Analysis
The 2018 session looks to be an off year for energy issues
at the Minnesota Legislature. Democratic Gov. Mark Dayton is largely focused on
bonding, clean water and a myriad of other issues. But his agenda will be
limited by a Republican-dominated House and divided Senate. While no one is
circulating big ideas on energy, a handful of issues are likely to come up,
including biomass and energy storage. With that in mind, here are six modest
predictions for energy this session:
Energy storage bridges the partisan divide
Minnesota has a couple of energy storage projects planned
but advocates would like to see a more organized, incentivized approach. A
study in Massachusetts jumpstarted battery storage there, and some think a
similar effort could do the same in Minnesota. A group of lawmakers led by
Republican Rep. Pat Garofalo, chair of the House Job Growth and Energy
Affordability Policy and Finance committee, recently visited Tesla’s offices in
California to discuss energy storage. Last year the legislature ended the Made
in Minnesota Solar Incentive program, freeing up money in a renewable
development fund for a potential battery storage pilot.
The state’s RPS is staying where it’s at, for now anyway
Minnesota created its 25 percent by 2025 renewable portfolio
standard in 2007 and hasn’t updated it since. The main champion for increasing
it to 50 percent by 2030 was former Lt. Gov. Tina Smith, who was appointed
last year to replace U.S. Sen. Al Franken. Without Smith to lead the charge and
with the session slated to be short this is probably not the year for updating
the targets.
Biomass gets a hearing, but what comes of it is less certain
Last year the Legislature, at the request of Xcel Energy,
closed three biomass plants that sold electricity to the utility. The
Department of Employment and Economic Development issued a draft report
recently looking at the economic impact of the closure of a biomass plant that
burned turkey waste in Benson. The report details lost jobs for plant workers
and suppliers but predicts a net overall positive impact for Benson. To help
make communities impacted the lawmakers allocated $54 million last year — $20
million of it for Benson and the rest for two northern communities where woody
biomass was burned for electricity. How that money gets spent, and on what, may
arise during the session.
Volkswagen settlement funds spur EV funding talk
Minnesota lags similar-sized states like Washington, Oregon
and Colorado in electric vehicle adoption. Advocates think the state should
help build out a fast-charger network, a strategy embraced by states with
greater numbers of EV drivers. There will be some money for that type of
build-out from the state’s Volkswagen settlement, but a bit more would help.
The settlement should boost for electric and propane school buses, too, as well
as heavy duty on-road non-diesel vehicles. A few bills around the settlement
have been introduced that would give the Legislature some say in the agreement
but it’s hard to say if any will pass.
If utilities don’t share their tax savings, lawmakers will
make them
The federal tax bill is poised to save Xcel Energy, as well
as Minnesota Power and Otter Tail Power, hundreds of millions of dollars. Who
gets the cash? Should only investors benefit? Good questions. Regulators are
studying it, but the legislature, sensing a potential score in an election
year, might put a little back into consumers’ pocket if regulators don’t.
Property Assessed Clean Energy (PACE) picks up steam
Commercial PACE loans have been available in Minnesota for
years through the St. Paul Port Authority. Now a residential PACE option looks
like it has a good chance of passing this year, advocates say. The program
would allow homeowners to finance energy efficiency improvements and solar
panels on their property tax bills over as long as 20 years. The advantage?
PACE loans finance improvements 100 percent, so homeowners put no money down.
No comments:
Post a Comment