Purpose

This bill makes changes to Minnesota’s Renewable Energy Standard (RES) by broadening which energy technologies count toward meeting the standard. It amends Minnesota Statutes to expand the list of eligible energy technologies, with a specific update to how hydroelectric capacity is treated. It also creates definitions related to carbon emissions, environmental justice, and how electric utilities are defined.

It specifically amends Minnesota Statutes 2024 section 216B.1691, subdivision 1.

Main Provisions

• Eligible energy technologies (the technologies that count toward meeting the RES) now include:
  • Solar
  • Wind
  • Hydroelectric power from facilities of any size (see operation date condition below)
  • Hydrogen produced from the resources listed in the bill
  • Biomass, including:
  • Landfill gas
  • An anaerobic digester system
  • The predominantly organic parts of wastewater effluent, sludge, or related byproducts from publicly owned treatment works
  • Not including incineration of wastewater sludge to produce electricity
  • Energy recovery facilities that capture the heat value of mixed municipal solid waste (MSW) or refuse-derived fuel (RDF) from MSW as a primary fuel
• Hydroelectric capacity rule change:
  • Hydroelectric facilities of any size count as eligible if the facility is in operation as of February 8, 2023.
• New terms and definitions:
  • Carbonfree: a technology that generates electricity without emitting carbon dioxide.
  • Electric utility: defined to include various utility types (public utility, certain cooperatives, municipal entities, etc.).
  • Environmental justice area: defined by specific criteria using U.S. Census data (see below).
  • Total retail electric sales: defined as the annual kilowatt-hours sold to retail customers or to a distribution utility for distribution to its retail customers.
• Environmental justice criteria:
  • An area is considered an environmental justice area if it meets one or more of these:
  • 40% or more of the area's total population is nonwhite
  • 35% or more of households earn at or below 200% of the federal poverty level
  • 40% or more of residents over age five have limited English proficiency
  • The area is located within Indian country as defined by federal law

Significant Changes to Existing Law

• Expanded eligibility for RES counting:
  • Hydroelectric power counts for RES regardless of size, as long as the facility was operating by February 8, 2023.
  • Hydrogen, biomass (with specific included sources), and energy recovery from MSW/RDF are added to the list of eligible technologies.
• New and clarified definitions:
  • The bill adds explicit carbonfree terminology and updates how an “electric utility” is defined.
  • It creates a formal definition of “environmental justice area,” tying RES considerations to areas with higher needs or specific demographics.
• Regulatory emphasis on environmental justice:
  • By defining environmental justice areas with clear criteria, the bill sets up potential policies or incentives targeted to these areas.

Relevant terms to look for in discussion or analysis: - carbonfree - eligible energy technology - hydroelectric - solar - wind - hydrogen - biomass - landfill gas - anaerobic digester - wastewater effluent - sludge - publicly owned treatment works - incineration of wastewater sludge - energy recovery facility - mixed municipal solid waste (MSW) - refuse-derived fuel (RDF) - electric utility - environmental justice area - total retail electric sales - kilowatt-hours (kWh)

Relevant Terms - carbonfree - eligible energy technology - hydroelectric - solar - wind - hydrogen - biomass - landfill gas - anaerobic digester - wastewater effluent - sludge - publicly owned treatment works - incineration - energy recovery facility - mixed municipal solid waste (MSW) - refuse-derived fuel (RDF) - electric utility - environmental justice area - total retail electric sales - kilowatt-hours (kWh) - capacity (megawatts, MW) - operation as of February 8, 2023