Environmental groups in Minnesota are considering their next steps on the heels of a regulatory decision they said weakens the state's landmark carbon-free electricity law.

Late last week, the Public Utilities Commission clarified which technologies should be in the mix, as energy providers try to meet the requirement of 100% carbon-free electricity by 2040. The commission opened the door to allowing biomass -- namely the burning of wood -- and trash incineration to count as clean sources.

Barbara Freese climate program attorney at the Minnesota Center for Environmental Advocacy, said it is troubling the commission did not rule biomass options out.

"The law clearly said that to be carbon free, a generating source has to generate without emitting carbon dioxide," Freese pointed out. "These two sources of electricity, solid waste and biomass, emit tremendous amounts of carbon dioxide."

But utilities like Minnesota Power prioritize biomass as a form of renewable energy, with supporters arguing it is better to burn wood scraps from the logging industry than let it decompose. They argued it creates other carbon dioxide issues, and a carbon-neutral approach helps carry out the mission of the law. The commission decided more analysis is needed to get a clearer picture of the eligibility of these sources.

Despite the outcome, Minnesota's carbon-free requirement is not going away as the state added renewables like wind and solar. Freese expressed concern about what lies ahead.

"We can't be confident that the wording of the law will be accurately enforced," Freese contended. "And that is very troubling because there's going to be a lot of pressure to try to weaken this law."

She suggested pressure will not end with last week's decision. The law provides "offramps" for utilities struggling to meet the standard if clean-energy technologies are too costly or hinder grid reliability. And there is a push in the Midwest region to approve carbon-capture projects, with skeptics arguing some proposals are too large-scale and have yet to prove their effectiveness.


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Montana is a U.S. leader in the growing industry of sustainable aviation fuel. Experts in the field, and in the agricultural sector, hope to see new policies to support its development.

Sustainable aviation fuel can be made from a variety of agricultural inputs, including seed crops, which produce oils processed into fuel with a low-carbon footprint. Industry growth could mean new buyers for ag producers in the state, where Montana Renewables was the highest domestic producer of sustainable aviation fuel last year.

Bruce Fleming, CEO of the company, said China and Brazil are outpacing U.S. growth.

"If we can get our policy figured out, if we can get American innovation going and not fall behind, then we've got solutions here that will benefit the ag sector, particularly the farmers and ranchers," Fleming explained.

In terms of policy, Fleming acknowledged the "goalposts keep moving," because they vary between agencies at the state and federal levels, making it difficult to plan. He hopes to see policies that embrace the SAF innovation, as the nation did for ethanol.

Nicole Rolf, senior director of government affairs for the Montana Farm Bureau Federation, said the opportunity for farmers to grow and market new commodities is enticing, but she will be watching for tax credits and other policies to support producers.

"How do we make sure that we put the right incentives in place so that we're truly using American-grown feedstocks, and crops and commodities, to feed these sustainable aviation-fuel suppliers?" Rolf asked.

The industry sees both challenges and benefits in Montana. For instance, there are currently no local oilseed crushers, so farmers must ship seeds for processing out-of-state. Rolf pointed out Montana is prepared to ship the finished product by rail and other means, as it already does for other energy products.

Utility providers foresee a big rise in electricity demand which could lead to double-digit rate hikes if it is met with new natural gas-fired power plants, according to a new report.

PJM is the nonprofit independent system managing the power grid in Pennsylvania and 12 other states. It forecasts the need for 67 more gigawatts by 2039.

Sean O'Leary, senior researcher at the Ohio River Valley Institute, said relying on natural gas for the increased power demand could drive up Pennsylvania's rates faster than the national average. He cautioned addressing the climate effects of increased carbon emissions later could make costs skyrocket even more.

"It costs almost as much to retrofit a gas-fired power plant so that it won't emit greenhouse gases as it costs to build the plant in the first place," O'Leary pointed out. "Right now, Pennsylvanians get about 60% of all of their electricity from natural gas."

O'Leary noted PJM anticipates needing around 100 gigawatts of new capacity, combining 30 gigawatts of retiring coal and older gas plants with additional demand, equating to about two-thirds of the system's current generation capacity.

The Institute's report recommended prioritizing renewable resources and called on PJM to reevaluate its demand projections, since it has a history of overestimating future needs. He added more than 90% of PJM's upcoming projects are solar, wind and battery storage, which underscores the growing role of renewable energy and efficiency measures.

"I think in total, there are more than 90 gigawatts, currently, of renewable resources currently queued up and wanting the opportunity to provide energy to PJM," O'Leary reported. "That should be the first place that PJM turns."

He added states like Texas have made enough progress on renewables, solar and wind power now supply almost one-third of the state's electricity. The report showed the growth in renewable energy has also seen rates come down significantly, surpassing Pennsylvania, Ohio and West Virginia, where it was once thought the natural gas boom lowered energy costs.

A new report contended Alabama needs to invest more in energy efficiency so it can do more to lower power bills and curb the effects of climate change.

The Southern Alliance for Clean Energy's report, "Energy Efficiency in the Southeast," said Alabama trails other states in utility company energy efficiency investments. It found this leads not only to higher energy bills for customers, but increased carbon emissions contributing to the warming climate.

Eddy Moore, decarbonization director for the alliance, said there are multiple benefits to prioritizing energy efficiency.

"If we take energy efficiency seriously, there will be everyday cost savings, there will be delays of expensive investments," Moore outlined. "There's also a reliability benefit."

The report found utilities like Duke Energy in North and South Carolina outperform others in the Southeast, with Alabama Power at the bottom of the list.

Heather Pohnan, senior energy policy manager for the alliance, said the barriers to energy efficiency in Alabama include limited funding, minimal program investment and challenges in reaching low-income and rental housing markets. She noted federal funding, from sources like the Inflation Reduction Act, could be a substantial resource.

"The IRA includes tens of billions of dollars for energy efficiency," Pohnan pointed out. "It was a massive investment that includes tax credits, consumer rebates, loan programs and competitive grant opportunities."

She noted Alabama has yet to apply for key resources, like Home Energy Rebate funds. The future of the funding is unclear with the new leadership headed to the White House. But the report argued energy efficiency will be essential to bolster Alabama's power grid against the rising electricity demands of data centers and population growth and to mitigate the effects of extreme weather events.