Minnesota House
The House Climate and Energy Committee heard HF 164 (Stephenson, DFL-Coon Rapids) on Tuesday. This is the Energy Conservation and Optimization Act (ECO) and is the priority bill for the Minnesota Rural Electric Association and its members. HF 164 is the modernization of the state’s Conservation Improvement Program. ECO will give co-ops more flexibility to meet their annual energy savings goals, benefit the environment, encourage innovation with tomorrow’s technologies, reduce consumers’ total energy bills and provide better tools for reducing carbon. HF 164 will also eliminate the spending requirement, saving members money, and retains the exemption for small cooperatives and municipals that is in current law.
Greg Ridderbusch, CEO, Connexus Energy, testified in favor of HF 164 on behalf of the cooperatives. All utilities (investor-owned utilities, municipals, and cooperatives) support this bill. In addition, environmental groups, the International Brotherhood of Electrical Workers and the Citizens Utility Board support HF 164. Finally, HF 164 is part of Gov. Walz’s energy policy legislative package.
David Wager, executive director, Minnesota Propane Association, testified against the bill. Wager called HF 164 a “propane industry killer.”
The bill passed on a straight party-line vote (10-7). The bill was sent to the General Register.
On Thursday, the committee once again took up the Walz 100% Clean Energy bill. The bill has been introduced as HF 278 by Chair Jamie Long. Under this proposal, the Renewable Energy Standard 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 to meet. The bill would require electric utilities to be 65% carbon-free in 2025; 80% in 2030; and 90% in 2035.
Members debated a few amendments to the bill. Most were amendments offered by Republicans that were voted down on party lines. However, the committee ran out of time, so the bill was laid over for further discussion on another day.
North Dakota
This week marked the deadline for Senate bills to be introduced. Well over 800 bills and resolutions have been introduced to be heard during this session.
Investing the Legacy Fund earnings continues to dominate discussion. Legislative leaders introduced a bill, HB 1425, that would require 20% of future Legacy Fund deposits be invested in North Dakota. Currently, only a small percentage is invested in the state. The intent of the bill would be to invest the funds into innovative energy projects and emerging technologies. The bill would also provide low interest loans to local governments for infrastructure projects and creates a revolving loan fund that would provide 2% loans for essential infrastructure including water supply projects, water and wastewater treatment plants, transportation and other municipal infrastructure.
The Lignite Energy Council has been working with legislators on five proposals that the Legislature could approve to strengthen North Dakota’s lignite industry. The proposals are:
- HB 1412 would provide immediate economic relief through a five-year coal conversion tax relief to the lignite plants to improve their economic circumstances. This proposal does not impact county tax revenue and would provide stability for the industry as it develops carbon capture and other additional uses for lignite.
- SB 2287 provides support for insurance reform and to study the increased insurance rates due to pressures in the insurance and financial marketplace to exit fossil energy investments.
- SB 2152, the CO2 sales and use tax exemption bill, provides a sales and use tax exemption for carbon dioxide that is used for geologic storage. This bill was passed unanimously by the Senate Finance and Tax Committee last week.
- The creation of a new long-term low-interest loan program that provides access to capital for large economic growth opportunities in North Dakota.
- There are a few bills introduced that support increased research and development funding that invest in critical research and development that will help grow the state’s economy and keep the high paying jobs that the lignite industry provides.
The Clean Sustainable Energy Authority bill, HB 1452, was heard in the House Energy and Natural Resources Committee with widespread energy industry support and some opposition from environmental groups. The bill intends to establish another arm of the North Dakota 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. Proponents stated the bill is an important first step in ushering in the next generation of energy production that consumers are demanding. North Dakota has a strong record of facilitating partnerships to produce innovative results with its resources.
Great River Energy has several position statements available to inform stakeholders on key issues. Find them here.