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Indiana has its best year yet for solar
Mar 19, 2024

SOLAR: Indiana’s utility-scale solar market rebounds from supply chain issues and interconnection delays with its strongest year yet in 2023. (WFYI)

UTILITIES: ComEd and Ameren Illinois file scaled back infrastructure spending plans after regulators rejected previous proposals to align with the state’s Climate and Equitable Jobs Act. (Capitol News Illinois)

NUCLEAR: A Minnesota nuclear plant is back to full power after an outage dragged on for nearly two months longer than expected and drew questions from state officials. (Star Tribune)

PIPELINES:

  • North Dakota regulators reject a county’s request to reconsider a recent finding that the state supersedes local authority on pipeline siting issues. (KXNET)
  • New South Dakota laws create landowner protections during pipeline survey work and easement restrictions for carbon pipelines while allowing state regulators to overrule local officials on permitting. (KELO)

ELECTRIC VEHICLES: An Indiana Congress member wants the Biden administration to investigate the potential security risks of U.S. reliance on Chinese-made electric vehicles and battery components. (E&E News)

OHIO: An Ohio disciplinary board says the state’s former top utility regulator, who faces state and federal corruption charges, violated attorney ethics rules in his relationship with FirstEnergy. (Bloomberg Law, subscription)

WIND: A new study finds wind turbines have a negligible effect on property values, and the negative impact on homes close to wind turbines disappears within a decade. (CNN)

CLEAN ENERGY: Advocates urge the Biden administration to encourage manufacturers to revitalize domestic aluminum production to support the clean energy transition. (Canary Media)

FOSSIL FUELS: The National Park Service and a regional foundation announce that national parks around Lake Superior have begun efforts to transition park operations off fossil fuels. (Michigan Advance)

CLIMATE: The $10 million allocated to fund Minneapolis’ climate action plan includes $4.7 million for energy efficiency in buildings and $1.4 million for workforce training. (Minnesota Daily)

CLEAN TECH: A state-funded program in Minnesota is providing seed funding for clean energy startups to scale their technologies and help make the state economically competitive. (Star Tribune)

COMMENTARY: The executive director of the Sierra Club says the Line 5 pipeline trespasses on tribal land and is an environmental disaster waiting to happen. (Sun-Times)

Utah power agency urges coal-friendly bill veto
Mar 19, 2024

COAL: The Intermountain Power Agency urges Utah Gov. Spencer Cox to veto legislation that would force the agency to sell its coal plant to the state to keep it operating beyond its scheduled retirement date, saying it could provoke a federal backlash. (Salt Lake Tribune)

TRANSPORTATION: Colorado researchers find electric scooters are the most efficient means of commuting for limiting life-cycle greenhouse gas emissions. (Colorado Sun)

UTILITIES: New Mexico’s Supreme Court upholds regulators’ denial of a utility’s bid that would have allowed it to collect $5.2 million from ratepayers for exceeding mandated renewable energy targets. (Las Cruces Bulletin)

SOLAR: A food manufacturing company installs solar-powered microgrids at six of its California bakeries expected to offset about 20% of the facilities’ energy use. (Deli Market News)

CLEAN ENERGY: Washington state local officials urge the U.S. Energy Department to add clean industrial facilities and energy storage to its plans to develop solar at the Hanford nuclear site. (The Chronicle)

HYDROPOWER: An advocacy group’s study finds four Northwest hydropower dams targeted for removal emit 1.8 million tons of carbon dioxide-equivalent of methane annually, casting doubt on claims they provide clean energy. (E&E News, subscription; news release)

ENERGY STORAGE: A national lab identifies 1,800 sites in Alaska suitable for closed-loop pumped hydropower energy storage facilities. (news release)

OIL & GAS:

  • A California lawmaker introduces legislation that would require oil and gas companies to develop plans to plug some 40,000 idle wells, prioritizing those near vulnerable communities. (Santa Barbara Independent)
  • Six Western states join 18 others in a lawsuit aimed at blocking the U.S. EPA’s new rule limiting methane emissions from oil and gas facilities, claiming it is an attack on the industry. (Public Radio Tulsa)
  • The Biden administration allocates $55 million to tribal nations to identify, plug and clean up abandoned and orphaned oil and gas wells on their lands. (news release)

ELECTRIC VEHICLES:

NUCLEAR:

BIOFUELS: A Hawaii biofuel company expands its feedstock crops and considers developing a second refinery. (Hawaii Public Radio)

COMMENTARY: A former U.S. lawmaker urges Washington state regulators to help tackle climate change by expediting solar and wind development rather than hampering clean power based on faulty science. (Seattle Times)

Bitcoin, data centers fuel energy spike, risking climate goals
Mar 19, 2024

The United States is facing a new energy crisis — one that could make the climate crisis even worse.

After more than 30 years of falling or flat demand for electricity, electric utilities are forecasting the nation will need the equivalent of about 34 new nuclear plants, or 38 gigawatts, over the next five years to supply power for data centers, electrification and new industry according to filings made to the Federal Energy Regulatory Commission and compiled by Grid Strategies.

Since those reports, several utilities have further increased their near-term forecasts.

And those estimates don’t necessarily include the growth of hard-to-track, but energy-hogging cryptocurrency or cannabis farming, which are estimated to be using up to 2.3% and 1%, respectively, of the nation’s electricity. Energy demand in these industries has skyrocketed as the popularity of cryptocurrency and as legalization of marijuana have spread.

The utilities “were either just caught unaware or not believing what they were hearing,” said Rob Gramlich, president of Grid Strategies, which provided a cumulative look of the demand in December.  

In response to this demand, which seems to have power providers in the United States flat-footed, many utilities want to build new power plants to burn methane, a fossil fuel also known as natural gas, or to delay closing their coal plants.

“I can’t recall the last time I was so concerned about the U.S. energy trajectory, as major utilities maneuver for mass gas capacity expansion in the face of load growth. Unless course is changed … (greenhouse gas) goals are effectively dead,” Tyler Norris, a doctoral fellow at Duke University, said in a recent tweet.

The issue is also a global one, as a recent International Energy Agency report says electricity for data centers, including for AI and cryptocurrency, could double by 2026.  

At the same time, there hasn’t been enough construction of enough new transmission to bring renewables such as solar and wind to the grid.

“We see (the gas buildout) as a huge threat — we are at a moment where we need to be phasing out fossil fuels and not locking it in for decades longer,” said Gudrun Thompson, energy program leader for the Southern Environmental Law Center.

2022 projections ‘were so off’

Norris said in 2022 he pointed out in hearings on Duke Energy’s carbon plan that the company seemed to be “low-balling” the need for more electricity, including for the growing amount of electric vehicles. At about the same time, Georgia Power told regulators it only needed the equivalent of one more mid-sized power plant to meet growth for the rest of the decade after its two new nuclear units at Vogtle came online.

But late last year, Georgia Power said it will need 17 times more electricity — the equivalent of four new nuclear units — than what it had forecast just 18 months earlier because of new data centers and manufacturing in this state.

One Georgia Public Service Commissioner, known for backing Georgia Power, questioned whether the company should have seen that growth coming ahead of time.  

“Talk with me about why I should have any confidence whatsoever in these projections when the 2022 projections were so off,” a heated Tricia Pridemore asked in a PSC hearing.

Economic development interests in the state call the demand a measure of success. Georgia Gov. Brian Kemp has aggressively recruited new industry to the state, and its economic development arm and Georgia Power tout low electricity prices there as a way to attract that industry.

The same is true in Texas, where data mining centers have requested the equivalent of roughly 41 new nuclear power plants to power their energy-intensive computer processes to find the cryptocurrency.

Virginia cools on data centers

In Virginia, data centers are no longer as welcome as they once were. Dominion has threatened to turn away new centers, saying it can’t meet the power demand.

The utility said in 2023 that demand for electricity from those centers would increase 376% by 2038. Even if that demand is tempered, Dominion still expects overall demand for power to grow by 85% over the next 15 years as consumers shift to electric appliances, heating and cooling units and vehicles.

The Tennessee Valley Authority is also a hotspot for new data centers, with 65% of its new load growth since 2019 coming from data centers. TVA has contracts from additional centers not yet online that will increase its load another 40% to 50%. The quasi-public utility has proposed or is building eight new natural gas plants to fill the demand.

“The timeframe that they can get online has been aggressive on their part,” said Lori Stenger, TVA’s director of enterprise, forecasting and financial planning.

This underscores one point made by observers: Data centers and data miners aren’t just going to places where power is cheap, but where they can get power the fastest. In fact, some crypto miners are purchasing coal plants to provide electricity for their operations.

Utilities say they can’t meet the skyrocketing growth with wind, solar and other renewable energy, but a large group of businesses including Google and Microsoft, beg to differ. The 400-member Clean Energy Buyers Association said fossil fuels are not aligned with their goals.

“Georgia Power’s proposals to add more fossil fuel resources into its resource mix in this docket send the wrong message to the business community and large customers evaluating Georgia as a place to do business,” said Priya Barua, CEBA’s director of market and policy innovation, in written testimony over Georgia Power’s request to add more capacity.

Data on crypto energy use lacking

Despite the utility’s forecasts, it’s still unclear exactly how much power is needed.

Jeremy Fisher, a principal advisor for climate and energy with the Sierra Club, said while data centers in Northern Virginia are using roughly the equivalent of three nuclear plants worth of energy, the centers themselves are building almost four times that much in backup diesel generation around their centers, according to a review of permitting data. The backup power could be an indication those centers are preparing for future growth, Fisher said.

“There’s such little data, it’s frustrating,” said Mandy DeRoche, a lawyer at Earthjustice who has been tracking data centers.

That lack of clarity around the nation’s electricity use — no single agency has a full picture of how much is needed or used  — was in the spotlight this year after  the federal Energy Information Administration sent an emergency request to cryptocurrency miners requiring them to share how much electricity they use.

Texas miners sued to stop the request, and the EIA has agreed to go through a more formal process that will take longer to gather that data.

At least one publicly traded Bitcoin miner, Riot, which sued the EIA to stop the data collection, highlighted the risk of such data becoming public in its annual report to the Securities and Exchange Commission last year.

“It is possible that mandatory surveys such as this will be used by the EIA to generate negative reports regarding the Bitcoin mining industry’s use of power and other resources, which could spur additional negative public sentiment and adverse legislative and regulatory action against us or the Bitcoin mining industry as a whole.”

Floodlight is a nonprofit newsroom that investigates the powerful interests stalling climate action.

A Boston grocery store could become a proving ground for a new approach to equitable community solar
Mar 19, 2024

A group of energy equity advocates in Boston is launching a community solar cooperative they say could be a scalable model for both reducing carbon emissions and building wealth in disadvantaged communities.

The Boston Community Solar Cooperative is in the pre-development stage of an 81 kilowatt solar project on the roof of the Dorchester Food Co-op, in one of the city’s lowest-income neighborhoods. Residents will be able to buy or earn ownership stakes in the project, which will be governed by a board of community stakeholders. The food store will buy the power at a discounted rate and the revenue created will be shared among this group of owners.

When the Dorchester project is up and running, the coalition plans to replicate the model in other neighborhoods around Boston, as well as share details and lessons more widely so other communities can create their own co-ops.

“The idea is that the majority of the ownership for the Dorchester project will be owned by Dorchester community members,” said Gregory King, a co-founder of the cooperative and interim president of the board. “It’s about a community empowerment movement.”

The promise of community solar

Community solar, in which subscribers or co-owners pay for a share of the power generated, has been around for close to 20 years. Though it took about a decade to catch on, adoption began to pick up in the mid-2010s, and, today, some seven gigawatts of community solar capacity has been installed nationwide, up from just one gigawatt in 2018. Massachusetts is home to 882 megawatts.

From the beginning, advocates saw the potential in community solar to help bring the benefits of renewable energy to low-income and other historically disadvantaged communities. The approach allows anyone to buy clean energy, usually at a lower price than utility supply, without needing a sunny rooftop of their own or thousands to invest upfront.

“If you’re a renter, actually having your own solar array is almost impossible,” said Kendra Beaver, climate justice coordinator at the Fairmount Indigo CDC Collaborative in Boston and a co-founder of the cooperative. “For folks who do own their homes, there’s still a huge financial investment you have to make to put solar panels on your home.”

So far, though, the promise of using community solar to help narrow the wealth gap has not been realized: In 2022, just 2% of community solar customers were low-income, according to a report produced by Wood Mackenzie in collaboration with the Coalition for Community Solar Access. The trend is moving in the right direction, however. By the second half of 2023, low-income households made up 10% of community solar customers. And provisions of the 2022 federal Inflation Reduction Act (IRA) are likely to expand opportunities for low-income consumers even further.

“Community solar is a really great tool for energy equity and environmental justice. But our very first wave of community solar programs and projects served a more general market, with a larger portion of middle-income to upper-income customers,” said Kate Daniel, Northeast regional director for the coalition. “The trend is growing really quickly toward the direction of serving low-income customers.”

Maximizing the impact

The Boston Community Solar Cooperative grew out of a desire to maximize the economic and social impact community solar could have in disadvantaged neighborhoods. To achieve this goal, organizers designed a strategy with several key differences from standard community solar models.

“We’re laying out a framework for what I refer to as ‘community solar 2.0,’ that really provides ownership to members,” King said.

Most community solar developments use a subscription model: Consumers sign up to buy a share of the power produced by a given development, but the array is owned by a third party that operates the system and keeps the revenue. Projects developed by the Boston cooperative will also have local subscribers who realize savings on the cost of electricity, but the arrays will be owned by community shareholders and governed by a board of local stakeholders.

Area residents can pay $1,000 for a share in the development. A “solidarity fund” will allow the organization to fund ownership stakes for some interested community members who can’t afford the cost. There will also be worker members who will help with project development and community outreach, earning a regular hourly rate for their work and eventually becoming entitled to an ownership share, much in the way corporate employees can earn stock options.

For the first project, the cooperative will accept roughly 30 investor members, to ensure that each owner receives meaningful money from their investment, King said. More members will be added as new projects are developed.

The coalition is also dedicated to hiring people of color and women or minority-owned businesses whenever possible in the design and construction process, allowing more money to flow into the community.

“A lot of solar developers are not inclined to erode their profit by taking on more expensive labor than they need to — we have the opposite mindset,” King said. “We’re making sure we’re proactively engaging minority businesses and trying to create an income stream for contractors that work for us.”

The community solar cooperative could also offer benefits beyond the financial, Beaver said. Seeing more solar panels on your block and hearing your neighbors talk about their investments in them could increase engagement in climate solutions, she said.

“There’s empowerment in participating in something that feels meaningful with people who live in your neighborhood,” she said.

Looking ahead

There is growing interest in cooperative ownership of community solar and the ways it can share the financial benefits of renewable energy with community members, Daniel said. However, it has traditionally been difficult to make the model work.

“The challenge is just that this is a very hard thing to do to organize,” she said. “It takes a lot more effort, it takes more intricate funding and financing mechanisms.”

Indeed, it is a provision in the relatively new IRA that has really made the numbers work for the Boston coalition, King said. Tax equity financing, in which an investor puts money into a project in exchange for the tax credits it generates, has long been a common component of community solar financing. In the past, however, federal rules required the investor to remain an owner in the project for years. The IRA modified that regulation, allowing investors to simply take the tax credit without continuing on as part owners. That change allows community solar cooperatives to retain the revenue and profits for themselves — and their members.

The Solar for All program, another program created by the IRA, could also expand opportunities for low-income community solar cooperatives. Massachusetts has applied for $250 million from the program, and its plans include provisions that would help community solar cooperatives get more traction. The U.S. Environmental Protection Agency anticipates making awards to winning plans starting in July 2024.

Even as it continues to watch these developments and hone its plans for the Dorchester installation, the Boston cooperative is already actively looking for sites for additional arrays, focusing on the neighborhoods of Dorchester, Roxbury, and Mattapan, and considering how to communicate everything they’ve learned to other communities interested in forming their own cooperatives.

“One thing we’re hoping to do is share some of the things we’ve learned on our journey,” King said. “We’d love to see other communities around the state of Massachusetts adopt a similar model.”

Feds designate official Gulf of Maine wind energy area
Mar 18, 2024

OFFSHORE WIND: Federal ocean energy officials officially designate a 32 GW wind energy area in the Gulf of Maine that is 80% smaller than what was first marked as a potential leasing area and excludes fishing and lobstering areas. (Maine Public)

ALSO:

SOLAR:

GRID:

  • PJM Interconnection warns it could lose over 33 GW of power before 2030 because of capacity market price drops and another 19.6 GW over regulatory retirement deadlines, a concern it says could raise consumer prices. (E&E News, subscription)
  • New York’s grid operator explains at an operating committee meeting that this past winter was one of its mildest ever, in terms of temperatures, gas prices and power demand. (RTO Insider, subscription)

FOSSIL FUELS: A fatal Pittsburgh-area home explosion reopens emotional wounds for a nearby town where six people died in a separate gas-related explosion last year. (Trib Live)

TRANSIT: As Philadelphia’s transit agency considers significant regional rail cuts that threaten the independence of disadvantaged seniors along the city’s northwest Chestnut Hill line. (Philadelphia Inquirer)

WORKFORCE: Connecticut, Massachusetts and Rhode Island labor leaders hold a joint conference to push for better wages and working standards within offshore wind projects. (CT Examiner)

COMMENTARY: A New Jersey editorial board questions whether the state’s governor is getting in his own way of driving electric vehicle adoption. (Star Ledger)

Southeast utilities lean on natural gas, solar to keep up with demand
Mar 18, 2024

GRID: A Texas municipal utility builds four large solar farms and a natural gas-fired power plant as it aims to keep pace with power demand from data centers and electrification. (El Paso Times)

ALSO:

  • Georgia Power asks state regulators to allow it to build three new natural gas-fired turbines, develop 1,000 MW of battery storage, add a 200 MW solar farm, and buy power from out of state to meet growing energy demand, but critics warn the additions could cost ratepayers. (Atlanta Journal-Constitution)
  • South Carolina utilities warn that an escalation in data center construction is straining the grid. (Post and Courier)

SOLAR:

ELECTRIC VEHICLES:

OIL & GAS:

COAL: An Alabama family sues for damages after a coal mine explodes because of what a lawyer blames on a buildup of methane gas. (Inside Climate News)

CLEAN ENERGY: A report finds Georgia ranks second in the U.S. for clean energy development with $23.12 billion in investment. (Augusta Chronicle)

POLITICS: Virginia lawmakers use a budget amendment to try to force the state to rejoin a regional carbon market, but it will likely be vetoed by Gov. Glenn Youngkin. (Inside Climate News)

CLIMATE:

  • A nine-mile island in New Orleans is slowly being swept away by rising seas, and its erosion could severely affect more heavily populated parts of the city that it helps to protect from storm surge. (NOLA.com)
  • A Texas power company faces numerous lawsuits after investigators say its decayed power pole sparked this month’s historic wildfires in Texas and Oklahoma. (Grist)

COMMENTARY:

Feds to loan $2 billion to Thacker Pass lithium mine in Nevada
Mar 18, 2024

MINING: The U.S. Energy Department conditionally agrees to loan more than $2 billion to the controversial Thacker Pass lithium mine under development in northern Nevada. (Associated Press)

ALSO:

BATTERIES: Hawaii lawmakers consider legislation aimed at encouraging or requiring automakers to recycle spent electric vehicle batteries. (Honolulu Star-Advertiser)

CLIMATE: An analysis predicts California cannot meet its greenhouse gas reduction goals by 2030 unless it triples efforts to slash carbon emissions, attributing the backslide to a post-pandemic surge in driving and electricity demand. (Los Angeles Times)

WIND: Oregon regulators seek public input on a proposed 300 MW wind facility in the northeastern part of the state. (East Oregonian)

SOLAR:

CLEAN ENERGY:

  • An Arizona utility says Google’s agreement to purchase wind and solar energy to power its new Phoenix-area data center will help the utility transition to clean energy. (KJZZ)
  • A southern California county considers two proposed solar-plus-storage projects with a combined 870 MW capacity and a partly solar-powered micro-steel mill equipped with carbon capture. (Bakersfield Californian)

OIL & GAS:

FOSSIL FUELS: A Utah researcher predicts the state’s coal, oil and natural gas production will continue to climb in the near future even as new hydrogen, geothermal and solar facilities come online. (Deseret News)

UTILITIES: San Diego public power advocates predict establishing a municipal utility would cost $3.5 billion, but current utility SDG&E estimates it could amount to nearly three times as much. (San Diego Union-Tribune, subscription)

NUCLEAR:

Biden can’t break fossil fuel subsidies’ momentum
Mar 18, 2024

FOSSIL FUELS: President Biden campaigned on ending fossil fuel industry subsidies but has so far failed to break a century-old trend and keep them out of the federal budget. (New York Times)

ELECTRIC VEHICLES:

  • Electric vehicle prices have plummeted over the last two years, with the average purchase price now only $5,000 higher than the average for gasoline-powered vehicles. (Washington Post)
  • The U.S. Energy Department will loan more than $2 billion to the controversial Thacker Pass lithium mine under development in northern Nevada, which would produce electric vehicle battery materials. (Associated Press)
  • The United Auto Workers tries for the third time to unionize Volkswagen’s plant in Chattanooga, Tennessee, but so far sees diminishing returns. (Chattanooga Times Free Press)

HYDROGEN: An analysis concludes that “blue” and “green” hydrogen could be cost competitive with natural gas by 2030, but that meeting national demand might consume two-thirds of the country’s current renewable electricity. (Utility Dive)

EMISSIONS:

  • A federal court temporarily strikes down the Securities and Exchange Commission’s new rules that would require public companies to disclose their climate risks and emissions. (The Hill)
  • Republican attorneys general from 24 states suing over the Biden administration’s new rule to limit methane emissions say the policy is a “blatant attack on America’s oil and gas industry.” (E&E News, subscription)

POLICY:

  • House Republicans plan a slew of energy-related bills that would repeal a federal greenhouse gas reduction fund and deter challenges to energy projects from environmental groups, among other priorities. (E&E News)
  • The Biden administration looks to finalize and implement new energy rules in the next few months, before they become vulnerable to a potential Republican administration. (E&E News, subscription)

OFFSHORE WIND: Federal ocean energy officials officially designate a 32 GW wind energy area in the Gulf of Maine that is 80% smaller than what was first marked as a potential leasing area and excludes fishing and lobstering areas. (Maine Public)

NUCLEAR: Oregon small modular reactor firm NuScale shifts from providing grid-scale power facilities to catering to “enormous energy consumers” such as data centers. (Utility Dive)

SOLAR:

UTILITIES: Minnesota regulators will soon require the state’s three largest gas utilities to file long-term plans that forecast how they will meet demand while aligning with state policy priorities. (Energy News Network)

What’s the future of gas? In Minnesota, utilities have to share 10-year visions
Mar 18, 2024

No one knows what a gas utility will look like a quarter-century from now, as many states near deadlines for their 2050 climate goals.

In Minnesota, though, state regulators will soon expect utilities to at least have a vision for the next decade.

The Minnesota Public Utilities Commission voted last month to require long-range resource planning from the state’s three largest gas utilities.

Similar to a process that’s long been used for electric utilities, gas utilities will need to periodically submit plans showing load forecasts under various scenarios and how they intend to meet that demand in a way that’s safe, reliable, and affordable — and in line with the state’s policies.

“An IRP (integrated resource plan), just like it happens on the electric side, informs the level and type of cost-effectiveness and a framework for utility investment,” Commission Chair Katie Sieben said. “The hope is that by having the state’s three largest natural gas utilities file IRPs, it will provide transparency and more intentional decision-making in the years to come.”

The decision stemmed from a yearlong investigation by the commission into fallout from a February 2021 cold snap that caused extreme gas price spikes across much of the country.

Utilities in a handful of other states also file gas resource plans, including Oregon, which has had a similar process since 1989. In Minnesota, utilities typically submit annual plans for the upcoming winter season and offer data on changes in natural gas consumption. Investments in gas infrastructure are often discussed in rate cases.

After a six-hour meeting that featured more than 100 decision options, the PUC began drawing parameters for the data and information it will seek from Xcel Energy, CenterPoint Energy and Minnesota Energy Resources Corp. The plans will include projections for low, medium and high natural gas demand and pricing. They will also model energy efficiency initiatives as a potential resource.

“I think that’s important in the long term for helping the gas sector meet our overall (state) decarbonization goals,” Sieben said.

Looking to a net-zero future

The Center for Energy and Environment worked with Xcel Energy, the Department of Commerce and the Laborers’ International Union of North America on an approach to natural gas planning that heavily influenced the commission.

The center’s director of policy, Audrey Partridge, said asking for natural gas utilities to look out to 2050 remains difficult “because the quality of the data falls apart.” A 10-year time frame “is significantly longer than any planning on the gas system we’ve done to date.”

Though the plans don’t go as far as some clean energy and consumer advocates wanted to see, they’re hopeful the process, along with recent state laws encouraging gas utilities to diversify and decarbonize their businesses, will help make progress on state climate goals and avoid stranding customers with the cost of infrastructure that may not be needed in the future.

Annie Levenson-Falk, executive director of ratepayers’ advocacy group Citizens Utility Board, said the plans are “essential, given, particularly given all of the transition and uncertainty in the gas industry. It’s necessary, and we’re very happy to see this move forward.”

The natural gas market is in a state of flux, Levenson-Falk said. The growth of electric air source heat pumps is expected to cut into gas demand in the coming years. So will federal and state incentives encouraging geothermal and district heating systems.

Minnesota’s “future of heat” could eventually lead to natural gas being used only for the coldest days, Levenson-Falk said. As more customers switch to electric heating sources, there’s a risk that the cost of maintaining the natural gas system would “fall on households that could least afford it.”

The resource plans will help regulators see the “big picture” and how utilities are planning for it, she said. When gas utilities make investments, they often consider a 40-year timeline. But if gas sales decline, ratepayers will still have to pay for that infrastructure, Levenson-Falk said.

Clean energy and consumer organizations said natural gas utilities should consider a 2050 end-year because that’s Minnesota’s goal for carbon neutrality.

“We want the commission to be able to consider if they’re (gas utilities) putting in a 40 year pipe today, what will the utilization look like in 15 to 20 years?” Levenson-Falk said. “But they didn’t go that far.”

‘Basically making it up’

The natural gas sector is much more volatile than the electricity marketplace, with “so many unknowns,” Sieben said. That led the commission not to require utilities to propose a “net zero” future advocated by clean energy organizations. Commissioners also expressed concerns that net zero may impact the system’s reliability.

The commission decided utilities will need to consider externalities such as the societal cost of carbon pollution in the planning process.

“I think that is going to create a sea change in terms of opening up more opportunities for cleaner resources and reducing emissions on the gas side,” Partridge said.

Marketing Manager Kevin Pranis of the Laborers District Council of Minnesota & North Dakota said his union eventually supported the commission’s scope for gas planning. But he warned that no “magic” in planning would offer a perfect path toward reducing natural gas use.

By planning more than ten years out, “you’re basically making it up,” Pranis said. Even the idea of reducing natural gas piping cannot occur unless peak energy demand changes. He believes the distribution system will continue to operate for years but carry less natural gas.

“You need a fully functioning gas system until the day you don’t need it,” Pranis said.

Fresh Energy’s managing director of buildings, Joe Dammel, said utilities have long forecasted continued natural gas consumption increases despite contrary evidence. Nor have they had to include Minnesota’s 2050 carbon neutrality goals in their thinking.

Energy News Network is an independent journalism service of Fresh Energy.

The growth of natural gas “is at odds with, I think, a lot of the emerging policy concerns about the energy transition, customer preference and changes to the marketplace,” he said.

The plans will allow regulators to determine whether natural gas investments will be sensible in an uncertain future, he said. “Gas resource planning is an attempt to provide the commission and other stakeholders with a picture of potential futures,” Dammel said. “Saving customer dollars and keeping rates low is something planning can facilitate.”

Dammel still believes the final rules missed opportunities to gather important data. For example, he said that utilities will have to disclose potential new infrastructure investments but not the costs of replacing existing gas distribution systems, representing a significant portion of their spending.

Still, the natural gas resource planning “is a positive first step,” Dammel said.

The commission, however, might someday ask for net-zero planning.

“That’s the direction that we need to head,” Sieben said. “But are we ready to be there yet? No, but I wouldn’t be surprised if we, in the years to come, do get there and start to plan for a net-zero future in a more deliberate manner.”

The commission continues to take comments and has an August meeting set to further refine natural gas resource planning, including when the requirement will begin.

Is it too late for Biden’s grid expansion plan?
Mar 15, 2024

GRID: The Biden administration is expected to unveil a grid expansion plan this spring, but experts say the president would need at least a second term to fully roll out the transmission buildout. (E&E News)

ALSO: U.S. lawmakers introduce legislation that would require federal energy regulators to establish incentives for transmission owners to add grid-enhancing technologies to existing power lines. (Utility Dive)

ELECTRIC VEHICLES: The Biden administration plans to unveil a clean car rule next week that would require carmakers to cut average vehicles emissions 52% by 2032, likely spurring electric vehicle production. (Politico)

OFFSHORE WIND:

HYDROGEN: The U.S. Energy Department announces that it will funnel $750 million in bipartisan infrastructure funding to electrolyzer research and development projects, with a goal of spurring clean hydrogen. (E&E News)

COAL: Fourteen coal plants closed in the U.S. last year, but power generators are largely looking to natural gas to replace that capacity. (Inside Climate News)

CLIMATE:

UTILITIES: The role of a decayed power pole in sparking this month’s historic Texas wildfires drives discussion about the state’s general lack of regulations for utilities related to wildfire mitigation. (NPR, Houston Chronicle)

SOLAR:

  • A U.S. solar manufacturing executive urges congressional lawmakers to make tax code changes that would prevent Chinese solar companies from benefiting from Inflation Reduction Act incentives. (Utility Dive)
  • Ohio regulators are scheduled to consider plans next week for a $1 billion, 800 MW solar project with 300 MW of storage on thousands of acres partially owned by Bill Gates. (Columbus Dispatch)

PIPELINES: A four-week trial ends in North Dakota in a case to determine whether the state or federal government should pay $38 million in policing costs for Dakota Access pipeline protests, though a judgment isn’t expected for weeks. (North Dakota Monitor)

FOSSIL FUELS: A development group finishes dismantling a former oil refinery in south Philadelphia, once the East Coast’s largest such facility, and begins construction on an industrial space and life sciences lab. (Philadelphia Inquirer)

EFFICIENCY: A Virginia company offers a free online calculator to help homeowners navigate federal tax credits and point-of-sale rebates for efficient appliances. (Energy News Network)

BIOMASS: Environmental groups are concerned that the federal Inflation Reduction Act could create tax incentives for wood-to-energy biomass projects and potentially worsen climate emissions. (Inside Climate News)

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