SALT LAKE CITY -- Regulatory agencies in most western states have improved their oversight of the oil and gas industry in recent years. A recent analysis, however, shows that one state -- Utah -- stands out as the worst over the past two decades at dealing with violations.
Aaron Weiss, deputy director at the Center for Western Priorities, said a 2019 audit ordered by the Utah Legislature found producers in Utah were essentially free to pollute groundwater and release greenhouse gases, in violation of state law.
"What we discovered and what the Legislature also discovered recently through an audit, is that Utah did not have any functioning enforcement or safety program," Weiss said. "They've been around for 20 years and had never issued a single fine."
In 2019, agency director John Baza told lawmakers he would hire additional staff and release funds to work through a backlog of more than 100 unresolved cases. He also asked legislators to change a state law requiring his agency to get a court order to collect fines.
Weiss said the audit found Utah's regulatory agency was chronically understaffed, had a "culture of noncompliance," and often squandered its budget. He said they are optimistic that new leadership at the agency can bring producers up to standards.
"They did finally get caught doing nothing in the last couple months," he said. "So, the hope is now that they've been busted not doing anything for 20 years, that things may change."
According to Weiss, the analysis shows such states as Colorado and Nevada are doing a good job, while others -- including New Mexico and Wyoming -- are improving. But he said he fears financial pressures from the pandemic economic slowdown will put extra pressure on oil and gas inspectors.
"Extraction numbers are going to plummet," he said. "And as a result of that, you're going to have producers going bankrupt this year; you're going to have lots of wells getting shut in. And you're going to have financial incentives to cut corners when they're doing that."
Weiss said state regulators must balance their roles in both ensuring the flow of oil and gas royalties into state coffers while protecting the environment from water and air pollution.
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Minnesota is a leader in renewable energy - getting 54% of its electricity from zero-carbon sources last year, according to the 2024 Minnesota Energy Factsheet released today. The annual report comes from Clean Energy Economy Minnesota and the Business Council for Sustainable Energy.
Amelia Cerling-Hennes, managing director of public affairs with Clean Energy Economy Minnesota, said that's 12% better than the national average.
"We're really pleased to see about 600 megawatts of wind and solar getting added, and we're anticipating that that's going to be even higher next year as some of the large utility-scale projects that are being built right now kind of come online," she said.
Carbon emissions from the power sector also dropped 54% in 2023 with the retirement of part of the Sherco coal-fired power plant. Electric vehicle registrations went up 55%. Last year, Minnesota-based Cummins began shipping electrolyzers, which generate energy from hydrogen.
Andy Kim, president of the civil engineering firm EVS in Eden Prairie, said battery storage will be increasingly paired with large-scale solar projects in the future.
"You get uninterrupted power, you improve grid stability, and ultimately, it will lead to cost savings. And we see battery storage on at least half of our projects right now. And I would not be surprised if within the next two years, we see it on 80-90% of our projects," Kim said.
Cerling-Hennes adds the state made big strides policy-wise in 2023.
"So much happened last year, starting with passing 100% clean energy by 2040. And then following that up with a really historic energy omnibus bill. We created the Minnesota Climate Innovation Finance Authority. We funded high-voltage transmission," she said.
Tara Narayanan, lead analyst for North American regional trends with Bloomberg New Energy Finance, said energy efficiency is working - electricity consumption went down even as productivity went up. However, she notes that we need to ramp up the clean-energy transition even faster if we are to meet the goals set by the Paris Accords.
"Compare where we are going against where the U.S. has committed to go, we're really not on track. We're really going to have to make dramatic efforts in order to get to where we had committed to be in 2013," Narayanan said.
The state got $800 million in climate funding from President Joe Biden's infrastructure bill and the Inflation Reduction Act.
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New federal funding aims to revolutionize solar energy access within New Mexico's Native American communities and benefit the state overall.
The Environmental Protection Agency's $7 billion "Solar for All" program is designed to create new or expanded low-income solar programs.
Talia Martin, co-executive director of the National Tribal Program for GRID Alternatives, said the funding will help bridge the clean energy gap in Native American communities.
"In New Mexico, tangible impacts would be for household savings," Martin explained. "Which means working directly with the tribes to ensure that the savings are going to individual households as well as to the community as a whole."
According to Martin, the $62 million EPA grant awarded to the GRID Tribal Program is its largest ever. Nationwide, the agency's program is set to help at least 4,700 households in Native American communities. Across the U.S., the EPA said the program will enable more than 900,000 low-income households and disadvantaged communities to benefit from distributed solar energy.
Martin emphasized the program will allow GRID to help bolster solar storage capabilities and implement essential upgrades, while at the same time advancing their mission to support the self-determined efforts of Native American tribes to deploy clean energy on tribal lands, arguing it will be important to recruit contractors who understand the needs of tribal communities they're working with.
"It's an amazing window for Indian Country to be involved in energy development," Martin pointed out. "We want to just help foster all these relationships that it is going to take to do that."
The state of New Mexico also received a grant of $156 million from the program to overcome existing barriers to widespread adoption of distributed solar generation. In addition to the federal money for solar, Array Technologies announced last week it will build a new $50 million solar manufacturing campus near Albuquerque.
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A round of public testimony wrapped up this week as part of renewed efforts by a company seeking permit approval in North Dakota for an underground pipeline carrying carbon emissions. Economic benefits were again touted but the plan still has opponents.
Last year, North Dakota's Public Service Commission denied a permit request from Summit Carbon Solutions, which wants to build a maze of pipelines in several Midwestern states. Emissions from ethanol plants would be captured for underground storage in North Dakota.
Skott Skokos, executive director of the Dakota Resource Council, said they remain unconvinced it would be a worthwhile project.
"It felt like déjà vu," Skokos observed. "I don't think Summit did anything to relax the concerns of the public."
Company officials have submitted a new application with a revised route as they try to ease concerns about safety and landowner rights. During comment periods, Summit leaders and other speakers discussed how the project would provide economic boosts, including corn prices. However, skeptics restated their concerns about potential ruptures and lasting negative effects on the landscape.
Skokos pointed out large carbon-capture projects like these have yet to prove themselves, noting smaller initiatives are not as likely to rile up opponents. He pointed to the Red Trail ethanol plant in North Dakota.
"They're storing it, basically, almost on-site, next to the facility and they're not affecting a bunch of landowners in the process," Skokos emphasized.
The Summit regulatory case has two upcoming public hearings in North Dakota, one scheduled for May 24 and the other on June 4. The company has run into similar opposition and permitting headwinds in other states, including South Dakota.
Disclosure: The Dakota Resource Council contributes to our fund for reporting on Climate Change/Air Quality, Energy Policy, Environment, and Rural/Farming. If you would like to help support news in the public interest,
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