1.1    .................... moves to amend H. F. No. 3585, the first engrossment, as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 216B.1612, is amended by adding a
1.4subdivision to read:
1.5    Subd. 9. Local government and political subdivision powers. A Minnesota
1.6political subdivision or local government may plan, develop, purchase, acquire, construct,
1.7and own a C-BED project and may sell output from that project as provided for in this
1.8section. A Minnesota political subdivision or local government may operate, maintain,
1.9improve, and expand the C-BED project subject to any restrictions in this section.

1.10    Sec. 2. [216F.09] COUNTY; WIND ENERGY CONVERSION SYSTEM.
1.11    A county or the Metropolitan Council may own, construct, acquire, purchase, issue
1.12bonds and certificates of indebtedness for, maintain, and operate a wind energy conversion
1.13system, or a portion of a wind energy conversion system. A county or the Metropolitan
1.14Council may purchase and sell electricity from a wind energy conversion system only at
1.15wholesale on terms and conditions that the county board or the Metropolitan Council
1.16deems are in the best interests of the public. With respect to any wind energy conversion
1.17system, or any portion of a wind energy conversion system, a county or the Metropolitan
1.18Council may exercise the powers granted to a municipal power agency and to a city under
1.19sections 453.52, subdivisions 1, 6, and 9; 453.54, subdivision 10; 453.58, subdivision 4;
1.20and 453.59, except that output from that wind energy conversion system may not be sold,
1.21transmitted, or distributed at retail, or provided for end use from an offsite facility by the
1.22county or the Metropolitan Council. A county's onsite generation authorized under this
1.23subdivision is limited to a total of ten megawatts. Nothing in this section modifies the
1.24provisions governing exclusive service territories or a utility's exclusive service right
1.25under sections 216B.37 to 216B.43.

2.1    Sec. 3. [373.48] FINANCING ENERGY PURCHASE CONTRACTS AND
2.2PARTICIPATION IN GENERATION AND TRANSMISSION PROJECTS.
2.3    Subdivision 1. Definitions. For the purpose of this section, "project" means a facility
2.4that generates electricity from renewable energy sources listed in section 216B.1691,
2.5subdivision 1, paragraph (a), clause (1).
2.6    Subd. 2. Energy purchase contracts; generation projects. A county may, for
2.7itself or in cooperation with other counties, enter into agreements for the purchase of
2.8electrical energy from one or more projects, and may enter into agreements with a utility
2.9for the purchase and sale of the electrical energy so purchased. Agreements may be for a
2.10term of one year to 20 years. A county may also acquire an ownership interest in a project
2.11and may enter into agreements for the purchase and sale of electrical energy produced. A
2.12county may not sell, transmit, or distribute the electrical energy at retail or provide for end
2.13use from an offsite facility by the county or counties of the electrical energy. A county's
2.14onsite generation authorized under this subdivision is limited to a total of ten megawatts.
2.15Nothing in this section modifies the exclusive service territories or exclusive right to
2.16serve as provided in sections 216B.37 to 216B.43. The energy to be purchased by a
2.17county under agreements entered into under this section and the energy produced that is
2.18commensurate with the county's interest in projects shall not in any year exceed the total
2.19amount of energy used by the county for its own facilities in the immediately preceding
2.20year, regardless of the source from which energy was obtained.
2.21    Subd. 3. Joint purchase of energy and acquisition of generation projects;
2.22financing. A county may enter into agreements under section 471.59 with other counties
2.23for joint purchase of energy or joint acquisition of interests in projects. A county may
2.24annually levy an ad valorem tax for the purpose of paying the cost of energy purchased or
2.25acquiring interests in projects in an amount not exceeding 0.015 percent of the market
2.26value of taxable property in the county. A county that enters into a multiyear agreement
2.27for purchase of energy or acquires an interest in a project may finance the estimated cost
2.28of the energy to be purchased during the term of the agreement or the cost to the county
2.29of the interest in the project by the issuance of general obligation bonds of the county,
2.30provided that the annual debt service on all bonds issued under this section, together
2.31with the amounts to be paid by the county in any year for the purchase of energy under
2.32agreements entered into under this section, shall not exceed the amount of taxes authorized
2.33by this section. An agreement entered into under section 471.59 as provided by this
2.34section may provide that each county shall issue bonds to pay their respective shares of
2.35the cost of the projects, or that one of the counties shall issue bonds to pay the full costs of
2.36the project, and that the other participating counties shall levy the tax authorized under
3.1this subdivision and pledge the collections of the tax to the county that issues the bonds.
3.2Bonds issued under this section may be issued without an election and shall not constitute
3.3net debt of any participating county.

3.4    Sec. 4. Minnesota Statutes 2006, section 473.1293, is amended by adding a subdivision
3.5to read:
3.6    Subd. 6. Energy purchase contracts. In addition to the powers granted elsewhere
3.7in this section, the Metropolitan Council may exercise all of the powers granted to a
3.8county under section 373.48, provided that bonds may be issued by the Metropolitan
3.9Council for the purposes of section 373.48 only under its sewer bond authority in section
3.10473.541. The Metropolitan Council may not sell, transmit, or distribute electrical energy
3.11at retail or provide for end use from an offsite facility by the Metropolitan Council of the
3.12electrical energy as provided by section 373.48, subdivision 2. The Metropolitan Council's
3.13onsite generation authorized by this subdivision is limited to a total of ten megawatts.
3.14Nothing in this section modifies the exclusive service territories or exclusive right to serve
3.15as provided in sections 216B.37 to 216B.43."
3.16Delete the title and insert:
3.18relating to energy; authorizing certain governments to engage in energy-related
3.19activities, including ownership of renewable energy projects; authorizing bonds;
3.20authorizing an annual ad valorem tax;amending Minnesota Statutes 2006,
3.21sections 216B.1612, by adding a subdivision; 473.1293, by adding a subdivision;
3.22proposing coding for new law in Minnesota Statutes, chapters 216F; 373."