The Natural Gas Innovation Act would establish a state regulatory policy allowing a natural gas utility to add alternative fuels, such as renewable natural gas and hydrogen gas, to its distribution system. A utility could also deploy new energy-efficiency and carbon-capture technologies to reduce or avoid greenhouse gas emissions from natural gas use.
Renewable natural gas is produced from organic materials such as agricultural manure, landfill waste, wastewater, food waste and agricultural or forest waste. Renewable hydrogen gas is produced from water through electrolysis using renewable electricity such as solar. Renewable natural gas is interchangeable with conventional natural gas, while hydrogen gas can be blended with natural gas.
In addition to helping Minnesota meet its renewable energy and greenhouse gas reduction goals, the legislation's other potential benefits include diversifying the state's energy sources, encouraging technological innovation, improving waste management and supporting rural economic development.
"As our cold winters always remind us, natural gas plays an essential role in meeting Minnesota's energy needs," said Brad Tutunjian, CenterPoint Energy Vice President-Minnesota Region. "At CenterPoint Energy, we are committed to delivering reliable, affordable energy while also pursuing innovative solutions to help our customers limit the climate impact of their energy use. We see many great opportunities for clean energy innovation with natural gas, and this legislation will help Minnesota continue its clean energy leadership."
The bipartisan legislation will be introduced when the 2020 Minnesota Legislature convenes on Feb. 11, with Rep. Zack Stephenson (DFL-District 36A) and Sen. Bill Weber (R-District 22) as authors.
"The Natural Gas Innovation Act is a major opportunity for Minnesota to build on the important clean energy success we have already achieved," said Rep. Stephenson, who is vice chair of the House Commerce Committee and a member of the House Energy and Climate Finance and Policy Committee. "This legislation creates a forward-looking framework that will help our natural gas utilities innovate and invest in renewable resources to address climate change and continue Minnesota's clean energy transition."
Sen. Weber, who chairs the Senate Agriculture, Rural Development and Housing Policy Committee said, "The Natural Gas Innovation Act provides a responsible pathway for our state's energy future by prioritizing new technology and homegrown, made-in-Minnesota resources. In particular, renewable natural gas made from agricultural waste holds great economic potential for Minnesota's farmers and rural communities, while also protecting the environment and helping Minnesota meet its energy needs."
While several states have passed recent laws specifically to promote renewable natural gas, the Minnesota legislation encompasses a broader range of potential clean energy resources and technologies that a natural gas utility could use.
Under the proposed legislation, a natural gas utility could submit an "alternative resource plan" to the Minnesota Public Utilities Commission, seeking approval to provide its customers with access to new clean energy options.
To limit the financial impact on customers, the cost of the alternative resource plan must be no more than five percent of the utility's total annual revenue requirement approved by the Public Utilities Commission. The actual cost for any specific customer would depend on actual gas usage and the details of the plan as reviewed and approved by the Commission. For a typical CenterPoint Energy residential customer, the maximum expected cost could be about one dollar extra on their monthly bill, based on current rates and the specific plan approved by the Commission.
The Minnesota Commerce Department would also prepare a statewide inventory of Minnesota's potential renewable natural gas resources, including a list of all potential sources and estimated energy from each source.
"The Natural Gas Innovation Act is entirely consistent with the stakeholder-based process we are doing with the Great Plains Institute to explore options to decarbonize natural gas end uses in Minnesota," said Mike Bull, Director of Policy and External Affairs at the Center for Energy and Environment. "We truly appreciate CenterPoint Energy's leadership in proposing this policy for deploying low- and no-carbon alternatives to conventional natural gas, including enhanced energy efficiency initiatives."
Shannon Schlecht, Executive Director of the Agricultural Utilization Research Institute (AURI) said, "Minnesota agriculture has always been a leader in innovation. With the Natural Gas Innovation Act, farmers and rural entrepreneurs will have an exciting opportunity to take that leadership to a new level by transforming agricultural waste into a sustainable, Minnesota-produced clean energy alternative to conventional natural gas."
Hennepin County Commissioner Debbie Goettel, Chair of the Partnership on Waste and Energy, which includes Hennepin, Ramsey and Washington counties, said, "By promoting renewable natural gas made from organic waste, the Natural Gas Innovation Act will help the state and counties achieve waste management and recycling goals that protect our air, land, water and public health. Organic waste, including food waste, represents an enormous, untapped clean energy resource that is widely available in Minnesota. Converting this resource into a biofuel like renewable natural gas substantially reduces the carbon impacts of waste and is an important step in supporting recycling of organic waste."
About CenterPoint Energy
Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy's competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 53.8 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and nearly $34 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.
For more information
1111 Louisiana St
Houston Texas
United States 77210-4567
www.centerpointenergy.com
