Minnesota House
Tuesday was solar photovoltaic day in the House Climate and Energy Committee. Two bills would appropriate money for the installation of solar photovoltaics in schools and state parks.
HF 1226 (Acomb, DFL-Minnetonka) is a bill from the Minnesota Solar Energy Industries Association (MnSEIA). The bill would delete language as to how to calculate avoided cost of a qualifying renewable energy facility. On its face, the deletion seems innocuous (i.e. avoided cost should be avoided cost, regardless of source). MnSEIA argues that HF 1226 would allow renewable energy projects, especially solar, to receive a “fair” calculation of avoided cost. MnSEIA argues that current law is a barrier to adding solar generation.
Under current law, qualifying facilities (QF) are entitled to sell, and utilities are required to buy, the energy from these facilities. Purchases from QFs do not go through a certificate of need process nor through the integrated resource plan process. Generally, the cost of this energy is passed through to consumers. Utilities argue that the bill changes how much consumers will pay for purchases from a QF. Current law fixes the price to the lowest cost for comparable renewable energy. Current law provides consumer protection, so customers are not paying higher prices for comparable energy.
HF 1226 was laid over for possible inclusion in the Omnibus bill.
Senate
The Senate Energy and Utilities Committee heard SF 225 (Kiffmeyer, R-Big Lake) on Tuesday. SF 225 would repeal the nuclear energy moratorium. The committee heard testimony on advances in new nuclear technology. Sen. Kiffmeyer said repeal would at least allow utilities to look at new nuclear energy as a carbon-free resource in the future. Some environmental groups argued the moratorium should not be lifted until the state knows what to do with the waste. The environmental groups say that a carbon-free future can be reached using renewable energy and not nuclear energy. SF 225 passed on a straight party-line vote and was sent to the Senate floor.
The committee heard two bills on Thursday. SF 301 (Kiffmeyer, R-Big Lake) would allow cooperatives and municipal utilities to reduce their Conservation Improvement Program (CIP) goals. SF 992 (Mathews, R-Princeton) would eliminate CIP. CIP is a mature and successful program. However, the energy industry has changed since CIP was created. While it is understandable that legislators and some utilities are frustrated by the current CIP program, SF 301 and SF 992 are not the best solutions. All utilities, environmental groups, labor, and the Department of Commerce support modernizing CIP. SF 301 and SF 992 move focus away from passing the Energy Conservation and Optimization (ECO) Act. ECO has been a long-term priority of the Minnesota Rural Electric Association. ECO modernizes CIP and provides flexibility for cooperatives.
Both bills were laid over for possible inclusion in an Omnibus Bill.
The Senate Transportation Finance and Policy Committee heard SF 1086 (Howe, R-Rockville). SF 1086 would increase the vehicle registration surcharge for all electric vehicles from $75 to $229. The bill also creates a new vehicle surcharge of $114.50 for plug-in hybrid electric vehicles. Additionally, a new surcharge of $46 is imposed on all-electric motorcycles and $23 for plug-in hybrid electric motorcycles. These surcharges would be adjusted up or down in proportion to the gas tax rate variability.
The gas tax is the most sizeable highway funding source and is constitutionally dedicated to roads and bridges. With improvements made to vehicle fuel efficiency, the revenue from the gas tax has declined. Electric vehicles do not pay the gas tax. For years, Sen. Howe has been trying to figure out how to “fairly” impose a surcharge on electric vehicles.
The Minnesota Chamber of Commerce and the County Engineers Association both testified in favor of SF 1086.
The bill passed on a straight party-line vote and was sent to the Senate Taxes Committee.
North Dakota
Today marks the “crossover” deadline for the 2021 North Dakota Legislative Session and all bills must be passed from their respective chambers. The chambers met in the mornings and afternoons to get through all the bills and resolutions to reach crossover break a bit early. The Session is now in recess until Wednesday, March 3.
The first half of session went pretty well for the energy industry, although, we saw our share of concerning bills. The bills of concern have been withdrawn or amended to workable solutions. We value our working relationships with the legislators and our industry partners, North Dakota Association of Rural Electric Cooperatives, North Dakota Utilities Working Group and Lignite Energy Council. We still have work to do during the second half of session in monitoring amendments as they are heard in their respective committees.
The amended reliability standard bill, SB 2313, and the reliability and resilience of the electric grid resolution, SCR 4012, both passed the Senate floor this week. After legislative crossover, the utilities will work with the House Energy and Natural Resources Committee to further clarify the language in these pieces of legislation.
The Clean Sustainable Energy Authority bill, HB 1452, passed the North Dakota House with wide support from Republican leadership. The authority will help ensure that North Dakota is a leading producer of energy from these resources while remaining responsible stewards of our landscape. This bill intends to support research and development of large-scale projects that advance energy production while reducing environmental impacts, ultimately growing, and diversifying North Dakota’s economy. The bill now heads to the Senate for consideration.
Three significant Legacy Fund House bills passed and will now move on to the Senate for consideration.
- HB 1425 advises the State Investment Board to ensure that a portion of up to 20% of Legacy Fund dollars is invested right here in North Dakota. Currently, a vast portion of investments are sent out of state – or even internationally. By bringing these investments back to North Dakota, bill sponsors believe it will support businesses, create jobs, and diversify the economy.
- HB 1380 creates a Legacy Earnings Fund which will allow for Legacy dollars to be invested in communities across the state. This fund will support priorities such as infrastructure projects, career and technical education advancements, and innovation and technology initiatives. The bill sponsors believe this bill will help create jobs, and grow and diversify the state’s economy.
- HB 1431 proposes the use of Legacy Fund earnings to finance bonds issued for infrastructure projects across the state.
Great River Energy has several position statements available to inform stakeholders on key issues. Find them here.