Minnesota Senate Passes Bill Mandating Carbon-Free Energy By 2040; Bill Heads To Walz's Desk

By Michelle Griffith, Minnesota Reformer:

The Minnesota Senate late Thursday passed a bill that mandates Minnesota utilities transition to carbon-free energy by 2040. The legislation now heads to Gov. Tim Walz, who said he will sign it.

The vote was along party lines 34-33, with all Democratic senators in support.

Sen. Nick Frentz, a Democrat from North Mankato and the bill’s sole author, said lawmakers heard from Minnesota voters last fall that they want the Legislature to address climate change.

“This legislation was years in the making, and we passed it not a moment too soon,” Frentz said in a statement. “Carbon emissions are the number one threat to the health of our planet. This bill demonstrates that Minnesota takes climate change seriously, and that we must act now to create an energy production system that is reliable, affordable, and responsible.”

Sen. Majority Leader Kari Dziedzic, DFL-Minneapolis, said the bill will make Minnesota a leader in renewable energy.

“This bill will not only cut our state’s carbon emissions, it will also restore Minnesota’s leadership in clean-energy jobs and bring environmental justice considerations into the regulatory process,” Dziedzic said in a statement. “It’s a major and transformative step in our transition toward a clean-energy future.”

Senate Republicans earlier in the day announced their own energy plan that would allow new nuclear plant construction; permit energy companies to use more coal and natural gas; and categorize hydroelectric energy as a renewable source, like wind and solar.

Senate Democrats throughout about seven hours of debate voted down over 30 Republican amendments to the bill, which Republicans have christened the “blackout bill.”

“We want an all-of-the-above approach … We have supported wind and solar as it has grown in Minnesota and around the region, but we also want to have these key forms of baseload energy still in Minnesota,” said Sen. Andrew Mathews, R-Princeton.

The Frentz bill (HF7) would require Minnesota utilities to transition to 100% carbon-free energy sources like wind and solar by 2040. The energy companies would need to hit benchmarks, however, much sooner. Larger electric companies, like Xcel Energy, would need to have 80% of their electricity portfolio generated by carbon-free sources by 2030. Smaller municipalities and co-ops would need to reach 60% by 2030. By 2035 all electric utilities need to have 90% of their energy from carbon-free sources — a tough mandate for many community co-ops and municipalities, Republicans say.

Democrats included language in the bill that grants utilities leniency — or what Democrats are calling an “off-ramp” — if they can demonstrate that the carbon-free standards would significantly affect affordability or reliability. The municipality would need to make their appeal to the state’s Public Utilities Commission, which would grant or deny their request.

Otherwise, utilities can also pay for credits to offset any carbon energy they do use. For small utility companies in greater Minnesota, some may be forced to pay for the credits by increasing energy prices of their customers.

“Your bill will endanger the lives of Minnesotans and thrust them into blackouts,” said Sen. Eric Lucero, R-St. Michael. Lucero gave an impassioned speech, saying that the bill would burden businesses and family budgets.

Sen. Jim Abeler, R-Anoka, said he spoke to his local utility, Anoka Municipal Utility, and the company said it would need to raise electricity rates by 50% if the bill were to pass and they weren’t granted an “off-ramp.”

He proposed an amendment to mandate the Public Utility Commission grant the exemption if the utility merely demonstrates the mandate would negatively impact them. The current bill language says the commission “may” grant an exemption. After debate, he withdrew his amendment, saying he didn’t want Anoka to be mocked as Democrats were almost certainly going to reject the amendment.

Abeler choked up with emotion decrying Democrats’ refusal to support any amendments, which he said would cause his constituents to suffer.

The cost trajectory of fossil fuels vs. solar, wind and other non-carbon sources in the next decade is unclear. A recent study found that states that rely on fossil fuels for electricity are likely to pay higher utility costs than those with more carbon-free sources.

Republican lawmakers repeatedly tried to push adding nuclear power to the list of renewable energy sources, but Democrats voted the proposal down.

Nuclear energy is a carbon-free source of power but is not considered “renewable” because it produces large amounts of toxic waste.

Hundreds gathered at the Capitol Thursday to demonstrate in favor of the 100% carbon-free bill, including environmental groups and unions. A renewable energy advocacy group called 100% Minnesota handed out bingo cards to Senate spectators that included squares like “Obama created climate change” and “slippery slope,” so people could track the expected soundbites that would likely come up during the Senate floor debate.

The Minnesota Reformer is an independent, nonprofit news organization dedicated to keeping Minnesotans informed and unearthing stories other outlets can’t or won’t tell..