1.1                          A bill for an act 
  1.2             relating to energy cooperatives; authorizing the 
  1.3             formation of distributed generation cooperatives; 
  1.4             proposing coding for new law in Minnesota Statutes, 
  1.5             chapter 308A.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [308A.211] [DISTRIBUTED GENERATION 
  1.8   COOPERATIVES.] 
  1.9      Subdivision 1.  [DEFINITIONS.] The terms in this section 
  1.10  have the meanings given to them in this subdivision. 
  1.11     (a) "Distributed generation facility" means an electric 
  1.12  generation facility of no more than ten megawatts of 
  1.13  interconnected capacity which is: 
  1.14     (1) located on or near the location where the electricity 
  1.15  generated by the facility will be used; and 
  1.16     (2) fueled by natural gas or a renewable fuel, or another 
  1.17  similarly clean fuel or combination of fuels. 
  1.18     (b) "Distributed generation power supply services" means 
  1.19  the provision of electric power supply generated by a 
  1.20  distributed generation facility.  The term includes services 
  1.21  relating to the usage, purchase, or sale of electric capacity 
  1.22  and energy. 
  1.23     Subd. 2.  [FORMATION; PURPOSE.] (a) A distributed 
  1.24  generation cooperative may be formed under this chapter for the 
  1.25  purpose of common ownership of distributed generation 
  2.1   facilities, or for common purchasing of distributed generation 
  2.2   power supply services from the distribution electric utility in 
  2.3   which the cooperative is located.  
  2.4      (b) In addition to others that may form a cooperative, a 
  2.5   political subdivision of the state, including a service 
  2.6   cooperative created under section 123A.21, may act to organize a 
  2.7   distributed generation cooperative within its jurisdiction for 
  2.8   the benefit of its residents. 
  2.9      (c) A distributed generation cooperative must declare in 
  2.10  its articles of incorporation a contiguous area in which it may 
  2.11  operate. 
  2.12     Subd. 3.  [POWERS.] A distributed generation cooperative 
  2.13  has all of the powers described in section 308A.201, except that 
  2.14  a distributed generation cooperative does not have the power of 
  2.15  eminent domain.  A distributed generation cooperative is not a 
  2.16  cooperative electric association as the term is used in this 
  2.17  chapter and chapter 216B. 
  2.18     Subd. 4.  [GOVERNING BOARD.] A board of directors shall 
  2.19  govern a distributed generation cooperative.  The directors must 
  2.20  be elected according to the requirements of section 308A.311, 
  2.21  except that all of the directors must be members of the 
  2.22  distributed generation cooperative. 
  2.23     Subd. 5.  [OPEN MEMBERSHIP.] Any person within the 
  2.24  geographic operating area declared in a cooperative's articles 
  2.25  of incorporation may become a member of the distributed 
  2.26  generation cooperative. 
  2.27     Subd. 6.  [INTERCONNECTION; RATES.] The public utilities 
  2.28  commission shall review, and if necessary revise, the standards 
  2.29  set by the commission under section 216B.2411 for utility 
  2.30  tariffs for the interconnection and parallel operation of 
  2.31  distributed generation facilities, to ensure that these 
  2.32  standards encourage the development of distributed generation 
  2.33  cooperatives, while allowing electric utilities to recover the 
  2.34  costs of serving the needs of such cooperatives.