of payments due.
2.4EFFECTIVE DATE.This section is effective the day following final enactment.
2.5 Sec. 2. [216C.411] DEFINITIONS.
2.6For the purposes of sections 216C.411 to 216C.414, the following terms have the
2.7meanings given.
2.8(a) "Made in Minnesota" means the manufacture in this state of solar photovoltaic
2.9modules:
2.10(1) at a manufacturing facility located in Minnesota that is registered and authorized
2.11to manufacture and apply the UL 1703 certification mark to solar photovoltaic modules by
2.12Underwriters Laboratory (UL), CSA International, Intertek, or an equivalent UL-approved
2.13independent certification agency;
2.14(2) that bear UL 1703 certification marks from UL, CSA International, Intertek, or
2.15an equivalent UL-approved independent certification agency, which must be physically
2.16applied to the modules at a manufacturing facility described in clause (1); and
2.17(3) that are manufactured in Minnesota:
2.18(i) via manufacturing processes that must include tabbing, stringing, and lamination;
2.19or
2.20(ii) by interconnecting low-voltage direct current photovoltaic elements that produce
2.21the final useful photovoltaic output of the modules.
2.22A solar photovoltaic module that is manufactured by attaching microinverters, direct
2.23current optimizers, or other power electronics to a laminate or solar photovoltaic
2.24module that has received UL 1703 certification marks outside Minnesota from UL, CSA
2.25International, Intertek, or an equivalent UL-approved independent certification agency is
2.26not "Made in Minnesota" under this paragraph.
2.27 (b) "Solar photovoltaic module" has the meaning given in section 116C.7791,
2.28subdivision 1, paragraph (e).
2.29EFFECTIVE DATE.This section is effective the day following final enactment.
2.30 Sec. 3. [216C.412] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
2.31INCENTIVE ACCOUNT.
2.32 Subdivision 1. Account established; account management. A "Made in
2.33Minnesota" solar energy production incentive account is established as a separate account
3.1in the special revenue fund in the state treasury. The commissioner of management
3.2and budget shall credit to the account the amounts authorized under this section and
3.3appropriations and transfers to the account. Earnings, such as interest, dividends, and
3.4any other earnings arising from account assets, must be credited to the account. Funds
3.5remaining in the account at the end of a fiscal year do not cancel to the general fund but
3.6remain in the account. The commissioner shall manage the account.
3.7 Subd. 2. Purpose. The purpose of the account is to pay the "Made in Minnesota"
3.8solar renewable energy production incentive to owners of solar photovoltaic modules that
3.9have received a "Made in Minnesota" certificate from the commissioner under section
3.10216C.413.
3.11 Subd. 3. Allocations; deposit. (a) Beginning January 1, 2014, and each January 1
3.12thereafter through 2024, each public utility, rural electric association, and municipality
3.13subject to section 216B.241 must annually transfer to the commissioner five percent of the
3.14total amount spent by the utility the previous year on energy conservation improvements
3.15under section 216B.241 for the purposes of this section. The commissioner shall, upon
3.16receipt of the funds, deposit them in the account established in subdivision 1.
3.17(b) Notwithstanding section 116C.779, subdivision 1, paragraph (g), beginning
3.18January 1, 2014, and continuing each January 1 until 2024, the utility that manages
3.19the account under section 116C.779 must annually transfer from that account to the
3.20commissioner an amount that, when added to the amount transferred to the commissioner
3.21under paragraph (a), totals $20,000,000 for the purposes of this section. The commissioner
3.22shall, upon receipt of the funds, deposit them in the account established in subdivision 1.
3.23EFFECTIVE DATE.This section is effective the day following final enactment.
3.24 Sec. 4. [216C.413] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
3.25INCENTIVE; QUALIFICATION.
3.26 Subdivision 1. Application. A manufacturer of solar photovoltaic modules seeking
3.27to qualify those modules as eligible to receive the "Made in Minnesota" solar energy
3.28production incentive must submit an application to the commissioner on a form prescribed
3.29by the commissioner. The application must contain:
3.30(1) a technical description of the solar photovoltaic module and the processes used
3.31to manufacture it, excluding proprietary details;
3.32(2) documentation that the solar photovoltaic module meets all the required
3.33applicable parts of the "Made in Minnesota" definition in section 216C.411, including
3.34evidence of the UL 1703 right to mark for all solar photovoltaic modules seeking to
3.35qualify as "Made in Minnesota";
4.1(3) documentation, including, but not limited to, purchase orders, invoices, and
4.2shipping documents, establishing:
4.3(i) the origin of components used to manufacture the solar photovoltaic modules;
4.4(ii) the costs of raw materials, direct manufacturing labor in Minnesota, and
4.5overhead to manufacture the solar photovoltaic module; and
4.6(iii) the total costs of manufacturing the solar photovoltaic module, expressed in
4.7dollars per watts-peak governed by Standard Test Conditions under UL 1703;
4.8(4) any additional information requested by the commissioner of commerce; and
4.9(5) certification signed by the chief executive officer of the manufacturing company
4.10attesting to the truthfulness of the contents of the application and supporting materials
4.11under penalty of perjury.
4.12 Subd. 2. Plant inspection. After reviewing the application materials submitted
4.13under subdivision 1, the commissioner, or the commissioner's designee, shall physically
4.14inspect the manufacturer's Minnesota plant to verify that the manufacturing processes
4.15meet the requirements of subdivision 1. The Department of Commerce shall contract with
4.16an independent technical advisor with expertise in the manufacture of solar photovoltaic
4.17modules to accompany the commissioner, or the commissioner's designee, on the
4.18inspection. The Department of Commerce may assess a fee on the manufacturer that is
4.19equal to the costs billed by the contractor for the contractor's services with respect to the
4.20inspection, including review of the application and the writing of a postinspection report.
4.21 Subd. 3. Certification. If the commissioner determines that a manufacturer's solar
4.22photovoltaic module meets the definition of "Made in Minnesota" in section 216C.411, the
4.23commissioner shall issue the manufacturer a "Made in Minnesota" certificate containing
4.24the name and model numbers of the certified solar photovoltaic modules and the date of
4.25certification. A copy of the certificate must be provided to each purchaser of the solar
4.26photovoltaic module.
4.27 Subd. 4. Reinspection. The commissioner may reinspect the manufacturing facility
4.28of a manufacturer who has received certification under subdivision 3 at any time, but
4.29must do so at least every two years.
4.30 Subd. 5. Notice of change; certification review. A manufacturer that has received
4.31a "Made in Minnesota" certificate under subdivision 3 must notify the commissioner
4.32of commerce at least 60 days in advance of any changes in the components used
4.33in production, manufacturing processes, or any other changes that could affect the
4.34manufacturer's solar photovoltaic modules' certification as "Made in Minnesota," and
4.35must submit to the commissioner detailed information describing and documenting the
4.36changes. The commissioner shall, after reviewing the submitted material and, if necessary,
5.1conducting a reinspection of the manufacturer's manufacturing facility, determine
5.2whether the proposed changes warrant revoking the manufacturer's "Made in Minnesota"
5.3certification. Within ten days of making a determination under this subdivision, the
5.4commissioner shall inform the manufacturer of the determination in writing.
5.5 Subd. 6. Data. Any data submitted as part of an application under subdivision 1 or
5.6collected as a result of an inspection under subdivision 2 or 4 is trade secret information
5.7under section 13.37 and is classified as nonpublic data.
5.8EFFECTIVE DATE.This section is effective the day following final enactment.
5.9 Sec. 5. [216C.414] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
5.10INCENTIVE; CALCULATION.
5.11 Subdivision 1. Components. (a) By October 1, 2013, the Department of Commerce
5.12shall calculate a "Made in Minnesota" solar energy production incentive for each solar
5.13photovoltaic module that has received certification under section 216C.413 as being
5.14manufactured in Minnesota. The "Made in Minnesota" solar energy production incentive
5.15is a performance-based financial incentive expressed as a per kilowatt-hour amount that,
5.16when added to the amount paid by a utility to the owner of a solar photovoltaic module
5.17under section 216B.164 or other rate approved by the commission, reduces the payback of
5.18the owner's investment in the solar photovoltaic modules to a period of ten years. The
5.19Department of Commerce shall calculate the "Made in Minnesota" solar energy production
5.20incentive by utilizing a financial model composed of the following components:
5.21(1) an estimate of the installed cost per kilowatt-direct current, based on the cost data
5.22supplied by manufacturers in the application submitted under section 216C.413, and an
5.23estimate of the average installation cost based on a representative sample of Minnesota
5.24solar photovoltaic projects installed by installers certified by the North American Board of
5.25Certified Energy Practitioners and the Minnesota Joint Apprenticeship Training Committee;
5.26(2) the average insolation rate in Minnesota;
5.27(3) an estimate of the decline in the generation efficiency of the solar photovoltaic
5.28modules over time;
5.29(4) the rate paid by utilities to owners of solar photovoltaic modules under section
5.30216B.164 or other law;
5.31(5) applicable federal tax incentives for installing solar photovoltaic modules;
5.32(6) the maximum amount of debt the project can support based on current
5.33commercial borrowing rates and a ten-year term; and
5.34(7) the estimated levelized cost per kilowatt-hour generated.
6.1(b) In determining the amount of the incentive, the Department of Commerce shall
6.2consider, after consulting with Minnesota solar photovoltaic manufacturers, the degree to
6.3which solar photovoltaic modules contain components manufactured in Minnesota; the
6.4solar photovoltaic modules' estimated length of life, taking into account design, quality of
6.5materials used, and independent testing results; UL 1703 or equivalent fire safety ratings
6.6and additional integrated safety features; and the ability to use the solar photovoltaic
6.7modules in innovative applications, including for purposes other than solely electric
6.8generation.
6.9(c) "Made in Minnesota" solar photovoltaic modules shall receive:
6.10(1) 100 percent of the incentive calculated in paragraph (a) if they are manufactured
6.11under the process described in section 216C.411, paragraph (a), clause (3), item (i); or
6.12(2) 65 percent of the incentive calculated in paragraph (a) if they are manufactured
6.13under the process described in section 216C.411, paragraph (a), clause (3), item (ii).
6.14 Subd. 2. Notice; recalculation. A manufacturer that has received a "Made in
6.15Minnesota" certificate under section 216C.413 must notify the commissioner of commerce
6.16at least 60 days in advance of any changes in the parameters listed in subdivision 1
6.17that may affect the department's calculation of the "Made in Minnesota" solar energy
6.18production incentive, and must submit to the commissioner detailed information
6.19describing and documenting the changes. The commissioner of commerce, after reviewing
6.20the submitted material, shall determine whether the changes warrant recalculation of
6.21the "Made in Minnesota" solar energy production incentive for the manufacturer's
6.22solar photovoltaic modules and, if so, shall conduct the recalculation. Within ten days
6.23of recalculating the incentive, the commissioner shall inform the manufacturer of the
6.24recalculation in writing. A recalculated incentive is effective 90 days after the first day of
6.25the first month following the date of notice of the recalculation.
6.26 Subd. 3. Annual review. Unless a review of the calculation of the "Made in
6.27Minnesota" solar energy production incentive has been conducted under subdivision 2
6.28in a calendar year, the commissioner of commerce shall annually review the calculation
6.29of the "Made in Minnesota" solar energy production incentive for each manufacturer
6.30receiving the incentive. As part of the review, the commissioner of commerce may
6.31require the manufacturer to submit current information to support the calculation of the
6.32"Made in Minnesota" solar energy production incentive. A manufacturer shall submit the
6.33information requested by the commissioner of commerce in a timely fashion.
6.34EFFECTIVE DATE.This section is effective the day following final enactment.
7.1 Sec. 6. [216C.415] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
7.2INCENTIVE; PAYMENT.
7.3 Subdivision 1. Incentive payment. Incentive payments may be made under this
7.4section only to an owner of solar photovoltaic modules with a total nameplate capacity
7.5below 100 kilowatts who:
7.6(1) has submitted to the commissioner, on a form established by the commissioner,
7.7an application to receive the incentive;
7.8(2) has received from the commissioner a "Made in Minnesota" certificate under
7.9section 216C.413; and
7.10(3) has installed on or adjacent to residential or commercial property solar
7.11photovoltaic modules that are generating electricity and has received a "Made in
7.12Minnesota" certificate under section 216C.413.
7.13 Subd. 2. Eligibility window; payment duration. (a) Payments may be made
7.14under this section only for electricity generated from solar photovoltaic modules that are
7.15operational and generating electricity from January 1, 2014, through December 31, 2034.
7.16(b) Payment of the incentive begins and runs consecutively from the date the solar
7.17photovoltaic modules begin generating electricity.
7.18(c) An owner of solar photovoltaic modules shall receive payments under this
7.19section for a period of ten years.
7.20(d) No payment may be made under this section for electricity generated after
7.21December 31, 2034.
7.22(e) No owner of solar photovoltaic modules may first begin to receive payments
7.23under this section after December 31, 2024.
7.24 Subd. 3. Amount of payment. (a) An incentive payment is based on the number
7.25of kilowatt-hours of electricity generated by the solar photovoltaic modules installed at
7.26a single property, except as provided in paragraph (b). The per-kilowatt amount of the
7.27payment is the "Made in Minnesota" solar energy production incentive for those modules
7.28determined by the commissioner of commerce under section 216C.414.
7.29(b) The owner of solar photovoltaic modules eligible to receive incentives under this
7.30section and whose total nameplate capacity exceeds 40 kilowatts DC but is less than 100
7.31kilowatts DC shall be paid an incentive according to the formula:
7.32I = (M) x [(P kWh AC) ÷ (C kW DC)] x (40 kW DC), where:
7.33(1) I equals the incentive paid to an owner of solar photovoltaic modules whose
7.34nameplate capacity exceeds 40 kilowatts DC, but is less than 100 kilowatts DC;
7.35(2) M equals the "Made in Minnesota" solar energy production incentive calculated
7.36under section 216C.414;
8.1(3) P equals the number of kilowatt-hours AC generated by the solar photovoltaic
8.2modules whose nameplate capacity exceeds 40 kilowatts DC, but is less than 100
8.3kilowatts DC; and
8.4(4) C equals the nameplate capacity of the solar photovoltaic modules whose
8.5nameplate capacity exceeds 40 kilowatts DC, but is less than 100 kilowatts DC.
8.6(c) For purposes of this subdivision, (i) "AC" means alternating current; (ii) "DC"
8.7means direct current; (iii) "kWh" means kilowatt-hours; and (iv) "kW" means kilowatts.
8.8 Subd. 4. Allocation of payments. (a) Fifty percent of the funds deposited in the
8.9account established in section 216C.412 available each year to pay incentives shall be for
8.10owners of eligible solar photovoltaic modules installed on residential property, and 50
8.11percent shall be for owners of eligible solar photovoltaic modules installed on commercial
8.12property.
8.13(b) The commissioner may not award more than 25 percent of the annual
8.14contribution made by the public utility that owns a nuclear generating plant in this state
8.15to the account established in section 216C.412 to owners of solar photovoltaic modules
8.16that are installed in buildings located outside the area where that public utility provides
8.17electric service in this state.
8.18(c) The commissioner shall endeavor to geographically distribute incentives paid
8.19under this section to owners of solar photovoltaic modules installed throughout the state.
8.20(d) For purposes of this subdivision:
8.21(1) "residential property" means residential real estate that is occupied and used as a
8.22homestead by its owner or by a renter and includes "multifamily housing development" as
8.23defined in section 462C.02, subdivision 5, except that residential property on which solar
8.24photovoltaic modules (i) whose capacity exceed 10 kilowatts is installed; or (ii) connected
8.25to a utility's distribution system and whose electricity is purchased by several residents,
8.26each of whom own a share of the electricity generated, shall be deemed commercial
8.27property; and
8.28(2) "commercial property" means real property on which is located a business
8.29establishment classified under the North American Industrial Classification System as
8.30codes 42, 44, or 45.
8.31 Subd. 5. Limitation. An owner receiving an incentive payment under this section
8.32may not receive a rebate under section 116C.7791 for the same solar photovoltaic modules.
8.33 Subd. 6. Appropriation. There is annually appropriated from the "Made in
8.34Minnesota" solar energy production incentive account established under section 216C.412
8.35an amount to the commissioner of commerce sufficient to make the payments required
9.1under this section and to reimburse the Department of Commerce for actual and reasonable
9.2costs of administering the incentive program under sections 216C.411 to 216C.415.
9.3EFFECTIVE DATE.This section is effective the day following final enactment.
9.4 Sec. 7. VALUE OF ON-SITE ENERGY STORAGE STUDY.
9.5(a) The commissioner of commerce shall contract with an independent consultant
9.6selected through a request for proposal process to produce a report analyzing the potential
9.7costs and benefits of installing utility-managed energy storage modules in residential and
9.8commercial buildings in this state. The study must:
9.9(1) estimate the potential value of on-site energy storage modules as a
9.10load-management tool to reduce costs for individual customers and for the utility,
9.11including, but not limited to, reductions in energy, particularly peaking, costs, and
9.12capacity costs;
9.13(2) examine the interaction of energy storage modules with on-site solar photovoltaic
9.14modules; and
9.15(3) analyze existing barriers to the installation of on-site energy storage modules
9.16by utilities, and examine strategies and design potential economic incentives, including
9.17using utility funds expended under Minnesota Statutes, section 216B.241, to overcome
9.18those barriers.
9.19By January 1, 2014, the commissioner of commerce shall submit the study to the chairs
9.20and ranking minority members of the legislative committees with jurisdiction over energy
9.21policy and finance.
9.22(b) The commissioner of commerce shall assess an amount necessary under
9.23Minnesota Statutes, section 216B.241, subdivision 1e, for the purpose of completing the
9.24study described in this section.
9.25EFFECTIVE DATE.This section is effective the day following final enactment.
9.26 Sec. 8. VALUE OF SOLAR THERMAL STUDY.
9.27(a) The commissioner of commerce shall contract with an independent consultant
9.28selected through a request for proposal process to produce a report analyzing the potential
9.29costs and benefits of expanding the installation of solar thermal projects, as defined in
9.30Minnesota Statutes, section 216B.2411, subdivision 2, in residential and commercial
9.31buildings in this state. The study must examine the potential for solar thermal projects to
9.32reduce heating and cooling costs for individual customers and to reduce utilities' costs.
9.33The study must also analyze existing barriers to the installation of solar thermal projects
10.1by utilities, and examine strategies and design potential economic incentives, including
10.2using utility funds expended under Minnesota Statutes, section 216B.241, to overcome
10.3those barriers. By January 1, 2014, the commissioner of commerce shall submit the study
10.4to the chairs and ranking minority members of the legislative committees with jurisdiction
10.5over energy policy and finance.
10.6(b) The commissioner of commerce shall assess an amount necessary under
10.7Minnesota Statutes, section 216B.241, subdivision 1e, for the purpose of completing the
10.8study described in this section.
10.9EFFECTIVE DATE.This section is effective the day following final enactment.
