The 2020 Legislative Session has begun and already there are many reasons that LEC members who live in North Dakota should be paying very close attention to what happens at the Minnesota State Capitol. Around 50 percent of the lignite-based electricity produced in North Dakota is transmitted into Minnesota, therefore any legislation that is passed and signed into law in that state has a significant impact in North Dakota’s coal country.
In the Senate Energy and Utilities Finance and Policy Committee, there have been two hearings to discuss the Clean Energy First Act, S.F. 1456 authored by Sen. David Senjem (R-Rochester). The legislation would require Minnesota utility companies to prioritize carbon-free technology in their future plans and will direct the Minnesota Public Utilities Commission (PUC) to consider whether utilities’ new energy projects are in the public interest in the resource planning process. Specifically, it would direct the PUC to not approve a new or refurbished carbon-emitting resource in Minnesota in an integrated resource plan, certificate of need or a power purchase agreement, or allow rate recovery for that resource, unless the utility has demonstrated that a carbon-free resource alone or in combination with other carbon-free resources is not in the public interest.
The legislation defines clean energy as nuclear, solar, wind, hydropower, carbon sequestration and use and municipal solid waste. There are multiple provisions to make sure that the bill only pertains to power generation facilities located in Minnesota in order to avoid another lawsuit with North Dakota. The bill was laid over after both hearings for further consideration.
The House Energy and Climate Finance and Policy Division has heard four bills of interest to LEC members so far this session. HF3054, authored by Rep. Zach Stephenson (DFL- Champlin) would require Minnesota-based investor-owned utilities to file semiannual reports that detail information regarding how much associated air pollution emissions result from all their electric generation sources. HF3209 (Stephenson), would require investor-owned utilities to analyze the economics of resting their coal power plants and other nonrenewable electricity generating facilities to seasonal operation and require that the Public Utilities Commission would be provided a process for a seasonable operations pilot project. HF3101, authored by Shelly Christensen (DFL-Stillwater), would require all electric utilities that provide retail electric service to customers in Minnesota to enclose, with each customer’s monthly electricity bill, information regarding programs and financial incentives offered by the utility that are designed to encourage use of renewable energy.
HF3436, authored by Rep. Patty Acomb (DFL-Minnetonka), is a proposal that would spend $191.5 million of general fund dollars on new or existing climate change-related government programs. Of the projects funded, $85.5 million would be devoted to energy efficiency, $55 million to electric transportation, $26 million to solar energy, $15 million to local government projects and $10 million to environmental initiatives. The largest appropriations would be for energy efficiency grants for homeowners ($30 million), public schools ($20.5 million) and nursing homes ($20 million). Also receiving $20 million each would be two grant programs for the purchase of electric buses, one earmarked for schools and the other for mass transit. The bill also includes $16 million in grants for public schools converting to solar power and a $10 million rebate program for homeowners doing the same. Another $15 million would fund rebates for those who purchase electric vehicles. And $15 million would go toward energy efficiency in commercial buildings. All of the bills from the hearings so far were laid over for possible inclusion in an omnibus bill and none of them has a Senate companion bill.