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News of the week
July 17, 2024
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Border dispute over renewable energy policies between South Dakota and Minnesota
A political dispute is brewing between South Dakota and Minnesota over energy policies related to transitioning from fossil fuels to renewable energy.
Minnesota's 2023 law mandates carbon-free energy by 2040, affecting utilities like Xcel Energy, which serves both states. The South Dakota Public Utilities Commission sent a letter to Xcel asking the company to reverse plans to close several coal-fired power plants ahead of schedule as part of its transition. South Dakota's Public Utilities Commission opposes the early closure of coal plants, citing risks of electricity outages, especially during extreme weather. This disagreement reflects broader national debates on balancing environmental goals with energy reliability. Federal EPA regulations adding pollution controls are also contested by South Dakota, which joined 22 states in legal action. The state’s high energy consumption, harsh winters, and dependence on coal and natural gas for reliable power underscore its resistance to rapid changes.
South Dakota is not alone in objecting to the Minnesota law. Last month, North Dakota officials formally challenged the carbon-free energy mandate, claiming it may be unconstitutional. The North Dakota Industrial Commission, comprising Gov. Doug Burgum, Attorney General Drew Wrigley, and Agriculture Commissioner Doug Goehring, argued the policy endangers North Dakota’s coal and gas industries, which supply significant energy to Minnesota. North Dakota previously won a similar legal battle against Minnesota's 2007 energy policy.
To read more, click here.
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Vendor spotlight: National Conductor
MMUA is proud to present a new monthly series: “vendor spotlight.” Our associate members are crucial partners in delivering reliably excellent utility services to Minnesotans.
This series will provide an opportunity to get to know them a little better, highlighting the ways in which they support MMUA and municipal utilities throughout the region.
For the first installment, we spoke with Tyler Zahn, President of National Conductor Inc. National Conductor Inc. specializes in the construction and maintenance of power substations, switchyards, and Turbine Isolated Phase Bus (IPB) power generation projects. The company’s approach is to handle scheduling, material acquisitions, and equipment issues in-house, allowing field personnel to concentrate fully on their projects.
To read this month's vendor spotlight, click here.
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Southern Minnesota celebrates new water and wastewater training programs
Southern Minnesota officials celebrated the launch of two new training programs for water and wastewater operators. The legislature appropriated $350,000 over three years to create these programs through Riverland Community College; the programs will be administered by the City of Austin.
This initiative, supported by Sen. John Jasinski, Rep. Patricia Mueller, and Sen. Gene Dornink, addresses a critical shortage of qualified operators in the region. Brenda Johnson, executive director of the Southeastern Minnesota League of Municipalities (SEMLM), organized more than 60 municipalities to support the effort.
The programs will follow guidelines from the Minnesota Department of Health and the Minnesota Pollution Control Agency. An advisory committee will oversee the development of curriculum and internships. Peggy Young from Riverland Community College emphasized the importance of creating a comprehensive training pipeline to meet the diverse needs of participants.
To read more, click here.
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US lithium-ion batteries set to compete with Chinese prices by 2026
US-made lithium-ion battery energy storage systems could match Chinese prices by 2026 as US production ramps up, according to Clean Energy Associates (CEA). The Inflation Reduction Act’s 45X tax credit is expected to help close the current 20 percent price gap.
CEA’s Q1 2024 ESS Price Forecasting report highlights that global overcapacity is driving down battery prices, with Chinese manufacturers offering prices as low as $60 per kilowatt-hour.
US utility-scale energy storage installations soared by 101 percent from Q1 2023 to Q1 2024, driven by renewable energy growth, especially in the Southwest. However, future installations may slow due to interconnection delays and lengthy procurement times for transformers and high-voltage circuit breakers.
Despite these challenges, global battery energy storage demand grew by 60 percent from 2023 to 2024 and is expected to rise 21 percent annually through 2028. Global production capacity is anticipated to outstrip demand significantly, driven by expansions in China and the US.
Higher tariffs on imported battery materials could raise costs for US battery integrators by up to 16 percent, but these tariffs won’t take effect until 2026, allowing time for onshore production to increase. Major production announcements in the US and Canada are expected to meet local demand by 2026, spurred by Inflation Reduction Act incentives.
To learn more, click here.
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$1.3 billion in funding announced for EV charging infrastructure
The Biden-Harris Administration has launched a $1.3 billion funding opportunity for electric vehicle (EV) charging and alternative-fueling infrastructure. This investment, the largest of its kind to date, aims to enhance clean transportation in urban and rural areas as well as along major highways and interstates.
Funded by the Bipartisan Infrastructure Law’s Charging and Fueling Infrastructure (CFI) Discretionary Grant Program and the National Electric Vehicle Infrastructure (NEVI) Formula Program, the initiative supports state, regional, Tribal, and local government entities. The Federal Highway Administration (FHWA) administers the CFI program with guidance from the Joint Office of Energy and Transportation.
The funding aims to deploy Level 2 and DC fast EV chargers nationwide, focusing on multi-family housing and disadvantaged communities. It supports the National Zero-Emission Freight Strategy and aligns with President Biden's goal of establishing 500,000 public EV charging stations by 2030.
Eligible applicants can apply by August 28, 2024. For more information, visit FHWA’s CFI Discretionary Grant Program website.
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Second round of Solar for Schools opens; first step due by July 31
The Minnesota Department of Commerce (DOC), Division of Energy Resources requests proposals from qualified schools throughout Minnesota for the Solar for Schools Grant Program. Public schools, K-12, state colleges and universities, tribal contract and cooperative districts are eligible to apply for grants up to $500,000 to use towards the purchase and installation of solar photovoltaic systems up to 1,000 KW(ac) in size.
The application process is comprised of a School Readiness Assessment, and if selected, a full grant application. This is the second of two funding rounds in 2024. The Request for Proposals (RFP) will have detailed information and application questions as well as required forms and reference materials. It is available for download on the Department’s RFP website (look for Reference Number COMM-SFS06-20240701) through the deadline of Wednesday, July 31, 2024.
Applications must be submitted through DOC’s grant interface website no later than Friday, November 29, 2024. The link to the DOC's online grant interface is provided in the Request for Proposals/Grant Application section on the Department’s Solar for Schools program webpage.
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Summer Conference
August 19–21
Holiday Inn and Conference Center
Fargo, ND
The Summer Conference is designed to offer must-have information for municipal utility leaders. Commissioners, superintendents, managers, supervisors, and crew leaders all come together to learn how to tackle the challenges facing utilities at MMUA’s Summer Conference. There's something for everyone.
The theme of this year's event is "Stronger Together." Sessions will focus on communication, collaboration, and strengthening the municipal model. Keynote speakers include APPA CEO Scott Corwin, communications expert Mark Weaver, and leadership expert Jon Colby, in addition to excellent sessions on a wide range of topics from emergency response to system resilience to the pursuit of federal funding. You will be able to choose from four unique conference tracks (governance, leadership, electric, and water/wastewater) to maximize your learning. As always, the conference will include the state's largest trade show for municipal utilities on Tuesday evening.
The conference will be held on August 20–21 at the Holiday Inn in Fargo. There is plenty of activity on Monday, August 19 as well! Join us for either of two pre-conference sessions in the morning, and then spend the afternoon on a hike with Mike Willetts or playing a round on the beautiful greens at The Meadows Golf Course in Moorhead.
No matter what you do, we can't wait to see you! Visit our website to learn more about the conference and to register today.
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As always, thank you for your association with MMUA and your commitment to delivering excellent service through locally owned utility assets in your community. Have a great week!
Christian Glanville
Marketing and Member Relations Manager
Direct: 763.746.0727 / Cell: 612.655.0598
Fax: 763.551.0459
cglanville@mmua.org | www.mmua.org
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