Minnesota’s Better Energy Future Mike Bull, Assistant Commissioner, Renewable Energy The Next Generation Energy Initiative

Minnesota’s Better Energy Future Overview Energy Vision & Policies Record of Progressive Accomplishment The Next Generation Energy Initiative Concluding thoughts

Minnesota’s Better Energy Future Energy Policy Vision "We cannot, as a strategic plan for the future, just... experience the cost crisis, the environmental impacts, and the supply questions that flow from just embracing the status quo. We need a different and better energy future.” --from November 29, 2005 address to University of Minnesota’s IREE Renewable Energy Symposium

Minnesota’s Better Energy Future Energy Policy Vision To provide Minnesotans with energy resources that are: – Reliable – Low cost – Environmentally superior – Local economic benefits

Minnesota’s Better Energy Future Renewable Energy Vision To have 25% of all the energy we use come from renewable resources by 2025 –State strategic goal –Early endorser of the National 25x’25 initiative –Led MGA to endorse National Initiative

Minnesota’s Better Energy Future A Record of Progressive Accomplishment Quadrupled the number of E85 stations (>300) Protected MN’s energy conservation programs Led regulatory efforts to clean up three Metro- area coal plants Implemented the nation’s first biodiesel mandate Proposed & enacted 20% ethanol legislation Implemented the nation’s most aggressive community wind goal (800 MW by 2010) Proposed & enacted nation-leading mercury emissions reduction legislation

Minnesota’s Better Energy Future Why the NextGen Energy Initiative? To reduce the environmental and climate impacts of our energy choices To further unhinge our state’s economy from unstable fuel supplies To benefit and stabilize Minnesota’s rural economies To provide alternatives to Minnesota consumers

Minnesota’s Better Energy Future Next Generation Energy Initiative Four Components: Renewable Electricity BioEnergy Energy Efficiency Climate Change

Minnesota’s Better Energy Future Renewable Electricity 25% by 2025 for most utilities  7% by 2010; 12% by 2012; 17% by % by 2020 for Xcel Energy  25% wind energy by 2020 Protections for Minnesota ratepayers Encourages local ownership of energy production

Minnesota’s Better Energy Future Wind Integration Study Key findings: Up to 25% wind can be reliably accommodated by the electric power system (~6000 MW) The total integration operating cost less than $4.50 per MWh of wind generation Key assumptions include: A geographically diverse wind scenario The large MISO energy market Sufficient transmission

Minnesota’s Better Energy Future NextGen BioEnergy $100 million over 10 years to convert biomass to biofuels & bio-gas Agricultural residues, wood, perennial grasses, other feedstock E85 Everywhere grants Goal of 1800 E85 retail pumps

Minnesota’s Better Energy Future Energy Efficiency  Transition from conservation spending program to energy savings program Double current electricity savings & increase natural gas savings by 50%  1000 Energy Star buildings by 2010

Minnesota’s Better Energy Future Climate Change Require new fossil fuel generation to offset its greenhouse gas emissions Center for Climate Strategies Track & reduce greenhouse gas emissions from state operations Work with Midwestern Governors to develop a regional approach

Minnesota’s Better Energy Future Concluding Thoughts “ Peter Drucker once said “The best way to predict the future is to create it.” … The Next Generation Energy Initiative provides the pathway to a better energy future.” --from December 12 address to the Midwest Ag-Energy Summit

Minnesota’s Better Energy Future What will it take?

Minnesota’s Better Energy Future Thank you! Contact information: Mike Bull, Ass’t Comm’r for Renewable Energy Minnesota Department of Commerce 85 7 th Place East, Suite 500 St. Paul, MN (651)