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A state-funded climate financing authority will begin ramping up lending in Minnesota this year after hiring its first executive director in October.
The Minnesota Climate Innovation Finance Authority, established by state legislators as part of a flurry of climate and clean energy bills in 2023, is charged with annually lending at least $25 million to stimulate clean energy development and greenhouse gas emissions reduction projects.
The timing — as the Trump administration sows chaos and confusion around federal grant funding — is coincidental, but could help some projects withstand the uncertainty.
Kari Groth Swan, the state authority’s executive director, said she hopes to use her background in banking and community development to help connect promising projects with state and private money.
She recently spoke with the Energy News Network about the launch of the program, which has already drawn dozens of applications.
What kind of projects are eligible?
The finance authority seeks to fund projects that help Minnesota meet its climate action goals, including the Climate Action Framework. The green bank has received applications for district hydrothermal energy, solar gardens, new energy-efficient construction, electric vehicle charging stations, air source heat pumps, battery manufacturing, and the Solar on Schools program.
How does it work?
The funding process is similar to what conventional lenders use. Applicants provide two years of financials, a narrative, a project budget, a list of commitments from other funders, and other financial information.
“We’re not funding ideas,” Swan said. “We’re funding viable, actionable projects that can get done and create jobs.”
A governing board appointed by Gov. Tim Walz makes the final lending decisions. The board includes representatives of state agencies, industry organizations, tribal nations, labor unions and people from other professions.
Why does the state need a green bank?
Green banks are mission-driven to promote clean energy projects, and have technical expertise in energy lending. Minnesota’s green bank intentionally focuses on underserved markets unlikely to receive all their capital from private lenders. By deploying a lending institution rather than relying on grants for clean energy projects, the state creates a revolving fund as loans are repaid.
The finance authority won’t ever be the primary lender on a project, but having the state involved helps move projects forward, Swan said. The green bank has a pipeline of $25 million in loan applications from projects worth over $265 million.
Swan said the first wave of applicants came fully formed and with significant capital in place. The second wave might need some additional advocacy with lenders. “I will be out talking to the traditional lenders, saying, ‘Here’s an example of a project and here’s what the capital stack looks like. Will you partner with us?’”
How large are the loans?
A wide range of loan amounts are available. The green bank requires a minimum loan amount of $250,000, and while the first three loans it issued were all over $1 million, Swan expects a greater variety of loan amounts now that the bank is fully operational. In addition, no loan can exceed 10% of the amount the bank loans annually. The bank may also fund nonprofit lenders who could provide capital to smaller clean energy projects.
How much money is available?
By statute, the bank must lend at least $25 million annually. The Legislature allocated $45 million in 2024 to get the green bank going. Last year, the state competitiveness fund provided $60 million and the federal government added $25 million.
What other requirements are there?
Half of the loans must meet guidelines for environmental justice communities based on the U.S. Department of Energy’s current definition. To qualify, a community’s non-White population must be at least 40%, and 35% of the population must have an income at or below 200% of the poverty level.
How could President Trump’s attacks on federal clean energy affect the program?
Swan thinks federal investment tax credits for clean energy will survive under Trump, adding that unwinding them quickly will be challenging because they’re part of the tax code. But the Trump administration has already signaled a willingness to usurp Congress’ constitutional spending authority when it comes to clean energy, which could mean a greater need for money but also fewer projects ready to fund in Minnesota.
SOLAR: Virginia lawmakers and lobbyists back a proposed state board that would weigh in on proposed solar and battery storage projects but leave final decisions to localities, although its creation could be vetoed by Gov. Glenn Youngkin. (Inside Climate News)
ALSO: Duke Energy announces it’s completed its 10th solar farm in Florida, making good on its 2020 pledge to state regulators to build nearly 750 MW of solar generation in the state. (Panama City News Herald)
COAL ASH: Duke Energy, Louisville Gas & Electric/Kentucky Utilities and other power companies send a letter to Trump’s EPA nominee asking for“immediate action” to roll back federal regulation of toxic coal ash and rescind recent enforcement actions. (Canary Media)
STORAGE:
GRID:
ELECTRIC VEHICLES: Alabama suspends its electric vehicle charger installation program, citing President Trump’s order pausing its federal funding. (E&E News, subscription)
COAL:
EFFICIENCY: A new report finds Tennessee residents use 30% more electricity than the national average, largely because of the state’s lagging energy-efficiency building standards. (Knoxville News Sentinel)
NUCLEAR: South Carolina Gov. Henry McMaster calls for the expansion of the VC Summer nuclear plant, which previously collapsed in the “Nukegate” controversy but recently has been revived by state-owned utility Santee Cooper. (Post and Courier, South Carolina Daily Gazette)
OIL & GAS: A Texas city council approves a gas company’s proposal to expand its fracking operations near a daycare center and neighborhood. (Inside Climate News)
BIOMASS: South Carolina residents deal with noise, dust and pollution from a nearby wood-pellet plant, one of 28 similar facilities across the Southeast and seven in the Carolinas. (WSOC)
HYDROGEN: The U.S. Energy Department collects public input on plans to produce hydrogen from natural gas at multiple sites in West Virginia, Ohio and Pennsylvania that are part of the Appalachian Regional Clean Hydrogen Hub. (WYSO)
COAL: Executives from a dozen U.S. power companies urge the Trump administration to roll back federal regulations on coal ash disposal and rescind recent enforcement action. (Energy News Network)
ELECTRIC VEHICLES: The Trump administration’s efforts to claw back upwards of $7.5 billion in federal electric vehicle charging funding from states will likely be met with legal challenges, experts say. (Canary Media)
NUCLEAR: Home electrification, electric vehicles, new data centers and a 2040 carbon-free power mandate are putting pressure on Minnesota lawmakers to lift the state’s ban on new nuclear plants. (Minnesota Reformer)
UTILITIES: Missouri’s two largest utilities want state permission to charge customers for new gas plants before they’re built, which consumer advocates slam as a scheme to increase utility profits. (Missouri Independent)
GRID:
SOLAR: Consumers Energy breaks ground on a 360 MW solar project in southwestern Michigan that the utility says will help meet its goal of 8,000 MW of solar by 2040. (WWMT)
POLITICS: Jurors begin to deliberate in the corruption trial of former Illinois House Speaker Michael Madigan, who is accused of ushering favorable legislation for ComEd in exchange for jobs for associates. (Chicago Sun-Times)
COMMENTARY: A lung cancer specialist says Wisconsin utilities’ plans to prolong the life of coal plants and open new gas plants will harm public health. (Wisconsin Examiner)
ELECTRIC VEHICLES: The Trump administration singled out funding for electric vehicle chargers in his orders halting climate and clean energy spending, but experts say agencies legally can’t hold back these “mandatory” grants allocated by Congress. (Canary Media)
POLITICS:
SOLAR:
OIL & GAS: The Trump administration directs the Army Corps of Engineers to use emergency powers to sidestep the Clean Water Act to build gas pipelines, but environmentalists say they don’t have that authority. (E&E News)
GRID:
HYDROGEN: A last-minute infusion of funds from the Biden administration will allow the Mid-Atlantic Hydrogen Hub to begin planning and collecting community input, though some environmental advocates are skeptical the process will truly be climate-friendly. (Delaware Public Media)NUCLEAR: South Carolina Gov. Henry McMaster calls for the expansion of the VC Summer nuclear plant, which previously collapsed in the “Nukegate” controversy but recently has been revived by state-owned utility Santee Cooper. (Post and Courier, South Carolina Daily Gazette)
NUCLEAR: The Navajo Nation agrees to allow Energy Fuels to transport uranium ore across tribal land from the company’s Grand Canyon-area mine to its Utah mill. (AZ Mirror)
ALSO: Wyoming lawmakers kill legislation that would have encouraged the federal government to establish an interim nuclear waste repository in the state, citing concerns it would end up being permanent. (WyoFile)
UTILITIES:
COAL:
SOLAR:
CLEAN ENERGY: Hawaii Gov. Josh Green signs an order aimed at accelerating clean energy targets and setting a goal of 50,000 distributed solar and battery installations by 2030. (Maui Now)
STORAGE: A Utah utility and a firm look to develop 70 MW of demand response capacity using flywheel energy storage systems. (news release)OIL & GAS: The U.S. EPA reports seven methane super-emission events over one week near oil fields and refineries in a southern California county. (KBAK, news release)
BIOFUELS:
CARBON CAPTURE: Northwestern New Mexico officials hope a direct air carbon capture hub proposed for the area will replace declining coal industry jobs. (New Mexico Political Report)
COMMENTARY: Colorado labor advocates say a new pro-clean energy union coalition aims to tackle the climate crisis while ensuring green jobs also prioritize workers. (Colorado Newsline)
A recent ruling by a Wisconsin appeals court closes the door on the long-standing battle for third-party-owned solar in the state — at least for the near future, as disappointed advocates see it.
On Jan. 3, the court dismissed ongoing legal proceedings regarding a Stevens Point family’s efforts to buy electricity from solar panels that would have been installed on their home but owned by a solar company. The arrangement, known as third-party solar, allows customers access to solar power without the upfront cost of installing panels.
The family moved before their case concluded, though, making it “moot” in the court’s opinion. Advocates had hoped a court decision could still clarify that under existing law third-party-owned solar is indeed legal, but those hopes are now dashed.
“I think this road is at a dead end at this point,” said Will Kenworthy, Midwest regional director for Vote Solar, which had brought a petition before the Public Service Commission of Wisconsin on the family’s behalf, asking the commission to affirm their right to do the project. “We had a chance to resolve it once and for all, and we made the effort to get it this far, then had the carpet pulled out from underneath us.”
In late 2022, the Public Service Commission ruled in favor of the family, who wanted to install rooftop solar that would be owned by North Wind Renewable Energy Cooperative, a developer based nearby.
After the commission decision, the Wisconsin Utilities Association filed a lawsuit challenging the commission’s ruling, arguing such arrangements violate utilities’ monopoly rights to provide power.
A trial court remanded the issue back to the commission for further information. Vote Solar, represented by the Environmental Law & Policy Center, appealed that ruling and hoped the appeals court would affirm the commission’s decision.
But when the Public Service Commission members found out that the family had moved without installing solar, they withdrew the decision on their case.
“It closes this phase of the very long and ongoing saga here to clarify the law for third-party financing,” said ELPC Senior Attorney Brad Klein. “What’s frustrating with this setback is a lot of work went into teeing up a strong legal case for the commission and the courts. It got knocked out on a procedural non-substantive issue on the status of the customers, which leaves the rest of Wisconsin customers in the dark on the lawfulness of this tool.”
The commission’s decision on the Stevens Point case had applied only to that particular project. But advocates thought the move could pave the way for others to do third-party-owned solar.
“The hope with that decision was it would serve as a precedent — if this one family can do it, then a second family, a third family, a fourth family could do it too,” said John Albers, a director at Advanced Energy United, which filed an amicus brief in the case. “The frustrating part is none of this should be happening. Wisconsin is an outlier — you’ve got Michigan, Illinois, and Iowa that all allow third-party ownership.”
Nationwide, third-party ownership makes solar more accessible for many households, nonprofits, churches, schools, and government agencies since the solar developer or other third-party owner pays the upfront costs and reaps the tax incentives while providing power and passing on energy bill savings to the resident or nonprofit.
The direct-pay provision in the Inflation Reduction Act makes third-party ownership less crucial for nonprofit entities including government agencies since direct payments — unlike tax incentives — can be tapped even if one doesn’t pay taxes. But the paperwork requirements for direct pay can be onerous, and under the Trump administration, pieces of the IRA may be rolled back.
Advocates have long argued that existing Wisconsin law actually does allow for third-party-owned solar. But without clarity from a government authority, utilities have refused to interconnect third-party-owned solar arrays, and developers have been reluctant or unwilling to explore the arrangement with customers.
A legal battle over Eagle Point Solar’s plans to do a third-party-owned solar project with the city of Milwaukee, for example, has been before the Public Service Commission and in the courts for years.
Kenworthy said advocates were hoping the commission and appellate court would offer “an interpretation of statute that avoids this preposterous outcome that someone putting a small solar array on someone’s roof is suddenly constituting a utility.”
“We think it’s as urgent as ever to get third-party ownership available to the people of Wisconsin. We’re still interested in trying to figure out if there’s a way we can address it,” Kenworthy continued. That could mean another resident attempting third-party-owned solar, a lengthy and frustrating undertaking, as the Stevens Point family saw.
“It was illustrative of the problem people are facing,” Kenworthy said. “Getting solar on a residential rooftop is a tough choice anyway, and when you have that type of uncertainty out there it really is a deterrent.”
In an amicus brief, Advanced Energy United had made the case that residential third-party-owned solar would benefit all ratepayers and could reduce reliance on planned new gas plants in Wisconsin. The group is among many that have filed testimony opposing a $1.2 billion new gas peaker plant that the utility WEPCO plans to build at the site of its Oak Creek coal plant.
“Really, the more behind-the-meter solar you have in Wisconsin, the better for all ratepayers,” he said. “Utilities wouldn’t need to spend as much on new generation if homeowners were able to generate at home.”
In years past, advocates have pleaded with the legislature, courts, and commission to offer clarity on third-party ownership, so far to no avail. The Public Service Commission declined to rule on a petition from the Midwest Renewable Energy Association seeking to develop third-party-owned solar, noting that the association did not have a specific project contract.
“The problem remains unresolved, and it’s going to require some additional work over time, but we are going to continue pushing,” Klein said. “I’m confident in the long-term outcome because I think we’re right on the law. We don’t know if the next effort will mirror this one, which was an attempt to be responsive to the commission’s request to bring a specific case to them. We may do that again, or there’s other avenues. Certainly, the legislature could act. There are other ways the commission could act. We’ll be exploring all of those options.”
HYDROGEN: Backers of a planned hydrogen-powered iron production facility in Minnesota say they are confident that $1.3 million in federal funding just announced for the project will survive the Trump administration’s spending freeze. (Star Tribune)
CLIMATE: The Trump administration’s freeze on federal grants and loans could jeopardize funding for several climate and pollution-reduction projects for northeastern Ohio organizations. (Cleveland.com, subscription)
EFFICIENCY: Twenty-four states lack energy efficiency standards meant to curb energy use, which advocates say come with economic as well as climate advantages, according to a new industry report. (Grist)
OIL & GAS: A state-backed report in North Dakota says higher federal tax incentives for using carbon dioxide for enhanced oil recovery could unlock up to 8 billion more barrels of oil and generate $9 billion in more oil tax revenue over the next decade. (North Dakota Monitor)
EMISSIONS: U.S. Transportation Secretary Sean Duffy signs an order seeking to roll back fuel economy standards enacted by President Biden, arguing that “artificially high” fuel efficiency rules raise costs for consumers. (New York Times)
CLEAN ENERGY: Food and beverage production facilities across the U.S. begin to deploy low-carbon heating technologies as an alternative to gas-powered systems, though high costs remain a barrier. (Canary Media)
NUCLEAR: An Indiana utility will seek a $50 million U.S. Department of Energy grant to begin exploring the potential for a small modular reactor at a retiring coal plant. (Inside Indiana Business)
COAL: Springfield, Illinois, reaches an agreement with the U.S. EPA over two coal ash disposal sites that will require improved groundwater monitoring and addressing potential releases of heavy metals. (Environmental Protection)
BIOFUELS: Kansas agriculture and energy companies ask state lawmakers to approve a $5 million annual state tax credit to entice reluctant gas station owners to distribute more ethanol made with crops grown in-state. (Kansas Reflector)
SOLAR:
BIOMASS: Michigan biomass energy advocates say a new state law eliminating biomass as a clean energy source eliminated a market for burning old tires. (MLive, subscription)
COMMENTARY: A former Iowa lawmaker says restrictive local ordinances hinder the state’s ability to remain a renewable energy leader, particularly as new demand comes online from data centers. (Des Moines Register)
CLEAN ENERGY: Food and beverage production facilities across the U.S. begin to deploy low-carbon heating technologies as an alternative to gas-powered systems, though high costs remain a barrier. (Canary Media)
POLITICS:
GRID:
COAL ASH: A coalition of U.S. power companies sends a letter to Trump’s EPA nominee asking for“immediate action” to roll back federal regulation of toxic coal ash and rescind recent enforcement actions. (Canary Media)
EMISSIONS:
EFFICIENCY: Twenty-four states lack energy efficiency standards meant to curb energy use, which advocates say come with economic as well as climate advantages, according to a new industry report. (Grist)
WIND: President Trump’s actions against wind energy development might actually benefit Texas’ wind industry because the vast majority of its projects are located on private and not federal land, says the director of a university energy institute. (Texas Standard)
COMMENTARY: A California columnist urges policymakers to continue to invest in risky clean energy innovation even as the “expensive, bird-killing eyesore” known as Ivanpah solar plant nears its retirement. (Los Angeles Times)
AI faces a big question that even ChatGPT hasn’t been able to answer: How to provide the massive amount of power it needs to work and expand. But a new, efficient and inexpensive open-source AI model may sidestep the question altogether.
Just last week, the U.S.’s path forward on AI seemed clear. OpenAI — the company behind ChatGPT — and two partners got a White House welcome to announce a $500 billion investment into building out the virtual and physical infrastructure behind AI. That includes funding for solar arrays and battery storage to power new, energy-hungry data centers, Bloomberg reports.
A slew of other news made it clear energy was still at the heart of AI’s challenges: Tech companies joined a utility regulators’ conference to curry favor as they look to build their own power plants, and Chevron cemented a partnership to build gas plants dedicated to powering data centers.
President Trump meanwhile took his own crack at a plan for powering data centers, saying he’d use his new emergency powers to fast-track power plants that would connect directly to AI data centers. Companies can use “anything they want” to power their data enter operations, Trump said, “and they may have coal as a backup.”
But a Chinese company’s apparent AI breakthrough may render all of those plans moot. The company DeepSeek last week released a chatbot that it says uses far less computing power and energy than rivals like ChatGPT, but still churns out comparable results. The news sent AI and energy company stocks tumbling, as investors quickly noticed that the efficient DeepSeek could drastically reduce AI’s energy usage.
Still, DeepSeek’s long-term impact is still up in the air. It could end up creating loads of new energy demand, as its cheapness and efficiency earns it new customers, Heatmap notes. It could lead the U.S. government to fund domestic AI research to catch up to China’s lead.
Or, if DeepSeek fails to take off over security concerns or its apparent pro-China censorship, it could mean nothing at all.
💵 Deep freeze: The Trump administration pauses approvals for clean energy projects on public land and waters, and freezes conditional loans for clean energy and other projects that had not yet been finalized by the Department of Energy. (The Hill; E&E News, subscription)
🌊 What Trump’s wind order means: President Trump’s order curtailing wind power is likely to affect at least seven offshore projects still in the permitting process and jeopardize new manufacturing and supply chain investments, but questions remain about how forcefully the Interior Department will execute the policy. (Canary Media)
👀 All eyes on the states: Advocates share their fears about how the Trump administration will upend renewable energy development and climate action, but say state-level progress will be key to keeping things moving over the next four years. (Inside Climate News)
☀️ Floating a new idea: Federally owned or managed reservoirs could hold enough floating solar panels to power 100 million homes each year, a National Renewable Energy Laboratory study finds. (Canary Media)
🔌 Charging EVs: Congressional Republicans look to impose a national fee on electric vehicles, which advocates fear will be punitively high and discourage EV adoption. (New York Times)
📉 Solar growth sunsets: A new report predicts U.S. solar industry growth will come “to a halt” this year, as President Trump’s orders blocking Inflation Reduction spending and instituting tariffs threaten the industry. (E&E News)
🔋 Storage safety: Experts say recent safety improvements for grid-scale battery storage systems make another fire like the one at the Moss Landing site in California unlikely. (Canary Media)
🏠 Heat pumps heat up: U.S. residents bought 37% more heat pumps than gas furnaces in the first 11 months of last year, marking the electric appliances’ biggest lead over fossil fuel heating yet. (Canary Media)
NATURAL GAS: Federal regulators reinstate their approval of a natural gas pipeline expansion in Maryland, New Jersey, and Pennsylvania, declining to assess the possible impact of the greenhouse gas emissions associated with the project. (Utility Dive)
OFFSHORE WIND: President Trump’s anti-wind executive order will likely pause three of the four offshore wind developments in progress off the coast of New Jersey, experts say. (New Jersey Monitor)
TRANSMISSION:
ELECTRIC VEHICLES: Vermont is the latest state to impose a fee on owners of electric vehicles to make up for lost gas tax revenue, an approach that has been implemented in at least 39 states. (New York Times)
GRID: Public utility regulators in Pennsylvania gather ideas for how to stabilize the state’s “precarious” electric supply as the grid faces rising demand from data centers and growing risks from extreme weather. (Philadelphia Inquirer)
NUCLEAR: New Hampshire’s Seabrook Station nuclear power plant was not damaged in an earthquake that shook New England yesterday. (InDepthNH)
RENEWABLES: Plans are moving forward for a renewable energy generation project on a former Maryland dairy farm owned by the U.S. Navy, though some neighbors are concerned about the possible disturbance of agricultural land. (Capital Gazette, subscription)
HYDRO: A judge’s ruling does nothing to answer questions about the environmental violations an aging hydropower dam in Maine must resolve before it can receive needed permits to continue operations. (Maine Public)
TRANSIT: New York City launches a program allowing food delivery workers to trade in gas mopeds and e-bikes that are not certified for fire safety for new certified e-bikes, as part of an attempt to reduce the fire risks posed by uncertified batteries. (NBC New York)
ELECTRIFICATION:
COMMENTARY:
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