Minnesota’s 2013 legislative session ended in May. So what happened? How did the issues that matter to you—solar power, transit, renewable energy—fare this year?

On June 11, as part of our quarterly members-only webinar series, Michael Noble reported on Minnesota’s 2013 legislative session and gave members a glimpse of what’s next.

FRAC SAND: Developers of a proposed frac sand facility voluntarily withdraw their permit and agree to alter their plans after facing strong public opposition at a Wisconsin town meeting. (Winona Daily News)

EFFICIENCY: A closer look at how energy efficiency scores will be incorporated into Minnesota real estate listings. (Midwest Energy News)

WIND: A new 100-turbine wind farm is planned in Indiana, and Michigan-bound wind turbine components will share space with tourists aboard the S.S. Badger throughout the summer. (Muncie Star Press, Milwaukee Journal Sentinel)

FARM BILL: The U.S. Senate passed a farm bill Monday with reduced funding for energy programs; the future of those programs still is yet to be determined. (Midwest Energy News)

RENEWABLES: A recent court decision says it is unconstitutional for Michigan to only allow electricity produced within the state to count toward its renewable energy standard. (Greenwire)

OHIO: Results of a recent capacity auction show northern Ohio consumers will save millions of dollars in coming years, thanks to state energy efficiency requirements. (Midwest Energy News)

EFFICIENCY: A three-year effort in Detroit was able to improve efficiency in 84 buildings and 15 million square feet of commercial space. (Model D Media)

SOLAR: Are solar customers freeloaders? Or providing an undervalued benefit to the grid? Minnesota’s new solar law may settle that question once and for all. (Midwest Energy News)

TRANSMISSION: A federal court rejects a challenge to a cost-sharing plan for $5.2 billion in Midwest transmission upgrades. (Milwaukee Journal Sentinel)

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Tuesday, June 25, 6:30—8:30PM
Washburn High School Auditorium
201 West 49th Street
Minneapolis, MN

Co-sponsored by Minneapolis Energy Options, MN350, League of Women Voters Minneapolis, MPIRG, Citizens Climate Lobby, Will Steger Foundation, Cool Planet, Fresh Energy, Windustry, and Environment Minnesota

Tuesday, July 9, 7:00PM
Rejoice Lutheran Church
1155 County Road 75
Clearwater, Minnesota 55320

Minnesota is on a clean energy path that is bringing benefits to human health and our air, water, and natural resources.

But our work is not done. Join us for a public discussion about the costs of burning coal to our climate, natural resources, economy, and health, and the opportunities for clean energy in Minnesota. Hear Will Steger’s vivid, firsthand account of climate change with stunning photographs from his expeditions. J. Drake Hamilton, science policy director at Fresh Energy, will describe effective clean energy and clean air solutions that benefit our economy.

The forum will provide information on upcoming decisions about Xcel Energy’s Sherco 1 and 2 coal plants and the opportunities for public comment to help move Minnesota to an innovative, clean energy future based on more solar, wind, and energy efficiency.

Hosted by Beyond Coal Central Minnesota | Moderated by League of Women Voters of the St. Cloud Area

SPONSORS
Fresh Energy• Will Steger Foundation • Sierra Club – North Star Chapter • Conservation Minnesota

CO-SPONSORS
Clean Water Action • Clean Up the River Environment • Friends of the Boundary Waters Wilderness • Izaak Walton League of America – Midwest Office • Izaak Walton League of America – Minnesota Division • Kids for Saving Earth • League of Women Voters of the St. Cloud Area • Minnesota Center for Environmental Advocacy • Minnesota Renewable Energy Society • National Parks Conservation Association

To learn more, visit fresh-energy.org or contact J. Drake Hamilton at hamilton@fresh-energy.org or 651.726.7562. Download the event flyer.

CLIMATE:

WISCONSIN: A Wisconsin electric co-op warms to solar power: “You can view it as a threat or as something you need to be a part of.” (LaCrosse Tribune)

FRACKING: A Michigan fracking operation runs low on water, forcing it to truck in supplies from nearby towns. (MLive.com)

SOLAR: As Minnesota brings more solar power online, will Xcel Energy still need the three new natural gas peaking plants it’s proposing to build? (Midwest Energy News)

TRANSPORTATION: Faced with a road-funding shortfall, Michigan considers a $75 fee for hybrid and electric vehicles. (MLive.com)

GRID: As the Midwest faces more coal plant retirements, the region’s primary grid operator considers a longer-term planning outlook. (Midwest Energy News)

WIND: Nebraska Governor Dave Heineman signs wind energy tax breaks into law, a measure that he had earlier threatened to veto. (Omaha World-Herald)

TRANSMISSION: Kansas farmers object to plans for a new transmission line that will transport energy from wind farms to cities further east. (Topeka Capital-Journal)

ETHANOL: Ethanol refiners say they’re hurting from soaring rates from a Minnesota power company following its investment in a new coal plant that currently sits idle. (Minneapolis Star Tribune)

OFFSHORE WIND: An update on proposed offshore wind projects throughout the U.S. (Greentech Media)

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WIND:

FRACKING: As Illinois lawmakers debate a bill establishing new regulations for fracking, public records show that drilling is already underway in the state. (Associated Press)

COAL: Xcel Energy won’t be allowed to intervene in a case over pollution levels at national parks. (Minneapolis Star Tribune)

TECHNOLOGY: Scientists have found a way to remove CO2 from the atmosphere at relatively low cost—around $100 per ton. (ClimateWire)

SOLAR: How a new law enables Minnesotans to invest in solar power even if they don’t have a rooftop. (Midwest Energy News)

COAL: A federal court decision deals another setback to the proposed Sunflower coal plant in western Kansas. (Associated Press)

COMMENTARY: A Wisconsin state lawmaker says his opposition to wind power is “primarily a public health issue,” and can we stop climate change through carbon capture alone? (Milwaukee Journal Sentinel, The Energy Collective)

SOLAR: Utilities and industries brace for changes from Minnesota’s new solar law, solar panels will be installed on 80 buildings in Kansas City, and an Iowa Mennonite school sees justification for its new solar project in its energy bills and scripture. (Minneapolis Star Tribune, Kansas City Star, Iowa City Press-Citizen)

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Wednesday, June 12, 2013, 7:00–9:00AM
Greenway Building
2801 21st Avenue South
Minneapolis, Minnesota

Free and open to the public. Please RSVP.

Sponsored by the Minnesota Environmental Fund and cosponsored by: CERTs, Civia, Energy Center of Wisconsin, Envision Minnesota, Eureka Recycling, Great Plains Institute, Headwaters Foundation, Midtown Greenway Coalition, Nonprofits Assistance Fund, Peace Coffee, SOS Building Services, Inc., The Energy Conservatory, Wellington Management, Will Steger Foundation

Gethsemane Lutheran Church
715 Minnetonka Mills Road
Hopkins, MN 55343

Free and open to the public. For more information, call 952-935-1753 or visit glconline.org.

ELECTRIC CARS:

SMART GRID: The Illinois Senate votes to override Gov. Pat Quinn’s veto of a bill authorizing $2.6 billion in rate increases to fund grid upgrades. (Chicago Tribune)

STORAGE: Wisconsin companies partner with a Wyoming utility on a project to store energy from wind and solar installations. (Milwaukee Journal Sentinel)

WIND: How an Xcel-backed weather forecasting program will make it easier to integrate wind power into the grid, and tax breaks for wind farms move closer to approval by the Nebraska legislature. (Midwest Energy News, Associated Press)

TRANSPORTATION: Despite controversy surrounding the company installing a network of charging stations, the outlook for electric cars in Chicago remains strong. (Chicago Tribune)

OHIO: A new study finds Ohio’s 2008 efficiency mandate has saved consumers $170 million, more than offsetting a slight increase in costs related to the state’s renewable energy standard. (Columbus Dispatch)

SOLAR: Goldman Sachs bets big on solar, announcing it will provide $500 million in financing for rooftop solar. (ClimateWire)

ILLINOIS: A proposed “fix” to the state’s renewable energy standard that will save ratepayers millions is gaining support in the legislature, but still faces opposition from Exelon. (Midwest Energy News)

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Getting short shrift were wind and flexible financing options that allow more Minnesotans to access solar projects. Notably, almost all of the policy gains apply only to Minnesota’s public utilities, including Xcel Energy, Minnesota Power, Ottertail Power, and Alliant Energy. Unfortunately, this means customers of Minnesota’s cooperative and municipal utilities will not directly benefit from the year’s legislative wins.

Please join us in thanking Governor Dayton, Senator John Marty, and Representative Melissa Hortman for their tireless efforts in supporting the development of clean, local energy.

Learn more about our clean energy and efficiency accomplishments at the legislature this year.

Net metering for onsite renewable energy

In 1981, Minnesota became the first state in the nation to adopt “net metering,” a bedrock clean energy policy that allows utility customers with onsite renewable energy—such as solar or small wind projects generating up to 40 kilowatts of power—to spin their meter backwards and save on their utility bills. Various forms of net metering have since been adopted in 43 states. However, net-metered projects comprise only a tiny fraction of utility sales in Minnesota, and renewable technologies have dramatically improved over the last 30 years.

This session, Fresh Energy and our allies in the Minnesota Clean Energy & Jobs campaign worked to successfully protect net metering from efforts to erode it. Additionally, customers of public utilities will benefit from important gains. A new law passed that expands the size of projects that qualify for net metering from 40 kilowatts to 1,000 kilowatts. In addition, these projects are sheltered from arbitrary “standby charges,” making it easier and more profitable for large commercial and industrial customers to meet their electricity needs with onsite renewable energy generation. Nonresidential customers may also benefit from technical changes that make it easier to arrange for PACE (property-assessed clean energy) financing.

Minnesota supports community solar

Today, building small-scale solar projects in Minnesota is a challenge. For example, only owners of single-family homes who have a non-shaded, south-facing roof can have a residential solar project. This means the majority of Minnesota homeowners—not to mention the many Minnesotans who rent or live in multifamily housing—cannot benefit from federal tax credits and other solar incentives. Moreover, Minnesotans who are able to install solar often face high upfront costs.

That’s why Fresh Energy led the effort to create a legislative framework for community solar programs. This emerging project model would enable groups of community members to jointly develop a solar project and receive credit on their utility bills for their share of the solar power produced (just as they would if the solar panels were on their own roofs).

Minnesota adopts its first solar energy standard

Recognizing the vast benefits of solar energy, the legislature adopted a solar energy standard (SES), requiring all public utilities to generate at least 1.5 percent of their electricity from solar energy resources by the year 2020—on top of the existing renewable electricity standard of 25 percent by 2025 (30 percent by 2020 for Xcel Energy). The SES is expected to increase the state’s installed solar capacity to 450 megawatts—a 32-fold increase over the next seven years. Minnesota’s SES is the most aggressive solar standard in the Midwest, surpassing previous leaders Illinois and Ohio. It is expected to draw a significant number of jobs, investment, and manufacturing to our state.

Much of the SES will likely be satisfied by utility-scale installations, solar installations on large commercial flat roofs, and even community solar projects. However, at least 10 percent must be satisfied by solar systems under 20 kilowatts in size, such as rooftop projects located on single-family homes and small businesses. Finally, the legislature set an aspirational goal of generating 10 percent of electricity with solar by 2030. This will allow for utilities, government agencies, and the public to advocate for adding even more solar to the grid over time.

Recognizing the true value of distributed solar

Solar energy provides many benefits to a project owner. But solar also provides numerous benefits to utilities and the electric grid. Solar helps reduce the need to generate electricity from coal, lessens the need for transmission lines, mitigates fuel price uncertainty, and provides power to the grid when electricity is most needed and most expensive (like on hot sunny afternoons). Unfortunately, the true value of solar to the electric system isn’t currently accounted for in the rate that utilities pay for solar electricity.

This session, the legislature directed the Department of Commerce Division of Energy Resources and the Public Utilities Commission to develop and implement a “value of solar” rate that will compensate solar project owners for the true value of the electricity they produce. Fresh Energy will work closely with these entities to ensure that an accurate and fair rate is determined.

Minnesota prepares for a clean energy future

Bills passed this year provide for several studies to better understand barriers and solutions to transitioning to a clean energy system. These include a value of onsite storage study and a value of solar thermal study that will quantify the value of using solar to heat homes and for hot water. In addition, a wide-ranging study and stakeholder process will identify the barriers and solutions toward achieving a fossil fuel-free energy system in Minnesota.

Strengthening Minnesota’s Renewable Electricity Standard

Minnesota currently requires that utilities acquire 25 percent of the electricity they provide from renewable energy sources by 2025 (30 percent by 2020 for Xcel). Utilities are ahead of schedule in complying with this Renewable Electricity Standard (RES), thanks to Minnesota’s great wind resources. Most utilities have done this with little to no rate impact on customers while creating thousands of jobs and adding millions of dollars in payments to local landowners and revenue to local governments.

However, Minnesota—once fourth among states for installed wind capacity—has since slipped to seventh. Building on our state’s commitment to lead the transition to a clean energy economy, Fresh Energy and our allies pushed for an increase in the RES to 40 percent renewable energy by 2030. Unfortunately, the legislature called for an integration study—set for completion in late 2014—to determine whether utility transmission systems can accommodate 40 percent renewable energy, despite the significant study work that has already been completed by utilities and the upper Midwest grid operator, MISO. We expect the new study will affirm the results of existing engineering studies that haven’t found insurmountable barriers to a 40 percent by 2030 standard.

Value of energy efficiency affirmed           

The cheapest, cleanest energy is energy you don’t have to produce. This year, Minnesota’s public leaders took this to heart. Minnesota’s Energy Efficiency Resource Standard requires every utility in Minnesota to achieve a 1-percent energy savings every year, with an aspirational goal of 1.5 percent annual savings. Not only did the standard emerge unscathed from this year’s session, but additionally, legislators passed a policy that states cost-effective energy savings is an energy resource preferable to all other resources.

This language will be valuable as utilities and the Public Utilities Commission plan for future generation needs and resources to ensure that Minnesota uses energy in the most efficient way possible. Legislators also asked the Department of Commerce Division of Energy Resources to identify opportunities across Minnesota where efficiency gains can be achieved.

WHAT’S NEXT

These legislative victories represent an important first step in Minnesota. In the coming months, Fresh Energy will work with our colleagues at the Minnesota Clean Energy & Jobs campaign to implement and build on these victories in the 2014 legislative session.