Lawmakers are passing reforms to cut red tape for clean energy projects

An attempt to make it easier to obtain state approval for clean energy projects was part of a flurry of bills passed in the final hours of the Minnesota Legislature’s 2024 session.

Supporters say the reforms were needed to streamline permitting for solar and wind farms and power lines that Minnesota needs as it transitions to clean energy.

Clean energy developers and utilities have complained that the state’s permitting process is an obstacle to launching new wind and solar projects and building transmission lines.

This is because obtaining the necessary permits takes a long time, often several years. They say the process is even slower for more renewable energy projects.

Last year, state lawmakers passed a law requiring utilities to source 100% of their electricity from zero-emission sources by 2040. To achieve this goal, Minnesota needs more wind and solar power plants, battery storage and transmission lines to move electricity to population centers.

“There’s a renewed thought of, ‘OK, now we have a very aggressive zero-emission standard and we really need to take a closer look at the permitting process to make sure we can get these projects done faster,’” said Peder Mewis, director of regional policy at Clean Grid Alliance, which works to advance renewable energy in the Midwest.

Clean energy and utility advocates have argued that without allowing reforms, it would be difficult for Minnesota to meet the 2040 deadline.

The Public Utilities Commission formed a working group to propose changes to the permitting process, many of which were included in the bill.

“I think we’ve arrived at a transformative piece of legislation that sets Minnesota on a path to achieving 100% clean energy by 2040.” said Gregg Mast, executive director of Clean Energy Economy Minnesota.

The new language consolidates Minnesota’s permitting requirements into one law and shortens the time in which state regulators must review and permit these projects.

It creates two separate processes: a standard review for smaller wind and solar projects and power lines, and a major review for larger projects such as major transmission lines or power plants.

Energy companies wanting to implement wind and photovoltaic projects will no longer need a certificate from the Public Utilities Commission stating that the state needs the energy the project will produce.

The bill also moves environmental review staff from the Department of Commerce to the Public Utilities Commission, a move intended to improve communication.

Initially, some environmental groups expressed doubts about the bill. They worried that energy projects might be assessed less rigorously or that the public would have fewer opportunities to express their views.

Ultimately, the reforms were made without sacrificing opportunities for public input, said Patty O’Keefe of the North Star chapter of the Sierra Club.

“People will still have many opportunities to engage with (the PUC) and share with state regulators and utilities what they want from the clean energy transition,” she said.

But environmental groups didn’t get everything they asked for. They wanted new gas-fired power plants to be subject to more stringent environmental assessments. This was not included.

“For us, natural gas is not the type of carbon-free resource that we hope to move toward with 100 percent legislation,” said Sarah Mooradian, director of government relations and policy at Clean Up the River Environment (CURE).

Mooradian, however, is pleased that the bill requires a rigorous environmental impact statement for pipelines transporting carbon dioxide from power plants. It also provides $1 million for an independent study of the impacts of CO2 pipelines.

Supporters say the bill won’t solve all the delays in building clean energy projects and connecting them to the regional power grid.

Mewis estimated that the reforms would likely shorten the permitting process by six to nine months.

“All this will help accelerate the progress of work,” he said. “But we still have other challenges we need to overcome.”