Let’s recognize environmental victories when they come

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Last month the Minnesota Public Utilities Commission approved CenterPoint Energy’s very first natural gas innovation plan. The plan will reduce greenhouse gas emissions by an estimated 1.2 million tons of carbon dioxide and create up to 3,000 high-quality clean-energy jobs.

Yet some environmental advocates have framed the commission’s approval of the plan as a loss (“CenterPoint’s $106 million energy plan approved,” July 26). To the contrary, the commission’s approval was a big step forward for the climate, the environment, our economy and the public interest.

CenterPoint’s innovation plan is enabled by the Natural Gas Innovation Act, a landmark 2021 state law passed with broad bipartisan support. The law provides a regulatory framework for Minnesota gas utilities to invest in pilot projects to develop and test innovative resources, technologies and strategies to reduce greenhouse gas emissions of the natural gas system. In addition to cutting emissions, the new law will advance Minnesota’s vibrant clean-energy economy by creating local jobs, spurring new clean-energy markets, supporting economic development and fostering innovation.

Importantly, this law is not a blank check for gas utilities. It includes spending caps to protect ratepayers, annual reports to the commission on the utility’s progress and activity, and as always, the utility will need to prove to the commission that it acted responsibly and prudently before recouping the costs of its investments.

CenterPoint’s innovation plan includes a diverse set of pilot projects that will invest in electric heat pumps for residents and businesses, cutting-edge energy-efficiency measures for buildings, a networked heating and cooling system fueled by geothermal energy, renewable natural gas sourced from food waste and other feedstocks, hydrogen produced from solar energy, small on-site carbon capture technology, and new tree cover in urban areas that lack green space.

The commission approved objectives for CenterPoint’s plan, which will be used to evaluate the utility’s performance. One objective is that 40% of participants in the residential electrification and energy-efficiency pilot programs are either income qualified or live in a disadvantaged community, as defined by the federal government’s Justice40 initiative. Other objectives include reducing greenhouse gas emissions, reducing sales of geological natural gas, supporting in-state production of new low-carbon fuels, investing in projects that pay prevailing wages, supporting apprenticeship pathways into construction careers and conducting a study to develop pathways to net zero emissions in Minnesota by 2050.

Minnesota has made incredible progress over the last 20 years to reduce the greenhouse gas emissions of our electric system and to build in-state renewable electric resources. Electric system emissions are down 54% since 2005. In contrast, we are using more natural gas in our homes and businesses than ever before. Emissions from natural gas end uses have increased by more than 32% from 2005 to 2022. In 2020, greenhouse gas emissions from natural gas end uses in Minnesota exceeded greenhouse gas emissions produced by all in-state electric generation combined. If we are to meet our climate goals, we must get to work to address emissions from natural gas.

Approval of CenterPoint Energy’s innovation plan is our state’s first major step toward a clean energy transition for natural gas. It’s also the first test for a Minnesota gas utility to demonstrate that it is here to support our state goals and to be part of our clean-energy future. Xcel Energy Inc. is up next — Xcel proposed its innovation plan and the regulatory review is underway.

We understand that some are skeptical of utilities. This is the first time we’ve seen a gas utility embrace clean energy at this scale. But climate science is clear, and the clock is ticking. We need to work together, and we need our regulated public utilities to join us. So, let’s celebrate our climate wins for what they are: wins.

Audrey Partridge (apartridge@mncee.org) is director of policy at the Center for Energy and Environment (CEE). Kevin Pranis (kpranis@liunagroc.com) is marketing manager for the Laborers’ International Union of North America (LIUNA) Minnesota and North Dakota. CEE and LIUNA worked with CenterPoint Energy and the International Union of Operating Engineers Local 49 through the regulatory process to review and approve CenterPoint Energy’s innovation plan.