Source: Energy News Network
A long-running local government collaboration in southwestern Minnesota is helping to insulate the region from the kind of controversies and misinformation that have plagued rural clean energy projects in other states.
The Rural Minnesota Energy Board has its origins in a regional task force that was set up during the mid-1990s as the state’s first wind farms were being built. The task force was instrumental in persuading state legislators in 2002 to create a wind energy production tax, which today generates millions of dollars in annual revenue for counties and townships that host wind projects.
The group’s scope and membership has since gradually expanded to include 18 rural counties that pay monthly dues for support on energy policy and permitting. The board represents members at the state legislature and in Public Utilities Commission proceedings. At home, it facilitates community meetings with project developers, helps draft energy-related ordinances, and educates members and the public on the benefits of energy projects.
The result, say clean energy advocates and developers, has been a uniquely consistent approach to local energy policy and permitting that makes it easier for renewable companies to do business in the region.
“The rural energy board has been a critical, important body and one of the major reasons why renewable energy has been successful in southwestern Minnesota,” said Adam Sokolski, director of regulatory and legislative affairs at EDF Renewables North America. “Their policies have encouraged good decision-making over the years and led to a stable and productive region for energy development.”
EDF Renewables has worked with the board on at least nine projects in the region. Sokolski said he’s come to admire its approach to policy making, its support for transmission projects, and its efforts to educate members on clean energy.
“It’s positive to have county leaders talking to each other about energy projects, about how … they can approach those projects so they best benefit their constituents and the public,” he said.
Southwest Minnesota has the state’s densest concentration of wind turbines and is increasingly attracting solar developers, too. Wind turbines account for more than 4,500 megawatts, or around 22%, of the state’s generation capacity, making Minnesota a top 10 state for wind production.
‘It’s all economic development’
The board counts the wind production tax among its most significant accomplishments. Large wind farms pay $1.20 per megawatt-hour of generation. Counties receive 80% of the revenue, with the remainder going to townships. A similar fee also exists for large solar projects.
The fee delivers millions of dollars annually, allowing local governments to construct buildings and repair bridges and roads without raising their levies for years. According to American Clean Power, Minnesota municipalities receive $44 million annually in taxes, and private landowners receive nearly $41 million in lease payments from wind and solar companies.
That has enabled counties to stave off opposition by pointing out that turbines and solar are economic development, according to Jason Walker, community development director for the Southwest Regional Development Commission, which manages the board, said the local government revenue generated from wind and solar projects has helped reduce opposition to projects.
“It’s all economic development here,” Walker said.
When opposition does emerge, such as around a recent 160 megawatt solar project in Rock County in the state’s far southwest corner, the board works with commissioners to make sure local leaders have factual information as opposed to misinformation.
Peder Mewis, regional policy director for the Clean Grid Alliance, praised the board for creating an information-sharing culture among members that helps prepare them for clean energy development. He said many developers appreciate that the region’s ordinances are similar because of the board, and that they have maintained good relationships with members over the years.
“There are other parts of the state that are thinking, ‘Is there something here that we could replicate or duplicate?’” Mewis said.
Jay Trusty, executive director of the Southwest Regional Development Commission, said the board plays an essential role in lobbying for state policy to support clean energy development. In addition to the production taxes, the board regularly defends the local distribution of those funds when lawmakers consider other uses for the revenue. The board more recently lobbied for changes to the state transmission permitting process, which were approved this year, and it supported an expansion for Xcel Energy’s CapX 2020 high-voltage transmission project before state utility regulators.
Minnesota Public Utilities Commissioner John Tuma recalled the board’s support for the state’s 2008 renewable energy standard, which gave Republican Gov. Tim Pawlenty important rural support for signing the legislation.
“They bring an economic voice to the table,” Tuma said, adding that the board continues to be active in conversations about regional grid policies.
Nobles County Commissioner Gene Metz has served on the board for 12 years. The region’s decades of experience and collaboration on wind energy has helped make residents more comfortable with clean energy projects, he said, leading to fewer controversies.
In counties outside the board’s territory, “they’re getting more pushback, especially on solar projects,” he said.
Gene’s cousin, Chad Metz, serves as a commissioner in Traverse County, which is not a member and has a mortarium on clean energy projects. Chad Metz sees clean energy as inevitable and wants the county to join the rural energy board to protect its economic interests. “The benefits outweigh the negatives, and it will just become part of life,” he said.
Rural Minnesota counties work together to simplify clean energy development and maximize local benefits is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.
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