2007 was a landmark year for energy policy in Minnesota. The legislature passed the strongest renewable energy standard in the nation with overwhelming support from both sides of the aisle. This law makes Minnesota a leader in clean energy policy and creates a great opportunity for our state to reap the rewards of the booming renewable energy industry. With the passage of The Next Generation Energy Act of 2007, the legislature made sure much of the economic benefits of the increased renewable energy would stay in our rural communities.
Policy - State Level
New Law Passed to Advance Community Energy Projects
Next Generation Energy Act Helps MN Farmers and Small Businesses Build Renewable Energy Projects
St. Paul, MN – (5/25/07) Today Governor Tim Pawlenty signed the Next Generation Energy Act (SF145), which includes critical provisions that will help rural communities build wind farms, biomass power plants and other renewable energy facilities.
In order to be financially competitive, most wind projects need to take advantage of federal and, where available, state tax incentives. It is critical to understand the role and mechanics of tax incentives while developing a commercial-scale community wind project because these incentives can represent one-half to two thirds of the total revenue stream over the first 10 years of operation due to the Federal Production Tax Credit (PTC) and Modified Accelerated Cost-Recovery System (MACRS) or other type of depreciation that can be applied to wind energy assets. You will need to consult a tax professional in the early stages of project planning to ensure that your financial projections are valid and accurately take into account the project’s tax burden and benefits.
In an effort to capture the impact of the Alternate Energy Revolving Loan Program (AERLP) posted a number of project case studies online
2005 Minnesota Energy Legislation Factsheet
Minnesota’s original (2005) Community-Based Energy Development (C-BED) legislation offers some important benefits to community wind projects, but understanding how it works can be a little challenging. This article will try to explain the major aspects of the C-BED program and illustrate how community projects are helped with a simple example.
A Survey of State Support for Community Wind Power Development by Mark Bolinger of Lawrence Berkeley National Laboratory, published March 2004. The report is part of series called Case Studies of State Support for Renewable Energy.
The Clean Energy States Alliance (CESA) is a multi-state coalition of clean energy funds. Sixteen states across the U.S. have established funds to promote renewable energy and clean energy technologies.
The Database of State Incentives for Renewables and Efficiency (DSIRE) is a comprehensive database of incentives for wind and other forms of renewable energy. It is a great resource for up-to-date policy information.