House Energy
The House Climate and Energy Finance and Policy Committee heard presentations related to the insurance industry and climate change on Tuesday. Diane Gates, chief administrative officer, Allianz Investment Management, provided an overview of the company’s Environmental, Social, and Governance (ESG) strategy and climate change approach. In addition to making investments in renewable energy, Allianz declines to invest in companies that get more than 30% of their revenue from coal. The committee also heard presentations related to the social cost of carbon.
The committee heard several bills on Thursday. All were laid over for possible inclusion in the Omnibus bill. First, HF3043 (Stephenson, DFL-Coon Rapids) would appropriate $6.5 million from the Xcel Energy Renewable Development Account (RDA) for a geothermal energy demonstration project at the Sorteberg Early Childhood Center in the Anoka-Hennepin School District.
HF2698 (Christensen, DFL-Stillwater) requires Xcel Energy to file a decommission plan for the Allen S. King power plant by Dec. 31, 2025.
HF3907 (Pinto, DFL-St. Paul) creates a solar energy contingency account for the St. Paul Ford plant site. As the Ford site is developed, the developer (Ryan Companies) and the city of St. Paul would like to have a solar array on site. Xcel Energy would enter into a power purchase agreement with the solar developer. The area where the solar array would be located is the former Ford industrial waste dump. HF3907 appropriates $3 million from the RDA to create a fund, as an insurance policy, if the solar array needs to be removed in order to clean up the industrial waste. Ford Motor Company is responsible for the industrial clean-up. The fund created by HF3907 would be used to remove the solar array if that becomes necessary. Xcel Energy supports the bill.
Senate Energy
The Senate Energy and Utilities Committee heard SF3508 (Dahms, R-Redwood Falls) on Tuesday. SF3508 would appropriate $2,290,000 from the RDA to the city of Granite Falls to repair their hydroelectric facility. Previously, money was appropriated from the RDA for the same purpose. However, initial construction work revealed damage to the facility was far greater than originally thought. Additionally, COVID-19 and supply chain issues raised the cost of the project. SF3508 was laid over for possible inclusion in the Omnibus bill.
The committee also heard SF2947 (Frentz, DFL-Mankato). This is a Legal Aid bill and allows an individual to file a complaint with the Public Utilities Commission (PUC) if the individual feels he/she has been wronged by a utility. SF2947 codifies current internal PUC practices. All 49 other states have similar language in statute. SF2947 only applies to investor-owned utilities (IOUs). SF2947 was laid over for possible inclusion in the Omnibus bill.
Finally, the committee heard SF1621 (Frentz, DFL-Mankato) on intervenor compensation. SF1621 was first heard in the committee last year. Senators raised many concerns about the scope of the bill: no caps on the amount of compensation an intervenor could receive, no limitations as to who could be considered an intervenor and no qualifications as to when compensation could be awarded. Sen. Frentz, the Citizens Utility Board and the EnergyCents Coalition worked with stakeholders to refine the bill over the interim.
In committee, a delete-all amendment was adopted to reflect the work over the interim. Under the delete-all amendment, only IOUs are subject to the new intervenor compensation procedure. Caps are set on the amount of compensation. Additionally, caps are also placed differentiating IOUs (with Xcel Energy being subject to the highest aggregate amount). Further, the bill now limits who would be eligible for the new compensation procedure. Larger nonprofit organizations, like Fresh Energy or the Sierra Club, would not qualify for intervenor compensation under the bill. Finally, in order for a participant to receive compensation, the participant’s argument must not only be a unique perspective but must also materially assisted in the Public Utilities Commission decision-making. SF1621 was laid over for possible inclusion in an Omnibus bill.
On Thursday, the committee heard SF3661 (Benson, R-Ham Lake). SF3661 creates a state policy supporting the deployment of carbon capture and sequestration. The bill was passed on a straight party line vote and sent to the Senate floor.