When Minnesota lawmakers reconvene in the coming weeks, additional climate change work is expected.

Meanwhile, bigger moves from last year are being implemented, including a new "Green Bank." Many of the climate policies from 2023 are still taking shape, including the new Minnesota Climate Innovation Finance Authority.

Peter Klein, executive director of the authority, said it will be a facilitator for new federal funds coming in for clean energy projects around the state. He pointed out it will help bridge gaps for developments close to taking off but still having hurdles to overcome.

"MNCIFA really is an agency that's going to have a positive impact on every Minnesotan and really ensure that every Minnesotan has the ability to participate in the clean energy economy and benefit from it," Klein stated.

As part of the law creating the agency, a certain percentage of investments have to be made in underserved communities. Under pressure to recruit talent, the Minnesota Commerce Department has been adding staff to assist with the clean energy transition. Despite the possibility of other moves, Minnesota is in the first year of its new budget cycle, and with a smaller surplus on the horizon, there is little expectation for additional spending.

But advocates are hopeful the state will maintain a climate focus, including work already started.

Amelia Cerling Hennes, managing director of Clean Energy Economy Minnesota, said the region has a robust workforce within this sector. The group wants timely implementation of programs so progress is not derailed, and Hennes noted they are encouraged by the talent leading the charge.

"We need smart people who understand the clean energy system working at the state level so that they can help stand up these programs and make them really successful," Hennes emphasized.

Meanwhile, some lawmakers have hinted they will pursue regulatory changes to speed up the approval process for clean energy projects. Organizations such as Clean Energy Economy Minnesota are among those calling for changes to keep checks and balances in place but still allow wind, solar, and similar development to move more quickly.

Environmental groups in Minnesota are considering their next steps on the heels of a regulatory decision they said weakens the state's landmark carbon-free electricity law.

Late last week, the Public Utilities Commission clarified which technologies should be in the mix, as energy providers try to meet the requirement of 100% carbon-free electricity by 2040. The commission opened the door to allowing biomass -- namely the burning of wood -- and trash incineration to count as clean sources.

Barbara Freese climate program attorney at the Minnesota Center for Environmental Advocacy, said it is troubling the commission did not rule biomass options out.

"The law clearly said that to be carbon free, a generating source has to generate without emitting carbon dioxide," Freese pointed out. "These two sources of electricity, solid waste and biomass, emit tremendous amounts of carbon dioxide."

But utilities like Minnesota Power prioritize biomass as a form of renewable energy, with supporters arguing it is better to burn wood scraps from the logging industry than let it decompose. They argued it creates other carbon dioxide issues, and a carbon-neutral approach helps carry out the mission of the law. The commission decided more analysis is needed to get a clearer picture of the eligibility of these sources.

Despite the outcome, Minnesota's carbon-free requirement is not going away as the state added renewables like wind and solar. Freese expressed concern about what lies ahead.

"We can't be confident that the wording of the law will be accurately enforced," Freese contended. "And that is very troubling because there's going to be a lot of pressure to try to weaken this law."

She suggested pressure will not end with last week's decision. The law provides "offramps" for utilities struggling to meet the standard if clean-energy technologies are too costly or hinder grid reliability. And there is a push in the Midwest region to approve carbon-capture projects, with skeptics arguing some proposals are too large-scale and have yet to prove their effectiveness.


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In Kentucky, 462 businesses, farms and schools have received $77 million in federal funding to boost energy efficiency through the U.S. Department of Agriculture's Rural Energy For America Program, according to a new report.

The program provides loan guarantees and grants to farmers and rural small businesses.

Quenton King, government affairs specialist for the group Appalachian Voices, said the program is critical for helping agricultural producers and those in the tourism economy keep operating costs down.

"We're really grateful to the two Kentucky farms that agreed to talk with us, SouthDown farm in Letcher County and Sylvatica, a forest farm in Rockcastle County," King pointed out. "Both of those farms got a REAP grant to build solar arrays on their property."

SouthDown Farm in Letcher County received more than $7,000 from the program in 2020, enabling its owners to install a 20-kilowatt solar array. Sylvatica Forest Farm was awarded more than $11,000 in grant funding. Both businesses said the solar infrastructure will help reduce their energy consumption and lower their electric bills.

The infusion of an additional $2 billion for the program through 2031 as part of the Inflation Reduction Act will bring more energy efficiency and clean energy projects to Appalachia, King emphasized. He noted despite the funding boost, demand for the program continues to outpace available funding.

"We're looking at a future where people might not be able to apply for projects, or get money for projects," King projected. "That's really disheartening."


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Indiana is positioning itself as a national leader in clean energy, driving economic growth through innovative projects and significant investments.

Economic development officials said Indiana's heavy industry and manufacturing capabilities make it a natural partner for emerging technologies like carbon capture, hydrogen and solar power.

Andrea Richter-Garry, senior vice president of global strategy for the Indiana Economic Development Corporation, said clean energy is transforming the state's economy and creating new opportunities.

"A great example of that would be Heidelberg Materials down in Mitchell, Indiana, receiving a huge Department of Energy grant to be able to push forward a carbon capture project that will lead to low carbon cement," Richter-Garry outlined. "Wabash Valley just announced a huge project in Terre Haute."

Some opponents have said the best approach is to hold back on renewables, arguing technology will get better and be less disruptive to landscapes. Richter-Garry countered Indiana's manufacturing strength is a critical component of the transition. The clean energy industry has brought in $12 billion in capital investments, more than $40 million annually in taxes, and about $35 million a year in lease payments to Indiana landowners.

Richter-Garry noted Indiana's workforce and existing infrastructure are well-suited to produce essential clean energy components, including wind turbines and solar panels, helping meet national and global energy goals.

"The Mammoth Solar project, that 13,000-acre solar farm is going to generate 1.3 gigawatts of power," Richter-Garry pointed out. "That's 75,000 homes. Indiana again has the correct kind of landscape as well as some of the local partnerships to be able to continue that trend."

Indiana's clean energy initiatives are not just about sustainability, they are about securing the state's economic future. By leveraging its strengths in manufacturing and innovation, Indiana is paving the way for a prosperous green economy to benefit communities across the state.


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