State establishes standard of 100% carbon-free electricity by 2040

Minnesota’s Renewable Energy Standard statute has been amended to include adding a carbon-free standard that utilities must meet beginning in 2030.

The law, effective Feb. 8, 2023, also streamlines the siting and routing process for solar energy generating systems and certain high-voltage transmission lines, and authorizes the Public Utilities Commission to require payment of the state’s prevailing wage to workers constructing large wind and solar energy systems.

According to the law’s definitions, “renewable” energy sources for electricity production are wind and solar, while “carbon-free” sources would also include hydroelectric, hydrogen and biomass.

Under the law, electric utilities doing business in Minnesota will need to increase the proportion of a utility’s retail electric sales that are generated from renewable energy to 55% by 2035. Each utility would need to have 80% of its electricity generation be carbon-free by 2030, increasing by steps to 100% by 2040.

The law also specifies under what circumstances the Public Utilities Commission can allow the modification or delay of new renewable, carbon-free or solar standards, thus providing “off-ramps” if clean energy technologies prove too unreliable or expensive.

In addition to lifting the cap on the generating capacity of hydroelectric facilities that can be classified as “carbon-free,” the law encourages giving preference for building new generating facilities to communities where fossil fuel generating facilities have been or are scheduled to be retired.

The law also specifies that credits may be used to satisfy both the carbon-free standard and either the renewable energy standard or the solar energy standard, if they qualify.

Rep. Jamie Long (DFL-Mpls) and Sen. Nick Frentz (DFL-North Mankato) sponsor the law.

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HF0007* / SF0004 / CH7