6.1. ERMUSR 02-15-2011 - Laserfiche WebLink

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A couple big ticket energy bills advanced in the Minnesota Legislature this week. Hearings on additional issues of interest to utilities are likely in the coming weeks. While Republicans in the Legislature are having their way so far, a tempering thought remains in the back of everyone's minds: Will DFL Governor Mark Dayton sign any of these bills? On an 11-6 vote, the House Environment, Energy and Natural Resources Committee Tuesday approved HF 72 (Rep. Michael Beard, R-Shakopee), which removes the carbon dioxide emissions ban from new electric generation imported to or built in Minnesota. The bill advanced to the House Commerce and Regulatory Reform Committee. The Senate companion, SF 86, awaits its first committee action. Critics of the bill said it takes a step back in dealing with global climate change, is not needed because state officials could authorize a new coal plant, and is "bogus" because the chance of building a new coal-fired power plant in Minnesota is very slim. Proponents said the state will have growing energy needs in the next decade. Along with enabling future plants, the bill would allow importation of power into the state from Spiritwood Station, a plant built by Great River Energy in North Dakota. Allowing importation of power from Spiritwood is currently being examined by the Minnesota Public Utilities Commission. The bill, if enacted, could remove the State of North Dakota's stated concern that Minnesota law prohibiting importation of coal-fired electricity from North Dakota plans violates the Commerce Clause of the U.S. Constitution. The Minnesota Senate Wednesday voted to lift a 16-year-old moratorium on building nuclear power plants in Minnesota, approving SF 4 (Sen. Amy Koch, R-Buffalo) with bipartisan support, by a margin of 50-14. The companion bill (HF 9) is expected to come up for a House vote soon. A spokersperson for Gov. Mark Dayton's was quoted as saying the Governor would consider signing the bill if the waste-storage issue is solved, if utility customers are protected from soaring rates and if no weapon grade material is present in Minnesota. Bills have been introduced in the House and Senate (HF 75 and SF 86) that would return the state's Conservation Improvement Program (CIP) and Renewable Energy Standard (RES) to pre-2007 days. While these bills are not likely to become vehicles for legislative action themselves, the Senate Energy, Utilities and Telecommunications Committee is rumored to be planning hearings about the CIP issue on Feb. 15 and 17, and additional CIP-related bills may be introduced. Municipal utilities certainly have concerns over CIP law as it stands. However, many are also heavily invested in CIP efforts and consider conservation their feast-cost resource. Striking a balance on making this law more realistic and effective, rather than gutting it, will likely be required to actually earn the Governor's signature. Vol. 14, No. 2 Feb. 4, 2011