Minnesota

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• Minnesota
• Leading the Nation to a
• Renewable Future

Mike Bull Assistant Commissioner Renewable Energy
Advanced Technologies
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Minnesotas Clean Energy Policy Guiding
Principles

• Minnesotans must be provided with energy services
  that are
• Reliable
• Low Cost
• Environmentally Superior
• Conservation and renewable energy advance all
  three criteria

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ENSURE Minnesotas Energy Future

• ENSURE ENergy Security Using Renewable energy
  and Efficiency
• Renewable Energy Is Homeland Security
• Hedge against fuel price volatility
• Reclaim a measure of energy independence
• Local economic benefits
• Environmental benefits

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Minnesota Leading the Nation to a Renewable
Future

• A large and growing percentage from renewable
  sources
• 11 of the electricity
• 10 of the gasoline
• 2 of the diesel fuel

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Minnesota Leading the Nation to a Renewable
Future

• Minnesota has nearly half of the E85 stations in
  the country (approx. 150)
• Third most installed wind energy capacity (715
  MW as of Nov. 2005)
• Only state with both an ethanol and biodiesel
  blending requirement

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Minnesota Leading the Nation to a Renewable
Future

• Renewable electricity programs ranked in top 5
  states by Union of
• Concerned Scientists
• Biofuels production use
• First in per capita use of ethanol
• First in per capita use of biodiesel
• Third in production of ethanol
• First in production of biodiesel

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Minnesota Leading the Nation to a Renewable
Future

• Minnesota will double the amount of renewable
  energy used in the state over the next decade
• Gasoline and electricity
• The only state in the nation that has programs in
  place today to have 20 of gasoline and 20 of
  electricity come from renewable resources by 2015

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Ethanol Doubling Minnesotas Renewable Energy Use

• Governor Pawlentys 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

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Electricity Doubling Minnesotas Renewable
Energy Use

• Existing renewable electricity policies add up to
  20 renewables by 2015
• Counts all renewable energy sources
• Voluntary installations and purchases
• 1994 PI mandates on Xcel 825 MW of wind by 2010
  and 110 MW of biomass
• 2001 Renewable Energy Objective (REO) roughly
  2000 MW of wind

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Electricity Doubling Minnesotas Renewable
Energy Use
2003 data (MWh)
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Electricity Doubling Minnesotas Renewable
Energy Use
2015 estimate (MWh)
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Electricity Doubling Minnesotas Renewable
Energy Use

• Minnesotas Renewable Energy Objective (REO)
• 10 by 2015 from specified set of renewable
  sources
• Passed in 2001, to begin in 2005
• Not a voluntary goal-- its a utility good
  faith obligation
• Firmed up significantly in 2003
• Policed and enforced by state regulators
• Compliance judged according to specific criteria
  and standards
• Mandate for Xcel Energy (over 50 of MN load)
• Consequences of non-compliance
• No CON w/o REO compliance
• No additional nuke storage w/o REO
  compliance

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• Minnesota 20 by 2015 (DOC est.)
• Includes RES for Xcel Energy REO for others

Nevada 20 by 2015, solar 5 of annual
Maine 30 by 2000
New York 24 by 2013
Iowa 2 by 1999
Wisconsin 2.2 by 2011
Illinois 8 by 2013
Montana 15 by 2015
MA 4 by 2009
RI 16 by 2019
CT 10 by 2010
NJ 6.5 by 2008
DE 10 by 2019
Maryland 7.5 by 2019
California 20 by 2017
Washington D.C 11 by 2022
Pennsylvania 8 by 2020
Arizona 1.1 by 2007, 60 solar
New Mexico 10 by 2011
Texas 5,880 MW (4.2) by 2015
Colorado 10 by 2015
21 States D.C. w/RES or REO Info from
Union of Concerned Scientists MN DOC
Hawaii 20 by 2020
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Key IssuesThe REO vs. Additional Mandates

• The REO is a superior policy tool
• Pushes utilities to add renewables
• Allows consideration of reliability and energy
  costs to consumers
• Mandate sets these issues on autopilot
• REO captures benefits of an RES/mandate
• while protecting Minnesotans against downside
  risks

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Key IssuesRenewable Electricity Targets

• Legislative debate in 2006 session to convert REO
  to a mandate, and to increase it to 20
• Wind is the most economic renewable resource, but
  requires additional operational resources to
  manage
• Independent study of the reliability and cost
  impacts of 20 wind due Nov. 2006
• We need the data to set appropriate
• targets

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Key IssuesWind Energy Natural Gas Costs

• However, we will continue to push when we see
  opportunities that benefit consumers
• Xcel DOC advocates for 1100 MW of new wind in
  2015-2020 instead of natural gas resources
• Thats wind on the margin, unsubsidized,
  unmandated, beating out natural gas on a least
  cost per kilowatt-hour basis
• May not be the case for all utilities

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Key IssuesTransmission Infrastructure

• Best wind resources exist far away from where the
  energy can be used
• Currently, Minnesotans pay millions in
  curtailment payments annually
• Broad consensus that we need additional
  transmission investment infrastructure
• Utilities are following through

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Key IssuesCommunity-Based Energy Development

• Minnesota has the nations most comprehensive
  community energy program
• Governor Pawlenty recently called for an
  additional 800 MW of community owned wind by 2015

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Minnesota Leading the Nation to a Renewable
Future

• Summary
• First in per capita use of biofuels
• Third in ethanol production capacity
• Third in total installed wind capacity
• Top 5 states for renewable electricity programs
• Top 5 states for conservation programs
• SmartFleet executive order to reduce state govt
  use of gasoline by 50 by 2015
• The most comprehensive state community energy
  program
• The only state with both an ethanol and biodiesel
  blending requirement
• The only state to have 20 of gasoline
• and 20 of electricity from renewable
• resources by 2015

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Contact Information

• Mike Bull
• Assistant Commissioner
• Renewable Energy Advanced Technologies
• Minnesota Department of Commerce
• 85 7th Place East, Suite 500
• St. Paul, MN 55101
• 651-282-5011 Fax [phone]
• Mike.Bull_at_state.mn.us

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• Minnesota
• Leading the Nation to a
• Renewable Future

Questions and Answers