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SF2369 (Legislative Session 94 (2025-2026))

Renewable development account repeal; solar production initiative program sunset establishment; appropriating money

Related bill: HF1738

AI Generated Summary

Purpose of the Bill

The proposed legislation aims to repeal the renewable development account and make changes to Minnesota's solar energy production incentive programs. It seeks to streamline energy-related statutes, introduce new funding mechanisms, and set in motion a phased sunset of previous solar production incentives.

Main Provisions

  • Repeal of Renewable Development Account: The bill mandates the termination of the renewable development account, reallocating funds to support solar energy production.

  • Solar Energy Production Incentive Program:

    • The program offers incentives for solar energy systems with a total capacity of 40 kilowatts or less per installation site.
    • Systems installed before June 1, 2018, may receive incentives for additional systems, provided the total capacity does not exceed 40 kilowatts at any location.
    • Funding for the program remains until 2025, with specific amounts allocated from 2021 to 2025.
    • Between 2026 and 2035, $5,000,000 per year is allocated to the incentive program.
    • A portion of funds from 2026 to 2035 must be reserved for low-income solar installations.

  • Program Oversight and Transition:

    • Until December 31, 2025, utilities will operate the solar energy incentive program after which the commissioner of commerce will assume responsibilities from January 1, 2026.

  • Establishment and Management of Solar Energy Production Incentive Account:

    • A new account will be created to manage incentive payments from 2026 to 2036, with any unused funds reverting to the general fund after December 31, 2036.
    • The utility is responsible for advising the commissioner on distribution schedules of the incentives.

  • Expiration: The provisions relating to the solar incentive program will expire on April 1, 2037.

Significant Changes to Existing Law

  • The bill repeals several sections of statutes related to the renewable development account, significantly altering how solar incentives are funded and managed.
  • Transition of program management from utility companies to the commissioner of commerce in 2026.
  • Cancellation of unspent funds back to the general fund if not used by the end of 2036.

Relevant Terms

solar energy production incentive, renewable development account, solar energy systems, utility company, low-income solar installations, commissioner of commerce, incentive program management.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025SenateFloorActionIntroduction and first reading
March 09, 2025SenateFloorActionReferred toEnergy, Utilities, Environment, and Climate
March 12, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarification on the use of funds allocated to the solar energy production incentive program."
      ],
      "removed": [],
      "summary": "This bill references section 116C.779 in relation to program operations and program funding for solar energy production incentives.",
      "modified": [
        "Specifies that funds that are uncommitted at the end of a program year remain available, with specific refund provisions by December 31, 2025."
      ]
    },
    "citation": "116C.779"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill mentions section 216B.1641 concerning the limitations on solar energy systems and distributed generation resources.",
      "modified": [
        "Requirement for system sizing to be less than 120% of the customer's onsite annual energy consumption."
      ]
    },
    "citation": "216B.1641"
  }
]

Sponsors