Minnesota PUC offers guidance to utilities in implementing carbon free standard

The Minnesota Public Utilities Commission offered guidance last week for electric utilities in implementing the state’s Carbon Free Standard.

The Carbon Free Standard law, approved in 2023, requires Minnesota electric utilities to procure 100 percent of their electricity supply from carbon-free resources by 2040.

“The Commission appreciates the engagement of countless Minnesotans on how to implement this landmark law, the Carbon Free Standard,” Chair Katie Sieben said. “The Carbon Free Standard puts the state on a path to a decarbonized electric sector, and the decisions we made are consistent with the vision of the Carbon Free Law. My colleagues and I remain steadfast in our commitment to make efficient and logical regulatory decisions so our state’s electric sector can continue to decarbonize and provide reliable and affordable electricity.”

Last week, the commission offered some guidance for state utilities in implementing the law. Specifically, the commission’s decisions included:

• Additional proceedings to develop a lifecycle analysis framework for complex fuels such as biomass, renewable natural gas, and solid waste.
• Consideration of carbon capture and its sequestration in carbon-free calculations for partial compliance.
• Establishing a process and further record development for utilities on how to apply partial credit for certain energy technologies outlined in the law.
• Defining “environmental justice areas” to be either the census tract or Tribal boundary. This is relevant when considering utility reporting, any needed standard modifications, and local impacts of generation resources.

This is the second of four proceedings to clarify details for implementation of the Carbon-Free Standard. The third proceeding will discuss compliance standards, and the last hearing will consider potential off-ramps for utilities should they be unable to achieve the standard’s benchmarks. Also, because of the commission’s decision on the need to conduct a science-based life cycle analysis, an additional proceeding will occur, with a Dec. 31, 2025, deadline.

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