Minnesota House
The House Climate and Energy Committee heard two bills, for information, on Tuesday. The first, authored by Chair Jamie Long (DFL-Minneapolis), would accelerate the adoption of new energy codes in commercial buildings to get to a net zero energy usage by 2036. The Department of Labor and Industry, the city of Rochester, the IBEW local 292 and the American Institute of Architects all testified in support of the bill. All indicated that the bill would provide statewide uniformity and regulatory certainty for builders.
The committee also heard a bill on changing the dates of the Cold Weather Rule (CWR). The bill would add two weeks before and two weeks after the current statutory CWR period.
On Thursday, the committee heard HF 10 (Stephenson, DFL-Coon Rapids). This is Gov. Tim Walz’s version of the so-called “Clean Energy First” bill. Clean Energy First adds a level of complexity to the integrated resource plan (IRP) process. The bill strengthens existing law to give preference for renewable energy resources, energy efficiency and energy storage as the state’s preferred future resources. The idea is to speed up the transition to clean energy beginning with the IRP. HF 10 complicates current law by adding new definitions of “nonrenewable energy resources,” “clean energy resources,” and “carbon-free resources.”
All the electric utilities agree that HF 10 is not necessary. All utilities have been moving to reduce their carbon emissions. The introduced version of HF 10 did not include Great River Energy’s must-have requirements of: market purchases, natural gas peaking plants or carbon capture and sequestration as exemptions within the bill. Great River Energy has had ongoing discussions with the Department of Commerce and the chief author, Rep. Zack Stephenson. Stephenson introduced a delete-all amendment to HF 10 that did include one of Great River Energy’s provisions (market purchases).
Greg Padden, resource planning and markets director, Great River Energy, outlined our concerns with respect to the amended HF 10. Padden outlined the important role our gas peaking plants play within our portfolio.
HF 10 passed out of the committee on a straight party-line vote and was sent to the floor.
Senate
The Senate Energy and Utilities Committee heard two presentations on Tuesday. The Minnesota Conservative Energy Forum (MnCEF) gave a presentation on their polling data. Most of the information provided by MnCEF was push polling and included only a small sample of Minnesota voters (specifically in Senate Districts 8, 17 and 23). The MnCEF poll, from a national perspective, indicated that voters believe the U.S. should put more emphasis on solar, wind and hydropower. Coal has a negative reaction among those polled while natural gas is still seen as a favorable generation resource.
The Lignite Energy Council and Minnkota Power Cooperative gave presentations on carbon capture technology.
On Thursday, the committee heard SF 227 (Rarick, R-Pine City) which is the Energy Optimization and Conservation (ECO) Act. ECO is the top legislative priority for Minnesota Rural Electric Association (MREA). The bill proposes to modernize the state’s current Conservation Improvement Program (CIP). SF 227 provides cooperatives more flexibility to meet their annual energy savings goal, encourages innovation in emerging technologies and reduces consumers’ total energy bills.
Tim Sullivan, CEO, Wright Hennepin Cooperative Electric Association, testified in support of SF 227. Additionally, a representative from the municipal utilities and a representative from the investor-owned utilities testified in favor of the bill.
The Minnesota Chamber of Commerce testified in opposition to the bill. The Chamber argued that the bill needs more clarity on the fuel switching portion of the bill. The Chamber suggested that CIP goals should be more tailored to mirror a utility’s service territory, rather than making wholesale changes to the current statute. The propane association also testified in opposition due to the fuel switching provision.
Sen. Andrew Mathews (R-Princeton) offered an amendment that would require utilities to provide greenhouse gas emissions reduction comparisons when submitting a filing for a fuel switching program. The amendment was adopted.
SF 227, as amended, was passed and sent to the Senate floor.
The Senate Labor and Industry Policy Committee heard SF 181 (Rarick, R-Pine City) on Wednesday. SF 181 is one of MREA’s legislative priorities. The bill would remove a requirement that electric cooperatives pay for permits and inspections on replacement load-management equipment that was originally installed by a licensed electrician and inspected by a licensed inspector. Justin Jahnz, president/CEO, East Central Energy, testified in favor of SF 181. The bill is also supported by the Minnesota Municipal Utilities Association and the Electrical Association. The bill faces opposition from the Department of Labor and Industry, the National Electrical Contractors Association and the IBEW. SF 181 was laid over.
North Dakota
House
The supplemental wind tax bill, HB 1458, was withdrawn from further consideration on the House floor on Wednesday. The proposed legislation would have placed a tax on the Production Tax Credit received by new wind generation facilities that go into production after Dec. 30, 2020. The tax would be equal to 50% of the production tax credit received. The wind industry and members of the North Dakota Utility Working Group provided testimony in opposition to the bill during the hearing. Great River Energy and other members of the North Dakota Utility Working Group then worked behind the scenes with the bill sponsors and legislative leadership to get the proposed legislation withdrawn.
Senate
Three bills focusing on coal regulations, SB 2237, regional haze, SB 2238, and greenhouse gas regulations, SB 2239, were introduced earlier in the session by Sen. Jessica Bell. The intent of the bills is to proactively position the state to respond to federal regulations anticipated to come from the Biden administration. Members of the North Dakota Utilities Working Group worked with the bill sponsors and the Department of Environmental Quality to assure the bills accomplish the intent without any unintended consequences. Prior to Thursday’s hearings in Senate Energy and Natural Resources, Bell withdrew the greenhouse gas regulations bill, SB 2239, due to it being premature. Amendments were proposed for the coal regulations and regional haze bills. The Committee has not acted on these amendments yet.
The Senate and Natural Resources Committee also heard a bill, SB 2317, which would create a coal mine bonding performance program in partnership with the North Dakota Department of Trust Lands. David Straley, manager, government and public affairs, North American Coal, testified in support of the bill with some amendments. Proponents of the bill feel the bonding program would serve as a necessary tool to help alleviate some economic pressures on the coal industry. The amendments and the bill received a do pass 5-1 out of Committee on Friday.
SB 2301 was heard in Senate and Natural Resources Committee this week. The bill would amend North Dakota law to promote and document the use of local workforce for infrastructure project construction in the state. After testimony was heard on the bill, the Committee moved with a do not pass 5-1. The bill was then heard on the Senate floor Wednesday with support for the do not pass recommendation with a vote of 40-7.
Great River Energy has several position statements available to inform stakeholders on key issues. Find them here.