ST. PAUL, MN – Today the Minnesota House of Representatives Energy Policy Committee heard testimony on two pieces of legislation authored by Rep. Carly Melin (DFL – Hibbing).
One of Rep. Melin’s bills modifies an agreement with Xcel Energy to purchase power generated by the Laurentian Energy Authority (LEA), which was created after the Cities of Hibbing and Virginia converted their coal burning municipal combined heat and power plants to renewable biomass energy in 2005.
HF 623 directs Xcel Energy to negotiate a contract with the LEA at the price authored by the Legislature in 2009, levels the playing field for the LEA by adding a fuel adjustment clause similar to biomass plants in St. Paul and Benson, and increases operational flexibility by resolving annual production limitations. If the bill becomes law, it will mean $1.5 million of new revenue annually for the City of Hibbing and City of Virginia.
“The biomass plants in Hibbing and Virginia employ over 100 people and serve thousands customers in the region, both residential and commercial,” said Rep. Melin. “This legislation allows the LEA to retain financial viability and continue producing renewable energy under the remaining term of the power purchase agreement with Xcel Energy.”
The second bill authored by Rep. Melin heard in committee on Monday modifies Minnesota’s existing law on solar energy requirements for state buildings.
HF 567 requires solar photovoltaic modules to be assembled in Minnesota at a certified Underwriters Laboratory plant. It also requires any construction or renovation of a building financed from the bond proceeds fund to include the installation of “Made in Minnesota” solar energy systems. Current law does not require state buildings to use systems manufactured in Minnesota.
Lynn Hinkle, who testified in support of the bill on behalf of the Minnesota Solar Energy Industries Association, called the legislation a “Minnesota jobs engine.” If signed into law, HF 567 would reduce energy costs, save taxpayers money, and increase demand for local manufacturing jobs that could not be shipped overseas.
Both HF 623 and HF 567 were laid over by the House Energy Policy Committee to be considered for inclusion in the energy omnibus bill.