Newsletter

Minnesota

House

On Tuesday, the House Climate and Energy committee heard from the Minnesota Pollution Control Agency (MPCA) and the Department of Commerce as to how the state is doing on meeting the greenhouse gas (GHG) emissions reduction goals set forth in the Next Generation Energy Act. The upshot is the state is not meeting the goals. As a whole, the state failed to hit the 2015 target of a 15% emissions reduction from the baseline year of 2005. From 2016 – 2018, the state’s GHG emissions actually increased.

The one positive outcome on emissions reductions came from the energy sector. Electricity generation represents the second largest source of GHG emissions. The electric utility sector reduced its GHG emission levels by 29% since 2005 and is the only industry that is meeting the reduction goals. In fact, the GHG emissions report from MPCA specifically calls for the state to take “swift action beyond the power grid” to reduce emissions levels.

Despite the electric utility sector’s success, the Walz administration is still proposing a 100% carbon-free standard on electric utilities as well as increases to the Renewable Energy Standard (RES). 

The committee heard Gov. Walz’s 100% Clean Energy bill on Thursday. Under this proposal, the RES is increased to 40% by 2025 and 55% in 2035. Additionally, the bill requires electric utilities to be 100% carbon-free by 2040. The carbon-free standard also sets intermediate benchmarks for utilities. The bill would require electric utilities to be 65% carbon-free in 2025; 80% in 2030; and 90% in 2035.

All the utilities oppose Walz’s bill. Utilities argued that the energy sector is moving to reduce emissions as quickly as possible in ways that maintain reliability, affordability and work best for their service territories. Greg Padden, director, resource planning and markets, Great River Energy, testified as to the need to recognize the MISO market and peaking plants as part of the solution for carbon reduction.

The committee will act on this bill next Thursday.

Additionally, next Tuesday, the committee will take up Minnesota Rural Electric Association’s priority bill – the ECO Act.

North Dakota

The CO₂ sales and use tax exemption bill, SB 2152, provides a sales and use tax exemption for carbon dioxide that is used for geologic storage. The Senate Finance and Taxation committee passed the bill 7-0. There is already an exemption in place for the use of carbon dioxide in enhanced recovery of oil or natural gas; this bill adds geologic storage. This addition will continue the North Dakota Legislature’s efforts to find a path forward for coal and advancement for carbon capture technologies. The bill was supported by the ethanol industry, North Dakota Association of Rural Electric Cooperatives (NDAREC) and the Lignite Energy Council (LEC). Jeff Zueger, CEO, Midwest AgEnergy testified in support of the bill and provided an update on Blue Flint Ethanol’s carbon capture storage project. There was no opposition to the bill.

The Clean Sustainable Energy Authority bill, HB 1452, was introduced to establish another arm of the state Industrial Commission that would support research, development and technological advancements and financial support for commercialization of large-scale clean energy projects. The bill would establish a $25 million grant and loan fund carved out of the state’s general fund over two years. The authority would be comprised of fifteen members of which seven are voting members and eight are ex-officio. The voting members consist of appointees from legislative management, Lignite Research Council, Renewable Energy Council and the Western Dakota Energy Association.

The electric vehicle charging bill, SB 2091, clarifies language to allow the resale of electricity for charging electric vehicles. The bill clarifies that the resale of the electricity is permitted if the reseller has procured electricity from an electric service provider that is authorized to engage in the retail sale of electricity within the service area. The change will benefit the operators of electric vehicle charging stations, and the owners of electric vehicles who want to buy units of electricity rather than an amount of time at a charging station. NDAREC worked with the Public Service Commission (PSC) and the investor owned utilities on the language of the bill, and the PSC submitted the language as an agency bill. The bill was heard by the Senate Energy and Natural Resources committee and received a 6-0 Do Pass and then passed the Senate by a vote of 45-0.

Two bills, HB 1292 and HB 1455, were introduced regarding energy facility retirement. House Bill 1292 puts in place additional reporting, bonding, public hearings, and reclamation requirements when an energy facility is going to be retired. The PSC would have jurisdiction over the reporting and requirements of the bill which would expand the PSC’s jurisdiction over generation and transmission cooperatives and diminish the authority of the board of directors to make decisions in the best interest of their membership. NDAREC, investor owned utilities and the LEC have expressed opposition to this bill. HB 1455 was introduced after HB 1292 and similarly calls for notice and public hearings, bonding and site reclamation requirements for an energy facility that is going to be retired. HB 1455 does not require PSC jurisdiction over the reporting. Although these bills were drafted in response to the announcement of the Coal Creek Station closure, they would apply to all energy conversion facilities. The bills may be heard in the House Energy and Natural Resources committee in the near future. 

Great River Energy has several position statements available to inform stakeholders on key issues. Find them here.