.................... moves to amend H.F. No. 1836 as follows:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 2008, section 216B.2424, subdivision 5a, is amended to
Subd. 5a. Reduction of biomass mandate.
(a) Notwithstanding subdivision 5, the
biomass electric energy mandate must be reduced from 125 megawatts to 110 megawatts.
(b) The Public Utilities Commission shall approve a request pending before the
commission as of May 15, 2003, for amendments to and assignment of a power purchase
agreement with the owner of a facility that uses short-rotation, woody crops as its primary
fuel previously approved to satisfy a portion of the biomass mandate if the owner of
the project agrees to reduce the size of its project from 50 megawatts to 35 megawatts,
while maintaining an average price for energy in nominal dollars measured over the term
of the power purchase agreement at or below $104 per megawatt-hour, exclusive of any
price adjustments that may take effect subsequent to commission approval of the power
purchase agreement, as amended. The commission shall also approve, as necessary, any
subsequent assignment or sale of the power purchase agreement or ownership of the
project to an entity owned or controlled, directly or indirectly, by two municipal utilities
located north of Constitutional Route No. 8, as described in section
currently own electric and steam generation facilities using coal as a fuel and which
propose to retrofit their existing municipal electrical generating facilities to utilize biomass
fuels in order to perform the power purchase agreement.
(c) If the power purchase agreement described in paragraph (b) is assigned to an
entity that is, or becomes, owned or controlled, directly or indirectly, by two municipal
entities as described in paragraph (b), and the power purchase agreement meets the
price requirements of paragraph (b), the commission shall approve any amendments to
the power purchase agreement necessary to reflect the changes in project location and
ownership and any other amendments made necessary by those changes. The commission
shall also specifically find that:
(1) the power purchase agreement complies with and fully satisfies the provisions of
this section to the full extent of its 35-megawatt capacity;
(2) all costs incurred by the public utility and all amounts to be paid by the public
utility to the project owner under the terms of the power purchase agreement are fully
recoverable pursuant to section
(3) subject to prudency review by the commission, the public utility may recover
from its Minnesota retail customers the Minnesota jurisdictional portion of the amounts
that may be incurred and paid by the public utility during the full term of the power
purchase agreement; and
(4) if the purchase power agreement meets the requirements of this subdivision,
it is reasonable and in the public interest.
(d) The commission shall specifically approve recovery by the public utility of
any and all Minnesota jurisdictional costs incurred by the public utility to improve,
construct, install, or upgrade transmission, distribution, or other electrical facilities owned
by the public utility or other persons in order to permit interconnection of the retrofitted
biomass-fueled generating facilities or to obtain transmission service for the energy
provided by the facilities to the public utility pursuant to section
, and shall
disapprove any provision in the power purchase agreement that requires the developer
or owner of the project to pay the jurisdictional costs or that permit the public utility to
terminate the power purchase agreement as a result of the existence of those costs or the
public utility's obligation to pay any or all of those costs.
2.24(e) Upon request by the project owner, the public utility shall agree to amend the
2.25power purchase agreement described in paragraph (b) and approved by the commission as
2.26required by paragraph (c). The amendment shall be negotiated and executed within 45
2.27days of the effective date of this section and shall apply to prices paid after January 1,
2.282009. In no event shall the average price for energy in nominal dollars measured over
2.29the term of the power purchase agreement exceed $104 per megawatt hour by more
2.30than five percent. The public utility shall request approval of the amendment by the
2.31commission within 30 days of execution of the amended power purchase agreement.
2.32The amendment is not effective until approval by the commission. The commission
2.33must act on the amendment within 90 days of submission of the request by the public
2.34utility. Upon approval of the amended power purchase agreement, the commission shall
2.35allow the public utility to recover the costs of the amended power purchase agreement, as
2.36provided in section 216B.1645.
3.1EFFECTIVE DATE.This section is effective the day following final enactment.