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The state House — by a 123-10 vote — joined the Senate in adopting a bill requiring utilities to generate a quarter of their power from renewable sources by 2025. Gov. Tim Pawlenty has pledged his signature.
Supporters called the standard the most aggressive in the country, surpassing energy goals set in 21 states.
“We are showing the nation a fresh example of Minnesota leadership, Minnesota ingenuity, Minnesota know-how,” said Rep. Frank Hornstein, DFL-Minneapolis.
While Minnesota imports some of its electricity from other places, almost half of the power produced within its borders came from coal, according to a comprehensive 2004 government report. At that time, hydroelectric and other renewable sources accounted for just more than 8 percent.
Pawlenty, a Republican, had urged legislators to adopt a 25-percent-by-2025 standard along with carbon dioxide reduction measures. Lawmakers said they wanted to tackle the renewable goal first.
Advocates sold it as a way to promote cleaner power and create a bigger market for homegrown electricity. In southwestern Minnesota, the turbines that increasingly dot the landscape point to a growing wind energy sector.
Rep. Aaron Peterson, DFL-Appleton, said every extra megawatt of wind power would lead to two new jobs. “If you provide the standard, jobs will follow. If you provide the megawatts, businesses will come,” said Peterson, the measure’s sponsor.
“There’s nothing in the bill that assures that. It’s all on hope,” complained Rep. Torrey Westrom, R-Elbow Lake.
Under the legislation, all utilities would have to alter their retail power mix. But there is an energy credit trading system established to help out producers struggling to meet the standard.
Regulators could order utilities to build new facilities, buy or trade credits or pay unspecified financial penalties if they lag too much.
Xcel Energy Inc. would have to do more than most companies; the state’s dominant power provider would be under orders to draw 30 percent of its power from renewable sources by 2020.
The standard set out in the bill contains some flexibility.
If regulators at the Public Utilities Commission determine that the cost of meeting it would result in significant increases in customer bills, it could delay or modify the timeline.
Rep. Paul Kohls, R-Victoria, tried unsuccessfully to define a significant rate increase as 10 percent or more.
“I don’t think we should leave it to an unelected body to determine how much is significant,” Kohls said of the appointed utilities commission.
His attempt to change the bill failed. Other amendments met the same fate, including one to repeal Minnesota’s law prohibiting regulators from considering proposals for a new nuclear power plant. Minnesota now has nuclear plants in Monticello and Prairie Island near Red Wing.
