1.1.................... moves to amend H.F. No. 357 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 216B.1612, subdivision 1, is amended to
1.4read:
1.5    Subdivision 1. Tariff establishment. A tariff shall be established to: (1) optimize
1.6local, regional, and state benefits from renewable energy development and; (2) to facilitate
1.7widespread development of community-based renewable energy projects throughout
1.8Minnesota, especially in rural communities; and (3) enable Minnesotans to develop, own,
1.9and invest in renewable electric generation despite their inability to benefit from existing
1.10federal tax credit and other financial incentives.

1.11    Sec. 2. Minnesota Statutes 2008, section 216B.1612, subdivision 3, is amended to read:
1.12    Subd. 3. Tariff rate. (a) The tariff described in subdivision 4 must have a rate
1.13schedule that allows for a net present value rate over the 20-year life of the power
1.14purchase agreement. The tariff must provide for a rate that is higher in the first ten years
1.15of the power purchase agreement than in the last ten years. The discount rate required
1.16to calculate the net present value must be the utility's normal discount rate used for its
1.17other business purposes.
1.18    (b) The commission shall consider mechanisms to encourage the aggregation of
1.19C-BED projects. The tariff for a C-BED project of five megawatts or less must be the
1.20net present value equal to the annual average of the previous year's Midwest Independent
1.21System Operator (MISO) Average Day Ahead Market Price calculated over the term of
1.22the contract, which must extend at least 20 years.
1.23    (c) The commission shall require that qualifying and nonqualifying owners provide
1.24sufficient security to secure performance under the power purchase agreement, and shall
1.25prohibit the transfer of the C-BED project to a nonqualifying owner during the initial
1.2620 years of the contract.
2.1EFFECTIVE DATE.This section is effective the day following final enactment.

2.2    Sec. 3. Minnesota Statutes 2008, section 216B.1612, subdivision 5, is amended to read:
2.3    Subd. 5. Priority for C-BED projects. (a) A utility subject to section
2.4216B.1691 that needs to construct new generation, or purchase the output from new
2.5generation, as part of its plan to satisfy its good faith objective and standard under that
2.6section must take reasonable steps to determine if one or more C-BED projects are
2.7available that meet the utility's cost and reliability requirements, applying standard
2.8reliability criteria, to fulfill some or all of the identified need at minimal impact to
2.9customer rates contract with C-BED projects until the commission determines that the
2.10aggregate capacity of such projects installed or for which contracts have been signed in
2.11this state reaches 800 megawatts. Only if C-BED projects of any capacity are unavailable
2.12or are insufficient to meet the utility's need for additional electricity may the utility
2.13purchase electricity from a non-C-BED source.
2.14Nothing in this section shall be construed to obligate a utility to enter into a power
2.15purchase agreement under a C-BED tariff developed under this section.
2.16(b) A utility subject to section 216B.1691, as part of its plan to satisfy its good faith
2.17objective and standard under that section, must, by December 31, 2011, contract with
2.18C-BED projects with a nameplate capacity of five megawatts or less until the commission
2.19determines that the aggregate capacity of such projects installed or for which contracts
2.20have been signed in this state reaches 200 megawatts.
2.21    (b) (c) Each utility shall include in its resource plan submitted under section
2.22216B.2422 a description of its efforts to purchase energy from C-BED projects, including
2.23a list of the projects under contract and the amount of C-BED energy purchased.
2.24    (c) (d) The commission shall consider the efforts and activities of a utility to
2.25purchase energy from C-BED projects when evaluating its good faith effort towards
2.26meeting the renewable energy objective under section 216B.1691.
2.27    (d) (e) A municipal power agency or generation and transmission cooperative shall,
2.28when issuing a request for proposals for C-BED projects to satisfy its standard obligation
2.29under section 216B.1691, provide notice to its member distribution utilities that they
2.30may propose, in partnership with other qualifying owners, a C-BED project for the
2.31consideration of the municipal power agency or generation and transmission cooperative.
2.32EFFECTIVE DATE.This section is effective the day following final enactment.

2.33    Sec. 4. Minnesota Statutes 2008, section 216B.1612, subdivision 7, is amended to read:
3.1    Subd. 7. Other C-BED tariff issues. (a) A community-based project developer
3.2and a utility shall negotiate the rate and power purchase agreement terms consistent with
3.3the tariff established under subdivision 4.
3.4    (b) At the discretion of the developer, a community-based project developer and
3.5a utility may negotiate a power purchase agreement with terms different from the tariff
3.6established under subdivision 4.
3.7    (c) A qualifying owner, or any combination of qualifying owners, may develop a
3.8joint venture project with a nonqualifying renewable energy project developer. However,
3.9the terms of the C-BED tariff may only apply to the portion of the energy production of
3.10the total project that is directly proportional to the equity share of the project owned
3.11by the qualifying owners.
3.12    (d) A project that is operating under a power purchase agreement under a C-BED
3.13tariff is not eligible for net energy billing under section 216B.164, subdivision 3, or for
3.14production incentives under section 216C.41.
3.15    (e) (d) A public utility must receive commission approval of a power purchase
3.16agreement for a C-BED tariffed project. The commission shall provide the utility's
3.17ratepayers an opportunity to address the reasonableness of the proposed power purchase
3.18agreement. Unless a party objects to a contract within 30 days of submission of the
3.19contract to the commission the contract is deemed approved.
3.20(e) Each contract for a C-BED project with a nameplate capacity of five megawatts
3.21or less must contain a provision requiring the qualified owners to make a deposit each
3.22year throughout the term of the contract into a maintenance reserve account. The annual
3.23payment must be of a magnitude to reasonably insure that revenues in the account are
3.24sufficient to pay projected maintenance costs over the term of the contract, including
3.25provision for contingencies.
3.26(f) A qualifying owner of a C-BED project with a nameplate capacity of five
3.27megawatts or less that is aggregated into a larger project may not sign a contract to receive
3.28the price established in subdivision 3, paragraph (b).
3.29(g) A qualifying owner receiving the rate established in subdivision 3, paragraph
3.30(b), may not participate in the ownership of another C-BED project receiving the rate
3.31established in subdivision 3, paragraph (b), if the second project is located within a
3.32five-mile radius of the project receiving that rate.
3.33EFFECTIVE DATE.This section is effective the day following final enactment.

3.34    Sec. 5. [216B.1613] STANDARDIZED C-BED CONTRACT.
4.1    Subdivision 1. Commission proceeding. Within 60 days of the effective date
4.2of this section, the commission shall initiate a proceeding to standardize all contract
4.3provisions, except those establishing the power purchase price, for two classes of C-BED
4.4projects: (1) projects with a nameplate capacity of five megawatts or less; and (2) projects
4.5with a nameplate capacity of greater than five megawatts. The proceeding shall provide
4.6for participation by the public and stakeholders. The commission shall issue an order
4.7containing standardized contract language for each class of C-BED project identified in
4.8this subdivision no later than 90 days after the opening of the proceeding. Any applicable
4.9C-BED contract signed after the date of the commission's order whose provisions are not
4.10identical to the standardized contract contained in the commission's order is invalid.
4.11    Subd. 2. Expiration. This section expires the day following issuance of the order
4.12required under subdivision 1."
4.13Renumber the sections in sequence and correct the internal references
4.14Amend the title accordingly