Policy & Regulation

Two Midwest states see clean energy advancements

Two Midwest states see clean energy advancements
In April 2023, DTE Energy announced the commissioning of Meridian Wind, a 225 MW wind farm that became the largest operating in Michigan. (Courtesy: DTE)

By Kelley Welf, Communications Director, Clean Grid Alliance

With 2024 legislative sessions closed across the Midwest, renewable energy advocates in Minnesota and Michigan have reason to celebrate.

With mere minutes to spare in the legislative session, the Minnesota legislature passed the Minnesota Energy Infrastructure Permitting on Sunday, May 19. The legislation is a robust package of reforms that will reduce permitting wait times for wind, solar, battery storage, and transmission line projects by up to 6-9 months and will provide an easier, more consistent, and predictable process that will help establish a stable business environment for clean energy development in Minnesota.

Permitting reform has been part of the clean energy conversation in Minnesota for many years given the cumbersome, costly, and time-consuming process. For more than a year, Clean Grid Alliance (CGA) worked to assemble a broad coalition of clean energy organizations, labor, and businesses to collaborate on reforms to streamline Minnesota’s energy permitting process and elevate the issue to the Public Utilities Commission (PUC) and the Minnesota Legislature.

“The collaboration of the permitting reform stakeholder group that generated the ideas in the legislation was an unprecedented and cross-cutting effort,” said CGA Regional Policy Director, Peder Mewis. “This permitting reform act will have a tremendous impact, helping bolster Minnesota’s national standing in renewable energy development and creating a pathway to fulfill its pledge for 100% Clean Energy by 2040.”

Last summer, Minnesota Public Utilities Commission (PUC) Chair Katie Sieben invited CGA Executive Director Beth Soholt to give a presentation to the PUC to explain why reform was needed, the urgency around addressing this issue, and to clarify what the Commission could do to help the state meet its carbon reduction standards. This presentation led to the formation of a Stakeholder Work Group whose purpose was to review the permitting process and bring forward ideas and suggestions that could be implemented by the Commission.

The Public Utilities Commission Permitting Reform Stakeholder Group held several work group meetings last fall to address this issue, with Former Commissioner Dan Lipschultz appointed to facilitate the group. Representatives from 32 organizations including state agencies, renewable energy developers, utilities, consumer and environmental NGOs, farmer organizations, local government associations, construction and labor trade organizations, legal representatives, and other subject matter experts were included.

The Energy Infrastructure Permitting Act is the culmination of months of work and represents a comprehensive package of reforms that will help transmission lines and renewable energy projects to be permitted faster, thereby helping the state achieve its 100% Clean Energy standard by 2040 while delivering the reliability everyone demands.

“This legislation represents nearly a decade of hard work building partnerships with key groups and connecting the dots on why siting and permitting reform is pivotal to the success of Minnesota’s clean energy goals,” said CGA Executive Director Beth Soholt. “Siting and permitting is among the largest roadblocks to deploying renewable projects across the Midwest, and the reforms in this package ensure Minnesota’s policies demonstrate the state is committed to meeting the clean energy transition.”

The reforms include the following, among others:

  • Changes to the permitting process to simplify and expedite the application completeness check-off. The proposed changes would save 30-60 days, which could equal an entire construction season.
  • Removal of the Certificate of Need process for wind and solar projects
  • Move environmental review staff from the Department of Commerce to the Public Utilities Commission to streamline the process and align with other agencies. Changes here would save weeks of lag time in communications between agencies.
  • Bring wind, solar, and battery storage under the same permitting process to establish consistency.

Adam Sokolski, Director of Regulatory and Legislative Affairs at EDF Renewables, explained that the Minnesota Energy Infrastructure Permitting Act will expedite the permitting of renewable energy by up to 20 percent and electric transmission projects in Minnesota while enhancing public participation.

“The new law will ensure that Minnesota’s electricity system can quickly transition toward a cleaner future and maintain high levels of reliability that Minnesotans depend on,” said Sokolski. “The law is a win for all stakeholders by cutting red tape, enhancing environmental review, and laying the building blocks for an expeditious decarbonization of Minnesota’s grid.”

CGA and the Laborers International Union of North America (LIUNA) have been united on permitting reform for many years. “Renewable energy standards and carbon-free goals can be important investment drivers. But without an efficient and cost-effective permitting process to go along with it, Minnesota is leaving affordable power, jobs, and business opportunities on the table,” said Kevin Pranis, Marketing Manager, Laborers International Union of North America for MN and ND. “Skilled Laborers are ready to get to work so Minnesota can achieve our clean energy goals.”

This legislation demonstrates that Minnesota’s doors are open for further investment from the clean energy sector and the jobs and economic development that accompany it. Sen. Frentz, Rep. Acomb, and Rep. Long led the effort to advance these policies. Governor Walz signed the bill into law on May 24.

To the East, Michigan advocates for renewable energy joined together to oppose a controversial ballot initiative that sought to roll back the Clean Energy Future Plan, which was signed into law by Governor Gretchen Whitmer on Nov. 28, 2023. The law set a statewide standard for reaching 100% carbon-free energy by 2040 and established a streamlined permitting and siting process enabling landowners to use their land as they see fit. It also provided significant economic benefits for local communities including $2,000 per MW to be used for police, fire, and infrastructure needs.

Upon the announcement that the opposition group did not receive the necessary amount of votes, clean energy industry groups, including Michigan Energy Innovation Business Council (Michigan EIBC), Clean Grid Alliance (CGA), American Clean Power Association (ACP), and Advanced Energy United, applauded Michiganders’ support for renewable energy and the benefits accompanying the Clean Energy Future Plan.

“I see this as a signal that Michiganders aren’t too eager to undo these critical siting reforms that will pay dividends to all Michiganders for decades,” said Dr. Laura Sherman, President of the Michigan Energy Innovation Business Council. “These laws will help avoid higher energy costs for the average Michigan household while creating jobs and making our economy more competitive. Michigan’s clean energy economy is thriving, and we’re excited to see more growth and innovation in the coming years.”

Mewis concurred, citing the legislation’s benefit for landowners.

“Michiganders recognize that powering the future requires an emphasis on renewable energy production and the ongoing protection of landowner rights reinforced through this legislation,” he said. “Now is the time to move forward and step into this new chapter for renewable energy growth in Michigan.”