1.1    .................... moves to amend H.F. No. 3585 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. Powers. A Minnesota political subdivision or local government may plan,
1.6develop, purchase, acquire, construct, or own a C-BED project and may sell output from
1.7that project as provided for in this section. A qualifying owner may operate, maintain,
1.8improve, and expand the C-BED project subject to any restrictions in this section.

1.9    Sec. 2. [373.48] FINANCING ENERGY PURCHASE CONTRACTS AND
1.10PARTICIPATION IN GENERATION AND TRANSMISSION PROJECTS.
1.11    Subdivision 1. Definitions. Terms used in this section and not otherwise defined
1.12in this chapter have the meanings given them in this section or in section 216B.2422.
1.13"Project," when used in this section, means a renewable energy facility.
1.14    Subd. 2. Energy purchase contracts; generation projects. (a) A county may,
1.15for itself or in cooperation with other counties, enter into agreements for purchasing
1.16electrical energy from one or more projects, and may enter into agreements with a utility
1.17for purchasing and selling the electrical energy. The agreements may be for a term of one
1.18year or may be multiyear agreements, the term of which must not exceed 20 years. A
1.19county may also acquire an ownership interest in a project and may enter into agreements
1.20for purchasing and selling electrical energy produced.
1.21(b) Notwithstanding paragraph (a), a county (1) may not sell, transmit, or distribute
1.22the electrical energy at retail and (2) may not provide for end use of the electrical energy
1.23from an off-site facility by any county. On-site generation is allowed to the extent
1.24provided for in section 216B.1611.
1.25(c) The energy to be purchased by a county under agreements entered into under this
1.26section and the energy produced by the county's interest in projects must not exceed in any
2.1year the total amount of energy used by the county for its own facilities in the immediately
2.2preceding year, regardless of the source from which the energy was obtained.
2.3(d) This section does not modify the exclusive service territories or exclusive right
2.4to serve as provided in sections 216B.37 to 216B.43.
2.5    Subd. 3. Financing joint energy purchases and generation project acquisitions.
2.6    A county may enter into agreements under section 471.59 with other counties for jointly
2.7purchasing energy or jointly acquiring interests in projects. A county may annually
2.8levy an ad valorem tax for paying the cost of energy purchased or interests in projects
2.9acquired in an amount not exceeding 0.015 percent of the market value of taxable property
2.10in the county. A county that enters into a multiyear agreement for purchasing energy
2.11or acquiring an interest in a project may finance the estimated cost of the energy to be
2.12purchased during the term of the agreement or the cost to the county of the interest in the
2.13project by issuing general obligation bonds of the county; provided that, the annual debt
2.14service on all bonds issued under this section, together with the amounts to be paid by the
2.15county in any year for purchasing energy under agreements entered into under this section,
2.16do not exceed the amount of taxes authorized by this section. An agreement entered into
2.17under section 471.59 as contemplated by this section may provide that each county issue
2.18bonds to pay its respective share of the cost of the projects, or that one of the counties
2.19issue bonds to pay the full cost of the project, and that the other participating counties
2.20levy the tax authorized under this subdivision and pledge the collections of the tax to the
2.21county that issues the bonds. Bonds issued under this section may be issued without an
2.22election and do not constitute net debt of any participating county.

2.23    Sec. 3. [373.49] WIND ENERGY CONVERSION SYSTEM.
2.24    (a) A county or the Metropolitan Council may own, construct, acquire, purchase,
2.25issue bonds and certificates of indebtedness for, maintain, and operate a wind energy
2.26conversion system, or a portion of a wind energy conversion system, and may only
2.27purchase and sell electricity from a wind energy conversion system at wholesale on terms
2.28and conditions the county board or the Metropolitan Council deems is in the best interests
2.29of the public.
2.30(b) With respect to any wind energy conversion system, or any portion of a wind
2.31energy conversion system, a county or the Metropolitan Council may exercise the powers
2.32granted to a municipal power agency and to a city under sections 453.52, subdivisions 1,
2.336, and 9; 453.54, subdivision 10; 453.58, subdivision 4; and 453.59; provided that, output
2.34from that wind energy conversion system may not be sold, transmitted, or distributed at
3.1retail, or provided for end use from an off-site facility, by the county or the Metropolitan
3.2Council. On-site generation is allowed to the extent provided for in section 216B.1611.
3.3(c) This section does not modify the exclusive service territories or exclusive right to
3.4serve as provided in sections 216B.37 to 216B.43.

3.5    Sec. 4. Minnesota Statutes 2006, section 473.1293, is amended by adding a subdivision
3.6to read:
3.7    Subd. 6. Energy purchase contracts. (a) In addition to the powers granted in this
3.8section, the Metropolitan Council may exercise all of the powers granted to a county under
3.9section 373.48; provided that, bonds may be issued by the Metropolitan Council for the
3.10purposes of section 373.48 only under its sewer bond authority in section 473.541.
3.11(b) Notwithstanding paragraph (a), the Metropolitan Council (1) may not sell,
3.12transmit, or distribute the electrical energy at retail and (2) may not provide for end use
3.13from an off-site facility by the Metropolitan Council of the electrical energy as set forth
3.14in section 373.48, subdivision 2. On-site generation is allowed to the extent provided
3.15for in section 216B.1611.
3.16(c) This section does not modify the exclusive service territories or exclusive right to
3.17serve as provided in sections 216B.37 to 216B.43."
3.18Delete the title and insert:
3.20relating to energy; describing powers of qualifying owner of community-based
3.21energy development project; authorizing Metropolitan Council and counties
3.22to enter into contracts and to finance the purchase of energy and interests
3.23in renewable energy projects;amending Minnesota Statutes 2006, sections
3.24216B.1612, by adding a subdivision; 473.1293, by adding a subdivision;
3.25proposing coding for new law in Minnesota Statutes, chapter 373."