Minnesota Update

Minnesota Update

On Tuesday, Governor Tim Walz (DFL) announced that his commerce department would petition the Public Utility Commission to reconsider its approval of Enbridge Inc.’s Line 3 crude oil pipeline replacement project, prolonging a process begun by his predecessor Mark Dayton. “Projects like these don’t just need a building permit to go forward, they also need a social permit,” Walz said in a social media statement.

The Public Utility Commission approved Enbridge’s plan to replace the 50-year-old structure and expand its Line 3 oil pipeline last year, clearing the way for the project to move ahead. The line would carry 370,000 more barrels a day of crude oil from Hardisty, Alberta to Superior, Wisconsin.

The pipeline project is a critical $2.6 billion dollar private investment in Minnesota’s energy infrastructure, which would replace an aging pipeline on which the state relies for energy security and economic competitiveness. The project would provide quality jobs to more than 6,500 Minnesota workers during the course of the project, including 2,100 family-sustaining construction jobs

This week, the Senate Energy and Utilities Finance and Policy Committee heard from high energy consumers on Tuesday. The Iron Mining Association, Gerdau and Verso Corporation presented to the committee on their business in the state, emphasized their economic contributions in the region and highlighted the potential impacts that energy policy can have on their production. John Bastian, from the Verso Corporation noted that energy mandates play a greater role in the tight markets that high-energy users operate in – a concept that appeared to resonate with lawmakers on both sides of the aisle.

Additionally, the House Energy and Climate committee received an overview on the Department of Commerce and their role in the energy sector. Lawmakers, both republicans and democrats, used the opportunity to voice their frustrations with the Walz Administration for their recent litigation decision regarding the Enbridge pipeline. Following the Department’s overview, the Public Utilities Commission presented an overview on their responsibilities.