Minnesota
House
The full House passed HF 164 (Stephenson, DFL-Coon Rapids) on Monday. HF 164 is the Energy Conservation and Optimization Act (ECO). ECO is one of Minnesota Rural Electric Association’s (MREA) priority bills. The bill modernizes and reforms the current Conservation Improvement Program (CIP). HF 164 will:
- Allow cooperatives more flexibility to meet their annual energy savings goals by letting them count electric vehicle incentives, electric storage water heaters and air source heat pumps toward part of their goal.
- Encourage innovation with emerging technologies.
- Reduce consumers’ total energy bills and provide better tools for reducing carbon emissions.
The House passed HF 164 on a strong bi-partisan vote of 82-50. The Senate companion bill awaits a vote on the floor. Additionally, the language of HF 164 is included in the Omnibus Energy bill.
The House Ways and Means Committee took up HF 2110 (Long, DFL-Minneapolis) on Wednesday. HF 2110 is the House Omnibus Energy bill. It includes MREA’s priority bill, the Energy Conservation and Optimization Act (ECO). However, HF 2110 also contains many problematic provisions.
Some of the problematic provisions include:
- An increase to the Renewable Energy Standard (RES). New targets are 40% by 2025 and 55% by 2035.
- 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.
No major changes were made to the bill. HF 2110 was incorporated into HF 1031 (Stephenson, DFL-Coon Rapids), the Omnibus Commerce bill. This action mirrors the action taken by the Senate to incorporate the two omnibus bills. HF 1301 passed on party lines and was sent to the floor..
Senate
The full Senate took up SF 972 (Dahms, R-Redwood Falls) on Wednesday. SF 972 is the Omnibus Commerce and Energy bill. There are only a few energy provisions in the bill which is in stark contrast to the House version. 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 2079 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.
Senate Democrats, who are in the minority in the Senate, attempted to add several controversial amendments. Most of the DFL amendments offered mirror language that is already included in the House Omnibus bill. Sen. Scott Dibble (DFL-Minneapolis) offered Gov. Tim Walz’s Clean Energy First provision. Great River Energy opposes the Governor’s version of Clean Energy First because it fails to take into consideration the need for peaking plants, MISO market purchases and carbon capture and sequestration. Dibble also offered the Governor’s 100% carbon-free by 2040 mandate and the increase to the renewable energy standard bill as an amendment. There were also amendments to add diversity reporting to SF 972 and to delete the provision on nuclear energy (the bill repeals the nuclear moratorium).
All of the DFL amendments failed on a mostly party line vote, with Sen. Tom Bakk (I-Cook) and Sen. David Tomassoni (I-Chisholm) voting with the Republican majority. The votes on the amendments also gives the Senate a position against accepting House language for conference committee.
In the end, SF 972 passed on a vote of 38-28 with Sens. Nick Frentz (DFL-North Mankato); John Hoffman (DFL-Champlin) and Jerry Newton (DFL-Coon Rapids) voting with the Republicans. In voting for the bill, the DFL Senators are hoping to secure a spot on the conference committee.
North Dakota
Today marks day 67 of the legislative session. By law, the Legislature is allowed 80 days. Legislative leadership plans to wrap up the session early as they still have near future issues that require gaveling in. Two of the biggest issues are redistricting and federal stimulus money. It is anticipated the 2021 session will conclude sometime the week of April 26.
The resilience reporting bill, SB 2313, cleared the Senate earlier this week when it concurred with the House’s changes. The bill now awaits Gov. Doug Burgum’s signature. The North Dakota Utilities Working Group worked with lawmakers over the past few months to help bring the bill into a workable solution for both cooperatives and investor-owned utilities. The final bill requires the North Dakota Transmission Authority to gather information from the utilities and prepare an annual report regarding resilience of the electric grid. It also provides further direction on how the Public Service Commission (PSC) evaluates integrated resource plans. There still are some concerns over part of the bill that gives the PSC authority to assign a value to baseload electricity and how that will affect planning for resources. The bill also allows the PSC to fine utilities for failing to provide reliable service or for not meeting certain parameters required by the regional transmission organizations.
The coal conversion and severance tax exemption legislation, HB 1412, cleared the Senate with a 43-4 vote. It is anticipated the House will concur with the changes made on the Senate side early next week. The bill provides a five-year coal-conversion-tax-relief to lignite plants to help improve their economic circumstances. The original intent was to be at 85% of the total conversion and severance taxes which would not impact the local, 15% county, city and school tax revenues. The House passed the bill at 60%, it was then increased to 85% on the Senate side.
The revised Clean Sustainable Energy Authority bill, HB 1452, cleared the Senate this week and is now on its way to conference committee. The bill originally included $40 million for North Dakota’ general fund for grants and loans for innovating projects using North Dakota energy sources, it has been amended to $25 million. The authority will also oversee a $250 million long-term loan fund that is included in a separate bonding bill. The loan fund is intended for innovative development projects.
Originally, HB 1455 sought to put additional processes in place for when an energy conversion facility is retired. The bill would have directed the PSC to hold public hearings in the communities in which the facility is located and adopt rules governing site reclamation and bonding of an electric energy conversion facility. The amended version calls for utilities to notify the commission if the owner or operator considers removing an electric energy conversion facility from service if not previously disclosed in a ten-year-plan filing. The amended version also calls for a legislative management study of the need, cost, effect and appropriate process for bonding and ensuring reclamation of coal conversion facilities.
The Legacy Fund bills made significant progress as well:
- An important Legacy Fund bill, HB 1425, was signed into law by Burgum. The bill ensures up to 20% of the $8.3 billion fund is invested back into North Dakota which was the original intent of the legacy fund when it was created 12 years ago. The intent of the bill is to invest the funds into innovative North Dakota energy projects and emerging technologies. It will 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 electricity transmission infrastructure, water supply projects, water and wastewater treatment plants and transportation infrastructure.
- The Legacy Fund “streaming” bill, HB 1380, passed the Senate 47-0. The bill creates a Legacy Fund earnings distribution framework for future projects related to infrastructure, clean sustainable energy, economic diversification and workforce development.
- The Legacy Fund bonding bill, HB 1431, passed in the Senate and has been returned to the House. The $680 million bill provides $510 million for water projects and flood protection, $70 million for state roads and bridges, $50 million for local infrastructure, and $50 million for North Dakota State University for the ag products development center.
Great River Energy has several position statements available to inform stakeholders on key issues. Find them here.