Minnesota: America s Clean Energy Capitol. Mike Bull Assistant Commissioner, Renewable Energy & Advanced Technologies

Transcription

1 Minnesota: America s Clean Energy Capitol Mike Bull Assistant Commissioner, Renewable Energy & Advanced Technologies September 15, 2005

2 Minnesota s Clean Energy Policy Guiding Principles Minnesotans must be provided with energy services that are: Reliable, Low cost and Environmentally superior 2

3 Minnesota s Clean Energy Policy Guiding Principles State energy policy must reflect all three principles The Pawlenty Administration strongly supports conservation and renewable energy The reliability and low cost of energy in Minnesota are critically important to the economic vitality of our state 3

4 Pawlenty Administration s Clean Energy Vision 1) To continue to promote and defend the state s Conservation Improvement Program 2) To double the amount of renewable energy used in Minnesota over the next decade 20% ethanol use by % renewable electricity use by ) To reduce emissions from Minnesota power plants 4

5 Energy Conservation Minnesota s least cost energy resource Conservation: The Bedrock of MN s Clean Energy Programs Prevents environmental emissions Keeps energy rates low for everyone Reduces the need for additional energy facilities Gives consumers additional control over their energy costs 5

6 Energy Conservation Minnesota s least cost energy resource Conservation Improvement Program (CIP) Over $90 million each year on programs to reduce electricity and natural gas consumption Savings of $2 to $3 for each dollar spent Consistently ranked in the top 5 state programs $90 million is a lot of money Opposed legislative efforts to dilute CIP spending Requested a legislative audit of CIP to obtain third party verification of CIP cost-effectiveness In 2004, Governor Pawlenty received the Midwest Energy Efficiency Alliance s Inspiring Efficiency Leadership Award 6

7 Minnesota A National Leader in Renewable Energy A large and growing percentage from renewable sources: 11% of the electricity 10% of the gasoline 2% of the diesel fuel Other measures: Minnesota has half of the E85 stations in the country Essentially tied with Iowa as the state with the third most installed wind energy capacity (CA & TX) Only state with both an ethanol and biodiesel blending requirement State hydrogen transition goal 7

8 Doubling Minnesota s Renewable Use Ethanol Governor Pawlenty s E20 initiative passed in the 2005 legislative session Sets ethanol use goal of 20% by 2010 If use goal not met, the blend requirement doubles (from E10 to E20) in 2013 Waiver for E20 use required by fed EPA 8

9 Doubling Minnesota s Renewable Use Electricity Existing policies add up to 20% by 2015 Large hydro resources 1994 PI mandates: 825 MW of wind by 2010 and 110 MW of biomass 2001 Renewable Energy Objective (REO): roughly 2000 MW of wind 9

10 Doubling Minnesota s Renewable Use Electricity In 2003/2005, legislation shaped by the Pawlenty Administration made the REO a much more firm obligation of utilities Examples: Established criteria and standards for good faith effort MN PUC to review and judge effort of utilities every 2 years No CON w/o REO compliance No add l nuke storage w/o REO compliance REO became a requirement for Xcel Energy These changes ensure that Minnesota will achieve 20% by 2015 without losing focus on flexibility, cost and reliability 10

11 Doubling Minnesota s Renewable Use Electricity 2003 data (MWh) Wind 11.4% Biomass 3.2% Non-Renewables 89% Renewables 11% Hydro 74.1% RDF 11.0% Other 0.3% Non-Renewables 50,100,000 MWh Renewables 6,200,000 MWh 11 Total Energy 56,300,000 MWh

12 Doubling Minnesota s Renewable Use Electricity 2015 Estimate (MWh) Wind 60.4% Biomass 5.5% Renewables 20% RDF 4.4% Non-Renewables 80% Hydro 29.5% Other 0.1% Non-Renewables 63,200,000 MWh Renewables 15,500,000 MWh 12 Total Energy 78,700,000 MWh

13 Doubling Minnesota s Renewable Use Electricity According to the Union of Concerned Scientists 13

14 Doubling Minnesota s Renewable Use Electricity Key Issues Transmission infrastructure Ensuring that Minnesotans benefit from renewable development (C-BED) Wind energy as a hedge against natural gas prices Additional wind energy beyond existing requirements can save ratepayer money Statewide wind integration study 14

15 Power Plant Emissions Reductions Administration support was key in the MN Public Utilities Commission approval of Xcel Energy s Metropolitan Emissions Reduction Rider Over $1 billion to repower two metro-area coal plants and install state of the art pollution control equipment on a third Largest single reduction in emissions in state history, absent a mandate Reduces mercury emissions by nearly 200 lbs per year 15

16 Power Plant Emissions Reductions Implementation of new federal regulations Clean Air Interstate Rule (CAIR) Clean Air Mercury Rule (CARM) Air Visibility Regulation Development of Mercury TMDL Set the state on a course to ultimately reduce mercury emissions 93% Half of the remaining mercury emitted in the state is from power plants 16

17 Additional Activities 2006 Wind Integration Study 20% Energy by 2020, All Utilities New Statewide Wind Resource Maps Higher resolution, higher confidence 2006 Community Wind Rebates Continuation of the Solar Rebate Program 17

18 Contact Information Mike Bull, Asst. Commissioner Renewable Energy and Advanced Technologies Minnesota Department of Commerce 85 7th Place East, Suite 500 S t. Paul, MN Ph /Fax Mike.Bull@state.mn.us 18