1.1.................... moves to amend H.F. No. 1513 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 216B.164, subdivision 3, is amended to
1.5    Subd. 3. Purchases; small facilities. (a) For a qualifying facility having less than
1.640-kilowatt capacity, the customer shall be billed for the net energy supplied by the utility
1.7according to the applicable rate schedule for sales to that class of customer. In the case
1.8of net input into the utility system by a qualifying facility having less than 40-kilowatt
1.9capacity, compensation to the customer shall be at a per kilowatt-hour rate determined
1.10under paragraph (b) or, (c), or subdivision 4.
1.11(b) In setting rates, the commission shall consider the fixed distribution costs to the
1.12utility not otherwise accounted for in the basic monthly charge and shall ensure that the
1.13costs charged to the qualifying facility are not discriminatory in relation to the costs
1.14charged to other customers of the utility. The commission shall set the rates for net
1.15input into the utility system based on avoided costs as defined in the Code of Federal
1.16Regulations, title 18, section 292.101, paragraph (b)(6), the factors listed in Code of
1.17Federal Regulations, title 18, section 292.304, and all other relevant factors.
1.18(c) Notwithstanding any provision in this chapter to the contrary, a qualifying facility
1.19having less than 40-kilowatt capacity that is interconnected with a nongenerating utility
1.20may elect that the compensation to be compensated for net input by the qualifying facility
1.21into the utility system shall be at the average retail utility energy rate. "Average retail
1.22utility energy rate" is defined as the average of the retail energy rates, exclusive of special
1.23rates based on income, age, or energy conservation, according to the applicable rate
1.24schedule of the utility for sales to that class of customer rate the nongenerating utility pays
1.25a generating utility or utilities to supply electricity to the nongenerating utility, including,
1.26but not limited to, energy, capacity, and transmission costs.
2.1(d) If the qualifying facility is interconnected with a nongenerating utility which has
2.2a sole source contract with a municipal power agency or a generation and transmission
2.3utility, the nongenerating utility may elect to treat its purchase of any net input under this
2.4subdivision as being made on behalf of its supplier and shall be reimbursed by its supplier
2.5for any additional costs incurred in making the purchase. A qualifying facilities facility
2.6having less than 40-kilowatt capacity may, at the customer's option, elect to be governed
2.7by the provisions of subdivision 4.
2.8For the purposes of this section, "nongenerating utility" has the meaning given
2.9in Minnesota Rules, chapter 7835.0100.
2.10EFFECTIVE DATE.This section is effective the day following final enactment."
2.11Amend the title accordingly