2007 LEGISLATIVE VICTORIES

Renewable Electricity Standard: 25 by 2020

• Xcel Energy – state’s largest utility achieves 30 percent by 2020
• Other utilities – 25 percent by 2025
• $10 billion in new renewable investments, an additional 5,000 to 6,000 MW

Energy Efficiency

• Aggressive goals for efficiency savings: 1.5% of annual electricity and gas sales saved through utility efficiency programs, begin in 2009. Reaches 25 percent savings by 2025.
• This legislation will more than double electricity savings and triple natural gas savings. Spending estimates: electric current: $75 million increased to $150 million; gas current: $15 million increased to $45 million.
• Efficiency ratemaking: MN Public Utilities Commission may implement a rate decoupling pilot program for one gas and one electric utility.
• Research to improve programs and reduce GHG emissions - $3 million annually.

Global Warming

• Economy wide climate change action plan by February 1, 2008, to achieve interim benchmarks and the long-term goal for reducing greenhouse gas emissions 80 percent by 2050 (15 percent by 2015, 30 percent by 2025 with 2005 base year), including analysis and recommendations on a cap and trade system, not limited to just the power sector.
• Statewide regulations to limit state power sector CO2 emissions by August 1, 2009. If no regulations by August 2009, new restrictions on the power sector go into effect: prohibits the construction of new baseload coal plants within the state, the importing power from new baseload coal plants outstate, and new long-term power purchase agreements that would increase CO2 emissions.  New planst and agreements only go forward if they offset CO2 emissions from other power plants serving MN or by purchasing CO2 allowances from another state with a cap and trade system already in place. 
• Minnesota PUC must estimate and factor in the costs of future carbon dioxide regulation when it examines proposals for new power supply.

Biofuels

• A new state-wide working lands bioenergy program, Reinvest in Minnesota - Clean Energy, was established to allow for perennial crops to be grown under long-term easements for the bioenergy market.  A technical committee was funded with $200,000 to develop the details of the program over the summer, for presentation to the 2008 legislature. Bonding in 2009 will be asked for in order to fund the easements.
• A reserved market share for cellulosic ethanol within the existing state Renewable Fuels Standard (RFS) was established.