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GOP divided on fate of Energy Department loan program
Dec 3, 2024

CLEAN ENERGY: While the Project 2025 policy blueprint calls for eliminating the Energy Department’s Loan Programs Office, Republican lawmakers are uncertain, with some saying the program, which turned a profit last year, could be retooled to emphasize energy sources like nuclear that are favored by conservatives. (E&E News, New York Times archive)

ALSO:

  • The Loan Programs Office announces a $7.54 billion loan for an electric vehicle battery plant in Kokomo, Indiana, though it is uncertain whether it will be finalized before President-elect Trump takes office. (Reuters)
  • A $4.9 billion federal loan guarantee for a major Midwest transmission project faces uncertainty about whether the Trump administration will follow through with the commitment. (Canary Media)
  • Duke Energy has paused consideration of whether to apply for infrastructure funding through the Loan Programs Office, citing uncertainty about the program’s future. (Utility Dive)

EQUITY: Advocates say anticipated Trump administration climate rollbacks, particularly the expected elimination of the Justice40 initiative, will hit Black communities especially hard. (Capital B News)

EMISSIONS: The Regional Greenhouse Gas Initiative offers a model of successful state-led action on decarbonization, and is considering ways to expand participation as Trump pledges to roll back federal climate policies. (Energy News Network)

STORAGE: Duke Energy moves to demolish the final units of a former coal plant in North Carolina and replace it with a 167 MW battery storage facility, marking a step toward renewables even though the utility still plans to build gas-fired power elsewhere. (Canary Media)

WIND: A federal agency identifies environmental measures it will likely take in a group of six offshore wind lease areas off New York, pushing ahead despite Trump’s claims he will stop offshore wind development. (Maritime Executive)

NUCLEAR: A Tennessee city that’s historically been a hotspot for nuclear research is seeing a resurgence of interest from companies eager to take part in a new “nuclear renaissance.” (Knoxville News Sentinel)

PIPELINES: Whistleblowers warn the federal Pipeline and Hazardous Materials Safety Administration is “putting profit over safety” by largely relying on private inspectors hired by pipeline companies to monitor compliance with safety rules. (E&E News)

COAL: Wyoming and Montana join a lawsuit accusing three investment firms of following a “climate activist agenda” by colluding to acquire large stakes in publicly held coal companies and forcing the firms to slash Powder River Basin mine production. (Cowboy State Daily)  

EFFICIENCY: A Minneapolis nonprofit is leading the construction of passive homes on the city’s north side that aim to save homeowners with minimal electric and heating bills. (Sahan Journal)

COMMENTARY: A Western journalist says the incoming Trump administration’s pro-drilling agenda will harm the environment while doing little to bolster oil and gas production — which reached record levels under Biden. (Land Desk)

Wyoming, Montana accuse investment firms of colluding to crush coal
Dec 3, 2024

COAL: Wyoming and Montana join a lawsuit accusing three investment firms of following a “climate activist agenda” by colluding to acquire large stakes in publicly held coal companies and forcing the firms to slash Powder River Basin mine production. (Cowboy State Daily)  

OIL & GAS: Petroleum firms appeal a court order barring the federal Bureau of Land Management from issuing drilling permits for a Wyoming oil and gas project. (E&E News, subscription)

SOLAR:

BIOFUELS: Advocates push back on California Gov. Gavin Newsom’s proposal to expand ethanol-blending in gasoline, saying it is unlikely to lower fuel prices and could have environmental impacts in corn-growing regions. (Inside Climate News)

UTILITIES:

CLIMATE: Portland, Oregon, officials launch an online climate dashboard allowing residents to track local greenhouse gas emissions and local progress toward decarbonization targets. (OPB)  

OVERSIGHT: California Gov. Gavin Newsom asks state lawmakers to allocate $25 million to fund litigation defending state climate, environmental and other progressive policies from the incoming Trump administration’s expected challenges. (Los Angeles Times)

MINING: A southeastern Utah copper mine lays off more than 55% of its workforce as it moves forward on a “significant restructuring effort.” (San Juan Record News)

PUBLIC LANDS: Wyoming advocates worry the incoming Republican-dominated Congress will overturn the Biden administration’s plan to tighten oil and gas drilling rules on 3.6 million acres of public land in the southwestern part of the state. (WyoFile)

COMMENTARY:

Maryland wind farm receives final federal approval
Dec 4, 2024

OFFSHORE WIND: A planned 114-turbine wind farm off Maryland receives final federal approval, but still faces local opposition and likely hostility from President-elect Donald Trump. (Maryland Matters)

RENEWABLES: New York state executes contracts for 23 renewable energy projects expected to reduce emissions by 2.3 million metric tons annually. (Renewable Energy Magazine)

BATTERIES: A company making zinc-based, long-duration batteries will use a $300 million federal loan guarantee to expand its Pennsylvania manufacturing facility to address a backlog of orders. (Utility Dive)

SOLAR:

ELECTRIC VEHICLES: The Canadian company that supplied electric school buses causing problems for several Maine school districts is on the brink of bankruptcy. (Portland Press Herald, subscription)

EMISSIONS: The company that owns the Three Mile Island nuclear plant in Pennsylvania, which is looking to restart to sell power to Microsoft, routinely ranks among the U.S. power producers generating the lowest carbon emissions. (The Well)

EFFICIENCY: An affordable housing project in New Haven, Connecticut, includes $900,000 to complete energy efficiency retrofits for 30 existing homes in the neighborhood of the new units. (Connecticut Public Radio)

ELECTRIFICATION: New York launches a $10 million program to help advance cold-climate heat pump technology by funding manufacturers developing the products and field demonstration projects in large buildings. (Facility Executive)

COMMENTARY:

Colorado biomass power plant shuttered
Dec 4, 2024

BIOFUELS: A Colorado power plant fueled by shredded beetle-killed trees shuts down, putting wildfire mitigation efforts on hold and raising questions about the viability of biofuel-generated electricity. (Colorado Sun)

SOLAR:

GEOTHERMAL: A Nevada gold mine considers adding geothermal generation to an existing natural gas plant in an effort to decarbonize its operations. (news release)

EFFICIENCY: An Alaska-backed housing lender offers $10,000 rebates for new energy-efficient homes. (Alaska Public Media)

UTILITIES:

  • Wyoming lawmakers kill legislation that would limit utilities’ wildfire-related liabilities if they conduct hazard mitigation work, saying the bill was too complex to advance. (WyoFile)
  • California advocates question the efficacy and viability of utilities’ wildfire hazard mitigation efforts, saying burying power lines is too costly and takes too long. (CalMatters)
  • Portland General Electric says rising wholesale power costs are driving rate hikes after U.S. Sen. Ron Wyden queried the utility over rising utility bills. (RTO Insider, subscription)

CLIMATE: Climate change-exacerbated extreme heat adds urgency to efforts to bring electricity to some 13,000 off-grid Navajo Nation homes. (KUNR)  

ELECTRIC VEHICLES: California startup Aptera launches a crowdfunding campaign to bring its solar-powered electric vehicle to production. (Inside EVs)

BATTERIES: A California startup plans to begin manufacturing lithium-sulfur batteries at its Bay Area facility next year, saying they are cheaper and require less mined material than lithium-ion ones. (Heatmap)

TRANSITION: Los Angeles County votes to develop a plan aimed at helping displaced workers and communities weather Phillips 66’s petroleum refinery’s planned 2025 closure. (Daily Breeze)

TRANSPORTATION: Colorado officials expect a proposal to extend a passenger rail line to the northwestern part of the state will survive the incoming Trump administration’s funding cuts. (Aspen Times)

POLITICS: U.S. Rep. Raul Grijalva, of Arizona, steps down as the House Natural Resources Committee’s ranking Democrat, which oversees energy development and mining on federal lands. (Arizona Capitol Times)

COMMENTARY:

  • A Colorado advocate says the incoming Trump administration cannot stop the state from fighting climate change, protecting public lands from oil and gas drilling and enacting air pollution regulations. (Colorado Newsline)
  • A commentator calls for the Diablo Canyon nuclear plant’s closure, and suggests replacing lost generation with California’s excess solar power. (Counterpunch)

New York sees record clean energy job growth
Dec 5, 2024

CLEAN ENERGY: New York added 7,700 clean energy jobs from 2022 to 2023 — a record increase — with especially significant jumps in the electric vehicle and clean transportation sectors. (WGRZ)

GRID: Renewable energy developers urge PJM to drop a plan to fast-track approval for select generating projects, saying the process would unfairly advantage fossil fuel and nuclear plants. (Utility Dive)

OFFSHORE WIND:

SOLAR: New Jersey regulators prepare to solicit 250 MW of community solar capacity in 2025, amid concerns that President-elect Trump could change crucial tax credits, complicating the economics of the projects. (RTO Insider, subscription)

CLIMATE: Vermont’s state environmental agency has identified $160 million in promised federal funding that could be clawed back by the incoming administration, including money supporting the transition off fossil fuels and helping low-income households go solar. (New Hampshire Public Radio)

BATTERIES: With more than a dozen battery storage projects planned on Staten Island, including one that would be New York City’s largest, locals worry about fire safety and proximity to homes and businesses. (SIlive.com)

TRANSMISSION: Stakeholders across New England widely support a plan to seek proposals to increase transmission capacity in New Hampshire and Maine, the first project to emerge from the region’s new long-term transmission planning process. (RTO Insider, subscription)

EFFICIENCY: A Massachusetts company aims to use modular construction to build affordable, net-zero homes that can also help address housing shortages. (Christian Science Monitor)

TRANSIT: Establishing an electrified commuter rail line from Boston to the western Massachusetts city of North Adams could attract hundreds of daily riders but would cost hundreds of millions of dollars, a state report concludes. (Greenfield Recorder)

INDUSTRY: A Massachusetts company completes negotiations for a $87 million federal award that will enable it to build a manufacturing plant that produces cement without using conventional fossil fuel-fired kilns. (news release)

IRA crosses $100 billion in grant awards
Dec 5, 2024

CLEAN ENERGY: The Biden administration says it has handed out $100 billion in Inflation Reduction Act grants, and is on track to allocate more than 80% of available funds by the time President-elect Trump takes office. (Reuters)

ALSO:

  • More Republican Congress members say they’d prefer to take a “scalpel, not a hatchet,” to the Inflation Reduction Act, fearing a large-scale repeal of tax credits would jeopardize projects already in motion. (E&E News)
  • The U.S. Energy Department office that has approved nearly $55 billion in loans to help clean energy companies scale up is racing to get “dollars out the door” before the Trump administration potentially halts the program. (Canary Media)
  • The Biden administration awards $1.2 billion for states to build infrastructure with cleaner materials, but much of that funding will still be in limbo when Trump takes office. (Canary Media)

UTILITIES:

  • Analysts and experts say utilities should scale up time-of-use rates and other programs to help manage load growth from electric vehicles before major investments in distribution infrastructure. (Utility Dive)
  • A North Carolina city sues Duke Energy, alleging the utility stalled the transition to renewables and continued emitting greenhouse gases for decades by deceiving the public about climate change. (Floodlight)

GRID:

  • Renewable energy developers urge PJM to drop a plan to fast-track approval for select generating projects, saying the process would unfairly advantage fossil fuel and nuclear plants. (Utility Dive)
  • Consumer advocates in Illinois and Ohio are also pushing back against the plan that would prioritize natural gas projects, saying PJM has historically overestimated load growth. (E&E News)

OFFSHORE WIND:

LITHIUM: California environmental justice advocates call on lithium extraction firms in the Imperial Valley to sign legally binding agreements to provide local jobs, protect health and the environment and respect tribal nations’ rights. (KPBS)

OIL & GAS: U.S. Supreme Court Justice Neil Gorsuch recuses himself from a case related to a proposed Utah oil-hauling rail line following criticism of his ties to Colorado petroleum magnate Philip Anschutz. (CNN)

CLIMATE: Experts say climate change contributed heavily to rising inflation in the last two years, as extreme weather shut down oil refineries and compromised food production. (Grist)

Closed coal plant to become U.S.’s largest natural gas generator
Dec 9, 2024

NATURAL GAS: Officials in a small Pennsylvania city announce plans to convert a shuttered coal-burning power plant to a natural gas-fired station and double its capacity, making it the largest gas-burning plant in the country. (Power)

ALSO: A Maine utility has completed a 14-year initiative replacing more than 125 miles of outdated and potentially unsafe gas pipes, some first installed as long as 110 years ago. (Portland Press Herald, subscription)

RENEWABLES: Mass Audubon celebrates the new state climate law’s emphasis on sustainable siting for renewable energy projects, but in western Massachusetts, some groups are concerned the new rules will allow the development of large-scale solar and battery projects against the will of local residents. (Greenfield Recorder)

NUCLEAR: Some experts are skeptical that restarting the Three Mile Island nuclear plant and pursuing other nuclear power projects will actually be a meaningful solution for the energy needs of artificial intelligence. (NPR)

TRANSMISSION: Construction is roughly halfway complete on a $6 billion transmission line intended to bring hydropower from Quebec down to New York City. (Times Union)

GRID:

COAL: Hundreds of abandoned coal mines that have hollowed out the ground in parts of western Pennsylvania raise renewed safety concerns after a four-day search for a woman who fell into a sinkhole last week. (TribLive)

ELECTRIC VEHICLES:

  • New York City officials consider lifting a cap on flights from a downtown Manhattan heliport to allow more electric helicopter activity, angering local activists worried about noise and traffic. (Streetsblog NYC)
  • In the Portland, Maine area, municipal planners are asking for public feedback about the best locations for vehicle charging stations as they prepare to deploy potential federal funding. (WMTW)

COMMENTARY: Maine’s struggles with malfunctioning and unsafe electric school buses from one company have sowed “disillusionment and doubt” that could harm the state’s ability to transition about from fossil fuel vehicles, says an editorial board. (Portland Press Herald, subscription)

Texas wind farm removed from grid to power crypto miner
Dec 9, 2024

WIND: A crypto mining company purchases a 114 MW wind farm in Texas and will remove it from a regional grid to power its operations. (Houston Chronicle)

ALSO: A company secures financing for a 189 MW onshore wind farm in North Carolina, the first wind project approved by the state since state lawmakers passed siting legislation in 2013. (news release)

OIL & GAS:

EFFICIENCY: Some school districts in Houston, Texas, have installed energy efficiency measures in recent years, but many others saw soaring electricity bills from computers and air-conditioning against late summer heat. (Houston Chronicle)

STORAGE:

  • A study finds the addition of 5 GW of battery storage saved Texans an estimated $750 million by powering the grid through record demand and extreme weather without widespread outages or more conservation alerts. (news release)
  • San Antonio, Texas’ municipal utility partners with an energy company on a 120 MW battery storage system. (Renewables Now)

GRID:

EMISSIONS: West Virginia presses a federal court to rule against the U.S. EPA’s proposed power plant emission rules, which target coal-fired and new gas-fired emissions. (WV News)

CLIMATE:

COMMENTARY:

  • Florida Power & Light’s solar farms weathered hurricanes Helene and Milton with relatively little damage, indicating their durability in a region increasingly wracked by climate change, writes a local business leader. (Orlando Sentinel, subscription)
  • The proposed Appalachian hydrogen hub should be canceled because it relies too much on fossil fuels, is too expensive and has been obscured by a lack of public engagement, writes a retired research chemist. (Plain Dealer)
  • Donald Trump’s election and choice of a new EPA director may loosen regulations holding back federal investment in carbon capture projects, writes the state director of Conservative Texans for Energy Innovation. (Utility Dive)

Duke Energy data access rules poised to help North Carolina communities meet climate goals
Dec 4, 2024

Charlotte, North Carolina, may soon get access to a new tool to deploy in its push toward 100% clean power: data.

The Tar Heel state’s largest city aims to power all government operations with carbon-free electricity by the end of the decade, including the city-owned Charlotte-Douglas International Airport, one of the busiest in the world.

But the hub is a big question mark for the city’s climate target. Officials don’t actually know how much energy it uses — or how much renewable energy they need to offset it — because the utility bills for the five-terminal airport are paid by dozens of individual customers, from Cinnabon to Jamba Juice to airline club lounges.

Now, after a decade of urging by Charlotte and others, Duke Energy has a proposal to change that: an eight-page plan for improved data access that has sign-off from the North Carolina Sustainable Energy Association; Public Staff, the state-sanctioned customer advocate; and Dominion Energy, which serves the northeast corner of the state.

Filed last month with regulators for approval, Duke’s proposed rules could have wide application, said Ethan Blumenthal, regulatory counsel for the North Carolina Sustainable Energy Association.

“For municipalities applying for federal grants, large customers pursuing energy efficiency, and homeowners and solar companies that are trying to right-size solar installations,” Blumenthal said, “this access to data is essential.”

Avoiding a ‘laborious process’

The Charlotte airport is a prime example of one hurdle facing local communities with climate goals. Today, getting total energy usage data for government-owned buildings with multiple meters means reaching out to individual tenants to get permission to access their accounts.  

“It would be a very laborious process to do that at the airport and anywhere else we have tenants,” said Aaron Tauber, Charlotte’s sustainability analyst.

The problem extends to private building owners who aim to reduce their carbon footprints or improve efficiency but don’t have insight into their renters’ energy consumption. Honeywell, for instance, is a partner in the city’s “Power Down the Crown” initiative, whereby building managers look to reduce energy use by optimizing efficiency.

“They don’t own all of the data,” Tauber said. “They have tenants in their properties. So, they don’t have visibility to the entire building’s energy use.”

The new rule will allow a large user, from Honeywell to Charlotte, to access aggregated data for a large building with multiple tenants by request to Duke, so long as at least 15 individual accounts are involved, and none consumes more than 15% of the building’s energy use.

“Being a larger city, we do have a lot of large buildings with multiple tenants,” said Tauber. “I’m just really excited for these building owners to really — for the first time — gain an understanding of how their buildings are using energy.”

That understanding, he said, is critical for commercial properties to access a new law that allows them to borrow public money for energy efficiency upgrades and pay it back on their property tax bills.  

“Being able to unlock a financing mechanism based on this data will really go a long way for the city to be able to meet our strategic energy action goal of being a low-carbon community,” said Tauber.

Not just for big buildings

The data access rule also applies to a census block, zip code, or other area with at least 15 accounts, which will help local governments meet community-wide climate goals.

“You can use the aggregated data to make good decisions for program design, and where you might want to target,” said Ann Livingston, senior executive and director of programs with the Southeast Sustainability Directors Network. “You can assess: is this particular block or neighborhood really using a lot more energy per house per square foot than others?”

Durham County, for instance, together with neighboring Granville and Orange counties, has a $1.5 million federal grant to help low-income homeowners cut their energy use through weatherization and other upgrades.  

“We want to focus in areas where there’s a higher energy use or higher energy burden,” said Tobin Freid, the county’s sustainability manager. “We’d like information at a more granular level than just the county.”

If the new Duke rule is approved, it will also help county officials better tailor the program to individual households and assess its impacts. The proposal would ease the approval process for allowing third-party access to data and ensure that at least two years of prior energy use is included.

“For every home that we work on, we would need historic data to see: what was your energy use before?” Freid said.

Both the aggregated data and third-party access provisions will also be critical for federal programs like Solar for All, aimed at deploying rooftop solar on low-income households.

“Often, those federal funding opportunities require you to assess and report on energy impact,” said Livingston. “Solar for All will be a very clear example of this, where you need to report energy savings for individual participants.”

Growing interest in local impact

Apart from the sustainability goals, government officials also have a commitment to manage public dollars efficiently, Livingston noted. That’s especially pertinent for large energy users like Durham County, who may pay a higher “demand charge” for a single 30-minute spike in energy use. Large customers with net-metered solar power also pay more during times of peak demand.

The proposed rules will help solve these challenges by allowing third parties access to machine-readable, easily analyzed data for customers of all sizes. The format would essentially meet national “Green Button” standards, one familiar to the many companies around the country dedicated to managing building energy performance.

The Green Button initiative, a project of the U.S. Department of Energy that originated in Canada, has been around for over a decade – about as long as the Sustainable Energy Association has been advocating for improved customer data access, along with counties like Durham.

But the issue seems to have gained new steam in recent months, as local governments look to take advantage of new federal grants and laws aimed at reducing climate pollution.

What’s more, Blumenthal said, Duke has pledged to implement the rules within 18 months of their approval and help expedite any data requests in the interim.

“There is a commitment to doing everything they can, essentially, to provide data for federal funding purposes up until [the proposal] is fully implemented,” Blumenthal said. “A commitment to try to bridge the gap.”

Asked what prompted the agreement with Blumenthal’s group and others after all this time, Duke spokesperson Logan Stewart said over email:

“A lot has changed in the last decade from a technology, cybersecurity, and customer engagement perspective that made this stipulation possible. Duke Energy is always looking for ways to collaborate with stakeholders to achieve outcomes that benefit customers.”

Xcel Energy says data center growth won’t get in the way of 2040 clean energy target in Minnesota
Dec 2, 2024

A top executive with Minnesota’s largest utility says data center growth will not prevent it from meeting the state’s 100% clean electricity law, but it may extend the life of natural gas power plants into the next decade.

“As we take all of that coal off the system — even if you didn’t add data centers into the mix — I think we may have been looking to extend some gas (contracts) on our system to get us through a portion of the 2030s,” said Ryan Long, president of Xcel Energy’s division serving Minnesota and the Dakotas. “Adding data centers could increase the likelihood of that, to be perfectly honest.”

Long made the comments at a Minnesota Public Utilities Commission conference this fall exploring the potential impact of data centers on the state’s 2040 clean electricity mandate.

The expansion of power-hungry data centers, driven by artificial intelligence, has caused anxiety across the country among utility planners and regulators. The trend is moving the goalposts for states’ clean electricity targets and raising questions about whether clean energy capacity can keep up with demand as society also tries to electrify transportation and building heat.

Minnesota PUC commissioner Joe Sullivan organized last month’s conference in response to multiple new data centers projects, including a $700 million facility by Facebook’s parent company Meta that’s under construction in suburban Rosemount. Microsoft and Amazon have each acquired property near a retiring Xcel coal plant in central Minnesota.

“We need to ensure that our system is able to serve these companies if they come,” Sullivan said, “and that it can serve them with clean resources consistent with state law.”

Alongside concerns about whether clean energy can keep up with new electricity demand, there’s also an emerging view that data centers — if properly regulated — could become grid assets that help accelerate the transition to carbon-free power. Several stakeholders at the Oct. 31 event shared that view, including Xcel’s regional president.

A 100-megawatt data center could generate as much as $64 million in annual revenue for Xcel, enough to help temper rate increases or cover the cost of other projects on the system, Long said. He said the company wants to attract 1.3 gigawatts worth of data centers to its territory by 2032, and it thinks it can absorb all of that demand without harming progress toward its 2040 clean energy requirement.

Long said data center expansion will not change the company’s plans to close all of its remaining coal-fired power plants by 2040, but it may cause them to try to keep gas plans operating longer. Ultimately, meeting the needs of data centers will require more renewable generation, battery storage, and grid-enhancing technology, but rising costs and supply chain issues have slowed deployment of those solutions.

Other utilities echoed that optimism. Julie Pierce, Minnesota Power’s vice president for strategy and planning said the company has experience serving large customers such as mines in northeastern Minnesota and would be ready to serve data centers. Great River Energy’s resource planning director Zachary Ruzycki said the generation and transmission cooperative “has a lot of arrows in its quiver” to accommodate data centers.

Ruzycki noted, too, that much of the interest it has received from data center developers is because of the state’s commitment to clean energy. Many large data center operators have made corporate commitments to power them on 100% carbon-free electricity, whether from renewables or nuclear power.

Pete Wyckoff, deputy commissioner for energy at the Minnesota Department of Commerce, expressed doubts about the ability to meet unchecked demand from data centers. Even with the state’s recent permitting reforms, utilities are unlikely to be able to deliver “power of any sort — much less clean power — in the size and timeframes that data centers are likely to request.”

He sees hydrogen, long-duration batteries, carbon capture, and advanced nuclear among the solutions that will eventually be needed, but in the short-term the grid could serve more data centers with investments in transmission upgrades, virtual power plants, and other demand response programs.

“These solutions can be deployed faster and cheaper than building all new transmission and large clean energy facilities, though we’ll need those, too,” Wyckoff said.

Aaron Tinjum, director of energy policy and regulatory affairs for the Data Center Coalition, said data centers provide the computing power for things like smart meters, demand response, and other grid technologies. The national trade group represents the country’s largest technology and data center companies.

“We can’t simply view data centers as a significant consumer of energy if they’re all helping us become more efficient, and helping us save on our utility bills,” Tinjum said.

He also pointed to data centers’ role in driving clean energy development. A recent report from S&P Global Commodity Insights found that data centers account for half of all U.S. corporate clean energy procurement.

The true impact of data centers on emissions and the grid is complicated, though. Meta, which participated in the recent Minnesota conference, says it matches all of its annual electricity use with renewable energy, but environmental groups say there is evidence that its data centers are increasing fossil fuel use and emissions in the local markets where they are built.

Amelia Vohs, climate program director with the Minnesota Center for Environmental Advocacy, raised concerns at the conference about whether data center growth will make it harder to electrify transportation and heating. She pointed to neighboring Wisconsin, where utilities are proposing to build new gas plants to power data centers.

“This commission and the stakeholders here today have all done a ton of work and made great progress in decarbonizing the electric sector in our state,” Vohs said. “I worry about possibly rolling that back if we all of a sudden have a large load that needs to be served with fossil fuels, or [require] a fossil fuel backup.”

The Minnesota Attorney General’s Office argued that state regulators need to scrutinize data center deals to make sure developers are paying the total cost of their impact on the system, including additional regulatory, operational and maintenance work that might be required on the grid.

In an interview, Sullivan said he was impressed by tech companies’ interest in having data centers in Minnesota because of the 2040 net zero goal, not despite it. They want to buy electricity from Minnesota utilities rather than build their own power systems or locate in neighboring states, he added, and the October meeting left him confident that “we can deal with this.”

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