Weeks after the 100% bill was signed into Minnesota law, Minnesota’s investor-owned electric utilities – Xcel Energy, Minnesota Power, and Otter Tail Power – laid out their intentions to implement the benefits of the Inflation Reduction Act (IRA) into their energy resource planning. In response to these plans, Sierra Club submitted recommendations to the Public Utilities Commission (PUC) in partnership with the Minnesota Center for Environmental Advocacy, Minnesota Interfaith Power and Light, VoteSolar, and the Institute for Local-Self Reliance, urging the utilities and regulators to take full advantage of the IRA in future regulatory proceedings and energy resource planning.
The IRA is the United States’ biggest effort yet to address climate change by transforming and decarbonizing our energy economy, providing the tools to reduce greenhouse gas emissions by up to 42% by 2030. The policy is projected to accelerate solar and wind projects over the next ten years as well as energy storage, though actual emission reductions will largely depend on how the IRA is implemented by utilities and overseen by state regulators.
In addition to this historic national investment in climate action, the Minnesota legislature recently passed the 100% bill, which commits all utilities to provide Minnesota customers with 100% carbon-free electricity by 2040. The IRA provides our utilities with the pathways to meet this goal, and to do so in a way that benefits ratepayers and communities most impacted by economic inequality and environmental racism. The Public Utilities Commission and Department of Commerce have critical roles to play to ensure that our utilities’ transition to cleaner energy is equitable, cost-effective, and beneficial to Minnesotans.
With our partners, Sierra Club filed comments to the PUC recommending that utilities and regulators:
- Maximize IRA funds coming to Minnesota by taking full advantage of clean energy tax credits, the Energy Infrastructure and Reinvestment program, home energy efficiency and electrification rebate programs, and incentives for widespread electric vehicle adoption and workforce development.
- Make it easy for consumers to benefit by pursuing one-stop shopping, education, and outreach for consumers.
- Integrate IRA impacts into planning and forecasting in upcoming resource plans and rate cases for both electric and gas utilities serving Minnesota customers.
- Utilize the IRA to support and advance current policy objectives, including the 100 percent carbon-free standard, Minnesota Climate Action Framework, Natural Gas Innovation Act (NGIA), and Energy Conservation and Optimization (ECO) Act.
- Maximize the impact of IRA benefits to disadvantaged communities and communities of color by providing technical assistance and streamlining project implementation
As conversations and decision making move forward on IRA implementation in Minnesota, advocates and community members will need to keep the pressure on our utilities and the state to ensure these resources are maximized for fighting climate change and environmental injustice.