Minnesota's clean energy goals are among the more ambitious in the U.S. But industry experts say it can't slow down on the innovation side to see what works and what doesn't.

The future of a program for start-ups hangs in the balance. In 2023, the state Legislature approved $3 million for the Energy Alley initiative.

It's a public-private partnership that connects clean energy entrepreneurs to industry giants and research institutions looking for innovative approaches to decarbonizing the region.

Nina Axelson is the founder of Grid Catalyst, one of the key partners for this effort. She said they're seeing promising returns so far, providing this example.

"NeoCharge, which is a company out of California," said Axelson, "they have software for optimizing your electric vehicle charging, and they're doing a pilot with the University of St. Thomas."

By successfully demonstrating their technology through Minnesota's program, NeoCharge was recognized by the U.S. Energy Department in a separate prize-money pool.

However, funding for Minnesota's Energy Alley was just a one-time expense, and advocates hope for another round this coming session.

But with the state facing projected deficits in a couple years, they're expecting a cautious spending approach.

Clean Energy Economy Minnesota also helps guide Energy Alley.

The organization's Executive Director Gregg Mast said keeping this program alive means the state will continue to be a testing ground for emerging technologies to aid the transition away from fossil fuels.

"We don't want game changing energy talent and ideas leaving our state," said Mast, "and investing in Minnesota Energy Alley is an important signal to our startups that they're supported, welcomed, and encouraged to grow right here in Minnesota."

Grid Catalyst says without that state support, there's a slower process in seeing ideas come to life.

Program backers point to Minnesota's longstanding Medical Alley - and its role in putting the state on the map for healthcare innovation - as proof these investments will pay off.

Initially, some lawmakers questioned whether the energy projects will lead to local manufacturing.

One of the program's participants, Flow Environmental Systems, plans to start producing its specialized heat pumps in Minnesota in 2026.

One of New York State's first energy storage deadlines is fast approaching.

A roadmap established earlier this year sets a state goal of developing 6 gigawatts of energy storage but the Climate Leadership and Community Protection Act calls for 1,500 megawatts of energy storage by next year. So far, the state has more than 387 megawatts.

Kyle Rabin, large-scale renewables policy analyst at the Alliance for Clean Energy New York, said attitudes about the projects prevent more from moving ahead.

"While we see communities in other states embracing energy storage, we see that some communities across New York State have opposed these projects due to the lack of information about how this technology works, or disinformation that has spread online," Rabin observed.

Some misinformation equates energy storage with fires involving e-bike batteries, though Rabin pointed out energy storage has stricter safety regulations. He added people do not always understand the benefits of energy storage, like redistributing captured renewable energy back to the grid when it is needed. It can also aid public health and increase grid stability.

This year saw the lowest energy storage capacity installed, which could be a setback for New York's many goals. However, capacity is still increasing, and Rabin emphasized bringing more of the projects online increases regional economic benefits.

"Communities across the nation are building the batteries that are powering our electric grid, and we could do the same here in New York State," Rabin contended. "That's part of the reason New York State is pursuing this technology is, it's about complementing renewables and helping to bolster renewable energy."

Earlier this year, Governor Kathy Hochul invested more than $11.5 million in the state's clean energy workforce. The state's Energy Research and Development Authority is also putting resources into developing an energy storage workforce. As of 2023, close to 3,000 people work in energy storage and grid modernization.

New York lawmakers are focusing on electrifying municipal buildings.

Buildings statewide make up 32% of New York's greenhouse gas emissions and experts said electrifying them would lower heating and cooling costs, as well as reducing emissions. Inflation Reduction Act funds are available for municipalities to convert public buildings to use electricity.

Marian Brown, elected official fellow for Elected Officials to Protect America, said there is one challenge worrying elected leaders.

"One of the biggest challenges right now, and we were hearing this from folks, is uncertainty over the durability of Inflation Reduction Act funding, the IRA, with a new federal administration that's already signaling that it's not supportive of clean energy technologies," Brown explained.

President-elect Donald Trump has said he will repeal the Inflation Reduction Act but it comes with significant trade-offs. Research shows it could terminate many manufacturing jobs and cost America a chance at energy independence. Reports find conservative states are seeing the greatest benefits from Inflation Reduction Act investments.

The 2023 All-Electric Buildings Act will help get more buildings electrified by banning fossil-fuel systems in new buildings. All-electric cooking and heating will be required for new buildings under seven stories by 2026 and by 2029 for taller buildings.

Dominic Frongillo, cofounder and executive director of Elected Officials to Protect America, said the legislation comes with many benefits.

"We need to make sure we have the cleanest, most efficient, most modern technology that can protect the public health and improve indoor air quality, and make sure that we're keeping our dollars locally in our communities and our pockets," Frongillo outlined. "We need to build on that policy that New York State has passed."

The state's Building Code Council is deciding whether to include the All-Electric Buildings Act in its 2025 code update. Another bill establishing the Green Affordable Pre-Electrification Fund could help with the effort. It would allocate funds for buildings deemed unfit for weatherization and electrification, removing a major barrier to existing programs.

After years of double-digit rate hikes on electricity bills, some relief might be in sight.

Oregon Citizens' Utility Board, or CUB, has proposed a 7% to 10% yearly limit on rate increases for Pacific Gas & Electric and Pacific Power.

It is up to the Oregon Public Utility Commission to approve the proposal, and it will be making a decision this week.

Bob Jenks - CUB's executive director - said customers are struggling to absorb the 40% or 50% rate hikes from the last few years, and that something needs to be done to rein in this trend.

"We're concerned that this isn't going to stop," said Jenks. "This is in the interest of utilities to keep raising rates like this as long as they can."

Last winter's ice storm led to record power shutoffs for Oregon households, due to lack of payment of their utility bills.

If the PUC decides to adopt the cap, than PG&E's planned 10.9% increase and Pacific Power's planned 14.9% increase for January would need to be lowered.

Jenks said the system favors large companies, which pay much lower rates than households.

While industries need less infrastructure due to proximity to power supplies, he noted that new data centers are driving the need to grow the grid.

Yet, residential rates are rising more than three times faster than industrial rates.

"We think that residential customers and small-business customers are being asked to subsidize the big server farms," said Jenks, "the big data centers, like Amazon and Meta."

The Portland suburb of Hillsboro is newly home to many power-hungry data centers.

Jenks said PG&E's recent numbers show the centers use more electricity than all the residents in Washington County combined, and those numbers are expected to keep growing.

Jenks said CUB's proposal requires the PUC to mitigate rate increases that are higher than 10%.

They can do that by deferring part of the increase to the following year, or by setting the rate to the lowest level legally allowed that would still be profitable for the utility.

"Needless to say," said Jenks, "the utilities don't agree. "





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