Progress on current policy shows the system is working

Photo: Jonathan D. Thoreson

Minnesota has most of the basic elements of a comprehensive clean energy policy. Current policies increase energy efficiency and clean energy production while decreasing global warming pollution, reducing Minnesota’s reliance on fossil fuels, and improving the economics of the energy system for the long term.

However, good policy does not implement itself. Minnesota utility companies, the Minnesota Department of Commerce Division of Energy Resources, the Minnesota Public Utilities Commission, and advocates like Fresh Energy are hard at work identifying barriers to implementation and solutions for overcoming them.

SURMOUNTING BARRIERS: TRANSMISSION, EFFICIENCY

Minnesota’s Renewable Energy Standard (RES) requires a growing percentage of the state’s power to come from new renewable energy sources—27.5 percent by 2025. The fly in the ointment for implementation comes mostly after 2012, when the amount of renewable energy may exceed the available transmission. Most new renewable energy for Minnesota will come from wind, and new transmission lines are required. Who pays for those lines has been a contentious issue, and when a formal proposal was made for wind developers to pay 90 percent, wind energy development nearly stopped. A huge success for renewable energy came recently with federal approval of a plan to spread the transmission cost of renewable projects broadly among customers who benefit from that new energy. This cost allocation structure is a key factor in the present resurgence of wind project planning and development in Minnesota.

While Minnesota is increasing renewable energy, it is also decreasing the amount of energy used. The state’s aggressive energy savings goal of 1.5 percent per year took effect in 2010 for electric utilities and will take effect in 2013 for gas utilities. During much of 2010, the Minnesota Environmental Initiative convened a large stakeholder group to study how to meet the goal. The resulting report, “1.5% Energy Efficiency Solutions,” identifies barriers to success in four areas, articulates solutions, and provides technical measurement and verification metrics to help utilities meet the goal and to assist in evaluation. More similar work is ahead.

NEW CHALLENGES

Just as the state is starting on the path to meeting the RES and the energy savings goal, a number of proposals to eliminate or substantially reduce both have been introduced. Fresh Energy is working closely with allied organizations, businesses, faith groups, and others to keep these policies intact.

The slow-moving utility sector needs clear, consistent rules. We have them. There may be a need to adjust the rules in the future, but there is currently no evidence of that. These policies were the result of years of negotiations and compromises and were overwhelmingly supported throughout all sectors of Minnesota and by both political parties.

Clean energy policy must have time to prove itself. In a few years, we will have the information needed to make thoughtful adjustments, but in the meantime, Minnesota lawmakers should focus on moving the state forward toward a clean energy economy instead of dismantling clean energy and energy efficiency policies already in place.

Minnesota has most of the basic elements of a comprehensive clean energy policy. However, good policy doesn't implement itself.