Minnesota
Over the Legislature’s Easter break, all House and Senate committees put together their omnibus bills – which are a combination of finance and policy provisions.
House
HF 2110 (Long, DFL-Minneapolis) is the House Omnibus Energy bill. HF 2110 does include Minnesota Rural Electric Association’s priority bill, the Energy Conservation and Optimization Act . However, HF 2110 also contains many problematic provisions.
Some of the problematic provisions include:
- An increase to the Renewable Energy Standard. New targets are 40% by 2025 and 55% by 2035.
- A 100% carbon-free standard by 2040 with interim targets.
- Clean Energy First – does not include Great River Energy’s exemptions (peaking plants, MISO purchases, carbon capture and sequestration).
- Amends the Next Generation Energy Act goals. Sets the state goal to be net zero greenhouse gas emissions by 2050.
- Changes the definition of solar energy system to include transmission.
- Requires all utilities to do annual diversity reporting to the Commissioner of Commerce.
- Allows renewable developers to use the alternative review process for siting and routing of transmission if developer has all of its easements.
As of the time of publication, the committee was still debating amendments to HF 2110. The bill should pass out of committee late Friday and be sent to the House Ways and Means Committee.
Senate
SF 2075 (Senjem, R-Rochester) is the Senate Omnibus Energy bill. In contrast to the House, SF 2075 does not contain many policy changes. The bill includes Xcel Energy’s bill to modify its power purchase agreement with District Energy. The bill also includes CenterPoint Energy’s bill to allow gas utilities to propose renewable natural gas programs to the Public Utilities Commission. Most of SF 2075 is appropriations from the Xcel Energy Renewable Development Account (RDA).
Two RDA appropriations raise some concerns for Great River Energy. The first creates a State Energy Improvement Conservation Loan program. This program would be funded from the RDA. The revolving loan program would be for state agencies to pay for energy conservation and efficiency projects. Under the Senate language, a committee (made up of executive agency commissioners) would determine which projects get funded and would “prioritize” buildings located within the Xcel Energy service territory. However, this means some projects could be located outside the Xcel Energy service territory. Nothing in the bill describes how the revolving loan would work with another utility’s conservation program. Further, spending RDA funds outside of the Xcel Energy service territory opens up the possibility for the RDA assessment to go beyond Xcel Energy. Similar language is also included in the House Omnibus Energy bill.
The second issue deals with an appropriation for solar on schools. SF 2075 appropriates $5 million for schools within the Xcel Energy service territory to receive grants to install solar photovoltaics on school property. However, the bill has language to replicate the solar on schools programs for all other utilities but does not include any General Fund appropriations. The program language, and no funding, raises issues as to whether or not all other utilities would be required to have a solar on schools program.
SF 2075 passed out of committee and was sent to the Senate Finance Committee. In Senate Finance Committee, SF 2075 was incorporated into the Omnibus Commerce bill, SF 972 (Dahms, R-Redwood Falls). This is a procedural move for conference committee. The Omnibus Commerce and Energy bill will now be SF 972. SF 972 passed out of Finance and was sent to the floor.
Great River Energy has several position statements available to inform stakeholders on key issues. Find them here.