I haven't posted in a while, just haven't had the inspiration, so I thought I would throw up a piece of writing I did recently. I sent this letter to many house legislators including Representative Downey, my representative, concerning HF72, a bill in the Minnesota House that would remove the CO2 emissions limit on power utilities. If you'd like more information on the bill, including the text, check out this link to the Minnesota Legislature's site: https://www.revisor.mn.gov/revisor/pages/search_status/status_detail.php?b=House&f=HF72&ssn=0&y=2011
As a Minnesotan I do not support House File 72. If passed, HF72 will decimate the emerging renewable energy market by allowing power utilities to construct new power plants that increase statewide power sector carbon dioxide emissions (ie: non-renewable energy plants). According to the Minneapolis Federal Reserve, the renewable energy sector already employs 59,600 people—a number that is expected to grow to 64,000 by 2016. By allowing utilities to build more non-renewables this bill could drastically reduce or eliminate the 4,400 new renewable energy jobs expected to be created and threaten the livelihood of the 59,600 Minnesotans already employed in this sector. Supporters of repealing this ban argue that it is hindering Minnesota’s economic recovery and hurting job creation. However, if HF72 were not passed, power utilities would have to respond to increased energy demands with further development of renewable energies. In multiple studies, renewable energies have been shown to generate more jobs per dollar invested and more jobs per megawatt generated than non-renewables (Baker & Lehmer, n.d.). One study found that over a 10-year period the wind industry creates 5.7 jobs per million dollars invested, the solar industry creates 5.65 jobs, and the coal industry creates only 3.96 jobs (Fripp, Kammen, & Kapadia, 2006). Minnesota power utilities have even said that they won’t need more coal power for at least the next 15 years (Hemphill, 2011). That’s 15 years before coal power creates jobs for Minnesotans.
Additionally, Minnesota Statutes, section 216H.03 further protects the 59,600 Minnesotans working in the renewable energy sector by banning the import of non-renewable energy from other states. Without this ban the Minnesota energy sector would certainly contract more power to be bought from other states sending money and jobs out of Minnesota’s economy. Minnesota has no fossil fuel resources (U.S. EIA, 2011) and therefore all fossil fuels used in Minnesota must be imported. This dependence is unhealthy for Minnesota’s economy. However, Minnesota has ample renewable energy resources. According to the U.S Department of Energy, Minnesota has the capacity to harvest 489,270 megawatts from wind power, equal to 1,679,480 gigawatt hours annually. These numbers were adjusted to include land not likely to be developed such as wilderness areas or urban areas. Minnesota is also a nationwide leader in the production of biofuels; producing 1,117 million gallons of ethanol in 2010 (Minnesota Department of Agriculture, 2010). This level of production is projected to generate $3.1 billion in economic output and employ 8,395 Minnesotans in 2010 (MN Dep.Ag).
Why encourage fossil fuel use when Minnesota leads much of the country in renewable energy resources? Why send Minnesotan’s money and jobs to other states when Minnesota has ample energy resources? In tough employment times like these it is irresponsible for any Minnesota legislator to pass legislation that hampers economic recovery.
As an alternative to HF72 I propose that a Minnesota Made Energy tax credit program be created for Minnesota businesses. Minnesota Made Energy is defined as energy that is derived from a resource that originates in Minnesota. The program would be open to all businesses that pay the state corporate income tax. The goal of this legislation is to increase the consumption of Minnesota Made Energy by 10% in Minnesota’s business sector by 2015. The most common Minnesota Made Energies are wind power; either direct transport or through Xcel’s wind energy program, biofuels; any biofuel produced using grown-in-Minnesota inputs and refined in Minnesota, and finally solar; using collectors or systems manufactured in Minnesota. Once 20% of a company’s total energy use is Minnesota Made they get a 2% reduction off their state corporate income tax liability. Additional thresholds will be set at 30%, 40%, 50%, 60%, 70%, 80%, 90% and 100% Minnesota Made energy. At each of these thresholds the company gets an additional 1% off the tax liability totaling a 10% reduction at 100% Minnesota Made energy. The Minnesota Commerce Department would be in charge of this regulation. By achieving increased Minnesota Made Energy use, this bill will grow Minnesota’s local energy sectors; positively affecting Minnesota’s economy and putting Minnesotans back to work.
Minnesota Made Energy, fuel for Minnesota’s future.
Thanks for reading! My posts will probably continue to be few and far between but I hope you find them thought provoking.
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