07/09/2007 Council Packet - Laserfiche WebLink

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2007 Energy, Utilities, Technology and Communications Issues Renewable Energy Standard The Legislature passed legislation this session which created the nation's strongest Renewable Energy Standard. The bill requires all energy utility companies, except Xcel Energy, to produce 25% of their total energy mix from renewable energy sources (such as solar, wind and water) by 2025. Xcel Energy (which provides half of the energy sold in Minnesota) has a slightly higher standard of 30% renewable energy by 2020 including 25% from wind energy. The Public Utilities Commission will be allowed to delay or modify a utility's standard if it could cause significant problems with the reliability of energy delivery or rates charged to consumers or if technical problems occurred outside the utility's control. This legislation resulted from negotiations between members of the Senate, Governor's Office, environmental organizations, utility companies, Chamber of Commerce, and other organizations. By working together, they were able to create a standard which will improve the environment while ensuring that utility companies will be able to build the transmission lines and energy production facilities needed. In addition to improving our environment by causing a significant reduction in global warming emissions, this legislation will jump -start the renewable energy industry in Minnesota. This will result in thousands of new, good - paying jobs and billions of dollars of investment in Minnesota. Community -Based Energy Development The Legislature passed legislation to help ensure that Minnesota's local communities receive economic benefits from renewable energy that will be developed in the state as a result of the Renewable Energy Standard. The bill expanded the definition of C -BED projects and established a task force which will work to create a complete definition of what types of renewable energy projects should qualify as C -BED. This bill also encouraged partnerships between local wind developers and energy utilities; removed the 2.7¢ per- kilowatt-hour rate cap currently in place on C -BED projects; stated that energy utilities must take reasonable steps to determine if a C -BED project is available when developing new renewable energy facilities; and said that the amount of energy produced by small wind projects (one wind turbine) should be added to the amount of energy produced by other small wind projects located within a five -mile area and were constructed within a 12 -month period in order to determine if the state or county has jurisdiction over the project. The legislation also stated that counties may select to regulate any C -BED projects that produce less than 25 Important (inks and phone numbers Minnesota Public Utilities Commission www.puc.state.mn.us www.commerce.state.mn.us go to "Consumer Info and Services" to "Energy Info Center" for energy saving tips and information on renewable energy sources megawatts. This legislation will also help protect landowners by stating that a wind easement or lease of wind rights agreement will be invalid after seven years if a commercially active project is not on the property. Energy Conservation and Efficiency The Legislature passed a bill which was an important step to decrease the environmental and financial costs of Minnesota's rapidly increasing energy demand. The legislation asked all electric and gas utilities to reduce their energy sales by 1.5% annually through energy conservation and efficiency programs. The legislation also authorizes the Department of Commerce to serve as a technical resource to utilities by developing an inventory of effective energy- conservation programs, techniques and technologies, and stated that the Department will also State Senator Sandy Rummel 323 State Capitol, St. Paul, MN 55155 - (651) 296 -1253 sen.sandy.rummel @senate.mn